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Essay on Baria Planning Solutions: Publicly Traded Firm

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Baria Planning Solutions (BPS) was a publicly traded firm with $95 million annual sales. As a consulting firm, BPS provided advices of spend analysis and spend management, which helped its clients decrease cost of procurement and enhance the overall performance at every stage. Because of its first mover advantages, BPS had gained rapid growth in years before 2008. In 2007 and 2008, BPS acquired 3 firms, which served government sector, manufacturing companies and retail sector respectively. However, BPS allowed the acquired firms to operate semi-autonomously, which resulted in incompatibility among different departments, along with seasonal workload issue, both factors contributed to the decreased efficiencies, thus lowered the of overall…show more content…
There is no doubt that it was a selling point to both attract potential customers and maintain existing clients, but if those proposals did not work out, it would definitely soar the cost burden of BPS and increase the risk of operation of the company. OPPORTUNITIES First of all, BPS could gain a higher market share by properly fixing the delay problem. Compared with its competitors, BPS had a relative higher quality proposal, which helped it to establish a good reputation among customers and satisfies most clients they served. Secondly, BPS can accomplish economies of scales by acquiring firms in different industries with good reputation, which boosts its market share in the short run. In the long run, when these acquired companies get compatible with each other, the overall efficiencies will increase while the unit cost will decrease, thus achieve economies of scale. By virtue of this, the company will not only attain its existing customers but also gain more potential clients, which further boosts its market share. The increased market share will result in a better reputation for the company, which makes it possible for the company to exert more potential in the future market. THREATS Since BPS was a consulting service company, it was a cyclical industry. One of the main threats it may encounter could be economic recession.
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