Page 427 - Cambridge IGCSE Business Studies
P. 427
IGCSE Business Studies Student CD-ROM
Diseconomies of scale
Diseconomies of scale
The business becomes too large
and average costs rise
Poor communication Poor motivation of workers Poor control
Managers find it more difficult to
Chain of command becomes control and coordinate many
Managers lose day-to-day
longer and messages take longer contact with workers and this departments, products or
to get from sender to receiver leads to worker demotivation production units, especially if
and might get misunderstood they are located in different
geographical areas
© Cambridge University Press 2014 IGCSE Business Studies Section 4 – Mind maps 5
