A lack of scale means Bag’s cost per unit of output is very high. Increasing volume, while maintain quality, would help reduce those costs… … "Lack of Scale (Bag)" will have a long-term negative impact on this entity, which subtracts from the entity's value. This statement will lead to a decrease in profits. "Lack of Scale (Bag)" is a difficult qualitative factor to overcome, so the investment will have to spend a lot of time trying to overcome this issue.