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?
Chris wrote:
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.
Beth wrote:
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.
danielle wrote:
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