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!

@Rolldrunk Isn't the govt represented in the board by several directors ? Are you imagining that the mgt made the decision without consulting the board?

@MaichBlack and murchr
Murchr reducing 150 employee do not have to go to the board, infact a company like KQ could have a natural attrition upto 100 FTEs each year. Lets assume in this situation it went through the board, for your info the board always just rubberstamp what the management want, management run the company not the board.

And like you said, GK is abviously represented in the board, and no one is saying the GK board member did or did not object to reduction, infact we don't know their stand, RAO however, is a politician he has to be public to advance his cause. You might agree or disagree with him but atleast he made his stand known. I think as a Kenya citizen, I want to see my government and my leaders say something when we're faced with situations like these.

@Jamani, retrenchment is not affecting me in anyway, I have never earned as single shilling from any Kenya company in my entire life. I live outside the country and I have different point of view on how to approach some of these issues.

I think we need to talk about this it will assist those that are still in employment to have a plan B and while i empathize with the affected workers, I need to encourage my fellow country Wo(men) not to get in love with their employers always strive to own the ladder, ... and its only through serious discussions that people will learn, that companies have different objectives and employees are tools to achieve them nothing more, hence as one is still in active employment (s)he should put it in his/her head that the company might close tomorrow... remember castle breweries and the company that was competing with DSTV...

@admin,

why did you move the thread from the investor forum? Ama umedefect ukaingia TNA?

spoken like 10 men

Standard page 28, just saw a person I know there!!!!