Monday, January 19, 2015

AECOM and Diseconomies of Scale

What about a couple of issues to ponder in the age of the super-AE firms.  Several things could be happening that are interesting.  Companies, like a AECOM, are difficult to manage effectively.  When you see a company with many business lines - are we actually looking at CEO ego gain and shareholder wealth loss? True or false.  Or we actually live in a world of tremendous fixed costs to developing a good decision-making structure and CEO talent is scarce.  The CH2M-Hill's and AECOM's super managers or management super cultures can handle a 15th line of business more effectively than other managers can handle the first or fifth.  True or false.

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