Scale

Categories: Marketing

Picture a squid eyeball from space. 50 miles away. Now picture a squid eyeball from our boat, The PescaSqiudaleous. A mile away. Now picture a squid eyeball from the view of our iPhone we juuust dropped in the water when it swam beneath the boat scaring the crap out of us, uh...literally. At one scale, we can barely see the ocean. At another scale, we saw waaaay too much eyeball.

Scale in business has the same kind of dramatic effect as operations come into play. That is…it’s one thing to serve lemonade drinks to 100 people a week. It takes one stand, a permit, and a grocery store’s visit of supplies. It’s completely another thing to serve a million drinks a week. For the latter, you need infrastructure, trucks, storage, and armies of servers to...serve.

So when a company scales, it means that they have gone from a modest few million dollars of sales...to sales of a hundred million...and then a few billion. The skill set for the former is a vastly different set than for the latter. And some people are able to do both. Howard Schultz, founder & CEO of Starbucks, we’re lookin’ at you. Starbucks started off as just one store in Seattle. And like...5 minutes later, there were a gazillion of them all over the world.

So yeah, that’s how a company scales. Incidentally, you may want to stay off the scale if you consume Venti caramel fraps with whip on a daily basis.

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Finance: What does it mean to "scale"?58 Views

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Finance allah shmoop What does it mean to scale Well

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here's a squid eyeball from space fifty miles away and

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here's a squid eyeball from our boat the pesca squid

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alia's from a mile away and here's a squid eyeball

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from the view of our iphone we just dropped in

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the water when the squids when right beneath the boat

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scaring the crap out of us literally at one scale

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we could barely see the ocean At another scale We

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saw way too much eye ball scale and business has

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the same kind of dramatic effect as operations come into

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play That is it's One thing to serve lemonade drinks

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to one hundred people a week It takes one stand

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a permit grocery store visits worth of supplies it's completely

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Another thing Toe serve a million drinks a week for

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the latter You need infrastructure trucks storage and armies of

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servers to you know serve Yeah that's what they do

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someone's gotta get lemonades to the people So when a

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company scales it means that they have gone from a

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modest few million dollars of sales to sales of maybe

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one hundred million and then a billion Some like that

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The skill set for the former is a vastly different

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set than for the ladder and some people are able

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to do both Howard schultz founder and ceo of starbucks

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We're looking at you well starbucks started off is just

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one store in seattle in like five minutes later there

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were a gazillion of them all over the world thinking

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of coffee in any language So yeah that's How a

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company scales from you little toe Big big Incidentally you'll

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want to stay off the scale if you consume venti

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caramel frappe with whip on a daily basis but on 00:01:44.897 --> [endTime] there so good

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