Jack makes three proposals for the new company (page 8). Please evaluate each proposal. Accept? Reject? Accept with modifications?

reman operations to Butrather than bear the huge capital and manage- rial costs of running their own reman facility, many OEMS contracted with independent com- panies, the market Springfield ReManufacturing Corporation now sought. For their part, indepen- dent reman companies who sold to OEMS did not have to support their own distribution and mar- keting network. small group of mar at such risk would additional amount by purchasing stoc The managemer pany met to discu ideas, how far to practicalities of tr while trying to kee Stack's Proposal What Stack proposed at this critical moment in SRC's creation seemed naive to many. Each ele- ment echoes some "lesson" Stack thought he had learned in his years at International Harvester. Stack urged his fellow managers, who had risked their total net worth on the leveraged buyout, to: 1. Create a work culture of "open-book ma doidy n- agement," making every aspect of the busi- nin ness visible to every employee, indeed to d bag anyone who cared to know; 2. Invest a substantial amount of time and endto leaol effort training every employee in financial management so that they could follow, in detail, the weekly operating and financial reports of the company and other informa- tion they would see; and 3. Offer employees a significant share in the equity gains they helped achieve through a participatory stock ownership program. 8