...Virtual Organization Strategy Paper Caroll Ulbrich, Erin Thompson, Latasha Smith-Tutt, Levi Williams, Samantha Ehrlich FIN/370 August 19, 2013 Richard Jenkins Virtual Organization Strategy Paper Kudler Fine Food is a very well known food store. The owner Kathy Kudler is thinking about going public through an IPO. There are four approaches that need to be looked at from the IPO stand point. They are strength, weakness, opportunity and threat. Strength When a private company is thinking about raising money in the financial market an initial public offering (IPO) has advantages. By going with an IPO Kudler generates revenue from the sale of shares of stock in the company. The owner has gained liquidity in their company. With Kudler going public, the company now has access to the public market in the future. It also opens up the possibility for higher growth. Kudler will also have a higher profile making it easier to get vendors for goods. Weakness One of the things that could be a problem is arbitrage. Arbitrage is a purchase is made with the expectation of selling for a higher value in different markets. Opportunity Kudler Fine Food would have many opportunities with going public with an IPO, A greater amount of capital would come from issuing of shares that are traded on the stock market. It will also help the amount of business that takes place at Kudler should...
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...Virtual Organization Strategy FIN/370 October 20, 2012 Riordan Manufacturing is a Fortune 1000 company that employs 550 people with projected annual earnings of $46 million dollars. The company was founded by Dr. Riordan in 1991 and subsequently the company name was changed in 1992 to Riordan Manufacturing after Dr. Riordan obtained venture capital to expand the company. The corporate headquarters is located in San Jose, California with additional manufacturing plants in Georgia, Michigan, and China. Products include plastic beverage containers, custom plastic parts, and plastic fan parts. The company is a leader in the industry of plastic injection molding. (Virtual Organization Portal, 2012) Riordan Manufacturing wants to expand operations and they have three options when considering expansion. The three options are going public via IPO, acquiring another organization in the same industry, or merging with another organization. The company must consider the strengths, weaknesses, opportunities, and threats of each option before making a final decision on how to expand. Additionally, considerations on the financial effects of globalization, exchange rate risks, and mitigating the exchange rate risks should be analyzed if the company decides to go international. Strengths Riordan manufacturing is looking for ways to expand their business. They narrowed it down to three options which are going public through an IPO, acquisition of another organization...
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...Virtual Organization Strategy FIN/370 Virtual Organization Strategy Berry’s Bug Blasters is a privately held business and wants to expand its operations. The business is considering three options for moving forward with the expansion plan. The first option is going public with an IPO, or Initial Public Offering. The second option is to acquire another similar business within the industry, and finally the third option is merging with another organization. All three of these options are viable choices and this paper analyzes each options for its viability and suitability to needs of the business. The paper identifies the strengths and weaknesses of the each approach, and well as the opportunities and threats posed by each option. The analysis begins with the strengths of the IPO, merger, and acquisition. Strengths of an IPO, Merger, or Acquisition Berry’s Bug Blasters could effectively expand its organization very rapidly through an initial public offering (IPO). An IPO would position the organization, after an underwriting process, to go from a privately owned company with modest annual revenues of $3.2 million to a public company that could put Berry’s...
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...Running head: VIRTUAL ORGANIZATION STRATEGY PAPER Virtual Organization Strategy Paper The competitive nature of businesses is a direct reflection of a strong 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...
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...Virtual Organization Strategy Paper Finance for Business/FIN 370 March 18, 2011 Abstract The purpose of this paper is to review a hypothetical organization and outline the options the organization may be faced with when debating the idea of expansion. The organization in question is Huffman Trucking, which is a trucking firm based in Ohio that has established a presence by acquiring five Eastern regional carriers. The company is privately held. The analysis of this organization includes expansion options of an Initial Public Offering, acquiring an organization in the same industry, and merging with another organization. The positive and negative aspects of each option above are reviewed and a conclusion will be drawn as to the next step for that business to take. Virtual Organization Strategy Paper The concept of business expansion offers both promise and peril. The desire of growth for a business must be tempered with the fact of additional uncertainty and risk. Business under normal operating circumstances is perilous. The additional layering of risk in any type of expansion or capital generation cannot only serve to fail in its objective, but also has the possibility to bring the organization to financial ruin. An effective executive must weigh the chance of success with the absolute possibility of failure. Going Public through an IPO An option for Huffman Trucking to consider for expansion of its operations is going public through an initial...
