>
>
> "James" <jveillo@bellsouth.net> writes:
>
> > The US Corporate mantra, with a few exceptions, is 'maximize
> profit'. This
> > mantra often means shrink the product so that more profit is an inherent
> > outcome.
>
> But the move by the Finnish company /is/ an effort towards more
> profit. They lower their churn rate and attract new clients. That's
> maximizing profits.
>
> (Another famous Finnish company, Nokia, does pretty good at maximizing
> profits, too, by keeping executive compensation low.)
>
> Mark.
Yes. Nokia has been out in the world already so long that they have learned
some bad habits. The funny thing however is that Nokia still manufactures
the items they originally started with. Rubber boots (very good ones) and
car tires. Of course after those became computers, TV's cable/satellite
decoders, set-top boxes etc....
And maximizing the profits by lowering the prices has happened before. For
example 12 years ago I was working on the restaurant chain in Finland and
they decided to lower food prices. Just like that. At the end of the fiscal
year, the increased sales with lower profits still turned out more on the
plus side for the company.
These US companies just can't realize these kinds of things because of the
short-sightedness. Companies here have tendencies of thinking Quarterly,
whereas elsewhere in the world this span could easily be as long as 15
years. More commonly 4-5 years.
P
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Received on 06/13/03
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