Sample Paper on Charles and David Koch Revealed: Game Changers

Introduction

This essay addresses the “game changers” video tackling various issues, such as how the game changers became successful, what mistakes they made, and the kinds of strategies they utilized so as to remain in power.

Game Changers at Koch Industries

The company featured is Koch Industries, which was run by brothers: David and Charles Koch. They came from a family where good education was highly priced and all the children were held to high standards in terms of expectations from their parents. The brothers believed in long term growth of the company and they invested widely with products ranging from pipelines, fertilizers, toilet paper, napkins, and pipeline, beef, gas distribution companies, chemicals and textiles.

Koch Industries Company is not widely known in America and in the world, but it is the second-largest conglomerate in the country. David and Charles own about 80% of the company. The company generates about100 billion dollars a year and does not disclose its accounts. The brothers, David and Charles, believe in a free market and use their power in business and funds to influence politics.

Game Changers Path to Success

Both David and Charles Koch ploughed the profits that they gained into the business for its expansion. They shared the same vision whereby they wanted the business to grow in the long term and become an empire that would positively contribute to people’s lives and to the economy. The diversification of the industries in which the company invested their money in, ensured that they would have constant and consistent cash flow for their company operations; even when competitors in the different industries experienced downturns for different reasons. The four Koch brothers: David, Charles, Fred and William all attended (Massachusetts Institute of Technology) MIT with strict grooming from their father. Fred Koch Snr. had initiated the company in 1925 through funds he had acquired from building refineries.

Mistakes Made By the Game Changers

Bill and Fredrick Koch who had been part of the Koch industries management at one point, felt that the manner in which they had been made to sell their shares was not legitimate, and sued their brothers who were managing the company; David and Charles. This particular multibillion worth litigation was not good for business as most family feuds are. The company’s involvement in politics through the brothers’ advocacy for certain groups contributed to a lot of public focus and scrutiny.

Strategy formulation and implementation used by Koch Industries

The brothers; Charles and David used the company, which their father had helped become successful by using a powerful finance strategy. The brothers made sure that they ploughed the profits of the business back and diversified the fields within which they were making money for the company. Such a diversification strategy is effective since it ensures that when one business field is performing poorly, the business can still generate funds. I think that corporate governance is the most important. Corporate governance in this case meant that the brothers had influence inside the company, and outside, the environment had the most impact. A balanced corporate governance would ensure that a high percentage of shareholders have a solid say on how the company is run, and can have an impact especially when they vote as a block. If the shareholders are able to agree on one item, then they can be able to vote together and ensure that the company is run effectively.

References

Bloomberg news.