3 ms·
Slight increase in capital cost, should show as slower expansion to foreign markets. Self destructive rise of burger price is unlikely, as McDonalds executives
by vlehto 11y ago
Slight increase in capital cost, should show as slower expansion to foreign markets. Self destructive rise of burger price is unlikely, as McDonalds executives are likely not idiots.
- Retric 11y agoAt first it's not a problem. However, any disruption is going to have a magnified impact without free access to capital. ex: A short term fad, supply chain issue etc. Further, economies of scale often cause local optima which don't exist for smaller companies. (Advertising, infrastructure, price) So, large but lean companies can easily hit downward spirals. That said, this is really an edge case. A more common cause is conglomerates selling off lines of business which are then less stable on their own.