Where is the Growth in U.S. Companies?

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Feb. 7 (Bloomberg) -- Former Verizon Wireless CEO Denny Strigl examines companies that need to reinvent and reinvest to continue growth. He speaks with Erik Schatzker on Bloomberg Television's “Market Makers.” (Source: Bloomberg)

It is not just those companies.

I did say walmart.

They have single-digit growth.

Exxon mobil has negative growth.

Hewlett-packard has negative growth.

Microsoft has single-digit growth.

These are great companies.

Great companies need to reinvest in themselves through r&d and the need to reinvent themselves.

I teach this at our corporate strategy class.

If you look at some companies, classic examples that just missed the market.

We talked about kodak.

Even think about kodak and the digital camera, they had the first digital camera in 1975. they did not introduce it.

Sony did in 1981. history -- they stuck to analog film.

They should have been thinking about how do we reinvent ourselves?

What should we be investing in?

I cloud computing is something that they're focused on.

They are behind the eight ball.

Ibm as well.

Why is this happening?

Is this symptom manic of something bigger or deeper?

Is this a more fundamental problem that america's largest companies are run?

They are too comfortable where they are at any given point in time.

You can never become kumble as a corporate executive.

You have to looking at what is next.

I guarantee you, i sit down with these people and that is what they tell me.

They say they are looking to the future but they are paralyzed by uncertainty.

I hear that word over and over and over.

That is the explanation why they are not ended the cash -- not spending the cash.

Uncertainty should not be where r&d spending.

Cash is piled up in corporations.

We are seeing stock buyback programs.

We are uncertain as to what comes next, particularly from a political and regulatory point of view.

If you look at things like obamacare and the cost of obamacare.

If you look at things like the nlrb or the epa.

They are just stymied about what comes next.

Invested that money would have a lower rate of return for a shareholder than a cash management account.

Look at what interest rates are today.

The best way to invest your money today to take advantage of the shareholder is to buy back stock.

Reinvest in the company.

You are just reinvesting in your own equity.

I would do more r&d. the best companies should continue their r&d budgets.

We have to think a quick commercial break.

We will continue in a couple of

This text has been automatically generated. It may not be 100% accurate.


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