13
Robert H. Little
935 Middlefield Road
Palo Alto Ca 9430l-3395
Feb 25/92
BIG or Small Organizations.
Dear Henry:
We were discussing advantages of bigness in a
Coffee Company and how many companies are too small to
compete. However there may be an optimum size.
In your case, you want to be big enough to save labor and
improve efficiency by being able to afford the most suitable
machinery. It is your labor that needs to saved.
You are the key go the whole business.
Compare General Motors and Studebaker Car Co. Studebaker
was a small non- Union company that turned out a small
beautiful car year after year with little model change but
great efficiency. The staff were happy enough to reject
the unions. But the politicians sided with the unions and
the company went broke.
The biggest stock holder in G.M. was the DuPont family, so
for many years G.M. was run like a one man company.
Years ago, in France, a small tin mining company was
approached by a big American Company. We could modernize
your operations and get many times your present production.
The owner replied. This mine has been in the family for
several generations.. We have a reserve capacity.
