Virtual Organization Strategy

In: Business and Management

Submitted By bonitaverde
Words 325
Pages 2
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 it become a publicly traded company. Threats
There are risks in going with an IPO. One of the biggest threats would be that the owner Kathy Kudler would lose complete control over Kudler Fine Food. Another would be that going public brings investors all wanting their piece of the company. If the company goes public and then doesn’t do as well as…...

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