Strategies for Maximizing Shareholder Wealth

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Abstract Maximizing shareholder wealth requires a decisive strategy and a well-developed plan. It allows an investor to consider financial statements and growth strategies in order to establish a course of action. Case in point, one major franchising international business bought a well-known global restaurant business. The risks and expected return by these two companies may affect its long-term future goals. A profitable electronics company may lose its primary supplier in a strategic takeover in the industry. In an effort to maximize shareholder wealth, companies must develop a strategy for every maneuver and position in its respective market. Strategies for Maximizing Shareholder Wealth Trapped…show more content…
Applebee’s International, Incorporated Applebee 's is an American casual dining restaurant, head office located at Overland park, Kansas. Applebee has embraced neighborhood culture, providing high-quality food and drinks in a friendly and informal atmosphere. Applebee 's mantra is to serve food to the consumer in a faster and affordable price. IHOP, which franchises nearly all restaurants, said it hoped to employ the same strategy with the newly acquired Applebee 's. “We believe we have an opportunity to re-energize the brand and get franchisees, employees and guests all sort of thinking about the brand in a different way,” Julia Stewart, IHOP 's chairman and chief executive officer, said. How IHOP Benchmarking Relates to Lester Electronics Lester Electronics and Shang-wa face many challenges and issues that are similar to IHOP. For instance, employees and management at Applebee’s, Shang-wa, and Lester Electronics are concerned about the change because of uncertainty of what the future holds. Employees and management at Applebee’s and Shang-wa are comfortable with the way their operation runs and afraid of any major changes, which is not unusual because mergers or buyouts can create fears and concerns among employees. Evaluate Internal and External Growth Strategies Moreover, Applebee’s has certain ways when it comes to dealing with their suppliers, franchise owners, employees, and vendors; IHOP can and most likely will change
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