3 ms·

What's the alternative? If a company is essentially a zombie, what is the ideal outcome?

• vkou 4y ago
  Ideal outcome for who? The owners? The customers? The employees? The country? Competitors? My 401K? The creditors? Some of these stakeholders net-win when zombies die, and some of them net-lose. The economy isn't a zero-sum game, but particular categories of actions in it can produce net-negative outcomes for one of these groups. You can't just wave a large brush and say that everyone net-wins when this happens. It's a case-by-case thing. Eddie Lampert's corporate plundering of Sears is an example of just about everyone but him (Maybe including him? It's hard to tell) losing.
  • pfdietz 4y ago
    It's likely to be positive for all of those, even the employees. Who gains from the destruction of value? > stakeholders I hate this term. It's a deliberate attempt to blur the boundaries of who owns something and who does not. It's not shoplifting if I'm a stakeholder in this pack of cigarettes, right?
    • vkou 4y ago
      Our society isn't, and shouldn't solely be structured around prioritising the comfort of the people who own it above all others, despite how much they wish that it would.
• leaflets2 4y ago
  From what I'm reading, PE firms sometimes make zombies out of ok functioning companies, ... And sell the zombie, before others see what's happened (Eg fire too many employees to cut costs)