>> Then you go out behind the factory and see a massive mountain of furniture stacked up to the sky. The factory workers have been building furniture every day for years. > People all agree that it is good furniture, maybe the best there is. Nobody ever buys any of it. It's not sold in any stores. No hotels buy it. No businesses buy it. Lots of people are lined up as far as you can see to pick furniture out of the pile for free.
>> How do you fix this company?
> I'll take a shot : you don't, the free market does it for you (ie. the company isn't going to last long, or the plant get shut down if part of a group).
That's a pretty lazy, ideological answer. They're giving away their product for free and there's no mention of a sales team in the whole story. Before you get all enthused with "creative destruction," someone could try laying off some of the useless employees and actually selling their product first. Destruction shouldn't be the first solution, it should be the last.