Research Paper on:
Rusco Industries Case Study

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that placed pressures on the original company under the family ownership. International barriers to trade have reduced over time. These barriers were not only practical but also political determined by  international relationships and manifested through barriers such as trade tariffs and quotas. As tradition unions such as NAFTA have developed and international relations have moved towards a greater level of  free trade. This has meant that companies have a higher level of opportunity to export, but also means they face increased competition. Many traditional manufacturing companies have faced difficulties with  many imports being made in countries where there are lower input costs decreasing the prices and forcing cost cutting measures. As the new owners take turns running the company  there is political backing for acquisitions and mergers and the placement of the shareholder as the primary stakeholder may also be seen as a political decision in terms of the  way annual reporting legislation was created. The short termism and tax treatment encouraged the rapid transfer of this company between owners and may also be blamed for a lack of  encouragement for the development of this industry internally. b). Internal Politics The politics within the company is very important as this helps to determine what will and will not  be accepted by the employees. In the days when the firm was family owned there was a level of constancy and the balance of power resided with the employers. The  employees knew they had skill and expertise. In addition to this when there were threats to the future of jobs the employers would manage to find orders to save the  jobs. When the changes start to occur there is a gradual shift in power. The new owners do not know the business in the same way as the employees