Your definition of a good company is different than that of a CEO's. Their definition of a good company is one that is profitable and sets new quarterly records every quarter, period.
BUT if you refuse to see the trends and admit you need to move into a different direction and quit holding onto the old ways then you WON'T make profits and you'll eventualy run your business into the ground. So their actions are totally illogical no matter how you look at it.