Virtual Organization and Strategy Paper

Virtual Organization Strategy Paper

Finance 370

University of Phoenix

Introduction

One might not think of a hospital as being the same as any other business so why would the hospital have to consider having an initial public offering or merging, or finding an acquisition. Just like any person or company, it takes money to make improvements and to pay the bills. A hospital is still a business and all businesses need to find a way to increase their capital and run a smoother more efficient business plan, create shareholder wealth and reinvest in themselves. This can be done by considering initial public offerings, having mergers or acquisitions. Analyzing the strengths, weaknesses, threats and opportunities is a fantastic way to decide which is best of those three options.

Strengths of Initial Public Offerings

When hospitals decide to go public through initial public offerings, all purposes and focuses should be clearly stated. People will want to know what the funds will be used for and how this will help improve care for the hospital’s patients. When privatized healthcare firms go public, this would be the route to take when they are focused on expanding operations, more than one healthcare facility or in taking more patient care. Using IPO to go public they can state their own mission and continue to provide care the same as they did while being private. The funds brought in from its common stocks can be used to help improve in the area needed. In return taking this approach will help the hospital bring in addition funds in a short time period. The hospital may continue to operate under its own name and independent ownership. It will give them creditability and gain the trust of those that are under its care. This will also gain the attention of new customers and new investors. This will be the approach needed in order to improve a company’s financial stability.

Strengths of Merger and Acquisition

When a firms decides to merger with...