...Organization Strategy Paper Integrative Problems and Virtual Organization Strategy Paper Fuller-Patton Community Hospital (FPCH) has been in operation since 1975. The management of FPCH would like to upgrade and expand its operations in the community. In order to do so, a large influx of resources would need to be obtained. There are a variety of ways FPCH could add to its resources in order to accomplish its vision. These include taking FCPH public by holding an Initial Public Offering (IPO), acquiring another facility out right, or merging with another facility. This will be to compare and contrast each of these resource opportunities and to ultimately decide on a course of action. Strengths of the Various Resource Opportunities As stated, FPCH has various opportunities to generate an influx of resources in order to be able to expand their operations. The first of these opportunities is to enter an IPO. An IPO is the initial sale of stock in the hospital to the public, basically making those who purchase stock partial owners in the company. An advantage to an IPO is there is an instant influx of cash resources into the business. This influx of cash can then be used to make the upgrades and expansions that FPCH is envisioning. In addition to the instant influx of cash, another benefit of an IPO is that it generates publicity for the hospital and can increase their market share because of the added exposure. Another avenue that FPCH is exploring is the possibility of acquiring...
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...management team. In order for a company to remain competitive the management team must remain innovative, knowledgeable of the market, and open to new ideas. Expanding operations may be one way that the management team decides to stay ahead of the competition. Expansion may not only create growth, but it may create value, wealth, and fresh ideas for the future. This project is designed to analyze a possible operation expansion for Riordan Manufacturing, an industry leader in the field of plastic injection molding (Riordan Manufacturing, 2006). The researchers of this project will analyze three possible expansion approaches including an initial public offering (IPO), a merger, and an acquisition. It will then be determined which approach would lead the Riordan Manufacturing team ahead of the competition and ultimate greater success for the company. Strengths of Each Approach Riordan Manufacturing has three options to expand its operations, go public through an IPO, acquire another company in the same industry, or merge with another organization. The benefits or strengths of doing each of these are addressed below. If the choice is to go public through an IPO then the benefits to Riordan, according to Inc. (n.d.) are: • “A publicly traded company may tap a broader universe of investors as well as a larger pool of investment capital. • A publicly traded company may receive more public attention. • A publicly traded company may raise more capital through additional...
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...Makes sure the financials are represented “fairly”. Fair to whom. Concerned with Fair Representation. Public company: Not sure who your users are: so you use GAAP so ensure ppl are using the same thing. Who do I work for? Companies? No, but the users. * Advisor: Advisor to seller or buyer? Or lawsuit. * In the Company (CFO, CEO). I work for the company. Example: A company is in poor shape is trying to get a loan. Auditor: Worried about Earnings Management Advisor for company: Make things look as good as possible In the Company: Make things look as good as possible Leads to bias Report Requirement * To whom am I writing? I’m writing a report to audit partner vs to client. * Ex: Discuss the tax issues/accounting issues, whether or not they should buy * Copy exactly what the requirement is. Environment (for example in tax, how old, resident?) * Nature of the business. Why going to manufacturing when you’re in the retail business. * Private or public company: IFRS or ASPE * Key Success Factor: What makes it successful User Needs (if you dun know this, dun start the case) The user of my report (not of the financial statements), what do they need to know? You -> Partner: He needs to know if its represented fairly Why do I care? My conclusion always ties back to user needs. Ex: Advisor for poor company: What do they need to know? If they violated the convenance, and what do they need to not violate the convenance...
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...crash and burn at the beginning just like Facebook. Twitter decided to take advantage of the confidentiality provision within the JOBS Act that allows companies to “limit transparency” by keeping company financial information private up until three weeks before the company promotes its offering. However, the only companies who can use this provision are those that have annual revenue less than $1 billion. This gives us a little insight into how well Twitter is doing financially (Sommer, 2013). The confidentiality provision in the JOBS Act was intended for entrepreneurial firms who want to avoid too much attention and “prying eyes that might deter them from going public and growing to maturity”, said Kate Mitchell, a former chairwoman of the private I.P.O. Task Force. When asked about why the limit was set at $1 billion she stated, “We did that because we wanted I.P.O.’s to succeed. Had the limit been lower, it might have given smaller companies an incentive to rush to take advantage of it too soon, before their revenues had grown and, maybe, without a business plan that worked” (Sommer, 2013). Most companies are using this new provision because they can begin the process without letting competing companies know. They can also discuss problems privately with the S.E.C. and have the option of going back on their plan to go public without bad publicity. Twitter, with an estimated 2,000 employees, is a prime example of how the JOBS Act has contributed to...
