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In the video below, Motley Fool analyst Brendan Byrnes interviews Lisa McLeod, and discusses the "power of purpose" and how properly motivated and incentivized sales people can make a huge difference in a company's performance.
This concept has typically gained attention in the consumer space, where companies like Starbucks (Nasdaq: SBUX ) , Panera (Nasdaq: PNRA ) , and Whole Foods Market (Nasdaq: WFM ) empower their customer-facing employees to "make a difference." Lisa contends that the effects of this mentality are amplified when considering the B2B space. For a company like Rackspace (NYSE: RAX ) , Lisa explains that the sales narrative becomes more important as the employee targets big-ticket sales that involve significantly more revenue than the average consumer-facing employee. Simply said, convincing a buyer at a large corporation like General Electric (NYSE: GE ) to sign up for Rackspace's services has a significantly larger impact as a percentage of Rackspace's total business than the sale of a single latte at Starbucks.
For GE, the recent financial crisis struck a blow, but management took advantage of the market's dip to make strategic bets in energy. If you're a GE investor, it's important to understand how these bets could drive this company to become the world's infrastructure leader. At the same time, you need to be aware of the threats to GE's portfolio. To help, we're offering comprehensive coverage for investors in a premium report on General Electric, in which our industrials analyst breaks down GE's multiple businesses. You'll find reasons to buy or sell GE, and you'll receive continuing updates as major events unfold during the year. To get started, click here now.