Economies of Scope and the Modern Technology

Introduction: Economies of Scope as an Object of the Research The role of economics of scope has increased considerably since recently, which presupposes that the changes occurred in the given sphere should be considered closer and analyzed to understand the methods that enhanced the growing development of the given economics.Advertising We will write a custom report sample on Economies of Scope and the Modern Technology specifically for you for only $16.05 $11/page Learn More Therefore, the elements that economies of scope are comprised of, as well as the effects that the recent surge of technological development, as well as the numerous technological innovations, had on the given entrepreneurship is of major importance. It is necessary to mark that the phenomenon of economics of scope must not be confused with the one of the economies of scale. Since the two phenomena concern the same sphere yet are composed of different elements, it is required to dra w the line between the two. According to the description provided by Parkin, Powell and Matthew (2007), â€Å"a firm experiences economics of scale when an increase in its output of a good or service brings a decrease in the average total cost of producing it† (227). However, the authors mark that both the economics of scale and of scope â€Å"can lead to natural monopoly† (Parkin, Powell and Matthew 2007, p.227). It is worth marking that Parkin, Powell and Matthew (2007) emphasize the importance of technological innovations for the economies of scale: â€Å"In a period of rapid and far-reaching technological change, such as that of the information revolution of the 1990ies, firms become extremely optimistic about profits and investment booms (p.546).† Hence, the recent changes in the sphere of economies of scale are to be observed.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF L earn More The Existing Companies: The Opportunities and Examples In the given paper, such economics of scope are considered as the Xerox Company, the U.S. Telecommunications Industry, as well as the local exchange company and local operating company are considered. With the help of the analysis of their peculiarities and development, one can come to the conclusion concerning the companies’ strategic operations, their tactics and the way the given economies have utilized the new technologies that were at their disposal. However, it is important to mark the opportunities that each company had before the implementation of the technological changes. It is worth marking that Xerox Co. is one of the businesses that is developing rapidly and, hence, requires expanding, creating affiliates and managing them successfully. Speaking of the other sphere of economies of scope that are considered in the given paper, the one concerning the telecommunication issues, it is necessary to expl ain that in the given sphere, â€Å"the existence of economies of scope remains an important but ambiguous issue† (Banker et al 1998, p.254). Therefore, differences in the development of the given companies predetermine the complexity of the analysis, making the latter considerably objective, though. Tracking the Progress: The Role of the Technologies It is worth mentioning that in the companies under the considerations, the technological, innovations introduced have played quite different roles despite such common feature as the fact that the companies in question both belong to the economies of scope and, hence, are supposed to develop according to a certain pattern.Advertising We will write a custom report sample on Economies of Scope and the Modern Technology specifically for you for only $16.05 $11/page Learn More Nevertheless, it is worth mentioning that in the sphere of the U.S. telecommunications, the economies of scope are closely interc onnected with the rapid progress of the U.S. telecommunications, yet there is no tangible connection between the two; as the authors claim, the given elements impact the same sphere of financial issues, yet the connection between the two is quite vague: â€Å"Moreover,†¦ the evidence cannot adequately disentangle the effects of two factors that both reduce unit costs – economies of scale and technological advance† (p.256). In contrast to the given phenomenon, the economy of scale that Xerox Co. represents offers rather substantial reasons for implementing the strategy that economy of scale presupposes. Grounding their ideas and suggestions on the current state of the company’s affairs, the managers come to the conclusion that the technological innovations that have been implemented so far require the change of the company course of n economy of scope, marking that the old model of operating the company does not suit the innovations in the sphere of technolo gies: â€Å"In other cases, though, such a business model will not fit the circumstances of the technological or market opportunity† (p.2). Concerning the Course of Actions: Strategic Implications Analyzing the specific strategies that the given economies of scope utilize to achieve the maximum efficiency and decrease the costs that they suffer, one must mark that each of the given entrepreneurships has chosen it sown pace and model of development, which calls for another comparison on the efficiency of the given approaches. Nevertheless, it is necessary to comment on the strategic implications themselves first. Observing the specifics of the strategic implications that the economies of scale presuppose for the given companies, one can come to the conclusion that with the help of the strategies chosen by the companies, a rapid increase in the revenues is about to occur.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Because of the improvement of the technological issues, the companies in question are able to process the queries and complete the tasks several times faster; in addition, the surge of the income and the decrease of the raw materials used for the production of the goods of the given companies allows the latter to develop further, thus, creating sufficient grounds for the future expansion, the international partnership and even the â€Å"evolution of future industry structure†(Banker et al 1998, p.254). The Related Concepts: Discussing the Commercial Integrity Obviously, the issue of economies of scope and the technological innovations tat trigger the latter cannot be considered alone, since there is a number of factors dependent on the aforementioned economies, and, vice versa, the given corporations depend considerably on the issues intertwined with the problem of providing innovations in the sphere of economic and business. Crating the specific environment for the developme nt of the given ventures, one can claim with