Some Mercantile Considerations …

Well, I happen to know a huge medium-sized company in our region. It has a modern logo and excellent  marketing. It is owned by the public authorities; the Bavarian Capital City also has a share.

It is considered very important for Bavaria that the enterprise delivers good value. With respect to the climate catastrophe, however, you have to grade it at least “questionable”.

The business is very sensitive and almost every kind of crisis has a detrimental effect on it. No matter if we are talking global economic recession, fear of epidemics, natural disasters of all kinds, higher prices for raw materials, or simply some employees of partner companies going on strike: everything will influence the result and growth of this enterprise to a more than proportional extend.

Results as shown on balance sheets of the enterprise cannot be clearly evaluated. They are still indebted and the debt may sometimes rise erratically after a balance correction. Relative to the capital, the profit is not satisfactory. Even though the enterprise grew quite impressively over the years, it constantly suffered backdrops – for instance last year.
In order to deliver, the enterprise has and needs two very expensive (and gigantically huge) “machines”. These are quite often used to capacity, but there are also times when more would be possible. Just once in a while, it gets a little “crowded”.

Other states of Germany are competition. The one in Hesse is more or less in the same situation. Now, however, they got their third “machine”. That annoys the Bavarian enterprise. They also want a third “machine“. There is quite some opposition and consequently there is plenty of dispute.

The NEW “machine“ would cost around a billion Euros and use up enormous resources. Today, not all people are far-sighted enough to esteem the high value of these resources, but the future might well tell a different story.

Taking a total turnover of 850 million Euros, one billion Euros is definitely a lot of money. Especially if you consider that the turnover will certainly not correlate with the investments, even though the investment will doubtless increase the competitive capacity.

If I were managing director, I would probably try to find alternatives. But this is not why I wrote this article. What I want is try and make a quiz of it:

What enterprise am I talking about and what is the expensive “machine“ that is so highly controversial?
Please send an email with your suggestions to  me.


(Translated by EG)

The first five correct replies will get a small present from me.

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