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
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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
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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
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