• Company A will have to improve its product, diversify or go under. If it goes under it will be in no position to do anything with its workers except to wish them luck in finding alternative employment. As I am the owner of the company I would do my utmost to keep the company viable because I would stand to lose just as much as my employees. Of course if the company was a huge multi-national the owners would be faceless shareholders who cared more about the value of their shares than they did for the workforce. These hypothetical questions obviously relate to some real-world event - I wish I knew what it was.
  • Pool all it's resources and overhaul, starting with product development (improve product), and retrain all sales and customer service staff. Do away with traditional marketing and focus on gorilla marketing - hands on, consumer usage and press coverage! Of course, if there are little resources, they can sell to Company B and start from scratch with a skeleton crew. Obviously, many staff would be let go. They might also consider Employee buy-in, giving the company more money to make improvements and giving employees ownership in the company.
  • Company A can do what made the robber barons so powerful and undercut Company B's prices until they are at the brink of failure, then buy them out. That is, as long as there are plenty of other Companies in the same business so it's not an anti-trust issue. As to the workers, Company A will have fired most of theirs during the liquidation sale and will fire half of Company B's workers after the merger, then sell the entire business off to private capital. It's the American way.

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