Wednesday, March 15, 2006

The law of unintended consequesnces

It seems to be rare in business that people take the long view. So many apparently well thought through strategies turn out to be quick fixes, which then become albatrosses around the company's neck. For example, Western automobile companies were quick to leap into China, in spite of laws requiring giving control to Chinese partners. Now, just a few years later, when sales for many of these companies are in the '00s of thousands, we see that the Chinese partners are setting up their own state-of-the art factories to export many more cars back to the West. In the long run, the Western companies will have trained and set up their own worst nightmares.

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