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Big to small (Somewhat off topic)

Discussion in 'Electronic Design' started by Charles Schuler, May 5, 2006.

  1. The current news is replete with failures of major US companies to generate
    profits. It seems to be an epidemic. Is this the end of GM and Kodak and
    their ilk?

    Small companies are filled with enthusiasm, flexibility, and creativity and
    yet violate vertical integration and other rules of business.

    Small to big used to be a good thing, as it generated economics of scale.

    Anti-trust laws were popular at one time. This, to me, is really weird. Ma
    Bell is now trying to buy back the splinters. Government intervention is
    99% wrong ... correct me if I am wrong.

    I post this here as I am interested in the EE take on this (which is always
    unique).

    Will this trend continue?
     
  2. Gary Peek

    Gary Peek Guest

    I think it is because the economy is such that it just can't support
    large company inefficiency like it used to.

    Most workers, at least in the US, simply don't work about half the time!

    In a small company you can't get away with that, so small companies
    actually get some work out of their employess.

    Gary Peek, Industrologic, Inc.
     
  3. Mac

    Mac Guest

    Anti-competitive practices are bad for consumers and defeat the natural
    regulation of the free market. If there is a right kind of government
    intervention, it is to punish illegal anti-competitive behavior.

    The shenanigans that Microsoft got up to when it was at its worst were
    despicable. I am quite certain that without fear of government
    intervention, Intel would have gone that way, too.

    There is nothing wrong with garnering huge market-share by out-competing
    your rivals, but when you employ dirty tactics to squash your competition
    and lock rivals out of the marketplace that is another thing altogether.

    Just my $0.02.

    --Mac
     
  4. John  Larkin

    John Larkin Guest

    In a dynamic economy, companies come and go. Kodak and GM wither,
    Wal-Mart and Google grow, IBM and GE are forever.
    Vertical integration was a fad decades ago, and didn't work very well.
    Still does, if managed well.
    Government intervention is necessary for a healthy business
    environment... the right kind of intervention, of course. Antitrust is
    still being enforced, not enough in my opinion.
    Which trend?

    John
     
  5. Didi

    Didi Guest

    Will this trend continue?
    I suspect the trend in question is big getting bigger.
    Above a certain size a company becomes unmanageable
    economically just like the centrally controlled communistic
    countries had become some time (decades) before they
    collapsed. BTW, many of the big "companies" nowadays
    are economically larger entities than many of the collapsed
    countries.
    I suspect knowing that collapse is the only outcome of
    the trend won't change a thing... the interested parties who
    have the control invariably tend to think the collapse will
    happen after their time (and this is typically correct).

    Dimiter
     
  6. John Larkin

    John Larkin Guest

    Do you think so? Exxon, IBM, Wal-Mart, McDonalds, GE, Boeing... lots
    of huge companies are well-managed. They're big *because* they're well
    managed. GM and Ford are in for some serious adjusting, because of
    dumb management and dumber unions. And a lot of airlines, because
    there are too many players in a high-investment, low-margin business.
    But overall business is good, big and little, at least in the USA.
    Apart for the stupid dot.com fiasco, I don't see a trend for big
    companies to collapse. Do you?

    John
     
  7. Didi

    Didi Guest

    They're big *because* they're well
    The *have become* big because they *have been* well managed.
    Just wait until the person who brought them there is gone.
    I am not Hari Seldon so I may be wrong on this - hopefully I am - but
    to see the effect you may have to wait for another decade or so.
    I predicted this for the communistic countries so keep in
    mind that I have a very good nose for communism creeping in...
    but then again, I am not a psychohistorian and need not be
    taken that seriously :) .

    Dimiter
     
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