If you have attended a Finance or MBA program, you would have learned that the objective of a company is to maximize shareholders value. According to Jack Welch, former CEO of GE, this dumbest idea in the world.
James Montier made his case against shareholder value maximization when delivering the closing keynote address at the 2014 European Investment Conference in London.
Peter Drucker is right. The purpose of a company is to create customers. Profit is the by product of achieving the company's objective. Profit is a necessity but not the purpose.
Listen to Montier's presentation (starts at 5.30).
Business, economy, education and current issues. Providing tips, tricks and tools in managing business.