Posted by: mamamamahoney | August 27, 2009

Today’s Business Lesson

Company A own 100 widgets.  Company B owns none.  Company B wants Company A’s widgets.  Company B (possibly unknowingly) sends out its lawyers aka the goon squad to strong arm Company A into giving Company B widgets.  Company A graciously offers to loan Company B some widgets with 0% interest.  The goon squad comes back to Company A demanding all or most of its 100 widgets.  Company A will gain nothing from loaning Company B widgets.  Company B’s goon squad also expects this relationship to continue on throughout the life of Company A.  This is not just a one-time loan.  Company B and its goon squad have never provided anything to Company A.  What incentive does Company A have in loaning Company B widgets?  Should Company A loan Company B widgets?

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Responses

  1. No company A should not bow down to Company B’s goon squad. Company A should hold it’s ground and while being gracious, deny them ALL the widgets they currently have and all the widgets they intend to make in the future.

  2. This sounds like a Prof Muston business capstone class question…one to which I do not have an answer. Although, I am a firm believer in giving nothing away for free. That’s all I got.

  3. I think Company B, which doesn’t really need the widgets, should defer to Company C, who has need of widgets, but not necessarily Company A’s widgets, and let Company A and Company C work it out amongst themselves.

    Unless I’ve completely misread the situation. And then just ignore me 🙂


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