Sunday, December 21, 2008

17 bilion to save a reputation

A world without electronics is unimaginable.
Many people want to make their lives more efficient and easy by using electronic devices.
Like a computer and a mobile phone.

Is it difficult to make a computer?
Not at all.
Many companies worldwide make computers.
There are no secrets.
Is it difficult to make a mobile phone?
Not either.

This makes us ask why a company like Apple is so successful.
They make, among other things, computers, laptops, MP3 players and mobile phones.
And are incredibly successful worldwide.
How come?
Well, they are innovative.
And very good at marketing.



One of the secrets of their successful innovation is that they think from the world of the customer.
The starting point is always the person that is going to use the device.
Good example is software.
The operating system of most computers is Windows by Microsoft.
The Apple computers have their own operating system.
One is full of flaws, unpractical and complicated.
The other one is stable, consumer friendly and easy to use.

The driving force behind Apple is the CEO: Steve Jobs.
He announced he is not going to be present at the annual Apple meeting where new products are presented next January.
Immediately the stocks of Apple fell 4 %.
Out of fear that Steve Jobs might be ill and will retire from the company.

If Rick Wagoner, the CEO of General Motors, the automobile manufacturer, would announce he is leaving, GM stocks will not fall.
They are more likely to go up.

A company like GM is the opposite of Apple.
This is why Apple is not knocking on Government doors to get taxpayers money aid.
And GM does and will do again.



So we may wonder why flawed companies like GM and Chrysler did get over 17 billion Dollars last week.
In an undemocratic way decided by a President on his way out.

These days President Bush is leaving office thinking only of his reputation and how he will be remembered.
Like recently he went to some army camp to speak in front of many soldiers.
To defend his Iraq policies.
To suggest a conclusion that he was right all along to start the war in Iraq.



President Bush probably will turn out as the worst ever for the United States and the rest of the world.
That will make him not sleep peacefully so he forces himself and as many others as possible to believe in another truth.
A truth comfortable for himself and his cronies.

If he had been following the principles he has been advocating over the last 8 years, he would have accepted that potentially the American automobile manufacturers go into Chapter 11 bankruptcy.
This would have initially resulted in more unemployed people than we will see in the next few months in spite of the 17 billion Dollars.
Just recently GM closed a plant in Dayton, Ohio firing over 2.500 loyal employees.



But Bush has been thinking of his reputation.
Accepting the three automakers to go into bankruptcy would have been bad for his image.
Hence, the solution is to throw 17 billion Dollars at the badly managed companies to give them some breathing time.
Not to recover but to make time for himself to finish his Presidency and shuttle the problem to Barack Obama.

The American taxpayers just lost 17 billion Dollars because one man has been unable ever to admit he was wrong.


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