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/biz/ - Business & Finance

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52411780 No.52411780 [Reply] [Original]

How do companies work? Like in basic economics, you think about market participants each trying to maximize their profits, and everyone acting in their own interest ends up maximizing total welfare, and that makes sense in a zoomed-out way, and as far as I can tell is not a crazy model of the behavior of companies. But how do companies end up behaving this way?

My very uninformed impression of how companies work is something like:
- there is a CEO, who is a guy
- there is a board, consisting of a bunch of guys who are friends with the CEO
- they all have fiduciary duties and if they fail to meet them they will get yelled at by a judge in Delaware
- ???
- shareholder value gets maximized

>> No.52412302

Who is this semen demon?

>> No.52412338

what you were taught about economics is how it should work but its not how it actually works anon.
everything is corrupt.

>> No.52412378
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vile twot

>> No.52412403

Imagine being mid-swing in the office demonic worship orgy and all of a sudden you make eye contact with this goddess.

>> No.52412411
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Its a pyramid, so everyone drop the work they need to do to a level lower.

CEO has goals he needs to meet to keep their shareholders happy (for exampel cutting costs), he passes the goals to the

directors who are usally resposible for one or more domain (for example IT needs to save 10% on their budget)

directors drop the responsibilities to the senior managers, who each have their own domain (for example infrastructure, where they need to reduce the cost by moving to the cloud)

senior manager usually have 3-5 teams and drop the goals to their team managers (team X you need to migratie application Y to the cloud)

team managers drop the goals to the wagies as personal goals (Als a projectmanager I expect you to deliver the cloud migration before Q1).

Funny thing is that how higher you go in the company how less they care about the actuall company. They care more about the bonus and how good it looks on their resume so they can jump to a better opportunity.

Usually 1 in the 20 wagies become a team manager, 1 in the 10 team managers become a senior manager, 1 in the 5 becomes a director, 1 in the 10 becomes a CEO.

So if you want to become a CEO by climbing the corporate ladder good luck you got 0,0025 % to make it. Propably lower since above teammanager it becomes networking and nepotism.

>> No.52412423

>shareholder value gets maximized

lol, lmao

C suite is given stock, or bonuses based on stock price, to try and align their behavior with shareholders. In practice the system is always gamed, e.g. stock buybacks to inflate stock price before bonuses are calculated, even when this doesn't add real value.

>> No.52412756


>> No.52412919

Newfags are unaware this is from Caroline's book reviews. Losers

>> No.52412979

Hands off wh*teboys she's designated BBC territory

>> No.52413141

wtf her goodreads is gone aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa

>> No.52413154


>> No.52413972

> there is a board, consisting of a bunch of guys who are friends with the CEO
They aren’t always friends. Sometimes there is a lot of infighting between the board and the ceo, and also groups will form within the board that want different things. When the board doesn’t like the CEO’s performance they will vote to remove him.

>they all have fiduciary duties and if they fail to meet them they will get yelled at by a judge in Delaware
Also not really true. If the company is playing by the law and assuming the government is not corrupt a company can lose money and not fill their fiduciary duties, it’s usually only when the company or ceo does something scummy and commits some kind of fraud that legal action is taken. Otherwise it’s the board and CEO’s duty to turn the company around or risk investors selling off their stocks for the company underperforming.

>> No.52414920
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>> No.52415547

>dude let's make Grimes our CEO
they deserve everything that happens

>> No.52415801

Is it twice as hard for a wagey to become a team manager than for a team manager to become a senior manager then?

>> No.52416303

read marx

>> No.52416367
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>I'm way more motivated by things like revenge, or the desire to prove that I was right, or making guys think I'm attractive, or getting nice articles written about me in the newspaper, or expensive perks.

>> No.52416413


>> No.52416503

she's obviously retarded. by that I mean she is fundamentally a woman (but seriously, she's retarded but not stupid).

