To what extent has Shropshire Hills Water plc benefited from increasing the scale of its operations? (18 marks)

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Presentation transcript:

To what extent has Shropshire Hills Water plc benefited from increasing the scale of its operations? (18 marks)

Structure What has happened to the company’s average unit costs over the years? Use the text and be specific, have average costs increased or decreased and during what time periods.

Analysis - Balance Using the text can you identify any examples of economies of scale present? risk bearing, technical, managerial, marketing, purchasing, financial Can you also identify any diseconomies of scale present coordination, communication issues.

Evaluation - Conclusion Trigger words: on balance, it depends, short term, long term On balance do benefits outweigh costs of increasing scale? Have economies of scale changed over time?