Growth is important but cost can make or break a company


I MISS my roti canai breakfast at Raju's. Big time. The breakfast menu in the dining hall has been unchanged since Day 1. The caterer must be operating on a small fixed cost in this business school. Since they charged astronomical school fees, the gross margin for this executive education course must be very lucrative. Education entrepreneurs... food for thought.

So on the 38th same-same food aroma day, I was having a breakfast chat with Ben, the COO of Alaskan Airlines. I showed him the Star ePaper report on MAS and AirAsia. He was amazed that the MAS trade union could influence our PM to intervene in a strictly commercial business issue. His dealings with his trade union nowadays revolves around the issue of keeping jobs and increasing productivity. With the American airline industry in shambles, their main concern is to stay afloat, conserve cash and no layoffs.

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