Size Of Enterprise Decision-making And Effective Way

Not only scale economy of enterprise is important in economic theory, but alsoscale economy of enterprise is also very important in management theory. For a longtime, the entrepreneur has paid close attention to scale economy, such as bigger andstronger. It is a comprehensive economic strength. On micro level, scale economyimpacts very on existence and development of firms. It can increase in market share,enhance control ability in market and boost up competitive power. On meso level,competitive can heighten ability of resource integration in market. On macro level,It can enhance competitiveness from firm, industry,country to internation. On thebasic of it, this paper analyses in theory and demonstration view,in quantify andnature view. The paper reveals essence of scale economy, provides advice ondeepening firms’ reform.On the theory, this paper spread through system framework of introducingquestion, analysing question and solving problem. This paper analyses deeply causeand correlation of scale economy. The paper researches mechanization of scaleeconomy. On essence, scale economy expresses dialectical unity relationship inquantity and quality. In fact,enterprises suit scale economy,but scale diseconomy willalso emerge. Scale economy isn’t the equivalent of return to scale.Scale economyisn’t same as scale.In nature, they have distinguish from each other. Both scaleeconomy and scope economy can cut the cost.There are many positive effects on scaleof firms in the surrounding.At the same time, there are many negative effects.Such asa coin has two opposite sides. In fact, there exists dynamic and moderate scale.Because enterprises can’t infinite expand, limited rational hypothesiscan engender. Not only people are familiar with scale on physical form, but also onideology form. In subconsciousness, people have preference on scale.Therefore,theory on scale preference can emerge. Scale of firms haven’t unlimit. The boundaryof firms depends on border of scale and border of ability. The two borders aredynamic evolution and have effect on boundary of firms.At present, M&A and capitaloperation are two good routes which form scale.The paper chooses number according to input angel and output angel andstructures model on preference of scale. This paper chooses2009-2012data byprincipal component analysis and evaluates overall. This paper tests that features offirm have effect on scale preference.The paper structures model on scale routes. Ichoose2009-2012data as samples and test through multiple regression method. I structure model on economic benefits with scale and test by multiple regressionmethod. I conclude from:M&A and capital operation on scale have notable positivecorrelation. It make clear that M&A and capital operation are very effective routewhich shape scale. Not only scale of firms has effect on economic benefits, but alsoeconomic benefits have effect on scale of firms.