Integrative Problems and Virtual Organization Strategy Paper Fin/370

Integrative Problems and Virtual Organization Strategy Paper

FIN/370

Integrative Problems and Virtual Organization Strategy Paper

Options for Expansion

The primary goal of an organization is growth. Without growth, an organization cannot succeed. Growth yields great benefits to an organization, allowing funding of new projects, increasing market share, consumer awareness, inspiring new ideas, allowing room for their development which in turns leads the organization to financial success. Although growth in an organization can naturally take place, it is mostly created.

There are several ways an organization can implement to create growth. The three options organizations uses mostly are acquisitions, mergers and taking the organization public (IPO). In this paper, Team A will examine these three options on Berry’s Bug Blaster’s and will analyze the strengths and weaknesses, opportunities and threats each approach will present.

Initial Public Offerings

Initial Public Offerings (IPO) are not necessarily the best option an organization should opt to go with. IPO’s can be issued by large private owned organizations who desire to become publicly traded, but mostly they are issued by smaller companies seeking to expand their capital. Organizations must determine the strength and weaknesses of an IPO prior to issuing one.

An IPO happens when an organization issues common stock to the public and shares information with them. In the particular case of Berry’s Bug Blasters, issuing an IPO may not be the best option for their organization to grow. The organization must keep in mind the positive benefits and negative aspects of becoming an IPO. Some of those benefits enable organizations to raise capital funds inexpensively, increasing the public awareness of the organization, attracting potential customers and investors, creating multiple financial opportunities.

These benefits may also lead to an increase in market share for the organization. An IPO is...