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...a. They can go public through an IPO Baderman Island Resort is a self-contained resort, surrounded by Kelsey Island. It is all inclusive resort that offers almost unlimited activities for entertainment as well as relaxation. The resort has plenty of opportunity for expansion but they have to decide which option is best for their organization. One option is through an IPO (Initial Public Offering). A SWOT analysis is the best way to investigate this option. Strengths: An IPO brings new capital quickly for expansion in order to make the resort more profitable and offer more activities for the visitors. It also makes the stock more valuable for the investors. Expansion of the resort makes the resort more appealing to the public which will in turn make more money for the resort and the investors. Weaknesses: With investors, there are more splits in the profits as well as more red tape to make decisions within the company. Although the organization is making more profits, it has to be divided amongst the investors and the company. On top of that, the organization has to answer to a board of directors in order to make changes or expansions to the property. There has to be a vote before a decision can be made to any of the existing or future amenities that the resort holds. Opportunities: With an IPO, there is opportunity to make changes to the resort. Expansion is an option which gives the company more value. This gives more stock options which in turn brings in more money. Once...
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...Congress passed the Sarbanes-Oxley Act (SOX) in July of 2002, to restore public confidence in corporate America following the scandals at host of US companies including Enron, Arthur Anderson, Tyco, WorldCom and Global Crossing. The SOX has heralded a new era of transparency and accountability for corporate financial reporting (Bisoux, 2005). PCAOB stands for Public Company Accounting Overseeing Board. Restating from PCAOB's website, it is a nonprofit corporation established by Congress to oversee the audits of public companies in order to protect the interests of investors and further the public interest in the preparation of informative, accurate and independent audit reports. The PCAOB also oversees the audits of broker-dealers, including compliance reports filed pursuant to federal securities laws, to promote investor protection. With SOX come new costs, concerns, and confusion for business managers of corporate America. Many have opined that the SOX legislation was passed without giving enough thought to the cost-benefit analysis, and therefore the law's costs of compliance may exceed its benefits. Studies estimate that the private costs of complying with the SOX Act total $1.4 trillion (Cosgrov, 2006). Most of this cost comes from the increased costs of audits in order to comply with the law. Studies have also found that the SOX law has motivated many public firms to go private or re-consider going public as a way of avoiding the costs of complying with this law. Section 404...
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...Chapter 2 Financial Statement Audits and Auditors' Responsibilities |Learning Check | 2.1 The ultimate objective of accounting is the communication of relevant and reliable financial data that will be useful for decision making. Accounting methods involve identifying the events and transactions that affect the entity. Once identified, these items are measured, recorded, classified, and summarized in the accounting records and reported in accordance with generally accepted accounting principles (GAAP). The accounting process is carried out by an entity's employees, and ultimate responsibility for the financial statements lies with the entity's management. The primary objective of an audit is to add credibility to management's financial statements. The typical audit performed in accordance with generally accepted auditing standards (GAAS) involves obtaining and evaluating evidence concerning management's financial statements. Auditing culminates in the issuance of an audit report that contains the auditor's opinion on whether the financial statements do in fact present fairly the entity's financial position, results of operations, and cash flows in conformity with GAAP. The auditor is responsible for forming and expressing an opinion on the entity’s financial statements. 2.2 Verifiability is primarily concerned with the availability of evidence. In an audit the auditor needs to obtain evidence to support conclusions about the fair presentation...
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...to the Auto Bailout on a Private Jet Basic problems In this case study, there is wastage of resources. The CEOs of the nation's three largest automobiles uses private jets to attend the corporate public relations congress. This is wastage of resources since they are using private jets to travel when their companies are struggling to stay afloat. Ignorance is another basic problem evident in this case study. These CEOs are very ignorant. They attend the corporate public relation congress in Washington unprepared and thus appear to know nothing about their problems. The three companies, GM, Ford and Chrysler, lack the concepts of public relations. The main issues American economy is melting down. Most of the workers are losing their jobs since the companies cannot handle many workers anymore. The companies have got inadequate cash. Bankruptcy is another main issue experienced in this case study. The General Motors Company and the Chrysler can no longer pay their debts. Key decisions * According to the case study, the leaders have to come up with a new public relations strategy. * The CEOs should correct any mistakes they have made before such as using private jets to travel. * Introduce innovation in products * The auto industry of the US should promote its products. * Ensure transparency in business operations. SWOT analysis Strengths * Availability of resources for the companies * Existence of labor force Weaknesses * Inadequate cash ...
