13-21. Determine and discuss the degree of agreement or disagreement among the various groups in the class. Break into small groups of four to five people. Assume your group is the executive committee (that is, the top managers) of Resteaze, Inc. Resteaze is a large manufacturer of mattresses, box springs, and waterbeds. The publicly traded firm is among the largest in the U.S. bedding market. It operates 15 factories, employs more than 5,000 people, and last year generated

$20 million in profits on sales of $380 million. Resteaze products are sold through department stores, furniture stores, and specialty shops and have the reputation of being of good quality and medium-priced.

Your committee is thinking about entering the European bedding market. You know little about the European market, so you are thinking about forming a JV. Your committee has identified three possible candidates for such an arrangement.

One candidate is Bedrest. Bedrest is a French firm that also makes bedding. Unfortunately, Bedrest products have a poor reputation in Europe and most of its sales stem from the fact that its products are exceptionally cheap. However, there are possibilities for growth in Eastern Europe. The consultant who recommended Bedrest suggests that your higher-quality products would mesh well with Bedrest’s cheaper ones.

Bedrest is known to be having financial difficulties because of declining sales. However, the consultant thinks the firm will soon turn things around.