Fin 370 - Virtual Organization Strategy Paper

1592 WordsJul 31, 20117 Pages
Virtual Organization Strategy Paper Kathy Kudler founded Kudler Fine Food. She was once the VP of marketing for a large defense contractor. Weary of the constant travel and the pressures of corporate life, Kathy was looking for other opportunities. As it happened, Kathy relieved her stress through gourmet cooking and on a shopping trip for ingredients for a gourmet meal. Kathy suddenly realized there was an opportunity for an upscale epicurean food shop in La Jolla. Kathy developed a business plan, obtained financing and six months later, on June 18, 1998, the first Kudler Fine Foods opened. Within nine months the store was at break-even and was profitable for the year. In 2000, a second store was opened in Del Mar and in 2003 a third…show more content…
When used by academics, an arbitrage is a transaction that involves no negative cash flow at any probabilistic or temporal state and a positive cash flow in at least one state; in simple terms, it is the possibility of a risk-free profit at zero cost. Opportunities of Each Approach Many opportunities for Kudler Fine Foods come with going public with an IPO. A considerably greater amount of capital comes from the issuing of shares for trading on the stock market. It helps increase the amount of business taking place if Kudler Fine Foods were to become a publicly traded company. “Public firms tend to enjoy a higher profile than their privately held counterparts. This may make it easier to make sales and attract vendors to supply goods and services to the firm” (Keown, et. al., 2005, p. 413). This growth would be to the degree that the current management infrastructure could not handle at this time. There would need to be some widespread foundational changes for Kudler to have this opportunity to issue stocks. The company knows the current stockholders, the value of the employees, and the company’s customers. Kathy Kudler is not concerned with working by another organization in the same industry. Even though there are competitors, they are not as abundant in the California areas where her

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