Final answer:
As a company matures, detailed personal knowledge of its managers becomes less important to investors like bondholders and shareholders due to the availability of business information, leading them to invest confidently. Michael's dissemination of memos and provision of resources as a manager aligns with this principle, contributing to a successful business expansion strategy.
Step-by-step explanation:
When a company like Michael's is looking to expand and enter a new market, such as the casino business in Las Vegas, it signals that the company is reaching a level of maturity where its strategies are set to yield profits. At this stage, the importance of personal knowledge about the managers and their business plans decreases because the company's data regarding products, revenues, costs, and profits becomes more widely available. This transparency makes the company more attractive to external investors like bondholders and shareholders who are willing to invest capital without a personal connection to the management team.
Michael's actions of issuing memos to clarify the importance of the project and ensuring the readiness of resources for the project management team reflect qualities of a good manager who prioritizes clear communication, resourcefulness, and employee empowerment. Such behavior often leads to a positive work environment and attracts external funding necessary for expansion.