Scale and Scope

Scale and scope refer to two important concepts in business and economics. Scale refers to the size of operations or production. A company can achieve economies of scale by increasing its production, which often leads to lower costs per unit. Scope, on the other hand, relates to the range of products or services a company offers. A broader scope can lead to diversification, reducing risk and reaching more customers. Together, scale and scope help businesses optimize efficiency and adapt to market demands, allowing them to compete more effectively.