Kudler Fine Foods

Kudler Fine Foods

Patrina Smith

FIN/370

September 1, 2011

John Collier

Kudler Fine Foods

Although there is much strength to expanding Kudler Fine Foods, many weaknesses will also occur. The company will have to operate under increased rules and regulations. Along with enjoying public valuation, the downfall will be public scrutiny. Going public under IPO is very demanding. Kudler is taking the chance of losing the flexibility of managing the organization's affairs. The company also has to fulfill legal obligations to stakeholders based on the Securities and Exchange Commission (SEC). Under the new legal obligations, Kudler will have to keep stakeholders educated on management decisions, operations, and financial conditions that will incur expenses. Acevedo (2011), "The financial obligations of going public can leave less money for other business initiatives, leaving the company vulnerable until the IPO is completed" (Financial Weakness, para. 2).

Acquiring another organization can be time consuming. Kudler will have to find a company willing to accept or have the same strategic plan. By expanding the company will add a bigger workload. Kudler will have to bring in more management to help run operation. Acquiring another organization also can be costly. The company will have to think about the cost to expand. For example how much extra equipment and building space will the organization need. A friendly acquisition is better for the organization, but a weakness is finding a company who is willing to be acquired. Another weakness

Merging with another establishment can have greater optimism. Harvesting can affect the value of the company and unfriendly. During this decentralization, risks such as lack of team management, and poor planning can occur. They can face challenges such as employee losses or extensive training courses to bring the new employees up to speed. Another weakness with merging with another company is determining the value of the acquiring company. That can be very difficult in completing a merger because the company is taking the risk of losing their current market base.

Reference

Acevedo, L. (2011). The Weakness for a Company Going Public Through IPO. eHow. Retrieved from http://www.ehow.com/list_6329769_weaknesses-going-public-through-ipo.html