SMR FORUM: ASSET PARSIMONY - MANAGING ASSETS TO MANAGE PROFITS.

Donald C. Hambrick, Ian C. MacMillan

Research output: Contribution to journalArticlepeer-review

20 Scopus citations

Abstract

In this paper, the advice of the popular press for businesses to replace their assets with the most modern, large-scale equipment available is challenged. It is argued that companies should first consider the risks associated with large investments; that is, will the investments ever be recovered? In making such a consideration, the view is expressed that managers should be aware of the need for the so-called asset parsimony, namely, skill at deploying the minimum assets needed to achieve the desired business results.

Original languageEnglish (US)
Pages (from-to)67-74
Number of pages8
JournalSloan Management Review
Volume25
Issue number2
StatePublished - Jan 1 1984

All Science Journal Classification (ASJC) codes

  • Medicine(all)

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