Double entry bookkeeping scientific management y

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Unformatted text preview: double entry bookkeeping, scientific management) y Trend towards downsizing because: o Market increasing in efficiency, especially when business environment is turbulent => firms want to stay flexible o Technology is now widely available even to smaller firms The Costs and Benefits of Vertical Integration Defining Vertical Integration y Firm s ownership of vertically related activities (successive stages of the value chain) y The more a firm makes rather than buys, the greater value added y Backward integration: firm takes control of producing its own components/inputs y Forward integration: firm takes control of activities previously undertaken by its customers Technical Economies from the Physical Integration of Processes y Costs arising from physical integration reduced transportation and energy costs y However, this only explains the need for co-location; not common ownership y Better answer might...
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