Question

Ambrose is a scientist working for a pharmaceutical company. His company was acquired by a rival pharmaceutical company, and now it is involved in downsizing and downscoping. Ambrose is concerned about his job security, since he is actively involved in amateur sports in his community and does not wish to disrupt his current lifestyle. Ambrose's job will MOST likely be secure if:
a. Ambrose's research is in a non-core activity.
b. Ambrose is a key employee in the firm's primary business.
c. the acquisition has been financed by junk bonds.
d. Ambrose is in a position to take a poison pill.

Answer 1

Answer:

b. Ambrose is a key employee in the firm's primary business.

Explanation:

Downsizing or Down-scoping relates to degrade the level, or shift it to lower level from the current level, and accordingly in this instance it refers to degrade the market level of pharmaceutical company.

In the given instance the company is acquired by a competitor and because of that the management is changed. Although in these cases the employees are not changed, as the management is changed, but the working of company, its objective to do the basic business do not change.

Accordingly if Ambrose is a key employee and he knows the basic functioning of the company, he will not be removed and his job will stand secure. Even in downsizing or down-scoping the company cannot loose the key employees.