Henn & Co.: Politics in the Henhouse

A poultry firm, leading producer and a household name in Ghana, had ambitions of solidifying its position through a merger with an US poultry conglomerate, which was keen on gaining foothold in an African market. While negotiating an agreement, the founder contested in Ghana’s presidential election. Losing the election, his firm became an economic target of an administration that was not business friendly. The government interferes by offering the conglomerate partnership with a state poultry enterprise. The conglomerate declines and perceiving that it might expose itself to further interference, it withdraws from the merger agreement. Having reoriented its strategies while awaiting the merger, the firm borrows from a state-owned bank to execute a long-term strategy to go on its own. When the same party returns to power years later, the bank terminates the loan. The founder’s successors ponder how they can stay clear of politics. A case to discuss government business relations.