Shareholder Pleasing is not the Goal
Rudolf Graves, Member
I think that Porter has a point that shareholder pleasing may not lead to short term value creation
. The CEO has an important task in setting achievable goals that serve the long term strategy
of the company.
Ultimate (long term strategy) the company must survive and the financial history is full of examples of companies with high promising returns for pleasing shareholders but that eventually did not survive (Enron, Worldcom etc).
A company will survive if its customer base is good: stable and growing. Because finally it is the customer who pays and that makes the difference.
Shareholders often are focused on the short term results and return on their investments.