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Good Profit

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Charles G. Koch

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In 1967, Charles Koch took over his father's company and transformed it from a $21 million entity into a global powerhouse with revenues nearing $115 billion. His success can be attributed to a unique five-dimensional management system known as Market-Based Management. Developed over five decades through extensive studies and practical applications across Koch Industries and its 100,000 employees, this framework aims to generate "good profit." Good profit is defined as the value created for customers that enhances their lives, resulting from innovations customers willingly support with their purchases. It stems from business decisions that foster long-term value for customers, employees, shareholders, and society at large. Although Koch Industries may not be a household name, its innovations—like stain-resistant carpets, absorbent diapers, and high-definition televisions—are widespread. Through candid stories from his extensive career, Koch guides readers through the five dimensions of Market-Based Management, offering insights for stockholders, entrepreneurs, leaders, and employees across various fields on how to implement these principles to achieve good profit in their organizations and lives.