Investments and investment processes in professional service groups

• This article describes and analyses the size and character of investments, the investment criteria, and the investment processes in some professional service groups. The focus is on means of control used by the corporate level to influence the volume and direction of investments in groups of companies. Comparisons are made with standardized service and manufacturing groups. Professional service groups are of special interest because theirs is a growth industry; moreover many manufacturing groups have become more knowledge-intensive, and have adopted project-based structures similar to those found in professional service groups. The article shows that professional service groups invest just as heavily as do manufacturing firms, but concentrate their investments on training and the development of new knowledge. The principles of investment planning and control are the same as in manufacturing groups, but the means and the weight attached to them differ. Investment requests are initiated on the business unit level and major investment requests are channelled through the executive team system for approval. However, there is no system of defining, requesting and reviewing intangible investments. Rather, review is by projects and units. The focus is on market and social, not administrative, means of control.

Ämnesord

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Företagsekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Business Administration (hsv//eng)

Nyckelord

industriell ekonomi och organisation

Industrial Economics and Organisations

Publikations- och innehållstyp

ref (ämneskategori)

art (ämneskategori)