1. UNIDAD EDUCATIVA BILINGUE NUEVO MUNDO
WORKSHEET
FOR ING 01 VER 15 04 11
Teacher: Alex Arancibia Name: ……………………………
Course: 2nd Bach Section:…………………………
Subject: Business & Management Date: …………………………….
Activity: Stakeholders
Read the case study below and then answer the questions that follow. All answers must be
clear and precise. Presentation of your work will be considered.
DAILY RECORD: ‘MERGER RESULTS IN JOB LOSSES’
The merger of two of the largest airlines in the country will lead to job losses, reports the Daily
Record. Special Air and Flights4U have announced a huge merger which will result in a business
worth over $2 billion. The longterm plans are to offer more routes and cheaper prices to
passengers. The merger has the support of the government as it is expected to keep infl ation
down and boost tourist numbers into the country. Non-profitable routes to small regional airports
are to be closed, together with Special Air’s headquarters in New City. More than 500 staff are
expected to lose their jobs, resulting in annual savings of over $10 million. Trade union leaders
are threatening to take industrial action to support workers who will lose their jobs. The local
governments in the towns which are losing routes are very worried about the impact on local
suppliers of fuel and food to the airlines. The chief executive of Flights4U said: ‘Sure, there will be
losers from this merger, but there will be many more winners as we expand our operations from
the major cities.’
1 Are the two airlines focused on shareholder interests or other stakeholder interests? Explain your
answer.
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2 Why is it difficult in this case for the two merging companies to meet their responsibilities to all
stakeholder groups?
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Approved by: ________________________ Date: __________ # of copies: ____ Pages: 1/__

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3 Why might the negative impact on some stakeholders mean that the merger will not turn out to be
as profitable as expected?
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4 Discuss how the newly merged business could attempt to meet some of its responsibilities to the
stakeholder groups worst affected by this decision.
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Approved by: ________________________ Date: __________ # of copies: ____ Pages: 2/__