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...Strategic Thinking Many city departments in other states have faced similar issues as the Houston Public Library. The Houston Public Library can benchmark those companies that have demonstrated strategic thinking to resolve parallel issues. Strategic thinking is the approach in which group in an organization think about, access, view, and creates the future for themselves and their associates. It is more than responding to day-to-day as well as long-term problems, opportunities, and new realities; it is creating tomorrow. Strategic thinking is not reactive, but proactive. It focuses on how to create a better future by being proactive and adding value to society-through the accomplishment of high payoff results. Strategic thinking always involves change, and often, profound personal change. It is a change in ones mindset. Strategic thinking is imagining the results one wants to achieve in the future and creating an ideal future by defining and achieving results that adds values to the company. The Houston Public Library can also review how the Houston Zoo went from a city department to a private foundation. Strategy, in business, is the combination of foresight, planning, and decision-making that prepares an enterprise to achieve long-term goals and manage the consequences of contemporary decisions. When creating a strategy the firm needs to decide on both short-term and long-term objectives. The qualities of effective short-term objectives are measurable, priorities, and must...
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... Marketing Plan Outline 1.0 Executive summary 2.0 Situational Analysis 2.1 Market Summary Market Needs Market Growth Market Trend 2.2 SWOT Analysis Strengths Weaknesses Opportunities Threats 2.3 Competition 2.4 Product (Service) Offering 2.5 Keys to success 2.6 Critical Issues Executive Summary South Sound Cleaning is a commercial cleaning and janitorial service serving South King County and Pierce County private businesses and Government offices. This steady market will be targeted on because of their reliance on cleaning service to keep their offices and facilities clean. South Sound Cleaning intends to exceed expectation with better investment in human capital. It will work hard to provide costumers with a professional eco-friendly janitorial and cleaning service. Our existence is to attract costumer, satisfy their needs and keep them. 1.0 Situation Analysis South Sound Cleaning is just starting its first year of operation. The company recognizes that marketing will be critical to develop a large base of costumer. South Sound Cleaning provides services to private business and government offices building such as hospital, court rooms, universities and high school, DoL, DHSH,etc…. with focus on detail and being eco- friendly. The basic market need is a cleaning and janitorial service that is reliable and professional. 2.1 Market...
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...Riordan Strategies to Succeed Riordan Manufacturing Inc. is a leader in the field of plastic injection molding (Riordan, 2004). The company has facilities in San Jose, California, Albany, Georgia, Pontiac, Michigan and Hangzhou, China. Riordan's major customers are automotive parts manufacturers, aircraft manufacturers, the Department of Defense, beverage makers and bottlers, and appliance manufacturers (2004). Riordan Manufacturing Inc. is a privately held organization that wants to expand its operations. The company has three options that they are considering to do in order to expand the company. The options consist of going public through an IPO, acquiring another company in the same industry and merging with another company. When considering whether going public is advantageous and will maximize shareholder wealth the first step is to determine the risk return trade off. Additionally, two major factors not considered by the goal of profit maximization are uncertainty and timing. Keown (2005) states, "financial managers spend a significant portion of their time planning for a firm's uncertain future." When looking at whether an IPO would be advantageous or feasible a determination as to if this would adequately meet investors’ expectations of ROI; in so doing we would need to determine what types of strengths, weaknesses, opportunities and threats exist. For example: the prevailing economic conditions, market trends would need to be positive. Additionally, Riordan would...