certainty that the success of the entrepreneurship follows immediately, which means that the elements of the environment that the companies in question operate in must be considered thoroughly. Introducing the peculiar details, one will be able to see the related concepts that contribute to building a successful business. Among the concepts of the kind, the commercial integrity takes the first place. As Chesbrough and Rosembloom (2002) say, â€Å"some scholars conclude that firms may indeed develop the ability to manage new technological opportunities effectively if they invest in integrative capabilities†¦, ambidextrous internal processes†¦, or complementary assets† (p.5), hence, emphasizing the necessity to create the commercial integrity of the economies in question. Hence, the integrity of the U.S. telecommunication companies cannot be doubted at the moment, which obviously leads to the prosperity of the latter, where as Xerox Corporation seems to have problems concerning the integrity of the company (Banker et al 1998), which triggers certain concerns for the company future. Hence, the integrity of the economies of scope is essential for the well-being of the latter. Conclusions: Economies of Scope: The Importance of Technologies Development Judging from the research conducted and the data obtained, one can come to the conclusion that in most cases, the transition to the development of economies of scope is predetermined by the necessity to implement certain technological changes and offer various innovations into the company. Therefore, the transition to the strategies of economies of scope can be considered a natural course of events for major companies like Xerox or the U.S. Telecommunications. With the help of the strategies that the acceptance of the economies of scope presupposes, Xerox and the U.S. Telecommunications can develop into larger corporations, keeping their integrity and creati ng the environment auspicious for further improvements and progress. Executive Summary In the modern world of economics, the aspect of technological innovations plays one of the major roles. Providing an efficient operation of companies, facilitating the work of the employees and simplifying the working process in general and certain operations in particular, the technological aspect is one of the prior issues in the sphere of economies of scope. Hence, the scale of the recent technological innovations, as well as their impact on the modern economies of scope, is to be considered. In addition, the general features of the modern examples of economies of scope are to be observed as well. Narrowing the research to featuring the peculiarities of several entrepreneurships, the strategies chosen by them, the tactics the businesses in question implement and the goals that they pursue, as well as analyzing the commercial integrity within the companies in question, one can come to certain co nclusions concerning the methods in which the modern economies of scope are operated and the issues that arise on certain stages of the development of the given economies. Hence, the general assessment of the current situation in the sphere of economies of scope can be conducted. With the help of the specific methods of research, precise data can be obtained, a thorough analysis can be conducted, and cohesive conclusions can be made. In the given paper, several companies that represent the economies of scope and utilize the correspondent elements their corporation strategy are going to be considered, their recent technological innovations are going to be enumerated, and the changes that have occurred in the given companies are going to be analyzed. It is important to mark that the given research focuses on the technological innovations used in the process of operating the economies of scope, and argues that for the economies of scope, the recent technological innovations can be cons idered as an efficient means of tackling certain entrepreneurship issues, namely, the ones concerning the efficiency of the company, the quality of the products and the efficiency of the staff. Therefore, the given paper claims that the current technologies are to be incorporated for an efficient implementation of the strategies of the economies of scope. In addition, the issues concerning the technological sphere are to be considered in the paper. Moreover, the social complexities are to be taken into account. Conducting an extensive observation of the given entrepreneurships, the paper offers profound conclusions. Bibliography Banker, D.R., Chang, H.-H., and Majumdar, S.K. 1998, â€Å"Economies of Scope in the U.S. Telecommunications History†, Information, Economics and Policy, vol.10, pp.253-272. Chesbrough, H., and Rosembloom, R.S. 2002, The Role of Business Model in  Capturing Value from Information: Evidence from Xerox Corporation’s Technology Spinoff Companies , Harvard Business School, Boston, MA. Parkin, M., Powell, M., and Matthews, K. 2007, Economics, Pearson Education, Upper Saddle River, NJ. This report on Economies of Scope and the Modern Technology was written and submitted by user Anna Q. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

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buy custom Examining Indigenous Reactions to Globalization essay buy custom Examining Indigenous Reactions to Globalization essay Globalization entails amalgamation of different universal ideas, economies and cultures and it involves information technology and industrialization. Globalization as a concept has become more defined in the 21st century but it can be traced back to earlier centuries especially during the 19th century Industrial Revolution. There have been varied reactions to globalization over the years. Some have been in support of it and others have rejected it as a tool for western countries to advance their interests. When the British introduced the Industrial Revolution in India through the East India Company, there was a lot of rejection as it was seen as a form of colonialism. The East India Company had mainly established itself in India to expand its commercial operations. Vas states that between 1857 and 1858 some Indians started the Great Indian Mutiny which was supposed to fight the growing operations of the British in the country which were mainly seen as invasive and foreign. Their atte mpts at fighting modernization brought by the Industrial Revolution however failed. The Taiping Rebellion was experienced in China in the mid 19th century. The Revolt was however hailed for beginning the awakening of China. These two mutinies showcased different reactions to globalization. This paper will look at the similarities and differences between the Taiping Revolution and the Great Indian Mutiny. It