PANETTONE

Businesses can expand or remain small as they are. In this case, Brauli´s company prefers
to remain small. This enables the company advantages such as:
● Greater focus: gives them the opportunity to invest where they want and where they
believe the greatest profitability lies.
● Greater cachet: small businesses sometimes have more cachet, greater sense of
exclusiveness, larger business. This gives them the chance charge more for their
goods and services leading to a high profit.
● Greater motivation: more prestige motivates managers & employees by the idea that
they matter to the business.
● Competitive advantage: more personalized services, and being flexible.
● Less competition: markets can be so small that the big businesses do not want to
consider getting involved; this means competition is limited.
On the other hand, the main drawbacks of being a small company is that it doesn’t enable
this main things:
● survival: this is a great advantage because they have a less chance of failing or have
their business taken over by another firm.
● economies of scale: this helps in translating a greater profit, higher returns and a
healthier balance sheet.
● higher status: working with a large firm can provide a status to employees and can
motivate the managers as well as the other employees.
● market leader status: can lead and shape the market habits, giving it a competitive
advantage.
● increased market share: helps in controlling the marker by determining prices and
deciding which of the services will be the industry standard.