1.

Brio is a soft drinks manufacturer based in São Paulo, Brazil. It was founded in 1998 and now operates four factories, employing 12,000 workers. As Brio has grown, it has benefited from purchasing economies of scale, buying ingredients such as sugar and flavourings at significantly lower prices than smaller rivals.

However, in recent years Brio has also experienced diseconomies of scale. Communication between its head office and its four factories has become slower, and some factory managers have reported that workers feel poorly motivated and disconnected from the business.