Scale and Scope in Professional Service Firms

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Background Note | HBS Case Collection | March 2003 (Revised April 2006)

Scale and Scope in Professional Service Firms

Abstract

This case discusses why economies (and diseconomies) of scale and scope exist in professional service firms (PSFs) and how they influence the amount and range of services that PSFs offer. It is distributed with a case that focuses on determining the optimal scale/scope of a PSF.

Keywords: Cost Management; Operations; Microeconomics; Service Industry;

Format: Print

5 pages

Educators Purchase