

Maybe Large Companies are Fundamentally Flawed - twampss
http://www.jacksonfish.com/blog/2008/03/24/maybe-large-companies-are-fundamentally-flawed/

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pchristensen
Good read, but misses the point that big (and especially public) companies
became big by optimizing for profit and revenue growth, and shareholder
returns. Employee and customer satisfaction are pursued only if they help
drive those two goals.

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ktheory
Companies exist in large part to avoid transaction costs of using several
autonomous market agents (the thesis of _The Nature of the Firm_
[http://www.cerna.ensmp.fr/Enseignement/CoursEcoIndus/Support...](http://www.cerna.ensmp.fr/Enseignement/CoursEcoIndus/SupportsdeCours/COASE.pdf)
by Ronald Coase, 1937)

Vertically integrated companies can avoid more transactions costs, making them
more valuable.

The author doesn't seem to appreciate why large, vertically integrated
companies are fundamentally valuable.

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hillel
Actually, I think that is the point. Big companies are not necessarily always
optimizing for employee and customer satisfaction. And frankly, with their
size, creating a sustainable healthy internal environment becomes more and
more difficult.

And although, as you say, the big guys don't always optimize around employee
and customer satisfaction can you name one that would admit that?

One other note: small companies need to focus on profit as well or they won't
have employees or customers for long.

