Comment by FooBarBizBazz
2 years ago
Also called "brand harvesting".
(If you built the brand yourself and did this all intentionally, I think it could also simply be called "the long con".)
2 years ago
Also called "brand harvesting".
(If you built the brand yourself and did this all intentionally, I think it could also simply be called "the long con".)
"Exit scam," just on a longer timeline than usual.
How do companies not have a defense against this? It seems rampant. Is it just more visible for some reason?
Which companies? The ones who had quality and lost it? There's not a lot of defense against being purchased on the open market, as happened with Boeing. Or Simmons is another good example: https://www.nytimes.com/2009/10/05/business/economy/05simmon...
The real problem here is the US's dominant business culture, which tends to value short-term cash extraction over long-term value creation. There are a lot of practical incentives for that, but the culture problem itself will have a lot of inertia, so I think we're going to have to look for a generational change.
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It is a variation of the principal-agent problem [1].
It is extraordinarily hard to perfectly align the long term interests of shareholders and employees. It requires a level of oversight that most boards can't manage.
1. https://www.investopedia.com/terms/p/principal-agent-problem...