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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (June 29, 1962)
MEDFORD MAIL TRIBUNE. MEDFORD. OREGON FRIDAY, JUNE 29, 1362 mm Your Money's Worth By SYLVIA PORTER Copyright, Hall Syndicatt, Inc. Suggestions Offered for Young People Entering Labor Market KmHfIHHiiHflllllllHllHtlflfllj ANSWER TO 'THE SECOND PROFIT SQUEEZE Nothing the U.S. Government can do will beat the profit squeeze which is strangling an increasing number of U.S. corporations today and is dangerously limiting the growth of our economy. No foreseeable business upswing from here will solve the fundamental problem of declining corporation profit ratios, for the simple reason that today's profit squeeze is basically due to intense and bitter competition and this will persist into the indefinite future. There is no gift from the gods in prospect to restore corporation profits to the levels of earlier post-World War II years, when U.S. industry prospered under the brilliant eco nomic combination of huge pent-up demands for goods, a vast accumulation of savings to buy goods, an exploding growth of new families needing everything we could produce, no competition worth noting. Today's profit squeeze is one of the roughest ever. It can be beaten, but only by businessmen taking bold, broad, imaginative, stern, unsentimental, realistic actions on their own to do so. Right now, in every industry which overall is in a pinch a few companies are doing just this. Other companies which want to triumph In the environment of the 1960s will have to follow similar courses. These, in brief, are on conclusions of a detailed, thought provoking analysis of "The Second Squeeze on Profits" by J. Roger Morrison and Richard F. Neuschel, to be published in the July-August issue of the Harvard Business Review. Here's the heart of the study. No matter what your sympathies or prejudices, the fact is that a profits squeeze does exist and the evidence is mount ing that it has been retarding our growth. There is mounting concern that profits aren't high enough to finance the impera tive replacement of our increasingly obsolete factories, much less to finance the enormous total of new plants needed to employ the additional 13 million workers entering our labor force before 1970. This second squeeie differs from the firs., in the 1950s, which was due primarily to the fact that rising costs outran rising prices on finished goods. This second squeeze is due to a declining rate of demand for established products and a slowing rate of demand for new products. It is due to the fact that many industries have substantial unused., capacity, and this not only depresses prices but also sparks Intense competition. It Is due to skyrocketing foreign com petition. It is due to the fact that prices have stabilized, and even in periods of sharp business upturn corporations can't hike their prices enough to absorb higher costs. "No automatic relief is in sight" for this sort of squeeze, say Morrison and Neuschel. "There are no broad economic forces now in prospect to bring profits" up to a "more satisfactory level." Yet, the fact that in each industry some companies are conquering the squeeze emphasizes that this pinch "is obviously sensitive to management action." Specifically: (1) Cost reduction by decree - "arbitrary expense cutting" ranging from controlling use of paper clips to outlawing com pany planes. There are many instances where companies have slashed costs 10 to 25 per cent by this pressure - but it has to be "stern" and realistic. (2) Review of all existing operations, to slash costs and to increase Income. The president of one $1 billion corporation requested each vice president to study over a five-year period every activity under his responsibility to find profit improve ment opportunities. In the first year, savings ranged from 20 to 25 per cent on each activity studied and profits were hiked by tens of millions. (3) Search for fundamental changes, for the forces behind the second profit squeeze "have generated many profit oppor tunities in scope and size than those whittled away by the relentless erosion of competition.'