Finance 370 Week Five Integrative Problems & Virtual Organization Paper

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Integrative Problems & Virtual Organization Paper

Team A


November 6th 2012

Michael Baker

Integrative problems & virtual organization strategy

Riordan manufacturing is a plastics molding company with 550 employees with earnings of $46 million annually. The company currently is a fortune 1000 enterprise with total assets and revenue exceeding over $1 billion. The company produces plastics containers, bottles, plastic fans, and custom plastics in its three manufacturing plants in Georgia, Michigan, and its overseas plant in China. Riordan manufacturing research and development is in San Jose, California. Riordan’s current customers include Department of Defense, automotive manufacturers, aircraft manufacturers, appliance manufacturers, beverage companies, and more. The company is looking into options of expanding by going public via initial public offering (IPO) by means of acquiring another company in the same industry, or merging with an existing company. Riordan is looking at the possible advantages and disadvantages in addition to opportunities, and threats that come with the options available.

Going public via IPO

The approach of Riordan manufacturing using an initial public offering (IPO) is in effect when the company’s equity is set to be sold through investment banking with the framework of the shares and common stock. Riordan manufacturing definitely should consider becoming public knowing it has the potential to become successful. By doing so the company may have a positive impact that will demonstrate a substantial growth as well as annual increase in sales and earnings.

A few advantages of Riordan manufacturing going public are;

A vehicle to establish value for the company’s equity.

Establishing equity puts Riordan in a better position of acquiring other companies.

It raises capital for the company operating expenses.

Going public shows outward sign of credibility and achievement (J.H. Chapman Group, L.L.C. ,...