Parallax Systems – the Chick-fil-A of the Telecom Industry

In the Richmond Power and Light (RP&L) board meeting on November 1, 2021, Tony Foster, RP&L’s general manager, shared a strategic plan. He expressed his vision for Parallax Systems (RP&L’s subsidiary) to become the Chick-fil-A of the telecom industry in Richmond, Indiana. The resolution, passed in the following month, would also officially mark the end of the parent company-subsidiary relationship between RP&L and Parallax, effective January 1, 2022. This resolution, known as the 'Roll-In,' would enable Parallax to merge into RP&L as a department, a move considered to hold promising potential for both entities. At the same time, RP&L would forgive the start-up loan made to Parallax with a remaining balance of $2.3 million and acquire $3.7 million in assets from Parallax. This case examined the impact of the combined move on Parallax in June 2024 to see if it was as effective as expected. This case is most applicable to undergraduate introduction to business, accounting, finance, marketing, and business capstone courses. It is also a good candidate for business workshops.