Thursday, May 24, 2007

Michael Dell Should Run General Motors

So, Dell Computer has three quarters as #2 to HP and the management team takes action. Big action, slaying a giant taboo.

"The deal with Wal-Mart comes less than a month after Michael Dell, 42, told employees in an e-mail that the ``direct model has been a revolution, but is not a religion.'' "

Meanwhile the auto industry has bled billions of dollars for years and they can't seem to take anything but baby steps. If Dell can look beyond the direct distribution model, why can't GM, Ford and Chrysler look beyond the union labor-built automobile?

4 Comments:

Blogger Tax Shelter said...

it's interesting that certain organizations are more heavily unionized compared to others. For example, as far as I can tell, there are no unions in the high tech industry. IBM, Microsoft, Dell, Intel, HP, etc., all have hundreds thousands of employees, but none is unionized. Why is that?

10:18 PM  
Blogger Donny Baseball said...

The union movement was coincident with the rise of industrial America (also coincident with the rise of 20th century Socialism) and that is why metal benders of the 20th century (Caterpillar, GM , Ford) are union shops. IBM, MSFT, etc were born really long after the socialist movement had its heyday and by the time these companies were big and good targets, unionism was not a rising wave anymore. Unions have concentrated their efforts on government jobs.

1:38 AM  
Blogger Tax Shelter said...

IBM, MSFT, etc were born really long after the socialist movement had its heyday and by the time these companies were big and good targets, unionism was not a rising wave anymore.

That does not explain why government jobs are being heavily unionized though. i.e., why do the unions target government jobs instead of Microsoft employees?

A friend of mine works for a Swidish pharma company that is unionized. The union representitive sits on the management board. If it could happen in Sweden, then it could happen here, don't you think?

8:07 AM  
Blogger Donny Baseball said...

Fundamentally unions don't target growing companies as they grow, they move in when companies are already big. All that organizing effort should have a big payoff so they go after the big fish. Unions cared not one iota about Wal-Mart for 30 years, but now they'd kill to unionize Wally World because it has something like 100,000 employees. The government happens to be a big fish too, that's why they go there too. Also, the appeal of a union to a MSFT employee is probably pretty low, he/she has great working conditions and stock options! Why join a union when you have that setup?

9:26 AM  

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