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That's the strategy that makes a company more flexible to market shocks. If your revenue is tied up in new buildings, you can react to market shock by decreasin
by fixermark 8y ago
That's the strategy that makes a company more flexible to market shocks. If your revenue is tied up in new buildings, you can react to market shock by decreasing your growth rate. If your revenue is tied up in wages, you can't react to market shock by slashing your wage budget, for (obvious) psychological reasons that half-constructed warehouses are utterly immune to. ;)