🚀 go-pugleaf

dic5340@hertz.njit.edu (David Charlap) writes:

> In article <BmFsXB1w165w@student.business.uwo.ca> dszpiro@student.business.uw
> >dic5340@hertz.njit.edu (David Charlap) writes:
> >> This is misleading.  Personal systems (makers of PS/n's, and OS/2) has
> >> turned a significant profit, and is HIRING new employees.  Let's not
> >> lump the mainframe division (and other groups) losses in with the
> >> rest, OK?
> >
> >Group losses and group profits are bookkeeping artifacts. There are no
> >'water-tight' financial seals between groups. If the mainframe group
> >is bleeding and needs cash, this still affects the ability of IBM to
> >raise capital for new projects, including those in the Personal
> >Systems group. Holders of IBM debt and equity have to consider overall
> >corporate performance.
> 
> Except that Personal Systems is not a "group".  It's a corportion unto
> itself.  IBM has spun off most of their groups into separate
> companies.  What did you think the "new IBM" was all this time,
> anyway?

Personal Systems is a wholly owned subsidiary of IBM. It does not have a
separate set of shareholders or debtholders. This means we have a
hierarchial/organzational artifact on top of the accounting artifact. IBM
chose to organize Personal Systems as a corporation for its own reasons,
perhaps for the sake of motivating employees or for public realtions.

My original comment on the perspective of IBM shareholders still holds: it
is critical to consider overall corporate performance. Moreover, this can be
extended to all stakeholders, including customers for OS/2. If IBM performs
poorly overall, then eventually OS/2 will be affected.

What did you think the "new IBM" was all this time, anyway?



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 | / | Daniel A. Szpiro             Telephone: (519)679-2111, Ext.5138 | \ |
 | / | Western Business School          EMAIL: dszpiro@business.uwo.ca | \ |
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