Kaz Poll: Am I good or evil? Read first post before answering.

Discussion in 'Economy' started by kaz, Apr 13, 2011.

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Kaz: Am I good or evil? Read first post before answering

Poll closed Jul 12, 2011.
  1. Good

    10 vote(s)
    90.9%
  2. Evil

    1 vote(s)
    9.1%
  1. kaz
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    kaz Diamond Member

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    One and a half years ago I bought a design and print business that wasn't making money. In addition to generally scrutinizing expenses and cutting where I can, I invested $100K in expanding our digital capabilities. Then I shut down our production department laying off one third our staff and split the work that had been on our offset presses I'd shut down between the digital and outsourcing. I also slashed contributions benefits (mostly medical) by half. I did hire a new designer and focused the business more on the front end work. The result was for the staff left that we increased revenue by 20% and became profitable.

    - The staff who remain now work for a stable company with secure jobs.
    - The staff I laid off are having trouble finding new jobs and still mostly on unemployment because of the economy.

    Now the fun starts. I'm now buying a print business that isn't making money, I've been working on that acquisition for a couple months. We are closing on the deal Friday or Monday. The business I'm buying has customer service and presses, but no design capability. It gives us a whole new customer base with revenue to target the design work. It's a good business, but the owner's not a business guy like me. So, what's my plan?

    First, you guessed it, I'm shutting down production and this time laying off half the staff. I'm keeping the customer service side, the other half are going to have their benefits cut in half. I'm going to pay the upfront money by selling the production equipment and pay the ongoing payments to the seller from the staff reductions. So I get the business for free. At the same time, I am moving my business to their facility (theirs is bigger) and negotiated a rent cut. So I cut my rent in less then half and eliminate double payments for utilities, phones, insurance, etc. And I save money in production because digital and outsourcing is cheaper. I get the business for free and even make money before I even start to sell design work to their customers.

    So, am I:

    Good - The 60% of the staff remaining instead of worrying about their business shutting down all the time are a lot happier and working for a profitable company on the upswing. There will be raises at the end of the year instead of job cuts.

    Evil - 40% of the staff are gone, the rest have had benefit cuts and I made an evil profit doing it.

    What am I?

    I'm voting evil. Profit, disgusting.
     
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    Last edited: Apr 13, 2011
  2. Dr.Drock
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    Dr.Drock Senior Member

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    I'll give the boring answer, neither, I'm doubting you're even bringing your morals into your decision making process, only your business intellect.
     
  3. kaz
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    kaz Diamond Member

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    Why do you doubt that?
     
  4. Dr.Drock
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    Dr.Drock Senior Member

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    I'm not making any personal judgements, I'm saying you decided to make this capital decision on whether or not you'd gain more capital.
     
  5. Mad Scientist
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    Mad Scientist Deplorable Gold Supporting Member Supporting Member

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    Dr Drock just thinks like yer typical Liberal in that he thinks business is all cold hearted and unfeeling. He probably thinks that your evil and doesn't want to acknowledge that you saved a floudering company and a lot of peoples jobs on top of that. Because that would mean he'd have to admit that sound business practices entail cost cutting. He thinks business exist only to provide pay and benefits to it's workers. Make a good product that the people want? Hell no, that's not what businesses are for.

    My vote: You're good. My wife has the better business sense in our marriage. Even though I make more than her I have the "clock in, clock out" mentality while she is always thinking of new business adventures.

    Are you married Kaz? If so what sort of role does your wife play in your business dealings if any?
     
  6. xsited1
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    xsited1 Agent P

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    As long as the staff you fired were libruls, I'm okay with it.
     
  7. blastoff
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    blastoff Undocumented Reg. User

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    Have zero knowledge/experience in the types of businesses you've described but it sounds like your strategic planning and implementation has been pretty darn good. Good luck in the future.
     
  8. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    I chose good.

    You've turned around one business, and are going to do the same for another. It's likely that without your intervention, both would have failed, harming the customers and all of the employees. Instead, the customers are able to purchase products and services they value and the remaining employees, as you noted, have jobs in a stable company.
     
  9. G.T.
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    G.T. Diamond Member

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    This has no moral implication.
     
  10. G.T.
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    G.T. Diamond Member

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    That makes him a good business man. What's that got to do with his morals?
     

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