Klarinet Archive - Posting 000417.txt from 2003/02

From: Neil Leupold <leupold_1@-----.com>
Subj: RE: [kl] fire at LeBlanc factory
Date: Thu, 13 Feb 2003 14:39:12 -0500

--- David Naden <dnaden@-----.org> wrote:

> As was stated in a previous post, this was a
> business decision, and whatever company or conglomerate owns Buffet should
> be of little relevance provided that it does not impact instrument
> production and quality.

This, of course, is the primary point. Business decisions very often do involve making changes --
changes in leadership, in personnel, in processes, in market strategy and focus, in any number of
ways that could dramatically alter the complexion and inner workings of the company. One of the
main reasons that one business might acquire another is in anticipation of potential synergies
between their joint operations, e.g., AOL and Time-Warner, which turned out to be a total flop, of
course. In Buffet's case, synergies are not the likely consideration, for Rutland sees Buffet as
an investment venture. They see potential for financial growth despite the bear market, and the
realization of that growth may involve plans for any number significant changes to the way that
Buffet engages in its goods-producing activity. It's rational to expect that Rutland will seek to
maximize revenue, and they will examine very closely the manner in which Buffet generates product
and conducts its business. Hopefully, any normative analysis they conduct will conclude that
Buffet's processes and core competence are essentially sacrosanct, although a fresh perspective
can find ways to optimize efficiency in even the most delicate handcraft-based environment. The
quality of clarinets at Buffet could as easily go up as it could go down. If they're smart, the
guys at Rutland will perceive the connection between Buffet's substantial brand power and the
quality of what they make, and tread lightly in their quest for operational improvements that
might otherwise jeopardize what made Buffet an attractive investment in the first place.

Do you Yahoo!?
Yahoo! Shopping - Send Flowers for Valentine's Day
http://shopping.yahoo.com

---------------------------------------------------------------------

   
     Copyright © Woodwind.Org, Inc. All Rights Reserved    Privacy Policy    Contact charette@woodwind.org