Integrative Problems and Virtual Organization Strategy Essay

1064 Words Jul 28th, 2013 5 Pages
Integrative Problems and Virtual Organization Strategy

FIN/370

Integrative Problems and Virtual Organization Strategy
In this paper, Team C will discuss Huffman Trucking Company and recommend a strategy that is best for this company and what will benefit the company the most. It will discuss the strategies such as undertaking IPOs, merging with other companies and ways to get other companies, as a way to help their company to branch out. Some of the other things that will be discussed are the benefits and risks, the advantages and disadvantages of all the approaches that should be taken into consideration for what is the best way to strategy for the business, the strengths and weaknesses of each approach, and the
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Going public also creates a type of currency in the form of its stock that the business can use to make later purchases. Through IPOs, Huffman Trucking will be able to obtain more favorable loan terms from lenders. By offering securities publicly, the company and its management may be able to retain a certain degree of control. Going public also may result in better advertisement for Huffman. There are a various reasons why Huffman Trucking may opt not to go public. Going public is an expensive process and there is the risk of losing that money if the IPO fail. Going public is also a very rough process, especially registration which tends to disrupt the day operations of a company. IPOs allows more outsiders into your business information.
There are several advantages if Huffman Trucking acquires another company that is in a similar industry. An acquisition is different than a merger from the fact the merger implies shared ownership in the company. An acquisition implies more defined control of one company over another.
Acquiring another company reduce operating cost because of economies of scale. A company that only has few trucks pays more for maintenance and overhead than a company that possesses several trucks. In Huffman Trucking’s case, added trucks, warehouses, and staff can open doors of opportunity smaller firms can’t offer as well. This is
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