Quote:
Originally Posted by stovt001
Sadly that mentality is all to common in American business culture. For example, Disney's original plans for the second Anaheim theme park was more along the lines of a west-coast version of Epcot or DisneySea, which Tokyo eventually got and turned out to be the best Disney theme park in the world. Instead, Disney saved some money by building the cheap, uninspiring Disney's California Adventure, and it flopped. Now the cost to fix it and make it into a proper Disney theme park dwarfs the cost of the original Westcot or DisneySea plans, and that isn't even counting the lost potential revenue that would have been generated by a quality project. I honestly can't understand why the mentality to cut costs even at the expense of lost revenue and massive additional costs later on survives today.
|
Executives are usually rewarded on short-term gains/cost savings and not long term gains and stability. It's the same thing that caused the financial meltdown. They focused on getting their earnings up this quarter, not worrying what would happen 2yrs from now.