Hungarian-owned road haulage company Waberer's has reached the limit of advantage of economy of scale and is splitting its business into smaller companies that compete with each other, business daily Világgazdaság reported on Monday.
Waberer's International was divided into 17 independent cost centres at the beginning of 2010 and six companies have been established -- either with Waberer's staff or business partners -- since July to operate them. The managing directors get a 15-20 pc stake in the companies they run at the start but can acquire more shares later on.
“Nobody wants to be last. Thus an employed manager works differently in such competition than an owner. The latter never checks to see when the work day is done,” Waberer's CEO György Waberer told the paper.
Waberer's turnover has dropped just 7pc because of the crisis, well under the 20-25 pc declines at many competitors in Western Europe. At the same time, the share of Waberer's business from deliveries outside of Hungary has grown to 65 pc from 35 pc.
Waberer's had consolidated revenue of HUF 90.3bn in 2009, down from HUF 99.0bn in 2008. (MTI – Econews)