State Corporations (White Giant)

I would like to model my economy entirely on state corporations with no enterprise influence whatsoever.

How can I create the most profitable situation using only state corporations?

The main advantage provided by state corporation is that I maintain full control over my corporations. How can I use this properly?

Build the more profitable corporation types. Skip the ones that aren't as good. Not all corporations are equal in this game.

Personally though, I'd say to start your own enterprise and IPO the state corporations over. You need an enterprise anyway to level, so it's not like the extra 1 GC/day cost is going to kill you. You'll still maintain full control, and get all of the benefits of private corporations too. It takes some effort to get the corporations IPO-ready and sell the shares over but it's much easier now than it once was.

Haha, I just remember the reason to invite CEOs rather than build State Corporations has little to do with profits.

You can also look at Petra's countries to see how she does it.

Haha, yes... see how my LU countries have tanked with the oil market :P

But nevertheless you can get the concept from that, or you can look at my FB main.

LU is a bit of a grand experiment for me. I'm seeing what chunk of the entire market I can corner in a major commodity and what leverage that will gain me. But on to the point of this thread: the best way to set up a state corporation... or any corporation... is to manually contract the supplies in order to average the quality of low-cost supplies with the quality of high-cost ones at a favorable margin, thus significantly boosting the profitability of your corps.

This strategy brings most state corps to parity with CEO ones, and for quite a few it will let them outstrip CEO corps.

Of course, the flipside is you can also IPO said state corps over to your CEO and enact the strategy there. This allows you to crank up your CEO salaries to increase the resources paid to your country. The same way your state corps saving money increases profit for the country, the savings will allow your CEOs to run higher-then-normal salaries, thus earning you higher-than-normal resources paid. While I don't believe Tendo Ryu utilizes supply averaging on his GR main, you can see the concept of the high-salary CEO approach there.

On FB, I am in a transition of sorts, taking my contracted corps private. I'm presently hampered by a CEO over 750 corps which unfortunately creates some supply issues for me, and I don't feel like spending the coins to open a new one :P

Is the final quality an average of volume or an average of value?

For example: Will something that uses 1000 units of $500/200Q supplies and 500 units of $1000/100Q yield 166Q or 150Q final product? (Obviously not taking Quality upgrades into consideration.)

Considering that I will probably want to develop some military skills, my countries will probably be at war sometime... therefore, I'll only be doing this in my secured main so that I don't have to worry about garrisoning the corps.

The formula weights the quality against the volume used, not the value.

Suppose you use 200 units of product X at 100 quality, and 100 units of product Y at 250 quality. The average quality of supplies will be 150.

(Px*Q + Py*Q)/(Px+Py)
(200*100 + 100*250)/(200+100)
(20000 + 25000)/(300)
45000/300 = 150 average quality


In other words, products you use many units of will weigh heavier then products you use few units of. You will want to find corps that use large volumes of cheap products and small volumes of expensive products. Good examples of the latter supplies are FMUs and Electric, the cost of which can almost always be cut out of a corp because their volume is often relatively low compared to other supplies.

The above isn't my best explanation, but you should get it alright.

EDIT:

The guide I wrote, "WildEyes's Leaving Guide to Everything" which can be found in the General forum has a whole section on this stuff.