Market Base Management

Market Base Management:

Understanding the concept

21st Century Management Practices

November 20, 2009

Market Base Management:

Understanding the concept

Koch Industries philosophy of their management approach which they call “market –base management” seems to be a key reason for their success and profitability in the last 25 years. From a small company they grew to a 13,000 employee corporation with several operations around the world. The market-base management philosophy that Koch has developed and put into practice at first was more of a business mindset for Koch’s chairman and CEO, Charles G. Koch, which he practiced whenever a business decision arose. This practice was later developed into an organization set of goals and objectives to be engraved and assumed by every employee at all levels within the organization.

With this paper we strive to address the following questions:

1. How can we define Market-Base Management

2. Explain further the concept of Property Rights, Roles and Responsibilities

3. How does the concept of Property Rights, Roles and Responsibilities applies to Values Theories and how maximizes value over time when applied effectively.

Defining Market Base Management

In Gable and Ellig (1993) booklet, Charles G. Koch defines the concept which they arrived based on years of experience. Koch states that “market-based management is a framework within which we can analyze, and even improve upon, other management concepts”. Koch industries practice requires that the company as a whole and each employee in the company recognize their individual strengths; which practices “truly add value”, and to utilize the combined results with all other efforts within the organization in order to guarantee sustained growth and profitability.

Market base management is more than a philosophy, is a frame of mind, by which an individual and an organization can insightfully use the available resources in a way that allows rapid response to...