Tuesday, May 14, 2013
Howard & Jan Oringer Seminar
The Myth of Economies of Scale: The Vendor Business Model
Janet Campagna, Chief Executive Officer, QS Investors, LLC
Is bigger better?
When faced with the opportunity to spin-out of a 'big bank' asset management division, and form her own asset management boutique, CEO Janet Campagna had to consider what it takes to create a profitable enterprise. This case study takes you through her decision making process and illustrates the desired Cost/ Unit models needed to achieve the Sweet Spot of success. Identifying each functional area of the business, determining which core functions demand ownership and which functions normally associated with large-scale businesses can be outsourced to vendor resources are key to designing a new business model as well as ensuring a firm's ability to succeed.
Good news for entrepreneurs.