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When it comes to paying top executives, companies love to tie compensation to metrics like revenue growth and market share expansion. After all, these are clear indicators of a company’s size and reach. But while capturing market share can tell a story of growth, they’re not always the best measure of financial health. For example, Uber failed to return a profit for many years, finally turning profitable $1.887 billion in 2023, first…
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Let me get this right: Grainger’s “pricing action” was to lower prices. The result was higher volumes and lower gross profits. The aim was a clear market share take. And CEO Donald Macpherson is happy with the result?
Read MoreCan both product managers and salespeople have their incentives and key performance indicators aligned to the corporate goal: profits? Yes. They can…
Read MoreMarket share is not intrinsically valuable. In the world of business, good profit dollars are what has intrinsic value. Profit dollars, earned by serving customers, are the existential purpose of a firm. Anything else is merely instrumental.
Read MoreSince programming is the coin of the realm for the cable networks, an annual expenditure of $60 million is chump change when compared with the basic subscription revenue stream as well as lucrative secondary and merchandising market streams of income.
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