Business Services Industry
OPINION: Add Value Through Higher Returns of Capital.
Knight Ridder/Tribune Business News, August, 2003
By A.T. Kearney, Bangkok Post, Thailand Knight Ridder/Tribune Business News
Aug. 14--Highly profitable growth sounds great, doesn't it? Certainly, most companies aim to deliver results along these lines. But the reality, of course, is much more difficult to achieve than it sounds.
For manufacturing-based companies, similar growth goals ring true. However, all too often, as companies gear up for growth, the overwhelming tendency is to make large investments in new capacity and related operational assets, such as new plants, factory machines, etc. Yet, when sales figures end up lower than anticipated, the companies end up with lots of excess operational capacity and higher costs for many years to come.
Many Asian countries, including...
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