Just to recap on prof. Sugai's advice on creating value vs. profitablity. The article "Arrest Of China Tycoon Suggests Decline Of Crony Capitalism" shows how company or yourselves can run into trouble for focusing too much on profitability.
The story is quite nasty of how Huang Guangyu has created his wealth. Well, I have to admire his entrepreneurship but does profit really count when it comes to sustainable business? Giving a bribe maybe a good tactic and give you a hell lot of unfair competitive advantages. However, can you afford to bribe for the rest of your life? Who knows.
So, what I have learnt is that regardless how much profit you can generate for the company when it comes to long term success and sustainability your moral and appropriate business practice does count.
All the best years ahead ladies and gentlemen ^_^
3 comments:
The problem is the business environment (or eco system) where these companies or MNC`s operate. Have a look at this report to get an idea how different countries fare with regards to starting a new business. http://www.doingbusiness.org/documents/fullreport/2008/DB08_Starting_Business.pdf
In India there is no way you can start a new business without bribing all the layers of the hierarchy right from the door keeper to the senior most minister involved. The more bigger your company is the more power you wield. All the public cares about is not what you do in the mainstreet but how profitable you are in Wallstreet (In India its Dalal Street). If thats the level of difficulty to start a new business, tell me how hard will you work to sustain it ?? to what extent will you be willing to create value and at the same time deal with the corrupt system that exists ? Im not saying you should ignore your core vlaues... what I m saying is that... It is very difficult to sustain a business unless you have a conducive environment.
In China, given that its a communist country (though their economic policies are not so communist) it is a challenge to grow without the Government picking on you for obvious reasons. So these bribes are the lubricants to ensure the smooth functioniong of your Corporate growth machine. May be MA Xin can give us more insight...
Lets talk about USA now, Even in such a flourishing democracy... there are lobby groups which are working their way out to get an unfair advantage over others. Big MNC`s and their respective lobbyists have even legislated a few acts that gives them tax cuts for being rich!! I mean FILTHY RICH !
Bottom line - The World follows the `Golden Rule` and whats that... "Who has the Gold makes the Rules"
Maybe it's time to change the world...
Prof. - Yes We Can ! Yes We Will ! Our time for change has come and it is now...
PS: TQ Obama. I just love his campaign slogans and his speeches so much that I just cant stop quoting them in any given chance ;-)
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