What are Large Scale Production? What are its motives?

Scale of Production

The term, “Scale of production” refers to the size of the production unit of a firm or business. Depending on the size of production, it can be classified into large scale and small scale production.

What is Large Scale Production?

The term, “Large scale production” refers to the production of a commodity on a large scale with a large sized firm. It requires huge investments in plant and machinery. Large scale production can be carried out if the market size is large and expanding.

Large scale firms are characterized by mechanization, division of labor and production and sale of goods in large quantities. They cater to a large market. The industrial revolution laid the foundation of the factory system. The factory system which extensively used machinery and adopted division of labor made large scale production possible.

China is today considered to be the factory of the world because of its focus on large scale production. It today accounts for 50% of the world’s production of cameras, 30% of air-conditioners, 25% of washing machines and 20% of
refrigerators. It has become the world’s largest producer of toys, mobile phones, DVD players, laptop computers and colour TV sets.

What are the Motives for large scale production?

The following are some of the motives of large scale production.

  1. Desire for economy.
  2. Desire for increase in sales.
  3. Desire for a large customer base.
  4. Desire for large profits.
  5. Desire to become a global company.
  6. Desire for economic power.
  7. Desire for continuous growth and expansion.
  8. Desire to increase demand.
  9. Desire to overcome competition.
  10. Desire to achieve monopoly status.
  11. Desire for achieving long term profitability.

Leave a Reply




Recent Posts


Related pages


characteristics of process costingperpetual inventory system definitionpreference shareholders rightsdischarge of a contract by frustrationcapital budgeting screening decisionsfinal dividend and interim dividenddisadvantages of electronic commercemeaning of creditor and debtormeaning of audit samplingremunerations meaning in hindiadvertisement and propagandarights and duties of bailor and baileedefinition of nominal damagesadvantages and disadvantages of primary research methodscif shipping term definitionintracompany comparisonsexplain retailingjuristic person legal definitionbank swaps explainedreceivables turnover ratio calculatoricra rating scalesecuritisation processauthoritarian leadership style in nursingjob costing process costingdefine mercantile lawautocratic leadership stylesmacroeconomics aggregatesprivate distributor brand definitioncharacteristics of managerial accountingdefine barratryoverhead absorption ratezero based budgeting definitionwhat is precis writing with examplescapital budgeting managerial accountingdisadvantages of market penetrationallot meaninglimitations of abc costingessential of valid contract with examplefilling and indexingwhat are formal and informal groupspayment in arrears meaningscm problemssecuritization bondsfactory overhead expensesdefine multistage samplingtick marks in auditingwhat is rapid urbanisationadvantages of fiidifference between auditing and investigationwhat is convenience sampling methodcartels definition economicsdisadvantages of outdoor advertisingadvantages of online retailingdifference between bailor and baileecosting tools and techniquesdischarge of negotiable instrumentadvantages of autocracy governmentimplementing activity based costingfigurehead managerroles of managerial economicsaverage receivables formulameaning of dishonorhow is wto different from gattbailee bailorsundry payables definitionprècisclassification of bailmentlogisticsmeaninghorizontal takeoveradvantages and disadvantages of formal organisationiou from employeesthe meaning of debentureadvantages of sales forecastingstages of capital budgetingconsumer sovereignty meansadvantages of using secondary researchdifferentiate between marginal costing and absorption costingactivity based costing method