-Describe an activity or process or product of your chosen company that exhibits economies or diseconomies of scale. Here at ESPN we own the rights of a long list of major events in different sports, like Baseball, Basketball, Tennis, Xgames, etc. We can fully producing any of these events or simply airing it from another’s network signal (with our little touches). When we fully produce an event, I can tell that everyone is out there; producers, coordinators, camera operators, talent, media managers, server managers, etc. During these events we try to take advantage of all the things we can produce (or record) for the specific event or sport. For example, for Baseball, during Serie del Caribe in Dominican Republic, a side of the games, we wanted to record some informative clips explaining how baseball is played. These clips can be aired in our International networks and maybe have them sponsored by a big client. For a request like this, we could spend thousands of dollars paying for a whole production team. Since we were in the Dominican Republic producing this major event, we were able to record 15 clips, using production, talent and a baseball player that were already there. We didn’t have to pay anything extra for this, just arrange everyone schedule.
-Describe the source of the scale economy.The source of the scale economy is being able to maximize our productions,in producing small pieces that can be used in our networks and can make a profit.
-How could the organization exploit the scale economy or diseconomy? This is something that we should be doing in all our produced events. Maybe we should sell those pieces to a client before an event take place so we can be better prepared.