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Earnings Maximization, Oligopoly, Managerial Economics, Rhetorical Evaluation

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Together with the news of the office supply chain combination of historic proportions making headlines every single day, Staples’ CEO Ron Sargent has been required to publically simplify the company’s useful resource management technique (Detar, 2003). Combing through his public statements seeing that news with the merger’s pending approval was initially publicized, it can be possible to refine and improve the business future modifications to such shifting market conditions.

In order to anticipate the multitude to probable threats posed by a merger between its two main competition, Sargent as well as the executive managing of Staples must participate in a positive process of risk management. The likelihood of a combined Workplace Depot/OfficeMax enterprise slashing prices to power Staples in counterproductive financial strategies should be thought about of paramount importance. Adapting to the market conditions of an oligopoly, as enforced by the designed merger, will require a comprehensive risk management appraisal that features the ingredients of multiple contingencies. Accurately assessing the number of hazards associated with a great oligopoly will allow Staples to weather the proverbial surprise, holding its fairly gained market share whilst weathering the inevitable surprise of product sales, promotions, and advertising blitzes aimed at dethroning the firm.


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