1. Vitasoy International Holdings LTD.
Chan Wing Sze 4E(3)
Chow Tsz Yan 4E(6)
Kong Man Kiu 4E(12)
Lee Lok Yi 4M (20)

2. Content Video P.3 External Expansion P.4-6 Business Ownership P.7-10
Internal Economies Of Scale P.11-12
External Economies Of Scale P.13
Demand & Supply P.14-15

3. Video

4. External Expansion Example: Vitavitosoy Vita Pure Distilled Water
Vitaland

5. External Expansion Lateral integration Example:
Vita Pure Distilled Water produces water, Dispenser
Vitasoy International Holdings LTD. produces soya bean milk

6. External Expansion take advantage of the brand names
For an example, it takes advantage of Unicurd Food in Singapore.
spread risk by diversification
enjoy economies of scale.

7. Business Ownership belongs to public limited company.
Here is its features:
a legal entity
limited liability
lasting continuity
The profit tax rate is higher
need to open its financial

8. Here’s its financial statements :
Gross Profit and Gross Profit Margin
The Group’s gross profit for the interim period was HK$1,118 million, up 11% year-on-year .
Despite the increase in cost of some raw materials especially soya beans and milk powder, gross profit margin slightly improved to 48%.

9. listed and issue shares
Current Stock Price
Stock Code 0345.HK
Price HK$
Change (%) ( 0.565%)
Volume ,000

10. The Similar company Swire Pacific (太古股份有限公司) For example: Hi-C(drink)
Public limited company
Listed and issue shares

11. Internal Economies Of Scale
Internal economies of scale : output
average cost
Cheaper buying costs
It is often given discounts when it purchases raw materials in large quantities.

12. Higher degree of specialization
It splits the management jobs and employ specialists in different .The average cost is reduced.
Sell the product
Advertise

13. External Economies Of Scale
External economies of scale : expansion
average cost
Lower marketing costs
Vitasoy International Holdings LTD. saves the marketing cost of it in the region as it is famous.

14. Demand & Supply
Suppose that the government has carry out the minimum wage guarantee system. The cost of the Vitasoy soya beans milk became higher. + D

15. Suppose the Vitasoy's raw and semi finished materials’ cost increase and people buy another kind of drinks instead of soya beans milk. P S1 P1 P0 + - Q D1 Q1 Q0

16. ~THE END~