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Depends. A business can be focused on creating value for its shareholders and owners, or it can be focused on creating value for its employees and owners. If y
by simongr3dal 7y ago
Depends. A business can be focused on creating value for its shareholders and owners, or it can be focused on creating value for its employees and owners.
If you don't view the purpose of a business as needing to extract and funnel wealth upwards it doesn't need to come down to spending more vs spending less, spending more might even further the goal of the business if you view its purpose as creating jobs for people.
Essentially, it is possible to consider employees as an asset instead of a fungible commodity.
- sokoloff 7y ago> A business can be focused on creating value for its shareholders and owners, What is the difference between shareholder and owner here?
- lotsofpulp 7y agoIn a low margin commodity business, such as retail and grocery stores (that don’t cater to top 10% by wealth), it absolutely does come down to spending less. Proof is the success of Walmart, Amazon, Aldi, Costco, Dollar General etc. Customers don’t care about anything but buying goods at the lowest price.
- function_seven 7y agoThis is a great example of how cost cutting doesn't always mean rock bottom wages. Costco and Sam's Club are good comps. Yet they're way different when it comes to their workforce strategy: http://www.slate.com/articles/business/moneybox/2008/06/wage_against_the_machine.html http://www.slate.com/articles/business/moneybox/2008/06/wage...