Question

In: Operations Management

Will other stakeholders suffer a loss, or be damaged or changed by the action for Kinder...

Will other stakeholders suffer a loss, or be damaged or changed by the action for Kinder Morgan in El Paso?

Solutions

Expert Solution

The other stakeholders will be changes by the action of Kinder Morgan in El Paso. The other stakeholders may include the employees, customers, government, and local communities etc who have an interest in the acquisition of Kinder Morgan in El Paso other than the shareholders. There are chances of employee layoff, but they may not attempt the same as they require more employees to operate the enlarged business through acquisition. El Paso was one of the largest natural gas providers and operated in a safe, efficient and dependable manner. Hence Kinder Morgan may not lose the efficient workforce by reducing the workforce or benefits to employees. But El Paso may undergo cultural changes as the work culture in Kinder Morgan would influence their culture and behavior. El Paso stakeholders would undergo a change according to the organizational values protected by Kinder Morgan. The quality and price of services also may change according to the strategies adopted by the Kinder Morgan management to make the acquisition a success. Hence the customers of oil and gas including the local communities also may undergo changes according to the service provided and there would be a change in the consumption behavior. The government also may undergo changes in the form of tax paid by the business and the other benefits to the society through the acquisition as the government is responsible for the wellness of the citizens.


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