Jack Wright, John Rock, And Sam Bigger

973 Words Aug 25th, 2015 4 Pages
I want to start off by clarifying the three main people in this case. They are Jack Wright, John Rock, and Sam Bigger. There are a few other people as well, but they are not worth noting. Jack is the CEO of Dryden Corporation and John is the CEO of Mega Corporation. John has been talking to Jack about the possibility of joining Mega Corporation’s board of directors. Sam Bigger is the chairman and former CEO of Mega Corporation. They need an answer from Jack by the end of the month in order to get his name in for nomination. However, there are some issues that Jack wants to think through and discuss with his wife before making a decision. First, Jack is worried about the future of Dryden Corporation. Even though the company has grown and been successful for the past ten years, it has been rather stagnant lately. He isn’t sure how to get it back on the right track. One option is an acquisition with Mega Corporation, which seems to always do well. Mega has acquired 20 companies and sold 10 of them. Sam Bigger never lost money on any of the deals, and even became profitable with some of the investments.
On the other hand, Mega Corporation’s financials are going downhill. Despite having a strong balance sheet, there was a benefit pension plan that was hugely under-funded. The income statement was worse. Sales were nearly cut in half, due largely to the fact that foreign competition was squeezing out the margins. Profits and cash flow dropped even more than sales.…
Open Document