Daily VideoMay 3, 2010
Small Enough To Succeed?
As the business world becomes more and more complex, perhaps one way to avoid future “Too Big to Fail” catastrophes is to encourage companies to stay small and nimble.
Twenty years ago Paul Solman visited a small company called Springfield ReManufacturing Company which refurbished truck engines. At the time, the company was wholly owned by the employees giving every worker the incentive to read financial statements and create a great product. CEO Jack Stack also says it preserves solidarity, flexibility, entrepreneurship, and it has created more opportunities for advancement at SRC.
Now the company has investments in almost 60 related companies, many still re-manufacturing cars, tractors, boats. But there’s also a home furnishings firm, a warehousing operation, a business that teaches folks how to do business the SRC way.
NewsHour economics correspondent Paul Solman talks to employees of SRC and some business owners that have adopted the SRC way successfully.
“We saw the opportunity of being able to move them into their own businesses to make room for other people to be able to come up to the organization, because it wasn’t only about jobs. It was about opportunities.” Jack Stack, CEO SRC
“I had no idea about how important the numbers were in my business.” Juliet Mee, director, Professional Massage Training Center, Inc.
Warm Up Questions
1. What are some businesses in your community? Which are big national chains? Which are locally-owned and run?
2. What are some possible differences between big companies and small companies?
3. What does it mean if a bank is “Too Big to Fail”?
1. SRC says that it must keep its divisions small, what could be some pros and cons to that argument?
2. Why do you think that employees are more motivated if they have an ownership stake in a company they work for? Could this ever backfire?
3. Does this video encourage you to learn more about business? Why or why not?
4. What are some personality traits that make someone more likely to start their own business?
Tooltip of related stories
Tooltip of more video block
Submit Your Student Voice
The Food and Drug Administration (FDA) has ordered the elimination of all trans fats from the food supply within the next three years, a long-awaited move that is expected to save thousands of lives per year. Continue reading
The reforms were spurred in part by the death of Kalief Browder, a former Rikers inmate who was accused of stealing a backpack at age 16. Continue reading
The racially-motivated shooting of nine people at a historically black church in Charleston, SC, has spurred discussion and debate about the state of racism in America. Continue reading
Facing low graduation rates, Rainier Beach High School took an ambitious approach to turn things around. Continue reading
Dzhokhar Tsarnaev unexpectedly addressed the courtroom at the formal sentencing to acknowledge his role in the 2013 Boston marathon bombing for the first time. Continue reading