Running head: OPTIONS FOR GROWTH FIN 370 Week 5 Team Assignment Options for Growth University of Phoenix

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FIN 370 Week 5 Team Assignment Virtual Organization Strategy Paper Berrys Bug Blasters
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Running head: OPTIONS FOR GROWTH

FIN 370 Week 5 Team AssignmentOptio ns for Growth University of Phoenix1450+ Words

Options for GrowthGrowth is the ultimate goal of organizations. Without growth, success cannot beachieved. Growth benefits organizations in

that it; funds new projects, increases market shareand consumer awareness, attracts bright new minds, enhances the

ability to develop new ideasand ultimately leads to financial success. Growth in an organization can occur naturally, but mostoften is

created. Several ways exist that organization can foster growth and three popular optionsinclude taking the organization

public, acquisitions, and mergers. This paper will examine all three options using Berrys

Bug Blasters, a virt ual organization, and analyze the strengths andweaknesses or each approach as well as the opportunities and

threats that each option may present.Initi al Public Offerings IPOs are not necessarily the best way for any business to go.

As with any other op tion IPOs have strengths and weaknesses that need to be determined prior to

becoming one. An IPOoccurs when a company issues common stock or shares information with

the public. In the case of Berrys Bug Blasters, this may not be the best way for them to expand. Sometimes

sharingfinancial information can hurt more than help the organization. With both the positive andnegative aspects in mind

there can be certain benefits of becoming an IPO. These benefitsinclude enabling cheaper access to capital funds, exposure and the ability to

attract goodemployees and investors. Creating multiple finance opportunities is also a large benefit of becoming an

IPO. These benefits open up several opportunities for some companies and because Berrys wants to expand, loo

king into these benefits could prove to be useful. Even with the benefits however, an IPO can be a risky investment. Stocks can be

very unpredictable especially on their initial day of trading. In addition, when a company is going through growth stages

therewill be uncertainty regarding their future value. Many varied strengths and weaknesses of an IPOexist. Companies may

want to look into other opportunities like merging with another companyor acquisitions before going for the

IPO.Acquisitions A second option for organizations looking to expand is an acquisition. Mergers andacquisitions may seem similar

on the surface but they are two distinct options. With a merger, analliance is formed but each company remains its own entity. Acquisitions oc

cur when one company takes over another and clearly established itself as the new owner. . .the target company

ceases to exist, the buyer swallows the business (Investopedia, 2009, p. 2). The thinking behind a merger or

acquisition is that Two compani es together are more valuable than two separate companies (2009, p. 2).The main appeal of

an acquisition for Berrys is time. An acquisition would quicklyachieve the companys goal of expansion. A second strength

of the approach is the fact that the bu yer, in this case Berrys, obtains all the assets of the purchas

ed entity including buildings,equipm ent, employees, customers, and supplies. Depending on

the services offered by the purchased company Berrys may also benefit through the addition of new s ervices giving thecompany new

ways to better serve current and future customers (Pickering, 2007).Before deciding on using acquisition to expand,

consideration should be given toweaknesses of the approach. One such factor is the availability of acquirable companies.

Oneaspect to consider is whether or not a similar organization meeting the requirements of a goodacquisition can be found.

Another weakness is the potential cost associated with assimilating theacquired company. A final weakness to consider is the

state of the organization that will be acquired. Any financial, legal or organizational issues are obtained just as the positive

aspectsare.Oppor tunities and threats must also be taken into account. Opportunities associated withacquisitions are obvious and

coincide with the strengths of the approach. Acquisitions providethe opportunity for increased shareholder value, brand

recognition and profitability as well as potential tax benefits (Malott, 2001). Potential threats may not be as easy to recognize

and areoften overlooked by management. Acquisition integration usually takes longer and costs morethan you would predict

(Malott, 2001, 11). An additional threat is employee resistance. The employees of the purchased company are used to the

culture of that company and may respond poorly to or resist change. Problems within the purchased company such as personnel

andaccounting issues may not be easily fixed and could eventually bring down the new entity.Merger W hen a company or organization

wants to grow, there are a few different avenues inwhich their goal can be achieved. In this section of the paper were going to examine the

merger route. A merger can help a company from a variety of standpoints: financially, logistically, andcan give smaller

companies credibility and name recognition. Although most mergers aresuccessful, companies should do a great

deal research study before they team up with another organizat ion.Just like any decision a company might make, proper research and

comprehension of the positives and negatives that exist must be studied before deciding to merge with another brand.Merging

offers some great benefits to organization looking to expand. First off, a merger ischeaper and more costeffective than

acquiring a competitor. Merging allows two organizations to pool resources, exchange ideas, and grow as one recognizable

brand in the marketplace.

