But the companies also build intangible assets. M values are assigned to these too. In real life, the value of knowledge-intensive companies is based at least as much on talent as on tangibles. It's a fiendish game. Customers defect for similar reasons.
Projects run into snags of unforeseeable difficulty.
Solving them is expensive but enhances competence and image. Nastiest of all and most real, resources aren't unlimited. At the same time, if you don't invest in intangibles, you can't win the most lucrative customers, who tend to demand the most skill. The Alpha team was juggling the tradeoffs when I joined them. The year went on, and so did the cash crunch as Alpha juggled staff, projects, and cash.