is clear that in one way or the other these revolts were aimed at making statements on modernization and global integration in general. Similarities and Differences between the Great Indian Mutiny and the Taiping Revolution Watson describes the Indian Mutiny and examines the religious, political and economic elements of the civil war. In his book, he explains the reasons why the small British army was able to conquer the much bigger Indian rebel army. He explains that the British army was more organized and had advanced fighting equipment as compared to the Indian rebels. This gave them advantage and they were able to defeat the Indians in their own home ground. The great Indian Mutiny was also referred to as Indias First War of Independence. This was because the mutiny was a way of the Indians expressing their desire for autonomy from the British colonialists. The Taiping Rebellion just like the Indian Mutiny was an uprising and it was also in a way a war of independence from the Manchu rule and it established the Heavenly Kingdom of Great Peace in south China. The Taiping Rebellion sought independence from the traditional Confucian beliefs and turned to Christianity and the original Chinese culture. At the time of the Taiping Rebellion, th Manchu dynasty was in power. This dynasty was largely seen to neglect the fundamental needs of the Chinese. At that time there was famine due to uncultivated land, there was also an imbalance between the imports and exports from China. There was a lot of opium being sold in China by capitalist states such as Britain and the business was booming. The Mancu dynasty was seen as incapable of controlling the activities of the Europeans in China who had taken up the lucrative opium business. The Taiping society saw this as an invasion by foreigners who seemed to be doing much better than the majority of the Chinese. The Taiping Rebellion was aimed at the rule which was allowing the foreigners to thrive in China. The foreign ideas and people who went into China from other parts of the world were also greatly resented. David explains that the Taiping had the idea that the Manchu dynasty had transformed millions of Chinese gold to the opium sold by the British. This was a similarity noted also in the Indian Mutiny where there was resistance of the British because their commercial operation in India was doing well. The Taiping Rebellion was a widespread rebellion that got the attention of the elite in China and also global attention unlike the previous uprisings. The Taiping society was able to capture a large area during its conquest although this land was reclaimed after the defeat of the Taiping rebels. The Indian mutiny was also widespread and included other troops apart from the Indian troops who were referred to as sepoys. After the establishment of the British Empire in India, resentment for their growing influence built up over the years and the revolt was welcome by everyone who had harbored that resentment. Karl Marx a renowned philosopher intimated that the Taiping and the Great Indian Mutiny were a show of the characteristic nature of the slow nature of reforms in Asian society. These two revolutions showed how unreceptive to globalization the Indians and Chinese were. There were however notable differences between the Indian and the Chinese rebellions. The Taiping Rebellion was a quasi-Christian revolt orchestrated by Hung Hsiu-Chuan against the Manchu dynasty in order to restore China to its original glory. This was because the Manchu dynasty had allowed the Europeans to erode the Chinese traditions. The Taiping society drew Christian teachings from the English missionaries. The Taiping assimilated Western religious beliefs into Chinese traditions. This acceptance of western Christianity meant that the Taiping Rebellion was more receptive to globalization by the embracing of foreign religious ideas. The Taiping Rebellion changed the face of China and made it noticeable to the world which resulted in Chiina being closer to the world. In this sense without knowing it, the Taiping while trying to reverse China to its old ways managed to open China to globalization. The Taiping Rebellion was also able to end the isolation of China and bring it into the circle of Western influence. This was however not the main aim of the rebellion. The Taiping Rebellion was against the neglect of the government by the Manchu dynasty. They advocated for an egalitarian society where land was distributed equally, there was abolition of slavery and a caste free society. Teng states that the Chinese were also not happy with the growing population that resulted in poverty and lack of food. There were also natural calamities which grew the frustrations of the Chinese. This was however not the case in the Indian mutiny. The Great Indian Mutiny was based on rejecting all westernized ideas and technologies. For instance the troops refused to use cartridges which they alleged had been greased with cow and pig lard. This was seen as an insult to Muslim and Hindu beliefs. The Indian mutiny was mainly fought as a way of shunning westernization which was essentially global integration. They wanted to hold on to their old ways without looking into new ideas. The Taiping Rebellion was seen as different from this as there was embracing of new Ch ristian ideas. The Taiping was also not seen as a rejection of globalization as China was already involved in global trade as early as the 16th century. Conclusion The Taiping and the Great Indian Mutiny had a lot of common factors but they were also different in the strategies applied and their main agendas. The end result for both revolts was that they opened their countries to westernization and eventually to the countries joining the global village. Today China is one of the fast developing countries due to its trade with many countries in the world. The revolution began by the Taiping Rebellion stirred up events that led to what is now modern China. The Indian Mutiny also made the British colonialists gain more power in India which led to eventual westernization and thus global integration. The mutinies were based on the fact that it was perceived that globalization or what they referred to as westernization, would lead to their marginalization and also marginalization of their cultures and beliefs. This was indeed a misconception as the westernization they feared and rejected has ended up being the reason for the countries growth up to th is 21st century. The Indian and Chinese civilizations were the earliest civilizations that are still in existence up to date. The uprisings played a big role in catapulting these civilizations into the global arena. Buy custom Examining Indigenous Reactions to Globalization essay