Once again Zac is full of bull.Stock prices can be manipulated to produce short term increases in stock prices.Grow the company with revenue insread of slashing cost [jobs] and the stock price will take care of itself.Thats the problem with to many companies today they try to please Wall Street which is a fools errand.

I understand what Jack Welch is saying perfectly. My first economics class we discussed companies, now all defunct .. that made, "the best little wood stove in the world.", "the finest wagon wheels known to man.", "High -Fi's", Victorolas, Brownie Starflash cameras, Shoes with buttons. Later dates, Poloriod Cameras, Commodore Computors, Transistor Radios, etc. All gone, obsolete, if this aspect of business gets behind the curve, all other aspects will ultimately fail.

@sonnype
"His main point was that increasing the stock price in the short-term is not a valid goal, and that short-term market prices must be subjugated to long-term value. I agree with him 100% on that."

It looks like you misinterpreted/didn't actually read the post. Zac isn't talking about short-term increases in stock prices.

I agree that Zac is full of it. Companies are created to service customers. Of course they should be profitable, but they should not focus on profit as a strategy. Delivering Value to your customers is a strategy. Profit is a requirement. Shareholder Value is a result. If you are not focused on your customers and their changing requirements, your employees and keeping them happy, and your products to keep them refreshed; then you will not need to worry about having owners as they will all lose their money.

Wow, really? Welch's comments echo a sentiment I've held for some time. You even say you agree with his main point.

If you want to examine "product as constituency", let's look at the auto industry. Keeping a product competitive requires diligent effort from several different quarters. And it requires discipline and respect for the product. When those fall away, when corners get cut, the product...and its resulting sales...suffer.

Look at the longstanding success of the BMW 3-Series, the Honda Accord, the Lexus RX, the Mazda Miata.

Now compare those to the latest iteration of the Chrysler Sebring. Or the random vagaries of GM's passenger car lineup over the last decade.

You HAVE to do well by your products if you want them to be successful, especially over the long term. GM is failing because of its legacy costs. It's failing because of decades of NOT treating its products as constituents, but rather as so many balance sheet exercises.

Jack Welch u need to have some of your incentives reduced. GE was great now the company has fallen below the safe measure. What I loved about GE was that it was such a great diversifed company.

All divisions need to have their income reduced. I am especially upset with Jeff Zucker with Jay Leno and O"Brien. Why is O'Brien needed. There are too many great shows on at 10 PM on other channels. I love Jay but will miss his time slot unless there are reruns on my favorite shows on channel 2 mostly.

I have to agree with Welch here. shareholder profit or any owner's profit for that matter comes from producing products that will sell and sell well, treating employees well so they work effectively and efficiently, and providing customer service in order to retain customers. You do those well, then you make a profit which really is a byproduct. that's how you build strong companies. if you focus on shareholder value, then you are focusing outside of your business model. your business isn't shareholder value, it is to make widget x or provide service y.

Jack ran the company for many years, and is sitting on millions...and he's a big fat idiot?
What are Zac's achievements, and what size is his nest egg?
Anyone can disagree with someone else's take on any subject, but before calling names, look within,
Consider the source.
Where do i sign up for Idiot Classes?
I want to be an idiot like Jack, and Warren, and Barack and Bill ...Not Bill C...Make that Bill G. (-;

I could have swear that shareholders were the people who give money to enterpreneours so that enterprenours can buy machines, hire workers, manufacture products.

So. Since shareholders are not important, maybe they should just hold on to their money or find people who, shell we say, more apreciative of them... If GE has corporate culture described my Mr. Welch, there is way in hell that I will buy their stock, I do not care how cheap it is.

Oops, that should be: no way in hell

Jack is forgetting the way he pumped GE stock by cooking its books for years.