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The virtualization of the American corporation »

Posted by: jeremytoday 2 years, 7 months ago

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The trigger for this column was this week's announcement that Dell Inc. was going to slash 8,800 jobs. Its earnings were relatively flat, and that gave the company the excuse to make cuts, but were these people necessary in the first place?

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jeremytoday

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Comments: 4

Avg rating: (+3/-2 1)
MikeReardon
June 3, 2007, 2:25 a.m.
One of the other forces at play within the decision to continue a production process is not only does it return enough return with the money invested now but does its forward potential guaranty expanding larger returns. GE removed many under performing but still profitable units because they failed that test of return. Transferring them totally out of the company leaves the company with even greater returns to the bottom line to present to stockholder. I lean towards transferring these smaller units into NGO's that can keep them active in the economy. But letting them die if they can't give returns is standard.
Avg rating: (+6/-1 5)
rumple4skin
June 3, 2007, 12:54 p.m.
Dell Inc's business model is solid. It is the future. Stockholders do not care about collateral losses (jobs). The responsibility for the well-being of 8,000 people will transfer to local state unemployment and welfare offices. The idea that health care is breaking the corporate bank is negated by the development of virtual corporations. All of this is threatening to challenge the American workforce. It cannot be stopped.
Avg rating: (+2/-2 0)
MikeReardon
June 3, 2007, 3:46 p.m.
With Dell's now selling computers in Wal-Mart stores, Wal-Mart's distribution replaces Dell's direct shipping costs, that makes Wal-Mart the virtual supplier for Dell's new reach to Wal-Mart's cost conchs consumers. Dell will establish services agreements with these new consumers and have a platform in Wal-Mart to market new products. And in reaching and servicing these new consumers both will gain product cross marketing to the 107 million shoppers who by groceries at Wal-Mart every week. A low cost product can gain a market if costs are held in check by process.