Why The Large , Non Founder Driven Corporation Is A Dinosaur

I did my time in the large corporate sector, over three decades after a few years in the reality of small manufacturing businesses.

With few exceptions, we have decoupled the energy and vision that grew them to huge heights to the committee run temporary placeholder CEOs who manage to the next quarter to the latest live in the woke bubble idiots who went to college after 1980.

Many of these companies are coasting on inertia of their brands and live in a false reality.

I assume someone at Goodyear knows the two best selling vehicles in the USA by far are the F150 and the Chevy Silverado pickup trucks.

One would assume someone would guess that they would consume the most tires and represent a large portion of Goodyears tire market.

How hard would it be to assume that the woke BS about BLM would be a really stupid move given that market fact?

Our institutions are being run by Fully Grown Children.

Feel free to use that phrase.

What do you do with someone at biological maturity without mental experience of adulthood? You keep them away from things of power and cocoon them from any decision authority.

We are going to need a whole lot of short school busses.

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Author: TKC 1101

Unintentional Man of Mystery. - Curmudgeon, Reserve Status - Heinlien American - Business Advice and Salvage - Proud Grandfather-

28 thoughts on “Why The Large , Non Founder Driven Corporation Is A Dinosaur”

  1. It’s all true: almost all (if not all) large companies are dinosaurs. And much like dinosaurs, they survive for a long time. Dinosaurs walked the Earth for a couple of orders of magnitude longer than humans have so far. The way things have been going lately, the dinosaurs’ record is probably secure.

    Much as we may hope and pray for their extinction, these BLM/Antifa lovin’ companies will still be here next year and the year after that. The names on the S&P 100 threw money at the leftist causes not because they were stupid (though they are) but because BLM is a protection racket. Ridicule these dinos all you like; they still constitute about half the value of all US equities: these companies are trading 5% above their pre-WuFlu peaks.The bigger they are, the higher they soar. Meanwhile, many small and medium-sized enterprises are going out of business.

    The globalist ruling class are not going to go gentle into that good night. They’re going to need a solid push.

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  2. drlorentz:
    It’s all true: almost all (if not all) large companies are dinosaurs.

    Your perspective is good, but at the end, the beasts were beaten by more adaptable ones better suited to handling catastrophic change.

    They are eating their seed corn and destroying their brand equity.  Losing touch with your market is the corporate equivalent of burning the grain silo. Their carcasses will be bought by non woke foreign firms their size or larger who still connect to reality.

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  3. TKC 1101:
    Your perspective is good, but at the end, the beasts were beaten by more adaptable ones better suited to handling catastrophic change.

    Sure, in the long run they’ll be gone. As Keynes observed, in the long run we are all dead. The dinosaurs had a 30- or 40-million-year run. Meanwhile, lots of small businesses are biting the dust today, not in the long run.

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  4. These companies can be run in the ground. They can have competition. The competition just has to have perseverance enough (and capital) to push forward. These large companies have “friends” in government to help keep the competition at bay.

    The BLM thing is a racket no different than the mob. “Nice business you’ve got here. Sure would hate for something to happen to it.” 

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  5. Civilizations fall because critical resources are redesignated fungible giggles as the corrupt and murderous vote themselves rich out of the  commonweal and the public exchequer.

    youtu.be/grXDKcsv7KA
    … Observe who destroys the unbounded suspension bridge.

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  6. TKC 1101:
    We are going to need a whole lot of short school buses.

    They will need to be full length if we are still only allowed one occupant in every other row to preserve Virus distancing.

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  7. This is the normal cycle of history.  Small businesses earn money by providing customers with something that is better, faster, cheaper.  Once the business becomes large enough, it finds there is more money to be made by paying off politicians & regulators to build barriers against the entry of competitors.   Eventually, the whole political/commercial edifice collapses because of the weight of overhead and inefficiency.  Analogous things have happened before;  it will happen again.

    As Lenin asked — What’s to be done?  My advice to young people who insist on going to university is (a) make sure your major is in one of the tough but useful disciplines, and (b) take a minor in Russian or Chinese, and work hard at it;  we can all see the way the wind is blowing.

