
by Hans. D. Baumann, Ph.D.
|
Ever wonder why large corporations become less profitable; or, why old established companies such as General Motors and Delta Airlines seem to go out of business? There are underlying reasons typically not addressed in the newspapers and by stock market analysts. You will find these and other answers in the book subtitled, "How to Keep Companies Profitable as They Grow". Here are some other questions, you might ponder, affecting perhaps your investment strategies:
You will find, perhaps surprising, answers to these and other questions, given in a plain and sometimes humorous manner by a highly successful entrepreneur, a former corporate officer, and university lecturer. |
|
About The Author
|
|
What Others Are Saying About The Book "When it comes to Corporations, the common view is; 'The bigger the better'. This is true to a point as Baumann points out in his recent book; 'Building Lean Companies - How to Keep Companies Profitable as They Grow'. In this book he dissects the performance of scores of companies where he discovered that, aside from highly capital intensive firms (requiring little manpower), profit margins generally decrease when a firm exceeds a certain size. This seems to occur when a company employs more than five thousand people. This happens despite the beneficial effects of the 'economy of scale'. Baumann claims that these beneficial effects are ultimately overshadowed by a relentless increase in overhead and too many reporting layers. It may well be that his view point will be disputed by other management experts or, at least by Wall Street. Yet, this well written and at times witty commentary should be read providing a sobering and thought provoking point of view based on the author’s fifty years of management experience in industry. The book even provides equations to predict the typical margin decrease and number of reporting layers as function of a company’s increase in size. The author may overstate his case since such comparisons certainly vary with type of company, the business environment, and the effects of inflation. Nevertheless, his statistical evidence is compelling." - J. W. Friedman |
|
Available in Paperback for the publisher's price of $14.95 The book is also available from major book dealers such as Copyright © 2009 - H. D. Baumann - All Rights Reserved Page Hits: 1573 |