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...Virtual Organization Strategy Paper Kathy Kudler created Kudler Fine Foods in June 1998. The store only took nine months for to reach the break-even point, and at the end of the year, a profit was turned. Within the next five years Kudler Foods was able to expand to three more places and has been very profitable. At this time, Kudler Fine Foods is privately owned but wants to expand. Kudler Fine foods can either chose to go public through an initial public offering, acquire another organization, or merge with another organization. Team C will analyze the three options by using SWOT analysis and give a recommendation of the best way to expand. Strengths of Each Approach An initial public offering (IPO) would allow Kudler Fine Foods to go public and sell stock in the organization. Allowing Kudler Fine Foods to increase marketability, an IPO provides flexibility and the opportunity to raise funds quickly from the sale of stocks. Kudler’s management team will remain in control of the organization but will have a board of directors who oversees management’s decisions and ensures that Kudler acts in the best interest of the shareholders. The exposure of going public could increase the awareness of Kudler Fine Foods and could assist the organization in expanding into new markets (Keown, Martin, Petty, & Scott, 2005). Acquiring an organization allows Kudler Fine Foods to acquire the existing assets of another organization and the existing customer base also. The organization...
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...Integrative Problems and Virtual Organization Strategy FIN/370 Integrative Problems and Virtual Organization Strategy The Huffman Trucking Company was founded by K. Huffman in Cleveland, Ohio in 1936 with one tractor-trailer. By 1945 the company grew to 16 tractors and 36 trailers. Some of the most important clients are the U.S. Government, automotive, electronic, and plastic industries. The company has four locations: Cleveland, OH, Los Angeles, CA, St. Louis, MO, Bayonne, NJ (Apollo Group, Inc. 2011). The company grew through the increase of internal sales, and the acquisition of five different carriers from the East. Up until now, this growth has enabled the Huffman Trucking to continue to be privately held. Huffman Trucking now wants to expand operations and is considering three separate options to do so. This paper will compare Huffman’s options to go public, acquire another organization within the same industry, or merge with another organization. Going Public By going public the Huffman trucking company will improve its liquidity, gain more acquisition opportunities, as well as the ability to gain capital at a lower cost ("Going Public Experts", nd). The process of going public is not all beneficial; some of the down sides are the extensive time needed to complete the process. Furthermore, the payments of millions of dollars in fees such as legal, accounting, printing, listing, filing, along with the government fees pay to meet the tough standards regulation...
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...Integrative Problems and Virtual Organization Strategy FIN/370 Integrative Problems and Virtual Organization Strategy In this paper, Team C will discuss Huffman Trucking Company and recommend a strategy that is best for this company and what will benefit the company the most. It will discuss the strategies such as undertaking IPOs, merging with other companies and ways to get other companies, as a way to help their company to branch out. Some of the other things that will be discussed are the benefits and risks, the advantages and disadvantages of all the approaches that should be taken into consideration for what is the best way to strategy for the business, the strengths and weaknesses of each approach, and the opportunities that each one has to give. Finally, the last thing discussed is the globalization on financial decisions, factors of the exchange rate risks, and the mitigation of exchange rate risk. The one thing that Huffman Trucking Company has is strength and they can use this if they decide to go public through the IPO. By doing this Huffman Trucking will be able to raise extra capital for the company. This will then increase the liquidity of the stocks and it will increase the revenue to invest or it could extend the business. This will give the Huffman Trucking Company an opportunity to market the company to the public to extend the company’s service. This strength is to be able to limit their competition. Therefore, this will increase the business’s...
