| Topic Name: |
Older MBA's experience compensation envy. |
| Message Name: |
The Only 2 automotiv |
| Date Posted: |
10/02/2000 |
| In Reply To: |
My German friend,
The problem is that engineers are highly respected in Germany, France, and similar European countries...while they are considered more of a commodity in the U.S. The MBAs are the ones running the companies and hiring the engineers--whether the MBAs do a good job or not is besides the point. Given this arrangement, common sense tells you that the MBAs will get paid more.
German cars are indeed great machines...great feats of engineering. But without the appropriate marketing and competitive strategies in place, the company might make millions and millions less than it could otherwise. To an automotive company, the incremental value of the MBA is probably much higher than the incremental value of the engineer. |
| Message: |
The Only 2 automotive companies that have NEVER lost money are BMW and Toyota.
All others have lost money, at least during one fiscal year in their history.
BMW has great marketing and advertising policies (thanks to their managers, most of them probably holding MBAs) but this is a company typically run by engineers. Engineers and designers are kings at BMW.
Is it directly linked to their success ? Maybe, maybe not ? But one thing is sure:
if you give MBAs too much power, they tend to save money as much as they can on research and new technologies. This is a big mistake in the long term management of any company (See how the reliability and image of Ford is in the toilet)
By the way, I don't know what the other person is, but I am not German.
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