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Unformatted text preview: downsizing was necessary for the company to minimize financial losses. Secondly, the director assumes that the formerAlpha employees hired by Beta will be welltrained and valuable. During a typical layoff, however, the best and most experienced employees are typically the last to be laid off. By following the director’s advice, Beta would probably be hiring Alpha’s least efficient and least experienced employees—that is, those who would be least valuable to Beta. Thirdly, the author assumes that Alpha and Beta are sufficiently similar so that former Alpha employees could provide special value for Beta. However, we are informed only that Beta manufactures “some products similar to Alpha’s.” It is possible that former Alpha employees have experience with only a small segment of Beta’s product line, and thus have little inside information of any value to Beta. Finally, the claim that former Alpha employees would be motivated to compete against Alpha is partially unwarranted. While many of those who were laid o...
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This note was uploaded on 05/05/2009 for the course ECAS asdfasdf taught by Professor Asdfaf during the Spring '09 term at Academy of Art University.
- Spring '09