Preview

Comapany Men

Good Essays
Open Document
Open Document
574 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Comapany Men
After watching the movie “The Company Men” during the E-learning week, you need to submit a two-page learning (reflecting) essay online via IVLE before the end of the E-learning week (Sunday, September 15, before midnight). Please answer the following three questions. The reading of the E-learning week, Useem (1998), will help answer the questions.

1. What are the relationships among stock markets (share prices), large-scale layoff, and mergers and acquisitions as presented in the movie?
James Salinger’s tactic is to downsize the company to boost the share price to avoid a merger or acquisition. Salinger believes that a merger or acquisition will break down the company. The intention with the large-scale layoff is to make investors believe that the company will be more efficient and in return this will maximize the stock value for investors.

Why do the relationships become the way they are in the movie? Are there other kinds of relationships among these three phenomena?
Since the economy is in a recession there is no other way to boost the stock price than to do some sort of downsizing or restructure to prevent a merger or acquisition.
If an unexpected downsizing makes the investors afraid or if big layoffs occurs many times in a short time period stock prize can decrease. If the stock loses value it can increase the probability for merger or acquisition.

What are the relationships among these three phenomena in Singapore?
Since the article written by Michael Useem (1998) states that the financial market today is globalized I think the relationship between stock market, big-layoffs and acquisition and merger are pretty much the same in Singapore and the U.S.

2. What are the differences between GTX and the small construction contractor (played by Kelvin Kostner)? What makes the differences?
GTX is owned by the stockholders while Jack Dolans Company is owned by himself. This means that Dolan can decide for himself what to do and he doesn’t

You May Also Find These Documents Helpful

  • Good Essays

    Psy 315 Week 3 Case Study

    • 707 Words
    • 3 Pages

    Dependency on reaching certain earnings goal for bonuses or stock options may be one. Pressure on executives meeting analysts’ earnings expectations may be one. Also, the company may need additional financing. There is a possibly that bankruptcy might be pending (operating losses, technology change, or decline in industry). Lastly, a merger may be undecided and the management will want to discuss the largest price possible.…

    • 707 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    memo 2 Weymouth steel

    • 387 Words
    • 2 Pages

    As far as I know Corporation did her best to reduce costs, for example the initiated following measures: to close down less efficient factories and to terminate using of overtime and the hiring of temporary salaried employees. In order to improve efficient in the company we deal with difficult problem of laying off 2,000 salaried employees. But before we have to try finding the alternative ways such as attrition, early retirements, reducing payment of employees, transfers, and leaving positions vacant. But in spite of it we should dismiss 1000 employees.…

    • 387 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Tootsie Roll Case Study

    • 2927 Words
    • 12 Pages

    Over the last few decades the company has almost doubled their sales without spending money on advertising or buying out companies that did not fit in with their goals. While this is true in the most recent decade its operating…

    • 2927 Words
    • 12 Pages
    Powerful Essays
  • Satisfactory Essays

    The effect of mismanaged LAYOFFs on the remaining workforce and the effects, lack of management preparation, the human condition, and lack of mitigation strategies. We think that the problem with this article is that not enough managers or HR personal, know how to let a person go from their employment effectively. They sometimes don't realize the impact that it has on the other employees morals. Also, that sometimes companies don't take a closer look to make sure downsizing will be the answer to cutting costs like they think that it will. Every HR or manager should be let go in their lifetime so that they know what it feels like. I believe that this statement holds tremendous merit because the best lessons in life are learned through personal experience. In order to adequately communicate life changing messages of sorts, it should be done by a seasoned manager. I will be very surprised if any company has a potential layoff learning path that will coach and train the management staff for these kinds of things. It is imperative to be sensitive to the individual being laid off as this will impact their livelihood significantly. I do agree that other options much is explored such as relocating or wage cuts before making the decision to lay off people.…

    • 660 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Excello Telecommunication

    • 1722 Words
    • 6 Pages

    Excello Telecommunication had seen many years of profitable sales. But, then in 2010 Excello had seen a drop of sales due to competition of their product by overseas manufactures. With all the years that this company had been in business they were now faced with the fact that their earnings estimates were not going to be met. There were many executive managers that were worried about the kind of effect this would have on the company bonuses, stock options, and the share prices of Excello's stock.…

