| Lesson Plan |
| Grade: |
Date: 25/02/2026 |
| Subject: Business Studies |
| Lesson Topic: concept of diseconomies of scale: poor communication, lack of commitment or loyalty from employees, weak coordination, lack of control |
Learning Objective/s:
- Describe what diseconomies of scale are and how they differ from economies of scale.
- Identify the four main causes of diseconomies of scale.
- Explain how each cause raises the average cost per unit.
- Compare the impact of economies and diseconomies on communication, motivation, coordination and control.
- Propose at least two management strategies to mitigate diseconomies of scale.
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Materials Needed:
- Projector and screen
- Digital presentation slides
- Printed handout with the comparison table
- Case‑study worksheet
- Whiteboard and markers
- Sticky notes for group brainstorming
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Introduction:
Begin with a quick poll: “What benefits do you think a business gains when it grows?” Capture responses and link them to economies of scale. Remind learners that growth can also bring hidden costs. Explain that today’s success criteria are to define diseconomies of scale, name their main causes, and suggest ways to avoid them.
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Lesson Structure:
- Do‑now (5’) – Students list advantages of business growth on the board; teacher highlights the link to economies of scale.
- Mini‑lecture (10’) – Define diseconomies of scale, present the four causes with real‑world examples using slides.
- Group analysis (15’) – Small groups receive a short case vignette, identify which cause(s) are evident, and calculate the likely effect on average cost; record answers on the worksheet.
- Whole‑class discussion (10’) – Groups share findings; teacher completes the comparison table on the board and checks understanding.
- Mitigation brainstorm (10’) – Students suggest strategies to counter each cause; ideas are captured on sticky notes and grouped on the board.
- Exit ticket (5’) – Individually write one real‑world example of a diseconomy and one mitigation measure.
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Conclusion:
Summarise how poor communication, weak employee commitment, fragmented coordination, and lack of control can raise costs, and review the mitigation strategies generated. Collect exit tickets as a quick assessment. For homework, ask students to research a company that experienced diseconomies of scale and write a brief report outlining the problem and the corrective actions taken.
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