Quote:
|
Originally Posted by Brucelee
"I don't think we disagree. Part of the problem is the Public ownership of companies today. Boardrooms are forced into short-term thinking and results (think quarterly) and lack the stalward longterm vision which once made many of them great to begin with."
Frankly, this statement is a bit of nonsense. You are indicting a financing/ownership model because you disagree with Porsche's current product strategy. You are also assuming Porsche WAS a great company and will not be in the future.
Big assumptions!
How would you propose to own and finance car companies? See many private or government owned car companies out there?
I admire BMW's product line and stategy. Public company. Proves nothing of course.
The fact is, Porsche has been very successful and in the pst, not so. I don't think you can indict the ownership structure, simply the management who creates the strategy, a strategy BTW that has not FAILED, yet!
|
Hi,
Assumptions if you like. But, Corporations, especially Car manufacturers in the past have often been driven by great vision. I believe (IMHO) Public Ownership, while great in many respects, also has the downside of creating near-sightedness on the Board and Managers. As an example, look at how many executive perks are based upon short-term rather than long-term goals. How R&D has shrunk because unless there's a direct link today to the closing price and earnings, budgets are pared.
Again, in the Car biz, look at Porshe's successes, and there were many, plot them against the timeline where Ferdi was driving the bus and you'll find a corrolation. Same with Ford. Old Henry took a bath the 2 years after raising the pay to $5, he expected and accepted it. But, the 10 years beyond exceeded his expectations as his own employees were able to become customers as well. A CEO trying these things today would be ********************canned after the 1st annual report or as soon as some institution dumped it's block of stock. If this didn't actually happen, the mere possibility of it can limit the risk that these managers (perhaps not even significant owners) are willing to take. Yes, it's the managers who decide the strategy, but they do so within the structure which exists and this can often be risk averse, so the status quo leads to self-preservation.
Will Porsche fail?? Inevitably, the question is when and how. That of course is speculation, and open to opinion, especially when on the outside looking in...
Happy Motoring!... Jim'99
Threaded Mode
