negotiating deals to purchase Canadair Boeings de Havilland unit business jet

Negotiating deals to purchase canadair boeings de

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negotiating deals to purchase Canadair, Boeing’s de-Havilland unit, business – jet pioneer Learjet, and Short Brothers of Northern Ireland. Deere & Co. felt vulnerable with the declining customer base for agricultural machinery, so Chairman and CEO Hans Becherer began reallocating resources into other lines of business, such as health care and financial services. Entering these domains is helping Deere weather uncertain times and takes some pressure off the machinery business. An example of divestment is when Sears redefined its domain by selling off its financial services divisions, including Coldwell Banker, Allstate, and Dean Witter, to focus the company on retailing. Political Activity, Regulation: Political activity includes techniques to influence government legislation and regulation. For example, General Motors used political activity to successfully settle a battle with the U.S. transportation Department over the safety of some of its pickup trucks; the settlement requires that GM spend $51 million on safety programs over a five-year period but saved the company the cost of a $ 1 billion recall.
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Organization Theory and Design - MGT504 VU © Copyright Virtual University of Pakistan 42 In one technique, organizations pay lobbyists to express their views to members of federal and state legislatures. In the telecommunications industry, the Baby Bells hired powerful lobbyists to influence a sweeping new telecommunications bill giving local phone companies access to new markets. Many CEOs however, believe they should do their own lobbying. CEOs have easier access than lobbyists and can be especially effective when they do the politicking. Political activity is so important that “informal lobbyist” is an unwritten part of almost any CEO’s job description. Political strategy can be used to erect regulatory barriers against new competitors or to squash unfavorable legislation. Corporations also try to influence the appointment to agencies of people who are sympathetic to their needs. The value of political activity is illustrated by the efforts of Sun Microsystems and Netscape to persuade the Justice Department to break up Microsoft, arguing that Microsoft had acted as monopoly in controlling the software industry and now threatened to extend that power to internet access. Some observers noted that if Microsoft had paid more attention to political lobbying earlier, it could have avoided Justice Department investigation. Trade Associations: Much of the work to influence the external environment is accomplished jointly with other organizations that have similar interest. Most manufacturing companies are part of the National Association of Manufacturers and also belong to associations in their specific industry. By pooling resources, these organizations can pay people to carry out activities such as lobbying legislators, influencing new regulations, developing public relations campaigns, and making campaign contributions, for example, the National tooling and Machining
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