Integrative Problems and Virtual Organization Strategy Paper

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Huffman Trucking is a business that is privately held that is considering expansion. The company must choose among three different expansion opportunities. Those options are going public through an IPO, acquiring another organization in the same industry, merging with another organization. It is important that the right expansion option is chosen for Huffman Trucking, but before an option can be chosen the company will have to conduct an investigation of the available options. The investigation will discuss the strengths, weaknesses, opportunities, and threats of each option. During the investigation Huffman Trucking will need to consider the effects of globalization on financial decisions, factors that contribute to exchange rate risks, and mitigating exchange rate risk as it relates to the three options should the company search for a foreign location. Last, the company will choose which option is best for it. Compare and contrast

Huffman Trucking Company has three options to choose from: go public through an IPO, acquire another organization within the same industry, or merge with another company. An IPO or initial public offering is the first time a company sells stock to the public. An IPO happens when a privately owned company issues shares of stock to the public. When this happens a business is no longer privately owned but owned by investors. IPOs are a very important aspect of the United States economy and an easy way for the company to raise cash.

The other two options, acquisition of another company within the same industry or merge with another company differs in the aftermath of the process. In merger negotiations involve ownership interests each company hold in the merged entity. Acquisitions focus on the relative value of each company in negotiating a purchase price. The merged companies operate together whereas an acquisition involves absorbing all or part of another company. Strengths to each approach

The process of transitioning...
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