Jy Development Of Economies Of Scale, Research And Analysis

It is one of the efficient ways to gain a relative advantage of the profits from scale, which is to ensure essential factors of enterprise running at high efficiency condition. To solve the problem of the profits from scale means:(1) to make a decision in considerable investment in order to expand production, lower the cost and improve capacity of competition;(2) to improve the management efficiency by making best combination for productive factors.Profits from scale for the enterprise means a relative advantage of the profit gained from expansion of production. This paper based on the analyzing for JY Company, a state-owed enterprise in traditional industry, is an attempt to illustrate the fundament,conditions,aim and the accomplishment ways of the profits from scale formed for enterprise. The paper leads a conclusion as follows:(1) Existing assets and increase capital invested of enterprise forms a considerable scale under certain condition. (2) Profits from scale may be realized by expand scale, which is necessary to base a essential circumstances, such as potential development of products on market, the technology, productive capability, the cost control and management, etc. (3) The key to form scale profit is to create intellectual resources, and to fully apply them effective.This paper is divided into six parts. In the first part, a brief introduction for background, purpose and methods of study is given. In the second part, the successful case of scale profits achieved in GALANZ Electric Appliance Co., Ltd. is briefly analyzed, which would be very helpful for JY Company. The third part analyzes JY company products, technology, assets and cost in detail, attempt to explain the fundament factor for JY Company to form scale profits after its production expansion. The fourth part analyzes the theoretic evidence of JY Company to form scale profits. The essential factor for JY Company to form scale profits, such as absorptive capacity, renovation and creation capacity, and profit-making ability of the enterprise, is studied in the fifth part. On the basis of comprehensive analysis to make a comparison between cost and profit, the sixth part of the paper provides an illustration and a valuation for the aim of JY Company scaled profit and the accomplishment way to attain it. A summary and the shorting of research are given in the last part...