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...Integrative Problems and Virtual Organization Strategy Paper Meline Constantin, Angela Currier, Brett Kinney, Nicole Mcclelland, James Schmidt, and Kevin Sult FIN 370 June 20, 2011 Cheryl Heath Integrative Problems and Virtual Organization Strategy The medical world has started to join corporate America. Large companies run multiple hospitals and medical facilities across the world and it puts smaller community hospitals in a position that is not always beneficial. Patton Fuller Community Hospital is no exception. They have decided to expand to help meet the demand of the public and to help their hospital make profits necessary to keep the facility running. However, there are some decisions that need to be made. The hospital could have an IPO or could merge or be acquired by another hospital. To decide which option is best, Team B will weight the pros and cons of each option by showing the strengths, weaknesses, opportunities, and threats created with each option. Strengths of an IPO, Acquisition and Merger The strengths of an IPO in a hospital would be to raise more capital for PFCH to use for their various corporate purposes such as working capital, acquisitions, and marketing, to name a few. With PFCH taking advantage of an IPO we can take advantage of new larger opportunities that can start building toward incorporation and statewide expansion. IPOs also allow the company to access their capital more rapidly, and are...
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...Integrative Problems & Virtual Organization Strategy Paper There are mainly three options for expansion when a company is privately held and wants to expand their operation. This paper will discuss three specific options that a privately held company would have if they were to expand. First of those options would be to go public through an IPO or Initial Public Offerings. The second option would be to acquire another organization in the same industry in order to expand the business. The third and final option being to merge with another organization. With all three of these options having strengths and weaknesses, this paper will discuss some of the strengths and weaknesses of each and what opportunities may arise from each approach as well as the threats. Other things that this company may want to consider when looking to expand are the effects of globalization on the company's financial decision as well as the factors that contribute to exchange rate risks. Finally ending the paper with mitigating the exchange rate risk. Going Public through an IPO Taking a business public or better known as participating in an initial public offering is a process where the business is offered to the public by selling stock of the company. In turn, these stocks represent a partial ownership in the company to the individuals that purchase the stock. One common step in deciding whether or not to take a company public it is always best to speak with an IPO consultant to help determine the...
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...Virtual Management: A New Way to Manage Virtual Management: A New Way to Manage Technological innovation has been a driving force in the growth of e-business organizations. The e-organization growth has spawned new leadership methods and business processes aimed at maintaining competitiveness in a changing global economy. One business model attributed to the technical revolution is virtual models. This paper is intended to argue that traditional business management, methodology, and structures are failing to accommodate an ever-changing global environment, characterized by hyper-competitiveness, and the exponential increase of information systems design. The current virtual model is managed using out of date management theories, performance metrics, and technical innovations, thus creating a need to update the open systems thinking and organizational theory of the virtual model. As an open system, virtual environments are quickly becoming the new wave of business organizing. Open Systems Organizational Theory Jones (2010) defines organizational theory as “the study of how organizations function and how they affect and are affected by the environment in when they operate” (p.7). Organizational theory maintains a master relationship with organizational structure, organizational change and design, and organizational culture. Organizational structure is “the formal system of task and authority relationships that control how people coordinate their...
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...Virtual Management - a New Business Organization Paradigm JJ Murphy Negotiation Newsletter Calum Coburn Co Ltd ( private paper). This article discusses how traditional organizational management methods and structures are failing to adequately accommodate a complexity-based world view, which is characterized by discontinuous change, hyper competition and the exponential explosion of information science. Virtual organizational management is the needed change in the management paradigm. -------------------------------------------------------------------------------- This article argues that traditional management methods and structures are failing to adequately accommodate a complexity-based world view, which is characterized by discontinuous change, hyper competition and the exponential explosion of information science and shows how the management paradigm has been updated by the new era of the virtual structures. While the management structures and systems developed by such researchers as Weber, Fayol, Taylor and Drucker in the 19th and 20th centuries established a management paradigm which has endured up to the millennium, these "simple" structures and systems were more suited to a time when competition was slower, less aggressive, and characterized by long periods of stability, and when information science was in its embryonic or primordial stage. It is abundantly clear, however, that the arrival of the 21st Century demands a fundamental rethink, and the development of...
