Tuesday, December 30, 2008

The "Real" V/S the "Reel" - identity crisis



Investors – Gullible not Guilty
GM completed 100 years in 2007, companies mature and gain strength as they grow older unlike human who looses vigour and strength in old age. However, the current crisis at century old organisations like GM suggests that age brings in complacency of experience and dejection to innovate. GM’s Annual report for 2007, the year when they incurred around $38 billion loss, appears to reassure the ordinary investor that future is bright as the preamble title “GM planning for 100 years ahead”, however today GM is on a death-bed on ventilator just few months after (its market cap 10% of its value in 2007). But how does, the ordinary investor understand the real issues, how he can distinguish the real face of the leadership, as abovethe image displays, the one from the annual report of 2007 and the other I searched from net in which he is in pensive mood. That’s what the model-figure theory suggests, that the figures don’t speak the truth it’s just the mask over the real-information. Thus, the leadership at times act as a “model” for the organisation, but the real CEO is disturbed, might be market dynamics makes him to make-up.


Do I have a solution? yes and no. Yes, because I understand the problem, no because from centuries lot of economist, philosophers including Socrates tried but failed. However, I will definitely reiterate some of the aspects.

No comments: