Management Of A Company
In any companies, listed or unlisted, the CEO plays the biggest role in determining the revenues and earnings, while providing the priorities and vision necessary to deliver superior performance for years and years to come.
Two most important criterias in managing a company are innovation and marketing.
- Company needs to provide the best products / services to their customers. But customers' needs and wants can change over the years. Competitors can catch up with the quality of products / services. The company needs to innovate to keep up.
- No point having the best products / services if nobody know about them. The company needs to tell the whole world through their marketing strategy.
=> We want to invest in CEOs who are good at both innovation and marketing.
Getting to know the management is almost impossible for a typical investor. We have to rely on interviews (through Youtubes) and conference calls to make our judgements about the effectiveness of the person in charge.
I also like to invest in CEOs who have been through crisis and survive (Howard Schultz, Starbucks). I like to invest in CEOs who are also the founders of the companies (Howard Schultz, Starbucks & Larry Page, Alphabet & Jack Ma, Alibaba). I like CEOs who have vision about their companies 10 years ahead (Jack Ma, Alibaba).
These are some of the CEOs worth investing our money in them:
Bob Iger, Disney
- Bob has bought Pixar in 2006, then Marvel in 2009, and Lucasfilm (Star Wars) in 2012.
-> All these acquisitions create mulitplier effect from movies to toys to theme parks through their well known characters.
- Bob has spent 10 years planning and building Shanghai Disneyland.
-> This investment will not only tap the potential of China’s “rising middle class” but may also open other doors, possibly allowing it to sidestep China’s tight controls on foreign production of movies.
- Bob has bought Pixar in 2006, then Marvel in 2009, and Lucasfilm (Star Wars) in 2012.
-> All these acquisitions create mulitplier effect from movies to toys to theme parks through their well known characters.
- Bob has spent 10 years planning and building Shanghai Disneyland.
-> This investment will not only tap the potential of China’s “rising middle class” but may also open other doors, possibly allowing it to sidestep China’s tight controls on foreign production of movies.
Howard Schultz, Starbucks
- Howard retired from day to day management in 2000 and come back to the company in 2008 when the company faced with crisis. He had turned things around and has been smooth ever since.
- The company currently has 2,100 stores in China spread across 102 cities and is expanding rapidly in the region. It plans to open 500 new stores in the region in 2016.
-> Starbucks views China as its next growth opportunity and is looking at ways to exploit this potential to the fullest. The company wants to take advantage of the growing urban middle class in the region, with its increasing disposable income.
- Howard retired from day to day management in 2000 and come back to the company in 2008 when the company faced with crisis. He had turned things around and has been smooth ever since.
- The company currently has 2,100 stores in China spread across 102 cities and is expanding rapidly in the region. It plans to open 500 new stores in the region in 2016.
-> Starbucks views China as its next growth opportunity and is looking at ways to exploit this potential to the fullest. The company wants to take advantage of the growing urban middle class in the region, with its increasing disposable income.
Mark Parker, Nike
- Mark started his career at Nike as a shoe designer.
- Since taking over in 2006, Parker has overseen a more than doubling of Nike’s sales.
- He promised to boost Nike’s revenue by $20 billion—to $50 billion—by 2020.
- The company is famed for its ability to sell, but increasingly Nike is standing out in its commitment to technology, whether in design, in manufacturing, in marketing, and in retailing.
Extract from Get Rich Carefully by Jim Cramer
- Mark started his career at Nike as a shoe designer.
- Since taking over in 2006, Parker has overseen a more than doubling of Nike’s sales.
- He promised to boost Nike’s revenue by $20 billion—to $50 billion—by 2020.
- The company is famed for its ability to sell, but increasingly Nike is standing out in its commitment to technology, whether in design, in manufacturing, in marketing, and in retailing.
Extract from Get Rich Carefully by Jim Cramer
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