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"why do so many companies feel like they have to grow perpetually?" -> Capitalism - growth, year over year, leads to higher stock price (market valuation) which
by riteshkpr 10y ago
"why do so many companies feel like they have to grow perpetually?"
-> Capitalism - growth, year over year, leads to higher stock price (market valuation) which in turn justifies higher payouts to ceo's, bonuses to employees... as growth == innovation
If you din't keep growing and managed to keep the business profitable (hit the ceiling), then you weren't 'innovating' and should be replaced ...
... that's the mindset. I don't agree with it.
- traskjd 10y agoYou need some growth, even if just to battle inflation. Inflation is nibbling away at the value constantly.
- inimino 10y agoKeeping up with inflation isn't growth.
- windowsworkstoo 10y agoYou knew exactly what was meant but just in case - you still need nominal growth to avoid negative real growth
- traskjd 10y agoThanks, and yes that's what I meant :-)
- cookiecaper 10y agoYeah, it's a symptom of the way that companies are valued on the open market. No one can be content with well enough as long as our pricing and ownership models work the way they work.