Advantages and Disadvantages That Large Firms over Small...

Enterprise Essay CB 613 Number of words: 1202 a) Explain the advantages and disadvantages that large firms have over smaller firms and vice-versa, in the pursuit of entrepreneurial activity. As an enterprise can be defined as private business, it can thus be separated into two main categories which are small firms and large firms. Within many countries and many industries there are normally a large number of small firms and a smaller number of large firms as can be seen in the United Kingdom where there are only a few thousand large firms and over 4 500 000 small to medium sized firms according to the BERR. This essay will look at both of these categories of firms and will provide information on the factors which set them apart†¦show more content†¦Entrepreneurial culture is a big part of any company as not only does it represent the company’s values along with the values of the founder, but it will also provide a framework as to how the company will be run in the future. This however can change over the course of time which can have very negative effects on the company such as decreased efficiency and performance along with a loss of customers. This es say will look at what is entrepreneurial culture and how it be retained or regained throughout a firm’s existence. Enterprise can be defined as either a private business or the readiness to engage in undertakings of difficulty risk or danger. In other words, enterprise can represent the daring spirit of an individual (Abercrombie amp; Keat, 1999). Inevitably the culture of any venture is influenced, if not created, by this individual who imprints their value on to it. Hence, if founded by a true entrepreneur, the culture of a new venture might be expected to be entrepreneurial. However, the culture of any organization is also determined by the organization’s structure by the means through which the founder delegates authority and divides up responsibilities. It can be concluded that there are cultures that encourage and reward innovation and initiative, and those who discourage it. (Kirby, 2003) At IBM, the culture of the firm not only led to the belief that mainframeShow MoreRelatedWhat Are the Advantages and Disadvantages to a Firm of Operating on a Large Scale?1528 Words   |  7 PagesQ4) what are the advantages and disadvantages to a firm of operating on a large scale? Economies of scale fall under microeconomics and are the cost advantages a business obtains due to expansion. As scale is increased they cause a producers average cost per unit to fall. Microeconomics (from Greek prefix micro- meaning small and economics) is a branch of economics in which you study the behaviour of how the individual firms make decisions to allocate limited resources. Normally, it appliesRead MoreDollar General Industry and Competitive Analysis1629 Words   |  7 Pagesmany segments. DG is in the market segment known as the dollar store category. 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