Problems and Virtual Organization

Integrative Problems and Virtual Organization Strategy

Name

Finance for Business – FIN 370

Date

Instructor

Team D chose Baderman Island Resort as our virtual organization for this assignment. Team D will detail Baderman Island’s options of going public through and IPO, acquiring another organization in the same industry, or merging with another organization as a way of expanding the company. Team D will list some strengths, weaknesses, opportunities, and threats of each option. We will also touch basis on the effects of globalization on financial decisions as well as factors that contribute to the exchange rate risks should the organization pursues and international location.

“Baderman Island Resort is a self-contained all-inclusive resort destination. The island features an array of restaurants, three different hotels, an almost unlimited list of activities, dining, shopping, beautiful vistas, fine arts and paintings, golf, botanical gardens, oasis spa, and a recreation center. The featured hotels include the Baderman Main Hotel, the Tenney, and Melacon Convention Center and Hotel, ("Virtual Organization Portal," 2005, 2012).

Strengths

An initial public offering or IPO is the first sale of a stock by a company. A smaller company looking to increase the growth of their company is most likely to use an IPO to generate the capital they need to expand their business. There are many advantages for Baderman Island Resort when using an IPO. The biggest advantage would be the ability that the IPO has to raise capital for the organization. The capital generated can be used to expand the Tenney. There have been issues with customers who want a convention center at the Tenney, and with the increase in capital, this could make it possible.

When a company acquires another organization in the same industry there are advantages and disadvantages. By acquiring a company in the same industry Baderman Island Resort...