How Much Is Enough?
James A. Ogilvy, author of Creating Better Futures: Scenario Planning as a Tool for a Better Tomorrow, introduces a passage on the limits of executive compensation from Conscious Capitalism: Liberating the Heroic Spirit of Business, by John Mackey and Raj Sisodia.
Content: Article | Authors: John Mackey, Rajendra Sisodia | Source: “strategy+business” | Subjects: Corporate Governance, Human Resources
John Mackey and Raj Sisodia
In setting compensation, companies consider internal equity (where the compensation system is perceived internally to be fair) and external equity (where the compensation for any particular position is competitive with the external market). Most companies focus primarily on external equity when it comes to executive pay. If they find that a competitor is paying its CEO or chief financial officer a certain amount, they … [ Read more ]
Content: Quotation | Authors: John Mackey, Rajendra Sisodia | Source: “strategy+business” | Subjects: Compensation, Corporate Governance, Human Resources
John Mackey and Raj Sisodia
At some point, people have enough money to have financial security, live a comfortable, adventuresome lifestyle, and fulfill most of their aspirations in life. It is a mark of emotional and spiritual maturity to be able to say, “I have enough.” Past a certain point, it is not healthy to want more; actually, it is a kind of sickness.
Content: Quotation | Authors: John Mackey, Rajendra Sisodia | Source: “strategy+business” | Subjects: Ambition, Career, Motivation
Competitive markets and The Rule of Three
The “Big Three” no longer have the automobile market to themselves, but almost every market, including the one for cars, is ruled by three dominant firms. That reality does not prevent other firms from being successful. However, all firms, regardless of their market share, must still understand The Rule of Three and how it will affect their strategy and attempt to operate efficiently.
Content: Article | Authors: Jagdish Sheth, Rajendra Sisodia | Source: “Ivey Business Journal” | Subjects: Economics, Strategy
Why Good Companies Fail
It’s not just weak organisations that spiral into decline and fail. Managerial arrogance and inflexibility can bring even great companies to their knees.
Content: Article | Authors: Jagdish Sheth, Rajendra Sisodia | Source: “European Business Forum (EBF)” | Subjects: Strategy, Trends / Analysis
The ‘Rule of Three’ in Europe
Jagdish Sheth and Rajendra Sisodia say their research demonstrates that in mature, competitive markets there is only space for three large volume-driven companies alongside several niche specialists.
Key messages:
– Efficient markets eventually get organised into two kinds of competitors: full-line generalists and product/market specialists.
– Generalists are large scale companies, which compete across a range of products and markets, and are volume-driven. Specialists operate … [ Read more ]
Content: Article | Authors: Jagdish Sheth, Rajendra Sisodia | Source: “European Business Forum (EBF)” | Subjects: Economics, General