. Rethink every policy, re-examine every facility and organization structure, don't hesitate to undertake' drastic surgery. As one company presi dent puts it, "It is like starting out all over again in business." "The real answer to the second profit squeeze" lies in "the combination of sound management of each function with bold and broad evaluation of new profit opportunities," conclude Morrison and Nueschel. In one of the nation's most respected business publications, the challenge to business has been coldly and unsentimentally flung down. By DAVID NYDICK UPI Education Specialist Each June thousands of young people go out into the labor market to look for per manent jobs. Most are grad uates. Others, for reasons of their own, have no intention of continuing school. If you belong to either group, here are some things you should keep in mind in looking for a job. First, analyze trie type of work appropriate for your in terests and abilities. This may be obvious or may require pro fessional help. If you can t make up your mind, make use of available school serv i c e s (guidance counsellor, testing, etc.). You may find it necessary to go to a voca tional guidance organization. This is available privately or through some civil employ ment services. A relatively small fee and a little time may be repaid many times in hap piness and compensation. Many Sources Once the type of job is de cided, where do you start looking? There are many sources such as newspapers, public or private employment agencies, personnel depart ments (usually in large or ganizations), etc. Do not over look public service. Chock with your local, state, or fed eral Civil Service office. In many cases you may need a resume. Yours may be short, but it still is important. You must get the interview if you are going to sell yourself. There are many examples for preparing a good resume and interview in your school or local library. Take the time to check on these. In general, act natural and be yourself. Be straight for ward, but not overly aggres sive. The employer knows the type of person he wants. A good interview goes both ways. Don't be afraid to ask questions. Show your interest and knowledge of the job. Be honest. It may be advisable to admit some lack of knowl edge and emphasize your will ingness to learn. Show self confidence but not conceit. Future Not Decided Your first job does not de cide your future. You will find it exciting and valuable to get out and work. This ex perience will give you some background for deciding the field best suited to your interests. You do not have to forget about continuing your formal education because you are out working. An ambitious young UNDERGROUND TEST Washington-IUPH-The Atom ic Energy commission Thurs- day conducted the 40th an nounced underground nuclear test at its Nevada Proving Grounds since the current se ries started last September. 1 Say You wo . . . A 1955-15-FOOT TRAVEL TRAILER WE WILL ALLOW YOU UP TO $ 2 ON A... Brand New IDEAL TRAVEL TRAILER Serial No. JR21FKJRS2949 HURRY-ONE OMLYT 21 FOOT TWIN BEDS All Accessories THE PRICE REPRESENTS FACTORY LIST PLUS FREIGHT! WALKER the WEEPER 1243 SO. RIVERSIDE MEDFORD man can improve himself and gain an advantage over his competitors by taking evening courses. It is possible to ob tain a high school diploma or to specialize in a specific field. Many positions begin with well organized training pro grams. Keep these possibilities in mind. It is not necessary to take the first position you are of fered but don't set impossible standards. Your entire out look might change consider ably after your first experi ence. Therefore, seelc a posi tion commensurate with jour present abilities but with var ious avenues for growth. Slain Man's Auto Found in Seattle Vancouver, Wash.- (IIPU -An automobile belonging to one of two men found slain near Battle Ground, Wash., Sun day turned up in a Seattle parking lot Thursday, Clark County Sheriff Clarence Mc Kay said. The I960 model car be longed to Charles S. Hale, 71, of Battle Ground. He and his 67-year-old brother-in-law, Lester McCollum, were found dead on their farm Sunday. Reports from relntives and j neighbors indicated thry had ' died about three days earlier. Hnle had been shot in the head and McCollum had been strangled. Seattle police reported they did not know how long the car had been in the parking lot, which is used by a medi cal clinic. A caretaker said he had not noticed it before Thursday. ALL UNION BARBER SHOPS WILL BE CLOSED TUESDAY AND WEDNESDAY JULY 3 AND 4 LOCAL 269 BARBERS & SHOP OWNERS UNION a touch is all it takes to open new ' try k Burgie I Softop! I i - ; - JLL O even with a Burgie gives you this new easy-open, aluminum-top can...at no extra cost! Just a light touch . . . and you've opened the light beer. Burgermeister is brewed light from the start. So Burgie looks light . . . Burgie tastes light ... Burgie drinks light. Enjoy the lightness of Burgermeister and the convenience of Softop today. Burgermeister BREWED LIGHT FOR REFRESHING PEOPLE BURGERMEISTER BREWING CORP., SAN FRA.'.'CISCO, CALIFORNIA . 111 dull opener! VlgSSix .XSsSlffsSisillfl 7 Ft
