Verified Document

Strategic Choice Organizations Seeking To Expand Their Essay

Strategic Choice Organizations seeking to expand their operations have a wide range of expansion options at their disposal. Choosing the right option in this case can be rather challenging. My organization which plans to expand its operations is faced with this same challenge. Some of the options that have been explored in this case include the issuance of shares to the public through an IPO, merger with another entity, and acquisition of another entity in the same industry.

Issuance of Shares to Members of the Public through an IPO

In basic terms, an initial public offering (IPO) according to Lasher (2010) is the initial sale of securities to members of the public. One of the key benefits of an IPO has got to do with the creation of new capital for an entity (Smart and Megginson, 2008). The authors also note that when it comes to an IPO, a company can later use its publicly traded securities to acquire other companies...

Unlike a merger and an acquisition, an IPO does not necessarily call for the formation of strategic partnerships/relationships with other businesses. An IPO can be a rather expensive undertaking (Smart and Megginson, 2008). Typical costs in this case include but they are not limited to accounting and legal fees as well as underwriter expenses. Although an IPO still remains a valid option it is important to note that the organization might have to contend with takeover threats once it goes public. Lasher (2010) also points out that "the market for initial public offerings (IPOs) is very volatile and risky."
Acquisition of another Company in the Same Industry

An acquisition according to Lasher (2010) can be said to have taken place where "one firm acquires the stock of another called the target." In the…

Sources used in this document:
References

Lasher, W. (2010). Practical Financial Management (6th ed.). Mason, OH: Cengage Learning.

Smart, S. & Megginson, W.L. (2008). Corporate Finance. Bedford Row, London: Cengage Learning.
Cite this Document:
Copy Bibliography Citation

Related Documents

Smuckers Strategic Choices Smuckers Pursues
Words: 1240 Length: 4 Document Type: Case Study

As noted, the recent "supply chain streamlining" is a move to cut costs and build greater economies of scale. This is consistent with a firm engaging in a cost leadership strategy. That the company also has strong brands allows it to continue to pursue its longstanding differentiation strategy as well. However, the company has been slow to respond to new trends, a reflection of its conservative culture and the

Strategic Choice and Evaluation
Words: 1586 Length: 4 Document Type: Essay

Business Studies Recommendation of a Growth Strategy for MGM Resorts International MGM Resorts International is a major leisure and gaming organization. The company is undertaking a great strategy as seen with the organic growth which is taking place through the development of new resorts, including the current development of MGM Coati, which is scheduled to open in 2016, as well as the proposed development in Ontario, to be undertaken in partnership with

Organizational Theory 2 What Core Competences Give
Words: 2740 Length: 8 Document Type: Essay

Organizational Theory #2 What core competences give an organization competitive advantage? What are examples of an organization's functional-level strategies? Core competencies are those capabilities that are critical to a business achieving a competitive advantage in the marketplace. Typically, core competencies can be identified by certain common characteristics -- offering a benefit to the customer, difficult to imitate, uniquely identify the organization and easily leveraged to create many products or operate in many

Strategic Management Mission and Vision Brocade Communications
Words: 3066 Length: 10 Document Type: Research Paper

Strategic Management Mission and Vision Brocade Communications systems "provides innovative network solutions that helps the world's leading organizations transition smoothly to a virtualized world where applications and information can reside anywhere" (Brocade.com, 2013). The company notes that "these solution deliver the unique capabilities for a more flexible IT infrastructure with unmatched simplicity, non-stop networking, application optimization, and investment protection" (Ibid). This is the company's description of its business, and is not specifically billed

Strategic Management Report Toyota Motor
Words: 2443 Length: 7 Document Type: Essay

Therefore, they use strict evaluation criteria to make choice among different alternatives. Keeping in view the strength of customers' bargaining power, Toyota and other automakers are expending huge amounts on advertisements and promotional campaigns to create awareness about their brands and convince these customers to prefer them over all other brands (Jenny & Scammon, 2010). 5. Internal Environmental Analysis for Toyota Motor Corporation 5.1. The Resources Types: Like other types of business

Organization Performance Assessment Organizational Performance Assessment...
Words: 2998 Length: 12 Document Type: Essay

Organization Performance Assessment Organizational performance assessment can be defined as a process of evaluating the performance of an organization against some well defined goals and targets. It lays much emphasis on the accomplishments of an organization in relation to its mission and the stated objectives. In the situation of a government department, the assessment would check the major mandates, ambitions, priority and the performance schedules and evaluates the advancements that have

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now