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...holding up, given the intense price competition in the industry? Were attempts to lower costs through more automation paying off? Were the current problems in the U.S housing market going to continue to reduce demand for connectors? How would lenders react to this poor performance? Was the company’s financing in danger? Just by a brief glance at the balance sheet it could already be determined that Strong Tie has a serious cash flow problem considereing that cash has decresed about 50% per year from 2006 through 2008. This can also be seen by the cash ratio which is a a very low .085 which means Strong Tie is on its way to barely covering its short term liabilities while the industry average stands at .5. Strong Tie has seen a stall in growth and revenue between 2006 and 2008 as well as in future years. Growth stands at a mere .61% for future years. Company Name: Strong Tie LTD. Location: Winnipeg. Manitoba Products/ Services: designed and manufactures custom structural connectors used to reinforce wood joints in the construction of decks, fences, houses and other structures. Strictly speaking, the lower the score, the higher the odds are that a company is headed for bankruptcy. A Z-score of lower than 1.8, in particular, indicates that the company is heading for bankruptcy. Companies with scores above 3 are unlikely to enter bankruptcy. Scores in between 1.8 and 3 lie in a gray area. Executive Summary 2. Horizontal Analysis Revenue: Strong Tie has...
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...then your average country as ours being one of them. This hurts business because even if you think you can get around the corruption the government cant either because they now have lower cash flow to pay the good workers and purchase suppliers. Corruption as a whole harms the environment and undermines trust in government. So for a company operating in international surrounding with corrupt business practices I think is a huge problem and even though it is just an acceptable way of doing business in some parts of the world not something I would put my business into. For this case we see a company take the negative effects of corruption that are readily apparent and were willing to abstain from corrupt practice to make a personal gain from them. We see that corruption is widespread in Malawi but then with leadership from the private sector, a cross-societal coalition called Malawi Leaders Forum, government, private business, civil society, donor agencies and the media, all felt this was something that can be changed and a place where business could be successful. The different approach being taken in Malawi that these companies where going to take and hope of successfully...
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...July 25, 2002 the date when stock market indices were making a new history against over publicized corporate scandals, bankruptcy and accounting misstatements, the new legislation “The Public Committee Accounting Reform and Investor Protection Act of 2002” widely known as Sarbanes Oxley Act was passed by the congress in response to investment company abuses. On the article, “The goals and the promises of Sarbanes-Oxley Act”; John C. Coates, professor of Harvard law & economics school analyzed the pre and post Sarbanes Oxley era and the pros and cons of the SOX legislation. In addition, he recommended that by reconstituting governance and accountability of PCAOB, implication of Sarbanes Oxley can be more effective to safeguard net long term socioeconomic market gain. While discussing about the enforcement in pre Sarbanes Oxley era, Coates pointed out the previous laws and regulations lacked effective implementation of corporate governance. With the threat of systematic corporate misstatements, frauds and rise in significant class action suits, in the pre SOX era investors’ confidence were dramatically declining. As in such scenarios in last decade, Coats describe the core goals on which SOX were formed. First, on its core, “SOX legislation was designed to fix the auditing of U.S public companies.” Second, Sarbanes Oxley was predominantly designed to regulate the “deprofessionalization” of auditors as there was significant number of audit failure by top audit firms.[Coates 93...
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...compliance of the Sarbanes-Oxley Act of 2002 (SOX) (Kimmel,Weygandt & Keiso, 2009). Under SOX all companies publicly traded will maintain an adequate system of internal controls (Kimmel, Weygandt & Keiso, 2009). Some of the internal controls characteristics include, control environment, risk assessment, control activities, information/communication, and monitoring. According to Roadmap for an IPO, private companies pondering on going public should consider the following: 1. Internal control: Management, like the CEO and CFO, is required by section 404 of SOX to provide certifications in periodic filings (usually quarterly) regarding the evaluation of the effectiveness of the company’s internal control over financial reporting (Pricewaterhouse Coopers, LLC, 2010). Companies contemplating on going public should discuss their section 404 plan and timeline in their marketing documents (Pricewaterhouse Coopers, LLC, 2010). Sections 302 and 906 of SOX also requires that the CEO and the CFO to certify that the financial statements are accurate, comply with requirements and information are fairly presented (Pricewaterhouse Coopers, LLC, 2010). 2. Audit committee: An audit committee is required by SOX even if it’s just composed of one member (Pricewaterhouse Coopers, LLC, 2010). 3. Board of directors: SOX requires that majority of the board of directors are from outside the company and at least one member should have financial background (Pricewaterhouse Coopers, LLC, 2010)...
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