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The case refers to Aaron Feurersteins pledge to pay his workers during the rebuilding of Malden Mills after a disastrous fire in December 1995. The

The case refers to Aaron Feurersteins pledge to pay his workers during the rebuilding of Malden Mills after a disastrous fire in December 1995. The company filed for bankruptcy in 2002. Below are some supplemental readings that might help you as you work through the case.

As Mills Ruins Smolder, Massachusetts Dream is Doused. New York Times, December 13, 1995.

In Becoming An Icon, a Mill Owner Bets His Company. New York Times, July 4, 1996.

A Boss Saved Them, Should They Save Him? New York Times, January 20, 2002.

I was able to find all these articles with a quick google search of the title.

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The following is required for the first part of the case study:

  1. Bill Young believes that because his employees were not responsible for the 9/11 attacks, they should not have to suffer loss of income as a consequence. Businesses are always subject to economic forces over which they have little or no control. Should the business response to something like the 9/11 attacks be any different from the response to normal fluctuations in the business cycle? If so, why and how? If not, why not? How does the example set by Aaron Feuerstein influence your decision?
  2. Bill Young has adopted the practice of sharing as much financial information with his employees as possible. How does the existence of a financial crisis affect the wisdom of such a strategy? How much information do you share with employees about the financial condition of the company? Do you tell them everything or do you sugarcoat the numbers to give them hope?
  3. The case cites a request from the director of marketing research at one of MTIs client firms. He was afraid of losing his job because he did not have any projects to work on and proposed that MTI start a telephone survey of consumer buying habits, and requested that the contract be backdated to September 5th. What do you say to the client?

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