Porsche Changes Track Essay Example | Topics and Well Written Essays - 500 words

Porsche Changes Track - Essay Example Dr. Wendelin Wiedeking (CEO, Porsche) while outlining the priorities of the company stated, "Yes, of course we have heard of shareholder value. But that does not change the fact that we put customers first, then workers, then business partners, suppliers and dealers, and then shareholders." This statement signifies the priorities accorded by Porsche to all its stakeholders in the business. That certainly doesn't mean that Porsche is not giving due importance to its shareholders, what it actually signifies is that, Porsche always believes in customer driven policies and keeping the employees happy. Satisfied customers and happy employees provide the company a distinct identity and edge over its competitors. At times Porsche appeared somewhat stubborn in its attitude owing to postures like non-listing on the NY stock exchange and non-disclosures of quarterly results. There's some confusion in the market place owing to the differences of opinion regarding the stated policy of 'keeping c ustomer's interest on top' and rewarding its own set people with huge dividends, as the company remains a closely held business entity. Porsche has been a closely held company as far as shareholding is concerned. That effectively means, despite its being listed on the bourses, majority of the stake is being held by limited number of people. The earnings growth too has been good enough during this decade despite a global slowdown in economies owing to reasons like t