British Wallboard, the parent company of Stonewall, had seen enough of the Canadian construction materials market and decided to sell the company. They sold it to US Corp, an American company with a Canadian subsidiary, the Canadian Wallboard Company. The plan was that Stonewall and Canadian Wallboard Company would merge into one organization. The news of this plan terrified the senior team at Stonewall. They had enjoyed a significant sense of independence under British Wallboard and now they felt they would be micro managed by US Corp or turned into just another ‘branch plant’.
Review the Case Study, then answer the following questions. Prepare your answers according to the “General Instructions for Written Assignments”, and consult the Timeline for the due date for this assignment.
1. In 1982 it seems the company will have to downsize. What are the factors that are forcing the company to make that decision?
2. What alternatives should the company explore prior to making its downsizing decision?
3. Which plant should the company downsize? Why?
4. Explain, in detail, the implications of the downsize decision.