Lesson Plan

• Describe internal and external factors that influence a business’s scale of operations.
• Explain how economies and diseconomies of scale affect average cost per unit.
• Analyse a case scenario to recommend an appropriate scale (small, medium, large) based on resource and market data.
• Apply a decision‑making framework to evaluate strategic choices about scale.

• Projector and screen
• Slide deck on scale factors
• Printed case‑study worksheets
• Calculators
• Whiteboard and markers
• Exit‑ticket slips

Begin with a quick video clip of a start‑up that grew into a multinational to spark interest. Ask students what they think enabled that growth and link it to prior knowledge of cost concepts. Explain that by the end of the lesson they will be able to identify key factors that determine a firm’s scale and justify strategic decisions.

1. Do‑now (5') – short quiz on average cost and fixed vs variable costs.
2. Teacher input (10') – present internal (economies of scale, finance, technology, management) and external (market size, competition, policy, location) factors using slides.
3. Group activity (15') – students work in pairs on a case worksheet to assess which scale best fits the company, using a simple cost‑curve sketch.
4. Whole‑class discussion (10') – each group shares findings; teacher highlights correct application of factors.
5. Diagram demonstration (5') – draw the average cost curve on the board, showing economies and diseconomies of scale.
6. Check for understanding (5') – exit ticket: “Name one internal and one external factor that would push a firm to choose a large scale.”

Summarise how internal capabilities and external market conditions interact to shape a firm’s optimal scale. Collect exit tickets to gauge understanding and assign a brief homework: research a real company and write a paragraph explaining why its current scale is appropriate or how it could benefit from scaling up.