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The following appeared as part of a recommendation by one of the directors of the Beta Company.
The Alpha Company has just reduced its workforce by laying off fifteen percent of its employees in all divisions and at all levels, and it is encouraging early retirement for other employees. As you know, the Beta Company manufactures some products similar to Alphas, but our profits have fallen over the last few years. To improve Betas competitive position, we should try to hire a significant number of Alphas former workers, since these experienced workers can provide valuable information about Alphas successful methods, will require little training, and will be particularly motivated to compete against Alpha.
Discuss how well reasoned... etc.
A director of Beta Company suggests that Beta can improve its competitive position by hiring a significant number of former Alpha Company employees who have recently retired or been laid off. The directors reasoning is that because Alpha manufactures some products similar to Betas, former Alpha employees would be experienced and need little training, could provide valuable information about Alphas successful methods, and would be particularly motivated to compete against Alpha. The directors argument is problematic in several respects.
