Some food for thought for Monday, from Greg Hackett, Goodyear executive professor at the Kent State University business school.
“A study of the profits of 3,200 of the largest companies trading publicly on the U.S. stock exchange between 1960 and 2004 has revealed a third go out of business and a third are acquired on average 23 years into their existence.”
Companies on Hackett’s ‘danger’ list include mammoth companies:
It left me wondering about the inevitability of business and how even the biggest companies will fall, the pace accelerated by a global marketplace. How will Korean chaebols cope within this market reality? And if the giants fall, where are the new companies coming from? Is Korea Inc. prepared? Should Korea be encouraging more entrepreneurship?
I look forward to seeing new Korean heavyweight companies emerge.