Saturday, May 20, 2006

Last of the Big Deals?

Study of major International Corporations will indicate they are beginning to have problems. They have to fight local Governments on issues of Wages, Economy, Health Care, Retirement, and other residuals. They are finding increasing strictures based upon local Tax issues. Everyone seems to have their Hand out, and large Organizations produce large Population segment Opposition. The real crux of their Problem, though, is the maintenance of Profitability. Big Deals remain profitable for Deal-Makers, but much less so for Deal-Managers.

Corporations also face adverse economic conditions, some critical to effecient Operations. Labor Salaries and Benefits become institutionalized with large Labor pools, and resistence to change of these elements grow exponentially fast. Bolivia and Venezuela holds forefront on the Caps which can be placed on Profitability for Internationals, and signal the Changes of the future. Simple knowledge of Accounting and Debt-Leverage Arts does not provision Management with expertise in Production functions. Ignorance of methodology in squeezing Profit from marginal productivity operations leads often to Line sell-offs which are necessary conpponents to overall Production line success. The Day of the Multinational may be coming to an end, not with a whimper or a bang, solely for better Management practice.

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