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FIN 370 Week 5 Team Assignment Virtual Organization Strategy Paper Berrys Bug Blasters
Ratings: 0|Views: 45|Likes: 0 Published by E-Nexus FIN 370 Week 5 Team Assignment - Virtual Organization Strategy Paper - Berrys Bug Blasters See More

Running head: OPTIONS FOR GROWTH

FIN 370 Week 5 Team AssignmentOptio ns for Growth University of Phoenix1450+ Words

Options for GrowthGrowth is the ultimate goal of organizations. Without growth, success cannot beachieved. Growth benefits organizations in

that it; funds new projects, increases market shareand consumer awareness, attracts bright new minds, enhances the

ability to develop new ideasand ultimately leads to financial success. Growth in an organization can occur naturally, but mostoften is

created. Several ways exist that organization can foster growth and three popular optionsinclude taking the organization

public, acquisitions, and mergers. This paper will examine all three options using Berrys

Bug Blasters, a virt ual organization, and analyze the strengths andweaknesses or each approach as well as the opportunities and

threats that each option may present.Initi al Public Offerings IPOs are not necessarily the best way for any business to go.

As with any other op tion IPOs have strengths and weaknesses that need to be determined prior to

becoming one. An IPOoccurs when a company issues common stock or shares information with

the public. In the case of Berrys Bug Blasters, this may not be the best way for them to expand. Sometimes

sharingfinancial information can hurt more than help the organization. With both the positive andnegative aspects in mind

there can be certain benefits of becoming an IPO. These benefitsinclude enabling cheaper access to capital funds, exposure and the ability to

attract goodemployees and investors. Creating multiple finance opportunities is also a large benefit of becoming an

IPO. These benefits open up several opportunities for some companies and because Berrys wants to expand, loo

king into these benefits could prove to be useful. Even with the benefits however, an IPO can be a risky investment. Stocks can be

very unpredictable especially on their initial day of trading. In addition, when a company is going through growth stages

therewill be uncertainty regarding their future value. Many varied strengths and weaknesses of an IPOexist. Companies may

want to look into other opportunities like merging with another companyor acquisitions before going for the

IPO.Acquisitions A second option for organizations looking to expand is an acquisition. Mergers andacquisitions may seem similar

on the surface but they are two distinct options. With a merger, analliance is formed but each company remains its own entity. Acquisitions oc

cur when one company takes over another and clearly established itself as the new owner. . .the target company

ceases to exist, the buyer swallows the business (Investopedia, 2009, p. 2). The thinking behind a merger or

acquisition is that Two compani es together are more valuable than two separate companies (2009, p. 2).The main appeal of

an acquisition for Berrys is time. An acquisition would quicklyachieve the companys goal of expansion. A second strength

of the approach is the fact that the bu yer, in this case Berrys, obtains all the assets of the purchas

ed entity including buildings,equipm ent, employees, customers, and supplies. Depending on

the services offered by the purchased company Berrys may also benefit through the addition of new s ervices giving thecompany new

ways to better serve current and future customers (Pickering, 2007).Before deciding on using acquisition to expand,

consideration should be given toweaknesses of the approach. One such factor is the availability of acquirable companies.

Oneaspect to consider is whether or not a similar organization meeting the requirements of a goodacquisition can be found.

Another weakness is the potential cost associated with assimilating theacquired company. A final weakness to consider is the

state of the organization that will be acquired. Any financial, legal or organizational issues are obtained just as the positive

aspectsare.Oppor tunities and threats must also be taken into account. Opportunities associated withacquisitions are obvious and

coincide with the strengths of the approach. Acquisitions providethe opportunity for increased shareholder value, brand

recognition and profitability as well as potential tax benefits (Malott, 2001). Potential threats may not be as easy to recognize

and areoften overlooked by management. Acquisition integration usually takes longer and costs morethan you would predict

(Malott, 2001, 11). An additional threat is employee resistance. The employees of the purchased company are used to the

culture of that company and may respond poorly to or resist change. Problems within the purchased company such as personnel

andaccounting issues may not be easily fixed and could eventually bring down the new entity.Merger W hen a company or organization

wants to grow, there are a few different avenues inwhich their goal can be achieved. In this section of the paper were going to examine the

merger route. A merger can help a company from a variety of standpoints: financially, logistically, andcan give smaller

companies credibility and name recognition. Although most mergers aresuccessful, companies should do a great

deal research study before they team up with another organizat ion.Just like any decision a company might make, proper research and

comprehension of the positives and negatives that exist must be studied before deciding to merge with another brand.Merging

offers some great benefits to organization looking to expand. First off, a merger ischeaper and more costeffective than

acquiring a competitor. Merging allows two organizations to pool resources, exchange ideas, and grow as one recognizable

brand in the marketplace.

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