Kudler Fine Foods

Kudler Fine Foods Strategy

Kudler fine foods, was created to make gourmet foods, and allow a one stop shop for those interested in creating a gourmet meal without traveling across town to obtain the ingredients needed. In growing the company has gotten to the point where the options of expansion. Many options in which this company can expand or gain a financial increase, have been presented. The options of the IPO, Merging with an additional company, which is similar, or acquiring an additional organization of a similar nature. In this assignment the team will discuss the positive and negatives, threats, and opportunities of each option, and finally come to a decision that would be beneficial to the company.

Going Public through an IPO

As a company grows, the needs of the company change from those of a small business to those of a larger enterprise and continued growth requires capitalization. With multiple locations and a powerful web-presence Kudler Fine Foods is in a position to go through a brokering banking house to issue an Initial Public Offering (IOP) of stock in their company. Once the company changes to a public limited company (PLC, as termed in the UK), they can proceed with going public since privately owned business are not allowed to go through an IPO. With this decision to go public come strengths, weaknesses, opportunities, and threats for a growing business.

Strengths of an IPO

If Kudler Fine Foods decides to go public, it will strengthen the business through increased cash flow. One way to strengthen the company is that through the sale of shares to liquidate holdings. When shares start trading on the stock exchange, they have a market value and can be sold and resold. The added wealth of an IPO gives a greater prestige and esteem for companies that go public (Gomes-Mejia & Balkin, 2005). Every entrepreneur dreams of “going public” and “cashing out” their lifetime’s worth of work with an IPO (Kleeburg, 2005).

Weaknesses of an IPO...