Yaohan Company Case Study

Published: 2021-06-29 06:59:38
essay essay

Category: Business

Type of paper: Essay

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

Hey! We can write a custom essay for you.

All possible types of assignments. Written by academics

GET MY ESSAY
When Yaohan establishes its first store in Shanghai, there are more than 10 million customers come, the first day revenue is huge, then several more department stores set up right after, Yaohan becomes a very well known name for every citizen in Shanghai.
The economies scales were developed. Since all the stores were in Shanghai, it saved goods shipping costs, lowered down supplier' barging power, saved management transportation costs, lowered down finance transaction costs, etc, Yaohan was able to make a lot more profits at a time of economies scales in Shanghai, but when the finance crisis went into the picture, everything was changed to the opposite.

The larger, the more profits, this is a wrong business strategy.
It will be beneficial for some companies expend business scales for some certain degrees, when the average unit costs to fall as the scales of output is increased, the company produces higher revenues. Yaohan benefited from the early expansions, but there are another two big indicators of Yen raising and the 1997 Asian finance crisis lead to its bankrupt- die young.

Warning! This essay is not original. Get 100% unique essay within 45 seconds!

GET UNIQUE ESSAY

We can write your paper just for 11.99$

i want to copy...

This essay has been submitted by a student and contain not unique content

People also read