Deciding to specialize or generalize

Deciding to specialize or generalize

    • A food (fruit) processor may
    1. Grow or buy his fruit requirements
    2. Sell his output to a wholesaler, retailer or directly to consumer
    • The advantages of specializing and concentrating in a small segment are:
    1. Less capital investment is needed
    2. Management can concentrate better on small segment
    3. Planning, directing and controlling are less complex
    1. More control of the process
    2. Less idling (time) of men and machinery
    3. Greater potential of growth
    • The economics of decision to set up a production unit. The decision on what segment of the total transformation process to be depends on the economics of situation. Having decided on the segment of the transformation process, one can begin to plan, obtain and install the producing unit.

Last modified: Monday, 18 June 2012, 6:32 AM