Nodge -- we need you. If there were no bad cops, we'd all be speaking with funny british accents, having high tea, spelling words incorrectly with s's where z's belong, etc.
Well OK then . . . . I'll carry on. . .
Hey, let’s have our own multiple choice question, but before I ask it, I’ve got to give you a little background.
Background:
Let's go back to 1999. Starwood just sold its gambling properties in Vegas and is flush with $3 Billion in cash from that sale and looking for the next big thing.
Much like "Walgreens" using the location of "Rite Aid's" to figure out where to put their new pharmacies, Starwood looks to its primary competitor and sees Marriott is "all that" with timeshares and Starwood feels behind the curve. Moreover, Starwood is eager to not only get in the timeshare game, but also appear to folks that it has already been in the game a while. (Our Walgreens was at this corner first!).
Accordingly, Starwood stumbles onto a preexisting timeshare company (Vistana) led by an entrepreneur/developer (think Rodney Dangerfield in "Caddyshack") who is doing reasonably well selling timeshares the good ol’ fashioned way (you know, sleazy, high pressure '70's-style timeshare sales) in Orlando and a couple of other desirable places. Starwood and this entrepreneur “negotiate” a deal, which, to put nicely, given Starwood’s cash and overwhelming desire to catch-up to Marriott, involved Starwood bending over.
The net result was that Starwood now “owned” Vistana (and, given the way Vistana consumated/negotiated the transaction, the two may even be considered married to each other in Tennessee). However, the entrepreneur was put in charge of the “new” company, and he was given complete control over it, begging the question "who really owned whom?"
Multiple Choice Question:
So the big day comes for Starwood to announce this wonderful new “acquisition.” When interviewed by the media, and in order to sell the deal to existing Vistana owners, this entrepreneur/developer, who is now the new CEO of SVO, with no obligation to seek permission or authority from anyone at Starwood to implement things related to SVO, says:
a. “With this acquisition, we’re pretty much going to do nothing to help owners book their rooms online. In fact even in 10 years, we still won’t have that ability. But, we will hire a vice president of ‘strategic technology’ someday, and with a little luck, he will pass a test, so we’ve got that going for us. Hey, did somebody step on a duck?”
or,
b. “[With this acquisition Starwood]
is investing in technology that will make Vistana’s reservations system more advanced than any timeshare system currently on the market. […] We have customized software to run the properties and track guests, but we don’t have the technology for the customer to dial up on the computer and through interactive capabilities, reserve rooms. […] I think in the timeshare industry that will be an absolute home run.”
Check your answer
here.
-nodge