Re: OT Super Mergers

Posted by Duane WI on February 19, 2016 at 10:44:44 from (69.29.254.39):

In Reply to: OT Super Mergers posted by David G on February 19, 2016 at 05:33:22:

These are companies trying to find a way to continue making profits so they can stay in business. These things don't happen because they are making money hand over fist. At least the company being sold isn't. The buyers might be. Yes they lead to cuts, factory closures, people loose their jobs. The other side is the businesses completely fail and everyone looses their job. So lets blame management. Yes indeed they had something to do with this. They couldn't find a way to right the ship. They have been watching the ship slowly sink for years and to be honest working really hard to not let it sink. I doubt they sat back and said lets watch it sink so we can sell the business. They failed to figure it out before it got too far. We have hind sight now to tell them what they should have done. Running a real business looking at the unknown in tomorrow is much harder than running it from the side lines looking at yesterday.

Sometime the biggest failure in management is making some hard decision early on before they become bigger problems and hurt more people. I was part of the management of a small company years ago. We had to sell out. Looking back and learning from life's lessons we should have cut the business in half early on and focused on what we could make money at. We didn't. We didn't have the heart to make that hard decision and let people go. The business got sold and they moved what they wanted and shut it down. In the end everyone lost their job.

I don't know anything about the Dow Dupont thing. I do have some vision into the Kraft Heinz and MillerCoors stuff. I do project engineering work for both companies. They have been going through continuous reorganizations for years. New managers come in and old ones out. Reshuffle the business. They knew they had problems and worked to fix it they just failed to do so.

I don't think it hurts consumers. We have a lot of choices. We benefitted from the tough competition keeping prices down that leads to businesses closing and getting sold. The problem is we over benefited to the demise of the company. Now the pendulum swings back and prices go up and the cycle repeats. Overall we stay in balance.

Just my thoughts. Would like to hear others.

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