Management of Companies & Enterprises

Management of Companies & Enterprises

Brief Excerpt from Industry Overview Chapter:

Companies in this industry manage the operations of other companies or enterprises and may have an equity stake or controlling interest in the managed firm. Major companies include Berkshire Hathaway and Icahn Enterprises (both based in the US), Sweden's Investor AB, and Canada's Onex.

COMPETITIVE LANDSCAPE

Demand is driven by business activity and potential returns on investment. The profitability of individual firms depends on efficient operations and the ability to identify targets for investment. Large firms have advantages in access to capital. Small firms can compete by specializing in niche industries or geographies.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major services may include strategic or organizational planning and decision-making, as well as establishing and monitoring corporate governance efforts. However, some companies have minimal involvement in the day-to-day business activities of the company. For example, investment firms typically focus on tasks such as capital allocation and choosing chief executives for operating businesses. Majority of the sector's revenue comes from: trading securities and commodity contrast, which accounts for 50%; gains from non-financial-assets sold (10%); financial management consulting and implementation services (10%); and rental and leasing of non-residential space in buildings (10%). Other segments include bundled head-office services and franchising agreements.