IBM CEO/Chairman Sam Palmisano seems to have missed the CNBC/Fox News talking points about
how all businessmen cower under the iron foot of President Obama.
From today’s appearance by the President at the Business Roundtable”
MR. PALMISANO: On behalf of everyone in the business community, we’re very, very encouraged with your words and your support. You’ve always said that you were committed to the competitiveness of American business. You’ve always said you’re committed to the competitiveness of our country. And we really appreciate it. We are in tough times.
I also want to thank you for all the support in the stimulus package. And when we met, you listened to us and you implemented many of our ideas and your leadership made a difference. So, again, we appreciate it.
And what does the head of IBM know about business, anyhow? It isn’t like they have Business as part of their na–
Nevermind.
>> President Meets with Business Roundtable and Dow Does What?
And when we met, you listened to us and you implemented many of our ideas and your leadership made a difference. So, again, we appreciate it.
That’s how it’s supposed to be done.
Leaving aside Obama’s specific policies, IBM is an example of how an American company can re-invent itself. In the 1980’s, it made its name in typewriters and PCs. But, with plenty of cheap PC clones available, IBM had to figure out what to do in order to survive. So, it moved into servers and laptops, and this lead to consulting. IBM sold its laptop unit to the Chinese firm Lenovo. Lenovo was attracted to the unit because the name IBM still carries weight. And in India, IBM is competing successfully against its Indian competitors such as Infosys and Wipro. Yes, some shareholders took a beating when times were bad in the mid-90s. But investing carries that risk. Those that stuck it out did well. And IBM did it without running to the federal gov’t for a bailout.
If only American car companies and banks could follow IBMs example.
“You’ve always said that you were committed to the competitiveness of American business.”
So, when a company outsources as many jobs to India, can it truly be called “American business.”
I’m sure I can get some sweatshop labor and get great profits too while being a traitor to our own country by putting American workers in the unemployment line.