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...IT Management IT560-01 Unit 1 Assignment Donald Harris Kaplan University Table of Contents Introduction 3 Internet Competition 3 Organizational Strategy 4 Virtual Employee Productivity Measurement 4 Virtual Employee Connection 6 Virtual Employee Telecommunication 6 Cloud Computing 6 Other Considerations 7 References 8 Introduction In becoming the I.T. Manager for ‘The Best Widget, Inc.’, there are multiple aspects of this multinational organization that must be taken into account from a technology standpoint – specifically, the virtual segment of the business. With respect to evaluation of the virtual organization, there are six primary considerations that should be evaluated. These conditions entail the following: Internet Competition, Organizational Strategy, Remote Employee Considerations (Including productivity measurement, infrastructure, and telecommunications), and Cloud Computing. In addition to these core topics, other items must be evaluated prior to implementing a virtual organization. These considerations will also be evaluated below. Internet Competition In leveraging the available power of the internet, today’s businesses can greatly enhance their advantage over the competition, especially ‘The Best Widget, Inc.’. Of particular interest are two areas that can aid ‘The Best Widget, Inc.’ with respect to their competitive advantage. These two areas are those of competition research and advertising. Through internet...
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...Virtual Teams and Managing Conflict. Name of the Author: Name of the Professor: Name of the Institution: Date of Submission: According to Duarte and Snyder (1999) “virtual teams operate without the physical limitations of distance, time, and organizational boundaries. They use electronic collaborations technologies and other techniques to lower travel and facility costs, reduce project schedules, and improve decision making time and communication (p.4)“. Virtual teams mean people who are geographically separated, and work together across borders. They are connected by modern technologies of computers. Internet has transformed most economies and workplaces into modern economies and workplaces. Many organizations are abandoning conventional face to face working teams for virtual teams. Most organizations are embracing technological revolutions. This enhances them to be more dynamic and adopt innovative approaches in their procedures. The ability of the work team to incorporate technology has led to success in most organizations. Well known international companies such as, IBM, Whirlpool, Hewlett-Packard, Ford Motor, Johnson and Johnson and Verifone have successfully implemented virtual teams. (Kiser, 1999; Stough, 2000). The rapid worldwide growth of virtual teams has been attributed by increased inter organizational co-operation, rapid pace of globalization and other benefits associated with its implementation. This includes the ability of the employees to work for...
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...Why Off-Sites Should Go Virtual: the Virt-Site By Keith Ferrazzi Organizations are all trying to do more with less. As the economic downturn drags on, companies have tightened their belts even further. Businesses continue to lay off thousands of workers; holiday parties are being drastically downscaled; executive perks like corporate jets have become history; and the list goes on. As part of that belt-tightening, some companies have begun to rethink their strategic off-sites. Instead of flying executives from around the world to an expensive three-day offsite location, why not just conduct everything virtually? The problem, though, has been that many companies have been trying to use videoconferencing, virtual reality technologies, and other tools to try to replicate physical off-sites. One idea was to encourage spontaneous conversations by simulating a “virtual cocktail hour. ” Wrong! The use of virtual technologies to replicate traditional physical off-sites misses a huge opportunity. Doing so results in a “poor man’s” version of the real thing, like online training courses that consist of nothing more than a video recording of an instructor followed by a test. Instead, companies need to be much smarter about how they conduct virtual off-sites. They need to leverage online’s unique characteristics to push beyond what’s possible in a physical setting and truly transform the process. Interviews with dozens of experts resulted in the following methodology, dubbed the virt-site...
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