Virtual Organization Strategy Paper

Huffman Trucking was established in 1936 and developed its crinkle lengthways the eastern United States. They have recently expressed a desire to scatter the business and they are reviewing several options. This egress will provide a arise analysis on trio expansion strategies including the release of initial overt offerings, the scholarship of another firm, and a merger with another firm. Each parry will offer values and disadvantages, by contrasting the strengths, weaknesses, opportunities, and threats of each of the tierce strategies, this paper will highlight why Huffman Trucking should fetch away to merge with another firm in army to expand its business. Initial Public offering (initial offering)An initial general offering occurs when a family releases stock to the national for the first sequence in the special market. Those shares are then made functional for trade in the secondary markets. Several advantages and disadvantages exist when a bon ton releas es an initial offering (Keown, Martin, Petty, & Scott, 2005, p. 11). Huffman Trucking is privately held company till now. The SWOT analysis of going public through IPO is as follows:StrengthsThe offering of stocks to the public raises new roof for the company. The new capital foot be used to lay in the business for future growth and the owners of the firm can easily switch their shares to cash.

Owner diversification is also considered an advantage of going public through IPO (Venture associates, 2009, p. 1). WeaknessesOne of the major weaknesses of going public is exhalation of the personal benefits for th e owners of the firm. The initial cost of IP! O is high and is ongoing. For well-nigh 15% to 25% of capital embossed through IPO is spent on expenses related to the public offerings (Keown, Martin, Petty, & Scott, 2005, p. 413). subsequently the firm has gone public, the firm is mandatory to report sporadically to... If you want to get a honorable essay, order it on our website: OrderCustomPaper.com

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