Sunday, June 23, 2002

P&G employees nervous about outsourcing
I would be nervous too. This is a very bad trend. It is part money shuffling games played by corporations. The company I work for did this with certain departments in the corporations about 2 years ago. This year all of those functions were brought back into the company. I would guess that it cost more money in the long run, but the short run it help the stock. I would bet this will be the same outcome for P&G. Corporations are far to tied to short-run stock price increases. They should instead focus on long run stock price increases. This attitude is similar to the short-run business method that ran the US economy down in the 1970's and early 1980's. The Japanese show a better model to production methods and the rest is history. What is happening here is similar. Short run cost savings is deemed more important to long run cost savings. I don't know if this attitude will ever change.

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