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Industrial organisation 2

Megalomaniacs Inc., the washing powder producer has today confirmed, amidst great fanfare and publicity, that it has hired Mr Megatron, the renowned empire building manager. Mr Megatron is a controversial figure that has in the past consistently pursued vast increases in the size of the companies that he runs with scant, if any, regard to profits. The shareholders of Megalomaniacs Inc. largely voted in favour of the installation of Mr Megatron, after ousting the former manager in a stormy shareholders’ meeting last week. WhiteEnvy, the arch rival of Megalomaniacs - the two companies between them control virtually all of the washing powder market in a tightly contested duopoly that has lasted for years – swiftly dismissed the move as one that will drive down profits and harm the interests of the shareholders of Megalomaniacs. For their own part, WhiteEnvy shareholders affirmed their loyalty to the existing manager as someone that has “always acted in their best interests”.

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