Stanley Hydraulics Corporation (A)
Overall, I don’t think Bob Nehrgardt is crazy, because
* In ten years with Dynamic Controls, Bob Nehrgardt grew the annual sales from $600,000 to $5 million, and he gained diverse experience with product engineering, industrial sales, marketing, product development and top management, which contained every aspect of running a company. Therefore, he had already massed intense and broad knowledge and working experience as bases upon which to build his company, rather than build a company on pure theory and imagination with inexperience. * Bob Nehrgardt had rational goal and plans for his new company. He intended to spend a full year planning and preparing every aspect of the new operation. He planned that it would take at least five years of operations to gain a reputation with distributors and at least three years to begin showing a positive cash flow. His plan even went into very details such as floor space and sales employees in three situations: pessimistic, realistic and optimistic. * Bob Nehrgardt also designed workable organization rules to achieve his goal. For example, he expected employees to honestly and fairly make and meet their commitments with customers, distributors, employees and suppliers and to establish stable relationships with them. These rules provided guidelines for the employees. In this way, this company is not literally running without any boundaries. * Bob Nehrgardt wasn’t the first one to have this cooperative, leaderless, non-authoritarian organization idea. Karl Marx’s socialism idea is now proved to be very successful in China.
Whether I would invest in Bob Nehrgardt’s company
I would invest in Bob Nehrgardt’s company, because I think his company will grow rapidly and become highly profitable, therefore the return on investment will be high. What foster the successes within the company were: * Motivation. Daniel Pink points out research that shows that autonomy...
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