Iscom 471 Week 1 Operations Management

Huffman Trucking

ISCOM 471

John Dough

January 1, 2013

John Dough

Huffman Trucking

Huffman Trucking Inc. is a successful business that both H. Huffman and son K. Huffman operated. With logistical services in high demand both nationwide and globally, Huffman Trucking must make proper adjustments to ensure the business remains successful with potential growth. Adjustments could include a merger or combining two or more companies, generally by offering the stockholders of one company securities in the acquiring company in exchange for the surrender of their stock ("Investopedia", n.d.). Huffman Trucking is success only because if it’s great operations management which they must maintain to remain a successful business.

Operations management (OM) is defined as the design, operation, and improvement of the systems that create and deliver the firm’s primary products and services (Chase, Jacobs, & Aquilano, p. 9, 2006). An example of Huffman Trucking using their operations management for their benefit would be going public. Going public means that Huffman Trucking Inc. has to be converted into a Public Limited Company (IPO) because a private company is not allowed to go public. The strength of an IPO is that the company feels that they have more wealth when they do an IPO because they can sell their own shares and liquidate their holdings. Strength of an IPO is that it provides greater liquidity to shareholders. An IPO simply means that there is greater capital for the company. Disadvantages include the price the companies play by going IPO which can cost up to one million dollars. The lengthy process offers are not always accepted run the risk of not having their money returned which goes towards a numerous amount of fees. Opportunities include expansion that would result in higher sales, profit and more employment. The threat of an IPO is that the company may be taken over by other companies. This can cause low...