Crisis? What crisis?

For a moment, imagine that sovereign states were large corporations. Now imagine, suddenly, one of the world largest corporations (let’s name it A) claims that caught an agent from a semi bankrupt company with poor reputation (Let’s name it B) in their headquarters, while he was trying to throwing a big cake, (not a yellow one) to the face of a visiting CFO of another company (C corporation).

Well, obviously, both An and C companies, become really upset for different reasons. A will be angry of the infiltration into it’s headquarters. C will be angry because one of it’s high ranking officers were in danger. In the meantime B, which-according to An and some of it’s business partners —  has a poor reputation of dealing with it’s own staff as well as costumers, denies everything.

Now let’s take a look at how two corporations rank:

A:

  • Gross profit per shareholder: $14.12 Trillion
  • Number of staff in legal department for settling “disputes”: 1,477,896
  • Annual spending on maintaining legal department: $549.1 billion

B:

  • Gross profit per shareholder: $331.01 Billion
  • Number of staff in legal department: 545,000
  • Annual spending on maintaining legal department:$9.174 billion

Now let’s anticipate the steps that A will take:

  • Public condemnation of the act
  • Asking it’s legal department to prepare a plan in case the have to fight in the court
  • Using it’s vast influence, ask its business partners not to supply any product to B corporation and, refrain from buying any goods from it, providing technical, financing assistance or trading it’s shares.
  • Use it’s influence on fuel stations not to provide B corp fuel for it’s cargo and staff cars.

And B… :

  • Denies it’s involvement in cake incident.
  • Does nothing else.

Which company will finally prevail?

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