Virtual Organization Strategy Paper

Huffman Trucking was established in 1936 and developed its crinkle doneout the eastern United States. They have recently expressed a desire to scatter the business and they are reviewing several options. This bailiwick will provide a arise analysis on trio expansion strategies including the release of initial overt offerings, the learnedness of another firm, and a merger with another firm. Each trick will offer vantages and disadvantages, by contrasting the strengths, weaknesses, opportunities, and threats of each of the 3 strategies, this paper will highlight why Huffman Trucking should get wind away to merge with another firm in cabaret to expand its business. Initial Public offering (initial offering)An initial human beings offering occurs when a family releases stock to the humankind for the first duration in the special market. Those shares are then made obtainable for trade in the secondary markets. Several advantages and disadvantages exist when a frate rnity releases an initial public offering (Keown, Martin, Petty, & Scott, 2005, p. 11). Huffman Trucking is privately held company till now. The SWOT analysis of dismissal public through IPO is as follows:StrengthsThe offering of stocks to the public raises new roof for the company. The new capital stand be used to garb in the business for future growth and the owners of the firm can easily switch their shares to cash.

Owner diversification is also considered an advantage of going public through IPO (Venture associates, 2009, p. 1). WeaknessesOne of the major weaknesses of going public is exhalation of the personal benefits for the owners of the fir! m. The initial cost of IPO is high and is ongoing. For well-nigh 15% to 25% of capital embossed through IPO is spent on expenses related to the public offerings (Keown, Martin, Petty, & Scott, 2005, p. 413). subsequently the firm has gone public, the firm is requisite to report sporadically to... If you want to get a mount essay, order it on our website: OrderCustomPaper.com

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