- Published: September 20, 2022
- Updated: September 20, 2022
- University / College: Curtin University
- Language: English
- Downloads: 49
The fact that Kellogg as a company endeavored to acquire the asset base of Diamond Foods Inc. was based on the performance history of Diamond Foods in its recent past. Thus, Kellogg has the chance and prospect of growing its asset share and base, due to the postulation and estimate growth rate that analysts have postulated. From the face value, Diamond Food Inc. has a strong customer base and a loyal brand that is good for any business mergers or subsequent acquisitions. On the other hand, this could be an attempt by the big companies to obtain a near monopoly status, by acquiring the other small companies. Due to the fact that the valuation price of the snack industry have declined or reduced (Stevens, 609). If the trend is anything to go by, then it is safe to assume that the acquisition of Diamond Food Inc. was relatively input. Presuming the assumption that it will fall in its market price and subsequent value. It is thus a dilemma to consider the prospects that the acquisition might have been a financial situation that ought to be considered in totality and positive
Firstly, there is the threat of the company Kellogg hiring leaders who may not be qualified enough as to carry the aspirations of the joint forward. For instance, the hiring process may overlook competence, gender of the application, years of service of experience amongst other qualities that are proper for the growth of the business. It is to say that Kellogg would be faced with the dilemma of maintaining a workforce including that of Diamond foods or hiring newer ones. It is to say that it would it is difficult for Kellogg to would contemplate using their mechanisms and systems in hiring because Diamonds Food Inc. has its mechanisms. It is imperative to note and record that there are different and varied natural abilities that people of both genders bring and would offer for the growth of the business. Thus, it would be unfair if either gender were overlooked during the hiring process.
Secondly, since the company has made the move to acquire the Diamond Food Inc. so as to increase its competitive edge and strong market share or base, there is a looming ethical scenario. Against all odds and argument, assume the deal does not materialize into some concrete financial conquest. Then the company would have a moral or ethical obligation to look after the assets, both human and non-human of the Diamond Food. It would be unethical for the company for instance to discard and dispose of the assets of Diamond Food Inc. summarily, the management would have to consider the chances of the joint acquired business venture never materializing or meeting their expected results.
Works Cited
Stevens, B. Corporate ethical codes: Effective instruments for influencing behavior. Journal of Business Ethics, 78(4), 601-609., (2008).