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Minimum Efficient Scale

CaseInterview.com

Today, I want to introduce you to (or perhaps remind you of) the concept of the minimum efficient scale. For example, Amazon is able to process and deliver its customers’ orders very efficiently because of its “scale.”. The concept of “minimum efficient scale” is less well known and is a less-used term. Minimum efficient scale.

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How to Win with Automation (Hint: It’s Not Chasing Efficiency)

Harvard Business

At the same time, managers need to continue to motivate employees who fear their jobs being replaced by robots. The value of bank branches, for example, is no longer to manually process deposits, but to solve more complex customer problems like providing mortgages. This creates a dilemma for leaders.