week1 case discussion

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Read the case titled “Harry Lewis: Ethical Manager” in A Casebook on Corporate Renewal. Then, answer the following question:

  • When should the shift to the creditor point of view have taken place?

In addition, review the following quote published in The New York Times on August 10, 1986:

[U.S. Steel] is now facing an economic showdown with nonunion
competitors, bankrupt competitors and foreign competitors. There are not
enough seats in the steel lifeboat for everybody. When the union puts
you out on a long strike, I hope you understand the risk that puts your
jobs under.” — J. Bruce Johnston, an executive vice president of USX
Corporation, in a letter to employees of its USS division, which closed
its plants when a contract with the United Steelworkers expired.

Based on this quote, answer the following questions:

  • Is it ever possible to convince a troubling element,
    in this case the labor union, but in other cases suppliers or partners,
    that unless they relax their demand everybody will suffer?
  • In the mid-1980s, what is the long-term play for the steel industry?
  • Is steel one of those industries that America cannot compete in?

Post your response to the discussion thread provided.


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