>> No.52417239

Her posts are always 50% insightful and 50% pitiful cope about being an ugly woman. It's pretty amusing actually.

>> No.52417587

100% her problem. The higher she climbs on the social ladder the more competition she has.

Then again, even if she settled for less, she probably wouldn't get anywhere. Her personality dosen't seem any more beautiful than her looks.

>> No.52417688
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Yeah she's clearly overambitious and gets pumped and dumped repeatedly. Lol. Like her token.

>> No.52417764

>and everyone acting in their own interest ends up maximizing total welfare
He fell for it. Good thing the FTX CEOs were acting in their own interest to maximize total welfare!

>> No.52417816

preach brother

>> No.52417861


All I see in this thread is


It's a man.

>> No.52417870
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American companies literally only exist on paper, fake products being made, fake transactions being recorded

Literally every company does what FTX does and borrows against their fake valuation and throws around money until it can't anymore. The only difference between them and FTX is that the government bails them out anytime things get too bad because

t. worked as an auditor for 2 years
You have no idea what supermarkets get away with

America is 100x worse than whatever the soviet union was doing, the only reason America never collapsed but the soviet union did is literally only reserve currency and killing anyone who would threaten their fake fiat schemes

>> No.52417885

Cope. You will never be as naturally ugly as her.

>> No.52417941


>> No.52417979
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There were no "shares" in Alameda Research or the FTX exchange, anon. There WAS an unrequired token (as there is in all of these projects) that ironically got them in trouble. The fools treated it as an actual ASSET making them as dumb as /biz/.

>> No.52418014

>You have no idea what supermarkets get away with

Please tell

>> No.52418188
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Fun examples

>You ordered 200 cans of spaghetti
>"EH JUST PUT 500"

>"Hey buddy, here's $20 and a free lunch. Why don' you adjust dis numbuh ova here."

>"The evaluation for the store is 2 million"
>Completely empty shelves
>No inventory ordered

And my favorite
>"Just round it up"

And these aren't shit stores mind you
Morton Williams
Oh Fairway is the absolute worst

Supermarkets are the absolute niggers of corporations because
>heh try to call us out! We'll close and create a food desert! People gotta eat don' they?

They also get kickbacks for items
Hence why faggot cereal is always filled to the brim on shelves even if only 1% of people buy $6 dollar cereal

>> No.52418617
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>> No.52418643


>> No.52418850

1) What

>> No.52418915
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Can someone please explain this to me? How was she the domino in all of this?

>> No.52419252

She is autistic and attracted to men who take high risk but mathematically sound bets. SBF proceeds to take high risk bets.

>> No.52419388
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Read a book
I suggest this one
It's not a long read, and it's on z-lib if you're a poorfag

>> No.52420532

PSA for anons: z-lib is dead because of tiktokshitters
i think you can use tor though

>> No.52421314
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>> No.52422088

This is correct on structure, however you miss an extremely important fact that contributes to the massive amounts of corporate waste and inefficiency. Low level/frontline managers are hired usually based on performance and most times start as wagies. Upper management is beholden to corporate owners and are at constant threat of being fired if they underperform and thus have a fire under their ass to perform. The entire middle level of corporate management is rotten to the core however. These middle managers are hired not from frontline managers but from college grads and various grifters with degrees and have no care or consideration for performance. Middlemanagers move up, not by performance because no middle managers care about that, they move up through networking and favoritism. Basically the top level has it's head on straight and directs the company well or gets fired, the bottom is directly impacted by the performance of the unit they control, but the middle can just fuck around all day and create various infographics and crap that no one cares about. Often times plans to streamline management and get rid of bureaucratic waste just fall short because it's nearly impossible to rate the performance of a middle manager (and worse, a lot of times performance is measured by how nice the infographics they make are). Perhaps there is no good efficient way to streamline the management of massive corporations but basically middlelevel=midwit

>> No.52423330

Where did you get this new photo?