1. How can social issues create value? How can social issues destroy value?
2. Roberta has been working for nine years as a managing architect in the landscaping division of Best Homes, Inc., which has recently become a target for acquisition by Urban Living, Inc. Both companies are home design and decorating firms; Best Homes mainly serves a rural and suburban clientele, while Urban Living caters to city dwellers. If Best Homes is acquired by Urban Living, there is a high probability that Roberta's job will be eliminated. However, there is also a chance that Roberta will continue with the new company in a different job role. Roberta has been one of the best-performing managing executives at her firm.
How might a package be designed to induce Roberta to stay with the target firm, even if her future at the firm is threatened by a merger?