Case Study: Virtual Organization Kudler Fine Foods

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Virtual Organization Kudler Fine Foods Suecirin Colon , Maybelline Torres, James Medina, Alvia Varona, Aixa Martinez, Marilys Robles Team B FIN 370 January 28, 2014 Prof. Fernando Padilla The purpose of this paper was to complete the assignment for week five according to the Syllabus for FIN370. We have selected the Virtual Organization Kudler Fine Foods and were asked to select among several options for expansion. We will state that the options that we will explain consider that the company that we have selected is privately held and is looking to expand operations. The three options that we will discuss that are open for our consideration are going public through an IPO, acquiring another organization in the same industry and…show more content…
The weakness of Kudler Fine Foods is that an IPO (Initial Public Offering) has many inherent and potential weaknesses that must be examined prior to selection as a means for expansion. An IPO is the first sale of stock by a company. There are many advantages and disadvantages for the Kudler Fine Foods to go public through the IPO. The advantages include generating more capital needed to expand their three locations The IPOs are very expensive undertaking, and a large portion of any capital acquired will be lost to this cost. Because the company must produce all financial information to the SEC many businesses find it to be very stressful and time consuming which takes time and money away from a company that is thriving like Kudler Fine Foods. Legal liability is important when conducting an IPO and those offering the shares can be personally sued. The expenses continue after the company goes public with the SEC reporting requirements. Kathy Kudler will not only lose control of some of the decision making for Kudler Fine Foods with an IPO, but she will also lose some of the profits, as a portion will go to the…show more content…
This way they will be able to gather all the money they need in order to expand the company. By expanding the company they will be able to have the opportunity to reach out for more potential customers. Leading the company to an economic success, Kudler as well could consider the possibility of acquiring another organization in the same industry. The opportunities the company will face taking this decision might as well increase their monetary income in a good way. Having at their side another company advertising and selling their products will provide the opportunity to expand their market. In addition, this decision will provide clear information to the shareholders of the company’s intentions to grow and of its economic stability within the market. On other hand, merging with another company will definitely attract more customers and will increase their sales. These strategies will help in the company’s position before the globalization and will minimize the risks when important financial decisions are

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