Resources and Bathtub Behavior
Overview
Resources have a special characteristic: They fill and drain over time, like water in a bathtub. This chapter explains this behavior, shows why it is so important, and also does the following:
- explains how to work out what the numbers do when resources fill and drain
- shows where management control lies
- outlines how managers can develop resources through time
Bathtubs Rule! Resources Fill and Drain
Since a firm’s performance at any time directly reflects the resources available, it is essential that we understand how these resources develop over time and how we can control the process.
Think about the regular customers using your restaurant. These people did not magically come into existence ...
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