Post by
Robert40 on Oct 28, 2011 2:22pm
Business Centers
Business centers had negative return on investments for many years . Now during 9 months of operation during this year it is eating in to Retail Divisions profit. They keep blaming the global competition for margin loss. What they don'tunderstand is It is the men behind the machine. If a 48 year old companywith all infrastructure depreciated next to nothing can't compete in theCanadian market it should not be in business. These business centers arecreated for loss only, no amount of contracts can save it. All theseindependent stand alone companies were making money prior to their acquisition.Now after five years of restructuring and integration situation hasbecome worst. They could not take advantage of spectrum allotment to newentrants. Their experienced technical people are moving to thecompetition and making things more difficult. There are two options left.Administer the drastic medicine and roll the head with competentqualified technical people who understands the business orsell the Business unit and stick to the business Skidmore's are good at"resale"also called Retail Division that is profitable.You can't blame the dance floor if you don't know how to dance.Only technically sound management can make the difference in Business Division as theyunderstand the terms and conditions of doing business. It is loosing money for 5 years in a row since I started tracking results. Rule number one saysBusinesss should be treated like a business and not like a charity forfriends and relatives. Resources invested are 20% in business centersanother 20% in corporate and rest in Retail. But return from 20%investment is negative year after year. No one in their sound mind will runbusiness like that for years knowing it is a deep hole and trust theirfriends running it. Please hand it over to professionals in share holders interest. I mustmention here that Skidmore's are doing a fantastic job of running RetailDivision, Kudos to them for that. I am only concerned about other wheelthat is dragging it down (not just flat but rim also bent) for numberof years and needs repairs badly.
Comment by
Satman3 on Oct 31, 2011 10:37am
good pts robert.What is ur take on when compasspeak tryed to turn things around when richard hoy was GM a year ago? What did they try to accomplish? did they succeed? seemed like they just layed off a lot of bodies then.