Moving to a Larger Factory Flashcards
Moving to a new factory would allow AFL to take more…
Orders
Plus they may not have to outsource to Sweden
What could AFL say about their products if they didn’t have to outsource to Sweden?
They were ‘made in Britain’
Why’s it good that AFL would further benefit from economies of scale?
They can increase competitiveness, so increase their market share
Or they can increase profit margins
Why could employees benefit?
Larger factory = more managers = promotions
Why will customers benefit from the move?
Reduced prices due to economies of scale
Why will suppliers benefit from the move?
AFL’s increased output means they’ll increase their order volumes, increasing their sales and profit
Why will lenders benefit from the move?
Increased income from the interest on future loans
