Measures the learner's ability to balance capital, fixed costs, control, risk, flexibility, growth potential, and mission when making LLE's capacity decision.

Capacity Strategy Judgment

Founder and CEO of LLE Construction Group. Lasenta built the company by staying lean, developing relationships, and using outside resources strategically. She is now deciding how much capacity LLE should own as it grows.

Finance and operations advisor to LLE. Marcus focuses on the economics of capacity decisions: fixed costs, cash requirements, utilization, and the risk of carrying resources when demand changes.

LLE operations leader who thinks about project delivery, scheduling, quality, staffing, and the practical consequences of owning versus accessing capacity.

Owner of a minority-owned subcontracting business that works within LLE's broader project ecosystem. Nia offers the supplier and mission perspective on capacity decisions.

More margin is always worth more fixed cost.

The company should compare the value of added control and margin with the capital, fixed-cost, utilization, and downside risk created.

Outsourcing is always cheaper than owning capacity.

LLE should own every trade it uses frequently.

<div class="bg-white text-gray-900 p-5 rounded-xl"><h2 class="text-xl font-semibold mb-3">Capacity Decision Brief</h2><div class="grid gap-4"><div><strong>A — Vertically integrate selected trades</strong><p>High capital requirement. Greater control, margin capture, scheduling reliability and internal capability, but higher fixed costs, management complexity and less flexibility.</p></div><div><strong>B — Remain lean and strengthen the subcontractor network</strong><p>Low capital requirement. Preserves flexibility and strongly aligns with Lasenta's mission, but leaves LLE dependent on outside availability and with less direct control.</p></div><div><strong>C — Scale through strategic partnerships</strong><p>Low to moderate capital requirement. Provides access to larger contracts, shared risk, knowledge transfer and credentials while preserving a lean structure. The main risks are dependence and slower development of internal capabilities.</p></div></div></div>

A case-fact comparison of the three capacity strategies.

Capacity Decision Brief

From our side, the subcontractor model matters. Reliable work, clear standards, and relationships with LLE help smaller firms grow. If LLE brings every capability inside, some of those opportunities could disappear. But if LLE grows through partnerships and a stronger network, there may be more work for the ecosystem too.

Capacity Strategy Review

A — Vertically integrate selected trades.

B — Remain lean and strengthen the subcontractor network.

C — Scale through strategic partnerships with larger firms.

A phased combination — use partnerships and a strong subcontractor network now, then selectively integrate only capabilities that become strategically important and financially justified.

Immediately buy equipment and hire a permanent specialty-trade team.

Identify two to three larger firms suitable for teaming agreements and establish criteria for when LLE should partner versus pursue a project independently.

Stop using subcontractors so LLE can build internal capabilities immediately.

Wait until LLE has more capital before taking any capacity action.

Defend the recommendation using evidence from the case. A sophisticated response may distinguish between the capacity LLE should access now and the capabilities it may eventually choose to own.

Thank you. The important question was never simply whether LLE should own more. It was whether ownership creates enough strategic value to justify the capital, fixed costs, and reduced flexibility. If we can grow through relationships while strengthening the capabilities that truly matter, we can build a bigger company without losing what made LLE resilient in the first place.

A 15–30 minute strategic operations simulation in which learners advise Lasenta Lewis-Ellis on how LLE Construction Group should build capacity for its next stage of growth while protecting profitability, flexibility, and its mission.

BREAKING BARRIERS - The Capacity Decision - Part 2

What’s included

Overview

Players tasks

Learning objectives

About the authors

Who is this for?

How to run a LiveCase and what it is, in one

The participant experience

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