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Petroleum Facilities Icon Images

Petroleum Facilities Icon

Petroleum Facilities Icon

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To "cash" low costs in the form of the raised dividends; to keep prices down and

To increase sales; to raise quality of products or services; more vigorously

To advance the products on the market in the methods which it is too expensive

To competing firms.

The large part of methods of reduction of costs are accessible to firms of all forms and

The sizes that is why have no special relation to a variety of the enterprises.

However three following plays a significant role in differentiation of the enterprises:

Economy on scale, specialisation and management of a production stream. For Through expansion of production the firm should develop reductions of costs Products and the sales organisation, calculated for very large market. That To reduce costs through specialisation, firms are concentrated on the narrow Market segment with a smaller variety of products. Economy on expansion Production scales strategy of specialisation - is usual for large firms, and For the small. What of methods supplies lower costs, depends from "The know-how" and sales, and from the requests presented by consumers To the given branch. It depends also on rate of changes of "know-how" And sales as production expansion gives the greatest economy at Invariances of the product and production methods, that is in default From ability to adapt for changes. Besides, the consumers wishing

To pay more expensively for a special custom-made product, can represent the important

The market segment, and small economic production for this segment can To appear more advantageously, than economy on scale at quantity production. As typical example of management of industrial streams the integrated serves The petroleum company invented in 1880th years by John D.Rockefeller. It The largest branch where management coordination can be an economy source

At all stages of production and sales - from a chink to the consumer. Connection

In one firm of several stages of production conducts to increase in the sizes

Firms, than they were measured - number of workers, size material Assets or added value size.

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