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{{a|risk|}}The point where the scale ''opportunities'' are large enough to require active management. | {{a|risk| | ||
[[File:Scale.jpg|450px|frameless|center]] | |||
}}The point where the scale ''opportunities'' are large enough to require active management. | |||
“Passive” [[economy of scale|economies of scale]] flow from the simple fact of size (e.g., adding another user to an existing software licence automatically ''reduces'' the per-user cost of the licence, without anyone having to do anything). But these passive economies run off at the point where one needs to divert the firm’s resources and personnel ''towards managing these efficiencies''. One must spend to save, manufacturing scale efficiencies that won’t arise by themselves. For example, negotiating [[law firm panel]] arrangements, [[outsourcing]] and [[offshoring]]). | “Passive” [[economy of scale|economies of scale]] flow from the simple fact of size (e.g., adding another user to an existing software licence automatically ''reduces'' the per-user cost of the licence, without anyone having to do anything). But these passive economies run off at the point where one needs to divert the firm’s resources and personnel ''towards managing these efficiencies''. One must spend to save, manufacturing scale efficiencies that won’t arise by themselves. For example, negotiating [[law firm panel]] arrangements, [[outsourcing]] and [[offshoring]]). | ||