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  8. 10 Centssays:
    #8 2020-08-26 at 21:24 UTC  [Quote]

    Raymond Solar:
    The asteroid is coming.  Be the small furry mammal.

    Any recommendations?

    Find something as anti-fragile as possible to produce as a good or service.  My deal is computer based art either in digital or print form.  Establish your own platform to advertise and spider on the web.  Find an independent bank (if possible) that will issue you a credit card to make only buys either through PayPal or another processing function, even if you have a dedicated payment system.  Partner with people who are related to your work who can provide support to what you do.  If you build furniture, maybe you know one or more finishers or refinishers who will work with you to provide that service for your goods at a discount, and maybe you can provide them with crafted furniture or repairs as payment or partial payment for their work.  Build a network of suppliers and customers as much out of the mainstream as in the mainstream.  Support the non-mainstream suppliers as much as you can afford to in order to have a reliable second channel if your main channel is cut off.

    Nothing new or spectacular, but if you don’t have your own platform, you are dependent upon people who may not be your friend or even just a neutral party in your endeavors.

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  9. Uncle Al:
    Civilizations fall because critical resources are redesignated fungible giggles as the corrupt and murderous vote themselves rich out of the  commonweal and the public exchequer.

    youtu.be/grXDKcsv7KA
    … Observe who destroys the unbounded suspension bridge.

    This is the biggest point I think. Many of these Dino-corps are severely intertwined with the US gov which has a printing press for money. Multiple earth killing asteroids could hit and they will still lumber on due to Uncle Sugar and his bevy of contracts.

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  10. Rent-seeking is the natural state of large corporations.  Government regulations and bureaucracy are the means to their ends.  Trump’s deregulation push is an existential threat to such parasites, which is why virtually all large corporations are pandering to the party of big government, with all its woke quirks.

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  11. Phil Turmel:
    Rent-seeking is the natural state of large corporations.  Government regulations and bureaucracy are the means to their ends.  Trump’s deregulation push is an existential threat to such parasites, which is why virtually all large corporations are pandering to the party of big government, with all its woke quirks.

    And of course the biggest rent-seekers of all are the banksters and financial interests, which is why you see many of these institutions donating heavily to the Dems. Recall, that many of the top ten donors of Obama were large investment banks like Goldman-Sachs. They thrive off of public debt and push for all policies that increase that debt.

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  12. Robert:  “… which is why you see many of these institutions donating heavily to the Dems.

    Remember the Old Days when Democrats decried the Republicans as the Party of the “Rich” and “Big Business”?  Lefties still make that claim, even though it is glaringly obvious that now the Rich and Big Business are the main funders of the Far Left.

    Big Business is in a sense apolitical.  The important thing is for them to be on the winning side, so that their bought-and-paid-for politicians can be relied upon to keep their businesses safe even while simultaneously bad-mouthing them.  It was natural for Big Business to migrate to the Democrats as it became increasingly clear that the US was heading towards a Democrat-controlled One Party State.  (Thank you, universal suffrage).

    But in the long run, reliance on politicians and regulators is a losing strategy.  Overhead and inefficiency builds up, and eventually the Mongols ride in.  See for example Mancur Olson’s book “The rise & decline of nations”.

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  13. Gavin Longmuir:
    But in the long run, reliance on politicians and regulators is a losing strategy.  Overhead and inefficiency builds up, and eventually the Mongols ride in.  See for example Mancur Olson’s book “The rise & decline of nations”.

    Sure, except that politicians and captains of industry don’t give a rat’s patootie about “the long run.” They’re in it for the short term. And it’s cold comfort for everyone else to hear about how they’ll get their comeuppance “in the long run.”

    We are no longer a culture in which old men plant trees in whose shade they know they shall never sit.

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  14. drlorentz:

    Gavin Longmuir:
    But in the long run, reliance on politicians and regulators is a losing strategy.  Overhead and inefficiency builds up, and eventually the Mongols ride in.  See for example Mancur Olson’s book “The rise & decline of nations”.