    • 1722 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    3. In the late 1980s there had been a wave of mergers. The companies had become vulnerable to mergers because they ignored changing demographics and emerging forms of retailing, failed to control high expense structure and integrate operations. In the backdrop of these mergers, McGregor believes that even though the company is doing well it needed to further improve its profitability, efficiency and turnover to prevent trouble.…

    • 1269 Words
    • 7 Pages
    Good Essays
  • Good Essays

    In all three stories, relationships become a huge factor when positivity is absent, giving each character something worth living for. Relationships…

    • 894 Words
    • 4 Pages
    Good Essays
  • Better Essays

    The goals of mergers range from reducing the number of competitors, to access of new products (Belcourt et al., p 330). Statistics show that 80% of new product developments fail (Howells, 2011), partly due to challenges and conflicts with human resources functions. Mergers and acquisitions are the fastest way to enter new markets. “It is estimated that 1/3 of all mergers fail due to faulty integration of diverse operations and cultures,” (Chhinzer, 2013). Therefore, the success of a merger or acquisition lies in the ability to guide, motivate, retain, and effectively use employees, and rarely has anything to do with financials. Mergers and acquisitions cause insecurity, lower levels of satisfaction at work, less affective commitment, and a loss of trust in the firm (Belcourt et al., p 329-330). In one study, it was found that declines in job satisfaction resulted in costs to the employer of approximately $17,000 per employee (Fairfield-Sonn et al., 2002). The loss of productivity stems from employees being afraid to make a mistake, resentment in the merger, and dealing with rumours about the merger (Belcourt et al., p 330).…

    • 5441 Words
    • 22 Pages
    Better Essays
  • Satisfactory Essays

    Companies often pay too much for their recently acquired businesses. Mergers are generally a little less on the pocket book. Many companies also buyout the majority of stock and purchase the company that way. However when buying a company through stock they also inherit the mishaps of the company and will have to fix them. But while they may spend to much for what the business currently is, it may not be too much money for what the company could become.…

    • 287 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    4. Corporations repeatedly claim that cutting jobs will allow them to save money and stay in business. Why does this not seem to work much in the examples detailed in the film?…

    • 1124 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Blanka Dobrynin is a managing partner of the Aurora Borealis Company. The company utilizes a strategy called “Active Investor”. In this strategy, the firm looks for companies that could benefit from restructuring. Aurora Borealis then invests heavily in the company’s stock. The next step is to convince management that a restructuring will benefit the company and its stock holders. The key to Blanka’s strategy is, of course, to affect the stock price of the company they are influencing. In the case of Wrigley, they are unique in that they have virtually no debt. Many would see this as a benefit.…

    • 870 Words
    • 4 Pages
    Powerful Essays
  • Good Essays

    Case 16 Sara Lee Corp

    • 579 Words
    • 3 Pages

    Case 16- Sara Lee Corp. in 2011: Has Its Retrenchment Strategy Benefited Shareholders?, Page C243…

    • 579 Words
    • 3 Pages
    Good Essays
  • Good Essays

    This case was happened on the 7th of March 2000. Gordon Gillingham was president and CEO of Northeastern Mutual Life which was the major subsidiary of the Calgary Insurance Group, and this company operated life insurance, reinsurance, general insurance and investment, and other activities in North American and internationally. Since Northeastern Mutual Life’s return on common equity had declined steadily during past four years, so he had to decide how to reduce costs, and balance shareholder and employee interests. Therefore Gordon’s decision would lead to some problems, such as whether or not cut employees from his company (Ken Mark, 2002, p.4-5).…

    • 598 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Coroprate Restructuring

    • 1598 Words
    • 6 Pages

    The first form of restructuring include divestitures, it is the sale of a business segment to another party. Sony has decided to sell off its VAIO line of PCs in a move that effectively takes the japan based company out of the PC market. This is a result of Sony’s poor sales performance, by doing this the organization get rid of a business entity that was pulling them down and it provides a sharper focus for the management. Hence their shares would be increased as their drop their poor performance sector. Divestitures may arise due to negative synergy arising from poor decisions on past acquisition on poor decisions made during periods of high growth. Much evidence seems to show generally that by announcement of selling companies results in a positive share prices…

    • 1598 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Seller Concentration

    • 2202 Words
    • 9 Pages

    International Labour Office (2004). Employment effects of mergers and acquisitions in commerce. . Available at: http://www.ilo.org/public/english/dialogue/sector/techmeet/tmmac03/tmmac-r.pdf…

    • 2202 Words
    • 9 Pages
    Powerful Essays