There's a lot to be learned from Electrocomponents (Where Now Cash Cow? p46). First, that it is possible to build a substantial quoted company without ever calling on shareholders for more capital. Second, that spectacular operating margins can be achieved by providing a simple service superbly. Third, that a high profile and a charismatic leader are not necessary in order to secure the respect of peers and the stock market. The fourth lesson is one which Electrocomponents knows only too well. Overwhelming strength in your core business increases the pressure on management to break into new markets. But it doesn't make the task any easier.
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