Fast Shoe Comments:
I like your idea of using a mock company to illustrate your
From your example of Fast Shoes purchasing another company to gain entrance into the track apparel market, Fast Shoes must consider many other things. For example it cannot just look at this situation from a market share or earnings standpoint. Fast Shoes must consider the internal power struggle that will likely occur between people at Fast Shoe and at the company they choose to purchase. There is likely to be some cross over of positions between the two companies and Fast Shoes must do a considerable amount of planning to make the transition less difficult. Such things would include deciding what employees Fast Shoes should keep from the company they purchased. Fast Shoes would have to decide on a specific way to measure an employee that was fair, objective and establish who is the more productive employee. Or maybe productivity is not you goal; maybe it is profits, market share or overhead costs. Either way a clear way to measure employees and decide what position would be eliminated must be formalized. They would also have to create an environment that was welcoming to the new company and its employees. This would require the capacity within the leadership at Fast Shoes to recognize the problem with purchasing another company and then carefully consider if they still think acquiring a track apparel company was the best decision for Fast Shoes.