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	<title>Key Points &#187; Economics</title>
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		<title>Ford Bailout</title>
		<link>http://www.keypoints.com/economics/ford-bailout/</link>
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		<pubDate>Wed, 29 Apr 2009 10:00:12 +0000</pubDate>
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				<category><![CDATA[Economics]]></category>

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		<description><![CDATA[A Japanese company ( Toyota ) and an American company (Ford Motors) decided to have a canoe race on the Missouri River Both teams practiced long and hard to reach their Peak performance before the race. On the big day, the Japanese won by a mile. The Americans, very discouraged and depressed, decided to investigate the reason for the crushing [...]]]></description>
			<content:encoded><![CDATA[<p> A Japanese company ( Toyota ) and an American  company (Ford<br />
  Motors) decided to have a canoe race on the Missouri<br />
  River   Both teams practiced long and hard to reach their<br />
  Peak performance before the race.</p>
<p>  On the big day, the Japanese won by a mile.</p>
<p>  The Americans, very discouraged and depressed, decided to<br />
  investigate the reason for the crushing defeat.  A management<br />
  team made up of senior management was formed to investigate </p>
<p>  and recommend appropriate action.</p>
<p>  Their conclusion was the Japanese had 8 people rowing and 1 </p>
<p>  person steering, while the American team had 7 people steering </p>
<p>  and 2 people rowing.</p>
<p>  Feeling a deeper study was in order; American management<br />
  hired a consulting company and paid them a large amount of<br />
  money for a second opinion.</p>
<p>  They advised, of course, that too many people were steering the </p>
<p>  boat, while not enough people were rowing.</p>
<p>  Not sure of how to utilize that information,  but wanting to </p>
<p>  prevent another loss to the Japanese, the rowing team&#8217;s  </p>
<p>  management structure was totally reorganized to 4 steering </p>
<p>  supervisors,  2 area steering superintendents and 1 assistant </p>
<p>  superintendent steering  manager.</p>
<p>  They also implemented a new performance system that would<br />
  give the 2 people rowing the boat greater incentive to work<br />
  harder.  It was called the &#8216;Rowing Team Quality First<br />
  Program,&#8217; with meetings, dinners and free ballpoint pens for the<br />
  rowers.  There was discussion of getting new paddles,<br />
  canoes and other equipment, extra vacation days for<br />
  practices and bonuses.  The pension program was trimmed to<br />
  equal the competition&#8217; and some of the resultant savings </p>
<p>  were channeled into morale boosting programs and<br />
  teamwork posters.</p>
<p>  The next year the Japanese won by two miles.</p>
<p>  Humiliated, the American management laid-off one rower,<br />
  halted development of a new canoe, sold all the paddles, and<br />
  cancelled all capital investments for new equipment.  The<br />
  money saved was distributed to the Senior Executives as</p>
<p>  bonuses.</p>
<p>  The next year, try as he might, the lone designated rower was </p>
<p>  unable to even finish the race (having no paddles,) so he was </p>
<p>  laid off for unacceptable performance, all canoe equipment </p>
<p>  was sold and the next year&#8217;s racing team was out-sourced </p>
<p>  to India .</p>
<p>  Sadly, the End.</p>
<p>  Here&#8217;s something else to think about: Ford has spent the last </p>
<p>  thirty years moving all its factories out of the  US , claiming </p>
<p>  they can&#8217;t make money paying American wages.</p>
<p>  TOYOTA has spent the last thirty years building more than a<br />
  dozen plants inside the US .  The last quarter&#8217;s results:</p>
<p>  TOYOTA makes $4 billion in profits while Ford racked up $9<br />
  billion in losses.</p>
<p>  Ford folks are still scratching their heads, and collecting</p>
<p>  bonuses&#8230; and now want the Government to bail them out.</p>
<p>  IF  THIS WEREN&#8217;T SO TRUE IT MIGHT BE FUNNY</p>
<p>  ***  Above post is from a friend&#8217;s email  ***</p>
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