Comments on: Some good news for Swiss businesses and workers during hard economic times http://welkerswikinomics.com/blog/2009/03/05/welkers-daily-links-03042009/ for students and teachers of Economics Wed, 23 May 2012 04:39:58 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Markus von der Marwi http://welkerswikinomics.com/blog/2009/03/05/welkers-daily-links-03042009/comment-page-1/#comment-7571 Markus von der Marwi Thu, 12 Mar 2009 01:41:37 +0000 http://welkerswikinomics.com/blog/2009/03/05/welkers-daily-links-03042009/#comment-7571 It makes sense that family owned businesses would do better in am economic downturn. They have much fewer costs to cover and most of the businesses in switzerland seem to be more interested in keeping a good name for their firm, rather then making money. This most likely results in a loyal group of customers, who are probably willing to pay slightly more in a name that they trust, instead of purchasing goods from a large corporation. They are not looking for every lowest cost method. It makes sense that family owned businesses would do better in am economic downturn. They have much fewer costs to cover and most of the businesses in switzerland seem to be more interested in keeping a good name for their firm, rather then making money. This most likely results in a loyal group of customers, who are probably willing to pay slightly more in a name that they trust, instead of purchasing goods from a large corporation. They are not looking for every lowest cost method.

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]]> By: Laura Nanette G http://welkerswikinomics.com/blog/2009/03/05/welkers-daily-links-03042009/comment-page-1/#comment-7560 Laura Nanette G Tue, 10 Mar 2009 02:10:27 +0000 http://welkerswikinomics.com/blog/2009/03/05/welkers-daily-links-03042009/#comment-7560 I agree with Justus and Simons statement. Justus is right with his example facing Schaeffler, as well as Simon who states the main point of maintaining the good name of the firm. Personally I think it was a mistake from Schaeffler to take over Continental, as they knew the costs would increase. With the ecnomic crisis affecting almost all large firms it was a high risk. Most large companies that seem to buy up smaller companies at the moment are suffering from high cost and fall into depts. Governments have been giving out more subsidies than ever. Getting back to the article, I believe the situation will stay balanced as long as the rest of switzerland does. Already banks such as the UBS are struggeling with the media that are making their name bad, and having to keep up with the large amounts of losses. However this does not affect small private businesses in Switzerland so far. If a bank such as the UBS would go bankrupt there would be a definete problem for Switzerlands economy; including small family businesse. “It’s pretty ridiculous to pay people to sit around and do nothing,” Yves Defferrard of the Unia trade union told swissinfo. “But when they have no work for them, employers can often think of nothing better than to lay them off. That’s the wrong way to manage a crisis. It’s what happened in the downturn of 2000.” - The article also explains itself why Switzerland is working on their business and are not trying to cut down their costs too far. It is important to keep the customers and the balance between profits and losses. Keeping the customers would seem the most important for a firm; they keep the firm alive. I agree with Justus and Simons statement.

Justus is right with his example facing Schaeffler, as well as Simon who states the main point of maintaining the good name of the firm. Personally I think it was a mistake from Schaeffler to take over Continental, as they knew the costs would increase. With the ecnomic crisis affecting almost all large firms it was a high risk. Most large companies that seem to buy up smaller companies at the moment are suffering from high cost and fall into depts. Governments have been giving out more subsidies than ever.

Getting back to the article, I believe the situation will stay balanced as long as the rest of switzerland does. Already banks such as the UBS are struggeling with the media that are making their name bad, and having to keep up with the large amounts of losses. However this does not affect small private businesses in Switzerland so far. If a bank such as the UBS would go bankrupt there would be a definete problem for Switzerlands economy; including small family businesse.

“It’s pretty ridiculous to pay people to sit around and do nothing,” Yves Defferrard of the Unia trade union told swissinfo. “But when they have no work for them, employers can often think of nothing better than to lay them off. That’s the wrong way to manage a crisis. It’s what happened in the downturn of 2000.” – The article also explains itself why Switzerland is working on their business and are not trying to cut down their costs too far. It is important to keep the customers and the balance between profits and losses. Keeping the customers would seem the most important for a firm; they keep the firm alive.

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]]> By: Simon Strong http://welkerswikinomics.com/blog/2009/03/05/welkers-daily-links-03042009/comment-page-1/#comment-7544 Simon Strong Fri, 06 Mar 2009 09:11:52 +0000 http://welkerswikinomics.com/blog/2009/03/05/welkers-daily-links-03042009/#comment-7544 I think Justus that you are missing the point of the article. You seem to have this prejudice and idea that all family run businesses are out to make money even though the article states that "The survey of 300 Swiss family-owned SMEs found that 68 per cent of companies are less motivated by making money than in maintaining the good name of the firm." Which would then go far enough to contradict your point of Schaeffler as only 68% want this, not 100%. In Schaeffler's case I would propose that if it had been run by one of these 68% of family owned businesses then it would not be in it's current predicament. It's poor management is a contradictory example yes, and worthy of explanation too, but it is an example, so it depends. I think Justus that you are missing the point of the article. You seem to have this prejudice and idea that all family run businesses are out to make money even though the article states that "The survey of 300 Swiss family-owned SMEs found that 68 per cent of companies are less motivated by making money than in maintaining the good name of the firm." Which would then go far enough to contradict your point of Schaeffler as only 68% want this, not 100%. In Schaeffler's case I would propose that if it had been run by one of these 68% of family owned businesses then it would not be in it's current predicament. It's poor management is a contradictory example yes, and worthy of explanation too, but it is an example, so it depends.

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]]> By: Justus http://welkerswikinomics.com/blog/2009/03/05/welkers-daily-links-03042009/comment-page-1/#comment-7525 Justus Thu, 05 Mar 2009 15:47:49 +0000 http://welkerswikinomics.com/blog/2009/03/05/welkers-daily-links-03042009/#comment-7525 I've been always very critical of family owned companies, because they are usually the ones that rectlessly try to make as much profits, as possible. I'm also pretty sceptical about this that family owned companies here in Switzerland will come out better than other fims. They might do better at the start, because they have alot of money to compete, but soon the crisis will hit them as well. An example is a German family owned company called Schaeffler. They too mad profit at first from the crisis, because as unemployment rose, alot of people went to Schaeffler and got a job, rising output. However now Schaeffler is facing big problems, because they baught "Continental". As the crisis increased the costs for Continental rose as well and now Schaeffler is making big lossses and is trying to get rid of them again. Of course it depends on what decicisos these firms make. They might be well thought of, or not. I deffinately don't agree that any family owned company in the world will come out better, than the normal firms. I've been always very critical of family owned companies, because they are usually the ones that rectlessly try to make as much profits, as possible. I'm also pretty sceptical about this that family owned companies here in Switzerland will come out better than other fims. They might do better at the start, because they have alot of money to compete, but soon the crisis will hit them as well. An example is a German family owned company called Schaeffler. They too mad profit at first from the crisis, because as unemployment rose, alot of people went to Schaeffler and got a job, rising output. However now Schaeffler is facing big problems, because they baught "Continental". As the crisis increased the costs for Continental rose as well and now Schaeffler is making big lossses and is trying to get rid of them again.

Of course it depends on what decicisos these firms make. They might be well thought of, or not. I deffinately don't agree that any family owned company in the world will come out better, than the normal firms.

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