Communication Nbsp - Staples\' Anticipated

Communication NBSP - Staples' Anticipated Acquisition of OfficeMax

John Stapler, CEO, Staples

Anticipated Acquisition of OfficeMax

To provide you with a knowledgeable overview of the anticipated acquisition of OfficeMax, I have prepared this brief with pertinent information regarding plans for the attainment of our current competitor. For the past two years, OfficeMax has experienced decreased sales, which along with its unproductive expansion into European and Asian markets, may trigger loan defaults. In contrast, Staples has experienced double digit growth, with sales in 2005 reaching $16.1 billion. While OfficeMax's advertising campaigns featuring "StickMax" and "Rubberband Man" have fallen flat, Staples' "Easy Button" campaign, launched in 2005, has netted phenomenal success.

Acquisition Details Acquisition of OfficeMax by Staples would prove to be a "Win-Win" for both companies. Acquiring OfficeMax embodies an opportunity for Staples to fulfill its objective to expand its European and Asian customer bases, since OfficeMax presently owns more than 300 stores in this part of the world. Complemented by Staples' negligible debt ratio and available funds allocated for growth, the $35 million price for OfficeMax constitutes a bargain. Both companies' board of directors, currently in talks, hope to culminate a deal by the end of August 2006.

Companies' Current Considerations: SWOT & ACA Communication objectives to be initiated after acquisition is complete would include educating OfficeMax's employees on the Staples culture. Weaknesses to be addressed and countered would include current jobs possibly overlapping, as well as, potential layoffs occurring. Some current employees from both companies may display varying forms of resistance to necessary changes and may experience anxiety and stress during transition phase.

Threats to a smooth transition may possibly be demonstrated through customers' negative perceptions; legal issues; shareholders' concerns over acquisition value. Wall Street analysts' ratings could also negatively influence acquisition. Strengths which will counter weaknesses and threats for the acquisition are embodied in Staples' stable, profitable company history as a major player in the office supply category, supported by its loyal customer base. The fact that Staples has also created a strong customer service department reflects another strong point. The acquisition of OfficeMax mirrors opportunities to/for: Create shareholder value; Cost savings; Economies of scale; Acquire new customers; Generate positive media/publicity; Job growth/advancement/new roles.

Communications Plan/Strategies

Research confirms that Staples will need to inform the following audiences of information regarding the planned process of acquiring OfficeMax prior to, during, as well as, after the deal is finalized: Employees of Staples and OfficeMax; CEO/senior management of Staples and OfficeMax; Shareholders; Media; Government; Lawyers; Investors; Analysts; Marketing; Human Resources. Human Resources for both companies will need to partner to communicate layoffs, appointments, and job relocations in a timely manner. Internal and external communications regarding merger status will need to be appropriately, effectively managed.