Virtual Organization Strategy for Kudler Fine Foods
For many organizations, strategic decisions play an important role in how the organization plans to expand its business and its profits. There are many factors management must consider before making a final decision as to which approach will provide the most benefits as well as bringing in the most capital. Each approach considered will present strengths, weaknesses, opportunities, and risks that management must carefully consider. Each approach will also have an impact on the organization’s decision should they decide to pursue an international location. The decisions management faces are not easy ones and they must carefully determine ...view middle of the document...
Management must look at each option and determine which will be the most beneficial to its organization. Management must take into consideration the risk and benefits associated with each approach. In addition, management needs to consider which of the three options will be most beneficial should the organization decide to seek an international location.
The first approach management has under consideration is the IPO or Initial Public Offering. This approach will give the organization the opportunity to make much needed capital by offering shares in its organization to any investor interested; if the interest is great, the organization can stand to bring in a large amount of capital. Management, however, must carefully consider the risks involved with an IPO. If many potential investors are unfamiliar with the organization, its purpose, and the service it provides, the organization risks losing money from lack of interest in its IPO and organization. In addition, management needs to determine if the timing is right for making an IPO available.
The main opportunity in offering an IPO is the hope in making a lot of money for the organization since this would be the first offering of shares to the public; once shares begin trading between investors, the organization will no longer make any money from the sale of its shares. The biggest disadvantage to offering an IPO is that the organization can only offer it once. In the event investors fail to buy into the organization, the organization will lose money and could put itself financially at risk.
Aspects of a Possible Acquisitions and Mergers
Both strategic and financial planning is used by organizations to determine the next steps that need to be taken in an effort to sustain and grow the organization. There are times that in an effort for an organization to expand its market share and strength in industry that they consider acquiring or merging with another organization within the same industry. This increases the size of the organization, allows the organization to reach more customers, and allows financial and strategic growth to increase overall profits. These are some of the benefits and strengths of acquisitions and mergers; there are, however, some weaknesses of the acquisition strategy that Kudler Fine Foods should be mindful of as well.
An acquisition or merger can bring challenges such as being able to effectively merge customer contact and account information. There may also be challenges with employee relations: what employees will remain, which ones will be severed. Things of this nature can cause some strain on the overall success of the process. Many growth opportunities exist within any merger or acquisition. This is especially true for companies that chose to strategically merge or acquire global organizations. For virtual companies such as Kudler Fine Foods the global aspect brings the chance as reaching an entirely different customer base that they would...