A Quote by Peter Senge

A well-managed business will have a high return on invested capital. But that's a consequence. It's not a way to manage a business. — © Peter Senge
A well-managed business will have a high return on invested capital. But that's a consequence. It's not a way to manage a business.
Buying a share of a good business is better than buying a share of a bad business. One way to do this is to purchase a business that can invest its own money at high rates of return rather than purchasing a business that can only invest at lower ones. In other words, businesses that earn a high return on capital are better than businesses that earn a low return on capital.
Over the long term, it's hard for a stock to earn a much better return that the business which underlies it earns. If the business earns six percent on capital over forty years and you hold it for that forty years, you're not going to make much different than a six percent return - even if you originally buy it at a huge discount. Conversely, if a business earns eighteen percent on capital over twenty or thirty years, even if you pay an expensive looking price, you'll end up with one hell of a result.
If you manage things properly - and, listen, I'm a business guy. I've got to prioritize spending in all my business career to prevent my business from going bankrupt. The federal government has got to start doing that eventually as well.
People will be discovering that the Internet helps their career. One of my theses is that every individual is now a small business; how you manage your own personal career is the exact way you manage a small business. Your brand matters. That is how LinkedIn operates.
The purpose of finance is to enable business to acquire the ownership of capital instruments before it has saved the funds to buy and pay for them. The logic used by business in investing is things that will pay for themselves is not today available to the 95% born without capital. Most of us owe instead of own. And the less the economy needs our labor, the less able we are to "save" our way to capital ownership.
Politeness and civility are the best capital ever invested in business.
The ideal business is one that earns very high returns on capital and that keeps using lots of capital at those high returns. That becomes a compounding machine.
I started out as a business manager for a national hotel chain based in Oklahoma. I got frustrated with what was happening in the state capital - the high cost of doing business and a lack of educated workers.
If you have a strong business idea, then it is comparatively easy now to get capital. It is a positive thing that increasingly more people want to join the startup bandwagon. However, to build a successful business, focus on creating more value through the product, and direct your efforts on solving real issues. If you manage to build a sustainable product, revenue will follow. A lot of startups fail because they concentrate on incremental innovations, increasing user base, and monetisation before strengthening the core of their business.
In any business opportunity, you'd be looking, probably, primarily at the risk and return. Some business can be very risky with a low return; what you want is the lowest risk with the biggest return.
To see how much a company is truly earning on the capital it deploys in its businesses, look beyond EPS to Return on Invested Capital (ROIC).
If America is to compete effectively in world markets, its corporate leaders must strategically position their companies in the right businesses, and then manage their workforces in the right ways. However, the nation has a shortage of business leaders who understand the importance of utilizing human capital to gain competitive advantage, let alone the know-how to do so. In the future, that shortcoming promises to be exacerbated because few business schools today teach aspiring executives how to create the kind of high-involvement organizations.
In the end, alchemy, whether it is metallurgical or financial, fails. A base business can not be transformed into a golden business by tricks of accounting or capital structure. The man claiming to be a financial alchemist may become rich. But gullible investors rather than business achievements will usually be the source of his wealth.
You can't manage [country] the way you would manage a family business.
The business of America is business, but it's about high-integrity business. It's about a business where you keep your word, where you make square deals.
Here's another way of putting it. Roosevelt wants recovery to start at the bottom. In other words, by a system of high taxes, he wants business to help the little fellow to get started and get some work, and then pay business back by buying things when he's at work. Business says, 'Let everybody alone. Let business alone, and quit monkeying with us, and we'll get everything going for you, and if we prosper, naturally the worker will prosper.'
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