In your initial posting discuss the concept of “economies of scope” and how an organization you are...

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In your initial posting discuss the concept of “economies of scope” and how an organization you are familiar with has leveraged the strategy or not leveraged the strategy. Include how they have or could have benefited from the strategy in their market niche. This could be an organization you have worked for or one in your community, or even region.
Your initial posting should contain at least 300 words with a reference list. Student replies must contain at least 100 words to assure credit. Support your answer through research. Sources should be documented in APA.

Robert · Accepted Answer

In your initial posting discuss the concept of “economies of scope” and how an 
organization you are familiar with has leveraged the strategy or not leveraged the 
strategy. Include how they have or could have benefited from the strategy in their 
market niche. This could be an organization you have worked for or one in your 
community, or even region. 
Your initial posting should contain at least 300 words with a reference list. Student 
replies must contain at least 100 words to assure credit. Support your answer 
through research. Sources should be documented in APA.- 400 words- APA 
REFERENCE
Economies of scope is defined as the process of reducing the cost of resources and 
skills for an individual business enterprise by spreading the use of these resources and 
skills over two or more enterprises. Its results can be advantages only when similar 
processes are used to deliver a set of distinct products or services. In other words, it's 
cheaper for two products to share the same resource inputs than for each of them to 
have separate inputs. To explain this let’s take an example, if a sales team sells several 
different products, it often works efficiently as they don’t have to sell product individually. 
Because the cost of travel is equally spread over a greater revenue base, thus 
enhancing cost efficiency.
Economies of scope derive its base from the nature of production process within the 
organization. It is a production process function that allows for the combined production 
of two or more products simultaneously that give better returns and the production cost 
is also divided amongst all product lines. In other words, it’s the theory, when an 
organization offers a variety of products instead of specializing in one product and the 
average total cost of production or the cost associated with production is decreased.

In your initial posting discuss the concept of “economies of scope” and how an organization you are familiar with has leveraged the strategy or not leveraged the strategy. Include how they have or...

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