EcoWash serves tourists while improving quality control; the case evidence includes average order value of ?6,030, sales of 720 units, and a 29% change in costs or demand. Recommend how the business should respond to Explain how growth can create diseconomies of scale through communication problems, coordination issues and reduced staff motivation.

Structure the judgement carefully. Apply economies of scale, diseconomies of scale to EcoWash serves tourists while improving quality control, then explain how the decision changes capacity utilisation, costs, revenue, cash flow, or stakeholder outcomes. A balanced response considers both the benefit and the risk for lenders, uses figures such as ?9,430 or 29%, and reaches a supported judgement based on the business objective.

Start with the business context. This explanation is anchored to Economies and diseconomies of scale and Expanding a business because it links the command word to scenario evidence, commercial reasoning, financial impact, and stakeholder consequences. It also separates internal and external finance, which helps the final judgement stay precise.