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Originally posted by Kidicious
Gramps,
You don't make the decisions regarding how much cash reserve your company will keep. You don't make the decisions on whether or not your company will prepare for a recession or exansion. Stop acting like you owe something to your employees and they owe something to you. You're acting like a complete ****ing tool.
Gramps,
You don't make the decisions regarding how much cash reserve your company will keep. You don't make the decisions on whether or not your company will prepare for a recession or exansion. Stop acting like you owe something to your employees and they owe something to you. You're acting like a complete ****ing tool.
Since I know what i do and what i dont do, I will explain. Just to be clear, this thread was not about being a CEO it was about running a business area, competition delegating process
Oh, Kid, since your taking this in a much different direction than it started, here is the OP:
Im in the Ready Mix Concrete Industry
So as not to violate as anti trust, lets speak in generalities;
Say there are 4 producers with a total of 50 trucks in a market that can handle say 30 trucks.
Now, everyone can comfortably make a living at that level.
But, adding those extra 20 trucks, decreasing the market with residential construction, increase in products and materials F.O.B. as well as variable costs in relationship to employees total package(hourly rate,vacation,insurance,ect.) now greatly reduces the post EBITA bottom line.
So now, companies, in order to keep employees working, cut the selling price by say 13%..but it starts a downward spiral, and before you know it, your facing a very thin R.O.I. as bottom line, so you have to do something, of course you have done all the necessary things up to this point, efficient, staggered start times, cutting off trucks while not loading, minimizing maintenance costs, ect.
Now, i ask you, whose fault is this?
is it the company who is trying to stay afloat by say reducing the workforce by 10 %?
Is it the employees fault for m,aking such wages with no regard to how changing economic times have strapped a company?
or is it the renegade company, who in frantic desperation, tries outrunning the inevitable by slashing deeper price cuts where now it is not making a profit, in hopes of being acquired by another company?
Who wins?
I hear lots of talk by people who bash corporations and companies for not giving raises in these thin times, just asking how would you change these conditions?
Thanks for your input, one and all
So as not to violate as anti trust, lets speak in generalities;
Say there are 4 producers with a total of 50 trucks in a market that can handle say 30 trucks.
Now, everyone can comfortably make a living at that level.
But, adding those extra 20 trucks, decreasing the market with residential construction, increase in products and materials F.O.B. as well as variable costs in relationship to employees total package(hourly rate,vacation,insurance,ect.) now greatly reduces the post EBITA bottom line.
So now, companies, in order to keep employees working, cut the selling price by say 13%..but it starts a downward spiral, and before you know it, your facing a very thin R.O.I. as bottom line, so you have to do something, of course you have done all the necessary things up to this point, efficient, staggered start times, cutting off trucks while not loading, minimizing maintenance costs, ect.
Now, i ask you, whose fault is this?
is it the company who is trying to stay afloat by say reducing the workforce by 10 %?
Is it the employees fault for m,aking such wages with no regard to how changing economic times have strapped a company?
or is it the renegade company, who in frantic desperation, tries outrunning the inevitable by slashing deeper price cuts where now it is not making a profit, in hopes of being acquired by another company?
Who wins?
I hear lots of talk by people who bash corporations and companies for not giving raises in these thin times, just asking how would you change these conditions?
Thanks for your input, one and all
Now, I have to make a business plan, a roadmap, or strategic plan and follow it, not simply ride the wave from day to day.
I do care about the employees and your so wrong, the corporation wont have anything from my area that I dont contribute..i.e. if I dont do my job, then their wont be a nice profit margin to trim during these times.
Or is this simply something you have never encountered or had to be held accountable for?
I will say I handle somewhere between 12 million and 54 million annually, not small potatoes. Now, just curious, do you have one iota hwat it takes to keep that sort of backlog?
Do you have any idea how hard it is to keep that money flowing...i.e. collections, promotions, value added sales, marketing services and products, producing value added performance enhancing mix designs, efficient and profitable stations, from the Quality Assurance end, to Safety,Environmental,Maintainence, from plant production to centralized dispatching of our fleet?
Kid, the term corporation is that of an Umbrella, which covers all its holdings.
Where do you think the monies come from?
Which way do you think the cash flows?
Do you think that Corporation have money that just permeates its companies top to bottom?
Or perhaps all efforts made by each individual contribute to the overall success and wealth/growth/sustainability of its future?
No I dont control where our corporate CEO's take our company, I do however have a say how well we perform locally. This in turn dictates how well we survive during good and not so good times.
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