    Sure, except that politicians and captains of industry don’t give a rat’s patootie about “the long run.” They’re in it for the short term. And it’s cold comfort for everyone else to hear about how they’ll get their comeuppance “in the long run.”

    We are no longer a culture in which old men plant trees in whose shade they know they shall never sit.

    I’ll go a different direction. They don’t think it is that bad out there. They do not understand why we are so upset. Life is great in Vail, CO, The Hamptons, San Bernardino, Bethesda/Chevy Chase, MD. What are we rubes so GD pissed off about? That’s the reality. It’s just Fishtown vs Broadmore (or whatever C Murray called the elite town in Coming Apart).

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  15. I’m entrepreneurial by nature. Would Apple have been Apple without Steve Jobs or would Facebook without Mark Z have eclipsed Myspace?

    You must have the founder who is totally invested in his vision.

    Good post.

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  16. Robert A. McReynolds:
    I’ll go a different direction. They don’t think it is that bad out there. They do not understand why we are so upset.

    Depends on what you mean by “they.” If you mean the average low-information upper-middle-class suburbanite then sure, they don’t think it’s bad out there. But the topic of the post is (non-founder) CEOs of large enterprises. They know exactly what is going on. More than that, they are encouraging it because it serves their interests.

    Robert A. McReynolds:
    Vail, CO, The Hamptons, San Bernardino, Bethesda/Chevy Chase, MD.

    Most of the denizens of those towns are not CEOs of anything.

    Also, San Bernardino? Seriously?

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  17. drlorentz:
    But the topic of the post is (non-founder) CEOs of large enterprises. They know exactly what is going on.

    They do not! They have an inkling that business is bad but their first reaction is to cut payroll and inventory and nary a thought as to how to adapt to new environments. Remember that:

    The definition of insanity is to continue doing the same thing over and over and expecting a different result.

    Again, I’m digging some of my new stocks that are addressing new and pressing needs and making money for their shareholders. This is my hero:

    Eric S. Yuan is a Chinese-American billionaire businessman, and the CEO and founder of Zoom Video Communications, of which he owns 22%.

    Born1970 (age 50 years), Tai’an, China

    NationalityAmerican

    Net worthUS$11.2 billion (June 2020)

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  18. EThompson:

    drlorentz:
    But the topic of the post is (non-founder) CEOs of large enterprises. They know exactly what is going on.

    They do not! They have an inkling that business is bad but their first reaction is to cut payroll and inventory and nary a thought as to how to adapt to new environments. Remember that:

    The definition of insanity is to continue doing the same thing over and over and expecting a different result.

    Again, I’m digging some of my new stocks that are addressing new and pressing needs and making money for their shareholders. This is my hero:

    Eric S. Yuan is a Chinese-American billionaire businessman, and the CEO and founder of Zoom Video Communications, of which he owns 22%.

    Born1970 (age 50 years), Tai’an, China

    NationalityAmerican

    Net worthUS$11.2 billion (June 2020)

    Guaranteed, if I still had access to classified networks, I would discover that this Eric S. Yuan fellow has ties to Chinese intelligence/government. Here is a handy-dandy little tool that tracks the level of military/defense ties that Chinese universities have with the PLA/PLAN:

    https://unitracker.aspi.org.au/

    Mr. Yuan’s schools are ranked low, but they still have ties to Chinese military. I doubt this will give you pause, as you are making your 30 pieces, but I wanted to pass this along.

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  19. Sorry Robert, but “Guaranteed, if …” doesn’t cut it for me. Unless you want to give me some hard facts, I’ll continue to enjoy my 30, 60 and 90 pieces.

    You cannot ruin my day regardless; Zoom hit 301 today and I am one happy camper because I caught it in the nick of time.

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  20. Robert A. McReynolds:
    San B. Is the only Cali city I could think of that might even be in the same ballpark as the others. I probably should have said Sonoma Valley.

    No worries.

    Unfamiliarity with California geography is not a bad sign.

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