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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