A Story Of Competition

10th Jan 2005 @ 11.38am

I visited a factory in China which makes toys and electronic products. 8,000 female workers come from the depths of China and work for 3 years, six and a half days a week, with two weeks off per year. They live on site, in dormitories, and gain privileges to use the gym, go to the cinema and so on - it’s a small town in its own right.

The Chinese love to eat - meals are the highlight of the day for most of the workers. The factory owner showed me the massive canteen area, teeming with people, noisy, and with the wonderful aroma of good Chinese food. At one end of the canteen, there are three serving windows, each with a separate kitchen behind. I asked if these were for different types of food that the company offered.

The owner told me that he leases the space to three different independent businesses, and that each competes for the business of the 8,000 employees at breakfast, lunch and dinner.

That way, market forces work. The best food gets the business, the employees are happy, and the owner of the company does not have to worry about something outside their skill set.

posted by Paul Honeywell
filed under Stories