Presentation

"Greetings, introducing names", we are going to present you today how the Berkshire Hathaway's acquisition criteria, operating principled and incentives work together to enforce hte values of responsibility and trust, which the Berkshire Hathaway model is predicated on.

Our presentation outline includes the company's history; its unique approach in corporate governance; the secret of success in terms of acquisition using human resources wisely and effectively; the company's culture and conclusions.

Initially, Berkshire Hathaway is one of the largest corporations in the world, which has significant minority hildings in American Express, M&T Bank, Procter & Gamble and IBM. It is known for its control by the investor Warren Buffet, who is the company's chairman and CEO. Berkshire Hathaway traces its roots to a textile manufacturing company established by Oliver Chace in 1839 and its business units employ over 250,000 employees.

Being built on a model based on centralization of capital allocation decisions within corporate headquarters along with extreme decentralization of operating decisions within individual business units, Berkshire Hathaway showed an absolutely unique approach in corporate governance that works effectively.

Despite the company has a considerable number of employees – over 250,000 individuals – managers, who oversee each unit, hold complete discretion over operating and capital decisions within their businesses, without obligation to submit budgets for approval or develop long-term operating plans to the senior management. Thereby, “delegation just short of abdication” system allows each unit work in its own regime and develop its own decision-making system, without being supervised, which shows unprecedented trust to the manager and his team, but place the whole responsibilities for the performance of the unit on