Comment by yobbo

> bureaucracy and stagnation while the same staff ends up flourishing and producing top notch tech when under a US company like Apple

Apple orders a widget from them which can be sold in an established product with existing customers. The magic was creating the Apple brand and iPhone product.

I think the problem with old European "conglomerates" is that no one has the mandate/legitimacy to make a multi-year/decade tech investment equivalent to the iphone. "Decision makers" are likely to have been promoted from other professions than engineering/products, and people promoted through management/sales lack competence and legitimacy. Their job is to apply old and approved templates for decision-making, while paying dues and respect to appropriate people.

It fails when templates for decision-making don't exist. Spin-offs or acquisitions based on new tech, rather than existing products/markets, can't work with this type of management.

I have also gotten the sense that management positions are given as rewards for "long and loyal service". It is effectively an incentives program, with the implicit assumption that management decisions don't really matter. This is not far from the the truth in old industrial companies with few but huge returning "captive" customers, which is typical in Europe eg Siemens, or high value luxury brands in fashion/jewellery/liquor/etc.

The meaning of the word "verwaltung" is different from the American "management". Verwaltung implies "preservation of stability" whereas "business management" implies something like "figure out how to sell more stuff".