Free Essay on LiL Guy Foods: Merger as a Recipe for Success

The incorporation of Li’L Guy Foods under the umbrella of Tortilla Kings, and in particular Christina and David Sloan working for the new company has some rewards and disadvantages attached to it. To begin with, Christina and David Sloan working for Tortilla Kings has the advantage of creating a platform for easy transition between the two companies. Christina and David have knowledge of the dynamics of Li’L Guy Foods, and this will facilitate an easy transition. The knowledge will be used to get the business in motion faster and capitalize on the combined resources with reduced adaptation time. In addition, Christina and David’s involvement in the business is an added advantage considering they have a five year purchase agreement at stake and would like to see the deal go through successfully.

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The incorporation of Christina and David in the Tortilla King management will increase the probability of success for all parties involved. The Sloans have a five-year purchase agreement in the deal and it is in their best interest that deal takes place successfully (Li'L Guy Foods, 2008). Tortilla King has invested its capital in the deal and is looking to safeguards its stake and gain returns on investments. Subsequently, Christina and David will be valuable assets to both companies.

On the other hand, one reason against Christina and David in the Tortilla King management is the possibility of conflict arising between the Sloan’s and the management of Tortilla King from the difference in organizational missions. The missions of the two organizations may differ and lead to conflict in approach to business. It would be advisable for the Sloans to think over all aspects of the agreement and have them clearly defined and agreed upon upfront on paper to avoid future legal disagreements.

References

Li'L Guy Foods. (2008). Li'L Guy Foods .: Salutes Chef Gabriel Mejia :. Retrieved from http://www.lilguyfoods.com/about_newsReleases_companyMerger.php