murchr wrote:mukiha wrote:murchr wrote:Ondiek wrote:Political pronouncements aside - why does KQ always undertake retrenchment to bolster their performance?
KQ's Mission is to maximize in profit making, not to create employment. Notice, they are acquiring new planes 787 that consume less fuel, greater capacity and covering long distances.
Now read this:
www.kenya-airways.com/Ho...ways/Mission_and_Vision/ Muhika,
If you went to business school am sure you learnt that the single most important objective of a company is to make PROFIT and grow the share holder value, without that the company is non-existent. Read their vision, its very clear and note on the mission where they mention employees - its in maximizing their satisfaction. Simply said, KQ cant satisfy the bloated workforce and still continue to grow the shareholder value. And note the company in not in existence to employ people, its there to screw competition and make mula
Like most business people, I did NOT go business school. And if that is what they teach, then I'll say I'm luck that I didn't go!
The notion that "the single most important objective of a company is to make PROFIT" is a fallacy peddled by "employee-type" people.
The day that a business begins to see profit as its PRIMARY motive also marks the beginning of its downfall.
look around and you will see that people who go into a line of business for profit alone don't last there for long. The moment they see the first sign of trouble, they jump out and go to the next "most profitable thing".
Businesses that last [and thrive] are driven by something more than the profit: the desire to satisfy a certain need in the market. Profit only serves to sustain the growth.
It is interesting that, on a personal level, we have very many people who have been driven to certain careers by the prospects of making a lot of money.
Like Jesus Christ asked 2,000 years ago "What good will it be for a man if he gains the whole world, yet forfeits his soul? Or what can a man give in exchange for his soul?"
What good will it be if you earn the highest salary in the land, but lose the opportunity to be what you were meant to be?
The same question can be asked of a business.
Thus when KQ says that its mission is "To maximise shareholder
value..." the word value must be interpreted in a broad sense; not just in terms of profits. If it was profit that the framers of that mission had in mind, then they would have written "To maximise profits..."
But as it is; I have never seen a business that says its mission is to make the highest possible profit. Any business school teaching that has completely missed the point of business!
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.