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Technology Stocks : Disk Drive Sector Discussion Forum -- Ignore unavailable to you. Want to Upgrade?


To: Gottfried who wrote (6432)5/24/1999 8:31:00 PM
From: Sam  Respond to of 9256
 
"I suppose you would have to see the accounting details to be convinced.<G>"
Yes. I could tell a tale or two about how my own division "made" (or, once, "lost") money in the 5 years I made out its budget. Or, actually, how we "surprisingly" made money, 'cause we were just supposed to break even, not make anything at all. Our raison d'etre was support, the other divisions were supposed to make the money. But there was all sorts of rivalry between VPs, and my VP wanted to make more money, and he had the GM (my immediate boss) make sure that we charge the other division up the wazoo in various ways for our product, while giving his division a break. And managers in other parts of the company never figured it out, cause we were still giving them a break over what they had been getting in previous years. They never realized just how productive our equipment and our staff had become, though.

Looking at the books probably wouldn't help much, you'd have to both look at them, talk to all the managers and suppliers involved, and do a study on outside pricing to really figure out what was going on. They can make any division they want look like it's making the profit.

Anyway, if they're getting decent profit sharing $, probably they're right.