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£984,000 for six bikes! Diseconomies of scale

Jim Riley

27th November 2009

Tesco mistakenly paid Universal Cycles, who are owned by Sports Direct, £984,000 for six bicycles when they were meant to pay £984. They are still to get their money back with sports direct holding on to more than £120,000. This is a great example of Tesco suffering from diseconomies of scale as they have now become so big that no one noticed almost a million pounds being paid for 6 bikes until 10 days too late!

Jim Riley

Jim co-founded tutor2u alongside his twin brother Geoff! Jim is a well-known Business writer and presenter as well as being one of the UK's leading educational technology entrepreneurs.

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