Long-term Strategy & The Mittelstand - Sennheiser
The Mittelstand - Germany's group of thousands of privately-owned and often world-beating companies - is often used as an example of the benefits of long-term business thinking.
This short video about a business that will be familiar to many students - Sennheiser- is a great example of the kind of businesses that make up the Mittelstand.
Lots of evidence in the video about the common characteristics of Mittelstand companies that adopt a very different approach to a "short-termist" strategy that is more focused on short-term financial performance.
- Mittelstand companies are said to typically exhibit:
- Family ownership or family-like corporate culture
- Generational continuity
- Long-term investment focus & focus on R&D
- Fierce independence
- Investment into the workforce
- Flexibility in how they respond to a changing external environment
- Lean organisational hierarchies
- Focus on innovation and customer service
- Take corporate social responsibility seriously
Which of these characteristics can students pick up just from the video?