Integrative Problems and Virtual Organization Strategy Essay

Economies of scale: Timken has started consolidating operations into global business units to reduce costs. They have expected annual savings of $80 million by the end of 2007 after Torrington’s acquisition.(case) As large size is usually expected to yield production economies if manufacturing operations can be amalgamated, marketing economies if similar distribution channels can be utilised, and financial economies if size confers access of capital markets on more favourable terms.(book).Moreover, by reducing the combined sales forces, Timken expected to realize significant purchasing synergies by giving much large volume to a reduced list of suppliers in exchange for price reductions. One analyst estimated that those

When a certain point is reached regarding a company’s success, a set of different opportunities arise and partnerships may unfold. However, with every possible strategy available, risks and benefits also come into play; without discarding any of them beforehand, every option is a strong candidate until a final decision is made. In this case study we will analyze the current business strategy pertaining

Integration could also benefit business competitiveness in that it is an extremely fast way for a business to grow. In many industries the ‘first mover advantage’ is crucial to any business that wants to capitalise on other areas of the industry that have not yet been exploited. If one firm manages to utilise the first mover advantage other firms may be left behind and so may struggle to compete in a certain area. However if a firm was to buy out competition then they would have less of a problem trying to establish themselves in the area. Asda recently took over Netto for a figure of £778mil. The move saw Asda instantly take over the 193 Netto stores across the UK many of which are small high street shops compared to the typical supermarket stores that Asda currently operates. The move will allow Asda to compete with other high street stores such as Tesco express and Sainsbury’s division of small high street stores. Without the takeover Asda would have found it incredibly difficult to establish themselves in this area of the industry. However Asda now have bought into an number of stores that will be situated across the UK and will be able to compete with the likes of Tesco and Sainsbury’s. The takeover has also gained Asda a further 0.7% share in the market

For the corporation that has acquired another company, merged with another company, or been acquired by another company, evaluate the strategy that led to the merger or acquisition to determine whether or not this merger or acquisition was a wise choice. Justify your opinion.

Merging with another organization has downfalls of destroying wealth from the merger. Considering the buying price is important when merging, spending too much on the merger will impound the value after the merger. Some mergers do not create wealth so capital is lost through the merger. There is no guarantee of financial gain and every formula considered with focus, just as with an acquisition. The final decision dictated by the variables. One company merging with another company takes the debt and losses of those companies in the new formed company.

The reason that Huffman Trucking uses the business structure that they have is to maintain the solid structure of the employment, and maintain the growth of the business in the industry of logistics. Huffman Trucking is a company that prides themselves on the idea that taking care of the employees will help the employees will take care of the customers, and the revenues from the customers will help the business and the stock and stakeholders maintain their edge. Huffman Trucking is a leader in the industry of logistics, and is one of the larger corporations that are in operation. The contracts that Huffman Trucking has are strong stable contracts that will help the vision and mission of the company to be successful in the completion and achievement of the goals that they set for the organization. Huffman Trucking has a strong foundation and the future of the organization is solid with the contracts that are in place from years to come. The services that Huffman Trucking offers to its customers are services that can

It is pretty simple why companies’ do choose to go public. “Companies go public usually to have access to more money” (Martin, 2017). Companies have two ways they can increase funding. They can sell bonds or sell shares. Although when it comes to selling bonds a company has to remember that they still have to pay interest on the money they have borrowed and pay it all back (Martin, 2017). This is why the majority of companies chose to raise the money by selling shares instead. Companies want more money for new investments, new innovations, and to be able to build up their savings too. Plus, companies need more money for when they start new projects.

The marketing sector of the company will also be saving money once and if the acquisition takes place.

After acquiring, Newell would get the service level of each business to their standards as fast as possible to make sure that these businesses do not damage its reputation. Thus association of brand name to Newell highly enhanced the individual companies inside Newell’s portfolio to be of good service and fast distribution. Other than these factors, the acquisition of different companies might bring in different skills and synergies to complementing goods such as production knowledge and complementary assets. Companies that produce complementary products are able to know what exactly to produce that would suit their customers, while companies producing differentiated products of the same category would be able to learn from each other to produce better products for each customer segment. Companies of similar nature are also consolidated and the plants upgraded to increase manufacturing efficiency which will benefit these companies in the cost aspect.

Strategy formulation has been acknowledged as one of the most crucial factors of ensuring the long-term growth of the business. However, the manner in which strategy is formulated, and most importantly, the nature of the strategy chosen for the company determines its future position in the marketplace (Grant, 2005).

In order for a business or corporation to grow and expand at a calculated pace, they must be able to strategize the proper business plan to get there. A strategy is a set of analytic techniques for understanding and influencing the firm 's position in the marketplace (Raimundo, 2001). Having a business

In this example, a public company could have a competitive advantage over a private enterprise. An IPO can indicate credibility to a company 's customers, which may lead to increased sales and a greater corporate profile.

This research paper presents some recommendations and a related action plan to address the strategic changes which are deemed crucial to the survival of General Motors (GM). An overview of the contemporary situation at the corporation is provided in this section of the paper, which is then followed by specific recommendations and a strategic plan of action to bring about the changes which are necessary for the company’s survival in these turbulent times.

According to Investopedia ("Why Go Public," “n.d.”), going public is when the customer decides they will go public to raise cash and they will end up on the stock exchange and basically anyone can purchase stock with them. Be advised, that is very uncommon that the general public can actually get in on the IPO investments. In addition, being publically traded offers many financial opportunities these companies and typically receives better rates from the banks when they issue debt, as long as there is a demand, you can always issue more stock and finally being part of the stock market means liquidity which means you are able to offer employee stock plans.

This study discusses Toyota, General Motors’ (GM), and Tesla Motor’s competitive strategies. These three companies are top leaders in the automotive industry, and this paper focuses on what their current strategies are and how they develop and manage their opportunities. The paper will also address what can impact these three companies, how they protect their company from competitors, and some recommendations for each companies.