Economies of scale refers to the power that the company has when it reaches an optimal level of production to produce more at lower cost, namely the production as a business grows, your costs per unit of output is reduced. The more you produce, the less it costs to produce each unit.

In other words, means that if a production function that increases the amount of all inputs used in a percentage, the output produced can be increased by the same percentage or increase more or less the same percentage.

If the increases in the same, it would be economies of scale constant, the savings would be increased if more of the scale, if at least in the economies of scale in decline.

Generally, when you just say “economies of scale”, referring to the increase, these indicate a function very advantageous from the point of view, because it means that production is less expensive on average, greater use of all resources. It would, for example, less expensive per unit of production of 400 units to 200, if we increase the same amount all the resources used for this (and the price of each unit of resource is not changed).

To analyze the phenomenon of economies of scale is generally considered the relationship between the increase in production (output) caused by the increase of production factors (inputs). What happens when a company, for example, double the amount of inputs used (twice as many workers, double the capital)? If the result is that production increases more than twice, and then said the company is characterized by increasing economies of scale.

This is a situation of some interest for the economy because it implies that can be produced at lower cost because it increases the level of production. This is closely related to the cluster, since a production process has affected the economies of scale, only one company produced more cheaply than two smaller companies.

The economic crisis and financial crisis represents a new challenge for marketers, who must adjust to lower advertising expenditures by companies. There are some things that traders should not overlook:

• consider the crisis as an opportunity: the tough times means a chance to differentiate itself from its competitors. We must not lose this opportunity, rather, should outperform its competitors by using innovative marketing strategies and appropriate technology.

• Get more results with less investment: as a rule, the marketing department will have less budget available to him at the same time will have to meet budgets even more ambitious than in “normal”. To do more with less, marketing professionals need to increase their effectiveness. A priory, the requirements are clear and have all the best technology.

• Focus on existing customers, gain new customers is expensive, so it should not be in a recession. The best strategy is to try to retain existing customers, ensuring that offers are considered to add value and deliver services, increase loyalty.

• Rethink and be innovative, always repeating what was done to avoid an attitude. If you used to send mass mailings to large numbers of customers, it is best to leave behind old habits. Customers do not like marketing offers tailored to your needs, but on the contrary, they feel attacked (spam) to them.

• Listen and talk to the client: it is always advisable to take the dialogue is established with customers. Find out what really is, explicitly and implicitly, and use this information to find him any agreement can be crucial to keep it.

• Combining online and offline channels: do not waste money on isolated structures, but must focus on the integration of sales channels (online, catalog and store) the marketing channels (direct marketing, e -mail, phone, web, kiosk and phone, including platforms “social media” such as YouTube or MySpace). Everyone in the company should be able to take advantage of consumption data were obtained through these channels.

• Prepare for the time after the crisis can help to invest in modular technology that can be extended as soon as the budgets increase again. The distributor must be prepared to integrate new emerging channels of marketing and sales in a flexible structure.

• Tracks and evaluates the digital revolution today I could not ignore the work of the wide range of social networks. You have to target customers through your favorite channel and more likely to be willing to listen and respond.

Thus, by combining innovation, technology and, above all, creativity, marketing professionals can meet the new challenges posed by the crisis.

Shared Services are the convergence and streamlining of an organization to ensure they provide the organization of services required of them as efficiently as possible.

This implies the centralization of back office functions such as time and finances, but can often be applied to the middle or front offices.

A key advantage of this convergence is that it allows the assessment of economies of scale within the function and may allow the operation of the multi (ligand, such as time and finances, where there are potential synergies.) Cultural transformation and large-scale processes is a key element of a move to shared services often including layoffs and changes in work practices.

It is claimed that the transformation often results in a better quality of life for employees although there are some case studies to back this up.

Shared Services are more than just centralization or consolidation of similar activities in one place. The poor performance of shared services activities that keeps them as a business and provides services to internal customers at a cost, quality and timeliness that is competitive with alternatives.

A joint can take a variety of different business structures. The six basic business structures include:

Simple – a single organization that consolidates and centralizes a business service
Department – an umbrella organization centralizes and service business that will be shared by other organizations
The common understanding of these initiatives (internal) – between two or more organizations to establish common services and work
Strategic partnerships contractual arrangement (external) – with a third party supplier of a range of services including shared
Joint Venture (JV) - legal entity of a joint venture between the organization and the supplier of the third
Outsourcing - the third party provider takes full responsibility to manage and operate the service

In 1989 the Berlin Wall. This was one of the most important events in world history that the end of the industrial era and the beginning characterized the information age.

The crisis we experience shows us that at the end of each stage there are people who move and those who cling to ideas of the past and still have the hope that the financial security of liability the company where you work or government.

Most of us are focused on safety. That’s why we can control stable jobs, career security, small business and we believe that with the best strategy for investment diversification.

We do not get the money to hire tenure, salary, etc. We will continue our explicit “creativity.” In other words, work less, earn more and do things that are important to us. (more…)