Scale organizations focus primarily on the processing of large numbers of simple transactions as efficiently as possible. Their position in the marketplace is based mainly on their ability to offer a highly competitive price and they generate profits from their ability to execute the required transactions as cheaply as anyone else in the marketplace.
To achieve and maintain a minimum cost position organizations will aim to maximize volumes in order to benefit from both economies of scale in their own operations and to provide leverage on suppliers further back in the value chain.
To ensure that transactions are processed as efficiently as possible the organization will design operational processes in detail and implement them as consistently as possible. They will also attempt too attenuate (by advertising, positioning, pricing policy and terms of trade) the variety in the demand presented by customers, and will decline business that falls outside of their standard operating model.
Mass production manufacturing, Supermarkets, Retail Banking and Insurance typify this business strategy.