Unfortunately, most of the companies I have worked for and/or consulted at continue to struggle because they do not value the customer. They only value short term thinking. They are only allowed to survive by collaborating with elected officials. The goal of business cannot be to enrich the shareholder that is a motive that can only be met by creating something that pleases consumers. We must get to the point where the consumer controls who survives in the market as Mises wrote: "The direction of all economic affairs is in the market society a task of the entrepreneurs. Theirs is the control of production. They are at the helm and steer the ship. A superficial observer would believe that they are supreme. But they are not. They are bound to obey unconditionally the captain’s orders. The captain is the consumer. Neither the entrepreneurs nor the farmers nor the capitalists determine what has to be produced. The consumers do that. If a businessman does not strictly obey the orders of the public as they are conveyed to him by the structure of market prices, he suffers losses, he goes bankrupt, and is thus removed from his eminent position at the helm. Other men who did better in satisfying the demand of the consumers replace him." Ludwig von Mises (2011-08-22T12:46:07+00:00). Mises 0068 (Kindle Locations 5286-5291). Kindle Edition.
Posted on: Mon, 22 Jul 2013 20:21:19 +0000