Who here started a company to increase shareholder value?
My cofounders and I did.
A company that exists to fulfil someone's dream is a hobby. Occasionally you can make money from it, but very often not.
In contrast, by building what customers want (rather than what you dream of), you create customer value. In turn, the customers pay you and increase shareholder value.
As for whether all companies exist to increase shareholder value, clearly they do not. The Gates Foundation, any church, or the Committee to Elect Hillary Clinton are obvious counterexamples. I was discussing the companies who do have increasing shareholder value as their goal.
My cofounders and I did.
A company that exists to fulfil someone's dream is a hobby. Occasionally you can make money from it, but very often not.
In contrast, by building what customers want (rather than what you dream of), you create customer value. In turn, the customers pay you and increase shareholder value.
As for whether all companies exist to increase shareholder value, clearly they do not. The Gates Foundation, any church, or the Committee to Elect Hillary Clinton are obvious counterexamples. I was discussing the companies who do have increasing shareholder value as their goal.