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Q.5.

what are the pros and cones regarding Jack joining the Megas
board?

Ans: Following are the pros and cones regarding Jack joining Megas board.

Pros:
1. As the consolidated financial picture of Mega Corporation is quite sound
depicting a strong balance sheet with $4.8 billion in assets including $1
billion good will. Due to these statistics the offer to join the board is merely
attractive.

2. Jack can exploit the extraordinary expertise of Sam Bigger and his friend
John Rock (CEO Mega Corporation) and can make the real difference as he is
expected to make.

3. As Mega has got the loyal directors, for instance eight of them are on the
board for more than 14 years, so this is good news for Jack and Jack is
impressed with this fact.

4. It is a great learning opportunity for Jack to join the board of a bigger


corporation comparatively.

5. To join Mega,s board is also advantageous for his professional


development and for unique access to the business leaders.

6. Once again it could be a source of recognition for him.

Cones:
1. The income statement trends were not as good and sales were relatively
flat. Net income was down to $252 million from $436 million and so many
other things were also down i-e EBITDA etc.

2. Primary focus for his own business may get disturbed. As he believes that
his primary allegiance must be to his own business.

3. A strong corporation may emerge as a direct competitor to Jacks own


business.

4. Directors of Mega Corporation may not be truly independent.

5. Burden in case of personal liability which is not clearly stated here but it is
a considerable fact as one can be sued in adverse case.
Q.7. Should Jack joins the board? Why?

Ans: Yes, Jack should join the board because he has the extraordinary
capabilities and potential to rejuvenate a floundering corporation as he
proved himself when Dryden Corporation was passing through a bad time.
Dryden then displayed a strong balance sheet and grew rapidly. Jack has the
personality and experience to be helpful in working Megas situation. Jack
has the time for Megas board position as he has the management team in
place. Its a great learning opportunity and to build connection as most of the
people on board are heavy hitters with in the business community. He
embrace challenges and this would give him another chance to play his key
role in the uplift of Mega Corporation. This success would surely gain wealth
and recognition for him.