1. Before discussing the situation with your group, and from the perspective of your assigned role, decide which option you think is best. Write down the reasons for your position. The Situation The Thomas Corporation is a very well-financed private corporation with a solid and growing product line, little debt, and a stable workforce. However, in the past fli!W months, there has been a growing rift among the board of directors that has created considerable differences of opinion as to the future direction of the firm.

The Dilemma Some board members believe the firm should "go public"

with a stock offering. Since each board member owns a large block of corporate stock, each would make a considerable amount of money if the company went public. Other board members want to maintain the status quo as a private corporation. The biggest advantage of this approach is that the finm maintains its current ability to remain autonomous in its operations.

The third faction of the board also wants to remain private but clearly has a different agenda. Those board members have identified a small public corporation that is currently one of the company's key suppliers. Their idea is to buy the supplying company, shift its assets to the parent firm, sell all of its remaining operations, terminate employees, and then outsource the production of the parts it currently buys from the finm. Their logic is that the firm would gain significant assets and lower its costs.

T earn Act ivity Assemble a group of four students and assign each group member to one of the following roles:

• An employee at the Thomas Corporation

• A customer of the Thomas Corporation

• An Investor in the Thomas Corporation

• A board member who has not yet decided which option is best