As I posted before, just pure maximizing profit is way of the past. Even L/T it might not work. Optimizing profit is only one aspect. Maximizing shareholder's value is the name of the game.
Look at companies which try to maximize profit at any cost: Nike with child labor, another US company with prison labor, Burlington coat tried to minimize cost buy going to China without truely considering the ramifications, they got dog furs whcih have to be recall.
L/T; maximizing shareholders value? Market share, brand recognition, establishing infrastructures for the business, all of these to make it attractive in selling the company. May the company has no profit, but will reap rewards to sharholders. To me it makes no different if the name of the CEO is Jerry Kaplan or Jerry Yang, I am investing in a company where the share price goes up. Otherwise, I will put my money in Ford or GM. They maximize profit, but look where the stock is. |
