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this mission. Kohler’s diverse product mix is unique. No other
company sells all of the same types of products.
Privately Held Company
Kohler has always been a privately held family business.
The Kohler family intends to continue their business as a private
company. Management did not view dealing with stock analysts,
outside probing, and pressure to produce earnings and raise the
stock price on a regular basis to be in the best interests of the
company. Herbert realized that public companies were much more
beholden to stock analysts than private companies. Herbert was
convinced that this type of dependence on outside forces could
lead to unfavorable results for the company. For example, Kohler
had a long history of faith in its investments and did not seek
to unload them at the first sign of unprofitability. A public
company might have less flexibility because a poorly performing
investment might decrease earnings and depress the stock price.
Kohler management was happy to avoid these types of concerns.
Kohler had a unique perspective on its role as a company.
Rather than seeking to maximize its earnings at every
opportunity, several members of Kohler management, including
Herbert and Natalie, viewed themselves as stewards, responsible
for the various constituencies the company touched, including
associates, customers, suppliers, and employees. This view was
another advantage of being a privately owned company that
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Last modified: May 25, 2011