Re: New chief prepares for job cuts at HP Message #8 Posted by John L. Shelton on 22 June 2005, 1:45 a.m., in response to message #7 by Eddie Shore
Reminder: corporate profitability is a good thing. It indicates that the company is meeting the needs of its customers. A well-run board doesn't give big bonuses to management unless the impact on the company owners (shareholders) is substantially bigger.
Wise management delivers good things to customers else the company gets trounced by better companies. The bottom line recognizes products that meet customer needs.
Cost-cutting is dangerous business, since it often leads to problems later, such as loss of innovation, customers, etc. While it's too hearly to tell about new CEO Hurd, he has a long-enough track record and experience to presume that he's investing for HP's long-term ability. Recent articles indicate HP's special interest in innovating their way out of a slump; in particular, they want other sources of profit besides printer supplies. HP is investing heavily in new technology and building their services group, for example.
As an individual, you try to maximize profits: you seek high wages and low costs. Why can't a company do the same? As long as you deal with others voluntarily (without force or fraud), all is well.
Further OT:
Both Democrat and Republican administration/legislators want as much of your money as they can get, but perhaps for different purposes. Short-sighted corporate management is not strongly aligned with either party.
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