13 Analyse the benefits a business can have after expansion. [6]

[Maham fatima]

[KN] Economies of scale
[AN]As a business grows in size it produces high output and so cost is spread on each unit produced hence lowering avg COP
[AN] leading to high profit margins


[KN]Good brand image
[AN]when a business expands by opening new outlets it can have direct contact with customers which helps to improve customer satisfaction
[AN] leading to brand loyalty

[Abbas17]

(KN) Increased revenue
(AN) When a business expands, it often taps into new customer bases, markets, or product lines. This expansion leads to increased sales and revenue.
(AN+) This growth in revenue can result in higher profits and provide resources for further investment or expansion.

(KN) Economies of scale
(AN) As a business grows and expands, it can achieve economies of scale. This means that the cost per unit of production decreases as the business produces more.
(AN+) For instance, a manufacturing company that expands its production capacity may be able to negotiate better deals with suppliers, reduce per-unit production costs, and operate its facilities more efficiently, all of which can improve profitability.

[Syed Mustafa Ali]

[KN] Increased revenue
[AN] When a business expands, it often taps into new customer bases, markets, or product lines. This expansion leads to increased sales and revenue.
[AN+] This growth in revenue can result in higher profits and provide resources for further investment or expansion.

[KN] Economies of scale
[AN] As a business grows and expands, it can achieve economies of scale. This means that the cost per unit of production decreases as the business produces more.
[AN+] For instance, a manufacturing company that expands its production capacity may be able to negotiate better deals with suppliers, reduce per-unit production costs, and operate its facilities more efficiently, all of which can improve profitability.

KHURRAM COPIED this answer from ME

[Syed Mustafa Ali]

(KN) Increased revenue
(AN) When a business expands, it often taps into new customer bases, markets, or product lines. This expansion leads to increased sales and revenue.
(AN+) This growth in revenue can result in higher profits and provide resources for further investment or expansion.

(KN) Economies of scale
(AN) As a business grows and expands, it can achieve economies of scale. This means that the cost per unit of production decreases as the business produces more.
(AN+) For instance, a manufacturing company that expands its production capacity may be able to negotiate better deals with suppliers, reduce per-unit production costs, and operate its facilities more efficiently, all of which can improve profitability.

COPIED from KHURRAM who COPIED it from ME

[Mahnoor Ali]

[KN] efficiency will rise
[AN] This will lower the cost per unit
[AN+] thus, increasing profits.

[KN] Rise in supply
[AN] edge over competitors who may not produce comparably the same quantities
[AN+] thus, market share will rise

[Soha Hussain]

Q13 Analyse the benefits a business can have after expansion. [6]

[KN]an increased no. of sales
[AN]due to expansion, a business reels/attracts more customers and thus improves its services further to meet their demand and make them loyal.
[AN+]due to this, sales increase along with profits and investments.

[KN]increased competition
[AN]due to increase in the no. of loyal customers, and high sales, the business brand image improves, allowing them to be more dominant in the market, further increasing their competition
[AN+]thus the business can set either lower prices and gain higher sales than their competitors or set higher prices and still earn high profits due to loyal customers and/or premium product/brand image

[Huma Junaid]

[KN]Economies of Scale
[AN]increased efficiency
[AN+]improved profit margins.

[KN]brand recognition
[AN]enhance the company's reputation
[AN+]making it more attractive to customers