FIN 370 Week 5 Team Assignment - Virtual Organization Strategy Paper - Berrys Bug Blasters Presentat

FIN 370 Week 5 Team Assignment - Virtual Organization Strategy Paper - Berrys Bug Blasters Presentat

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Unformatted text preview: Berry’s Bug Blasters Berry’s Bug Blasters Expansion Strategy Options for Growth Options for Growth Taking the organization public Acquisition Merger Initial Public Offering – Initial Public Offering – Definition Company issues common stock to the public Ownership would be transferred to stockholders in exchange for growth capital Initial Public Offering – Initial Public Offering – Benefits Less expensive access to capital funds Increased public exposure More attractive to employees and investors Increased finance opportunity Initial Public Offering ­ Risks Initial Public Offering ­ Risks Sharing financial information Unpredictability of stocks Uncertainty of future stock value Acquisition ­ Definition Acquisition ­ Definition “When one company takes over another and clearly established itself as the new owner” Two companies together are more valuable than two separate companies Acquisition ­ Benefits Acquisition ­ Benefits Quickly achieve the company’s goal of expansion Barry’s obtains all assets of the purchased entity Barry’s may also benefit through the addition of new services Acquisition – Risks Acquisition – Risks Finding a similar organization meeting the requirements available Potential associated cost The state of the organization to be acquired Time and employee resistance Merger – Definition Merger – Definition Pool resources Exchange ideas Grow as one brand Allows two organizations to: Merger ­ Benefits Merger ­ Benefits Less expensive and more cost effective than other growth options Increased sales opportunities Qualify for bulk pricing Shared business tools Merger ­ Risks Merger ­ Risks Loss of brand identity Lack of communication Possible rumors and negativity Growth Suggestion Growth Suggestion The best option would be a merger with another company Allows expansion with less expense IPO would reveal unfavorable information Acquisition is lengthy/costly References References Investopedia (2009). Mergers and Acquisitions. Retrieved November 11, 2009, from Malott, T. G. (2001). Building value through strategic acquisitions. San Diego Business Journal, 22(49), 20. Pickering, M. (2007, March). The urge to merge. In the 68­69. Black, 77(2), ...
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This note was uploaded on 02/21/2011 for the course FIN 370 taught by Professor Unknown during the Spring '08 term at University of Phoenix.

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