Google Unionizing

Google Unions

Enough is enough. With that phrase, Google’s parent company, Alphabet was confronted when workers demanded that there should be a union allowed. Under American law, a union is self-organized on the level of each company, so the union at Alphabet and other American unions are different from unions in other countries like Germany, where there is a union for the industry. So when enough was enough, Google and Alphabet workers created their own union. 200 members are not unionized with the Alphabet entity, and I’m curious to learn how those 200 members will make a difference in the life of over 100,000 employees.

Google has over 100,000 employees, as well as about another 100,000 freelance workers, contractors, and so on, and the numbers seem like they will continue to grow. So can 200 workers make a difference in the life of over 200,000 employees? We will see. The unionized employees stated that they were the ones doing the coding, the writing, the working, and keeping Google afloat, so they demanded fairness. Lessons learned for other organizations? Unions form because there is a feeling of unfair treatment. So, if your company doesn’t like unions or doesn’t want your employees to unionize, make sure to treat your employees fair. Fairness is the new catchphrase for 2021.

#328, January 2021, Google, union, fairness, Alphabet.

Shortage of CO2

Did you know that there is a shortage of CO2? No, this is not about global warming, this is about the fizz in the glass. Because we are driving less, because there is less ethanol production, because so many things are changing because of COVID, there is also a reduction in the production of CO2. I didn’t know until recently that companies who are reselling the Carbon Dioxide byproduct, are selling less ethanol or other products that produce CO2, therefore, CO2 is in short supply and high demand. Brewers are now paying up to 25% more than they used to pay for CO2 a year ago.

The sudden increase in prices for CO2 products and the decrease of CO2 also means that cans of carbonated drinks like soda could become more scarce. You may not be shopping as much, I know I’m not shopping as much, but I heard reports that the variety of flavors from carbonated drinks are also limited. So, what are my takeaways from this CO2 shortage? If you are operating your product from a byproduct, make sure that the byproduct is still available if the main product is no longer being produced. In other words, what could a company have done better to secure their supply? My second takeaway is that if you are operating with a byproduct, what could an alternate business model be for you to stay successful. Both are the initial questions that come to mind when I realize that my very own water bubbling machine at home is becoming harder and harder to be refilled.

#326, January 2021, CO2, beer, soda, carbonation, byproduct.

The False Perception of a Company’s Profitability

The Profit of a Company: Expectations vs Reality

Profit

What do you think is the average profit of a company? A management advisory company conducted a survey by asking people in the streets this same question. The people surveyed believe that the profit of a company is 22.8%. In other words, if your company makes $100 in revenue, taking away all of the expenses, your profit is $22.8.

In Germany, the reality is 3.4%. The global standard is approximately in the 7% area, so a company that has a 10% profit is rare, almost. Why is there a misconception? Could it be culturally? People just think that businesses must be profitable because why would someone be an entrepreneur otherwise? Or is it that the lack of information plays a role? Or could it be that the PR of companies speak a different language? Companies are very happy about their sales. Volkswagen vs Toyota, who is able to sell more cars? That’s a big discussion, but profit seems to be secondary. If you are the largest selling company, then you must be doing good.

Profit For German Companies

Why is profit in Germany so bad compared to other countries? 3.4% compared to something in the neighborhood of 7% globally. I believe a lot of it has to do with the German desire to provide top quality. The made in Germany sticker has a price, not only to you as a customer who pays more, but also to the company who loses some of their profit to ensure the quality. So, it is no surprise that Toyota’s revenue is double the amount of Volkswagen’s revenue. What does this mean for you? If you look for quality, buy quality, but if you look for buying shares, but a different one, probably one with higher profitability.

This video was transcribed from a Morning Musing from our YouTube Channel. To see the video, click here.

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