Wyalt Derp: So many business decisions seem to be made only with short-term gains in mind, rather than long-term sustainable profitability - a negative consequence of the bonus culture?
DrewCurtisJr: Major discovery? This happened to the U.S. consumer electronics industry decades ago. "Let's make some TV's over in Asia, don't worry it's just to get access to their market."These examples of Chinese success stories like GM and Caterpillar being held out as how globalization benefits US firms, it won't be much longer before China is selling cars and heavy equipment in the US and the rest of the world.
kertus: It took them how long to figure this out?Corporations are idiots
dumbobruni: there are two Chinese car brands for rest of the world to fret about: Geely (via Volvo) and SAIC (via MG Rover).
rewind2846: Short sighted asswipes. Didn't these morans realize that as the third and second world countries rose to first world status (like South Korea) they would want to make the sh*t they needed not only for themselves but for the rest of the world... and that by outsourcing american manufacturing you were giving them the keys to the truck that was about to run over your ass?More manufacturers, call centers, and other businesses are finding this out as well... the MBA morans who pushed these ideas so hard in the 80s and 90s should be lined up against the wall and shot. They have done more to destroy the middle class and long term economic health of this nation for short term profit than any recession of the past 50 years.
sno man: Wyalt Derp: So many business decisions seem to be made only with short-term gains in mind, rather than long-term sustainable profitability - a negative consequence of the bonus culture?That and fickle shareholders... What have you done for me today?
wingnut396: Wyalt Derp: So many business decisions seem to be made only with short-term gains in mind, rather than long-term sustainable profitability - a negative consequence of the bonus culture?I've always wondered if it was a shift from dividends to retained earnings. With a dividend, you can get money back from your investment in the company while still holding onto the stock. When profits are reinvested in the company and no dividend is issued, the only way for an investor to make money is to sell the stock at a high price. This requires constant growth. So if you are not growing the company and the stock price, you are are a failure as an investment. So instead of focusing on profitability, you focus instead on stock price.Yes, stock price should reflect profits, but it does not have to. You can pump that up in other ways that is not always good for the long term health of the organization.
dumbobruni: this happened to Schwinn Bicycles, twice.
dumbobruni: this happened to Schwinn Bicycles, twice.as for automotive, China's policy of forcing foreign automakers to link up with local companies is not working as intended so far. the market share of domestics are plummeting. china's car market isn't growing much right now, but the German and American brands have been making big gains in sales at the expense of domestics (and now, the Japanese).there are two Chinese car brands for rest of the world to fret about: Geely (via Volvo) and SAIC (via MG Rover).
rewind2846: the MBA morans who pushed these ideas so hard in the 80s and 90s should be lined up against the wall and shot.
sendtodave: It's a stupid system.
Lando Lincoln: The next logical step is just to move yourself and your big pile of money over to China and live in luxury
Omnivorous: I worked for a personal computer company. We outsourced production to a Taiwanese vendor ... which promptly began selling knockoffs in Europe. Copyright protection? What copyright protection?
Fark Me To Tears: CSB:One of my off-shored jobs was in the corporate IT shop of a Fortune 50 retailer. They began swelling their software development ranks with contractors (including Yours Truly) until the IT department had a ratio of about 2 to 1, contractors to employees. The contractors were highly skilled and actually did the work. The employees supervised the contractors and filled the copious paper pushing jobs that their little corporate IT empire scheme had proliferated over the years. Unbeknownst (at least for a while) to the contractors, the employees started having employee-only meetings with IT management to plan the off-shoring of all of the contractor jobs. This process took about 18 months, and the contractors were kept in the dark until the last possible moment -- and coincidentally right about the same time that the economy was tanking and jobs were becoming scarce.Long story short, the company laid off hundreds of US domestic IT workers, replacing them with some H-1Bs on-shore and sending the bulk of the work off-shore.A couple of years later, the same company fired its CIO, the one who had championed this whole scheme. He didn't "resign to pursue other opportunities." They FIRED him. Then they turned around and fired the VP who had been put in charge of the off-shoring.A former manager friend of mine told me that after they had swept all of their US contractors out the door, it soon became obvious that they had also swept all of their institutional technical knowledge out the door with them. To this day, they're still trying to salvage the situation. The damage that this caused in wasted time and money, not to mention the hundreds of lives it disrupted and the damage it caused to this company's reputation in the IT ranks, is hard to pin down. So far, I haven't heard of anyone they screwed over going back to work for them. Nobody -- including me -- trusts them. What's to stop them from doing it again?</CSB>
Fark Me To Tears: What's to stop them from doing it again?
Fark Me To Tears: Fortune 50 retailer
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