Kudler’s Fine Foods
Kudler’s Fine Foods is basically an online store providing its customers the convenience of doing one-stop shopping without taking the pain of travelling around the city looking for the required items. Since every successful business requires expansion at some phase of time, Kudler’s Fine Foods has also reached a point where the management feels necessary to expand the operations. Though Kudler’s Fine Foods has already three big stores under its belt, the requirement for further expansion in business calls for three options for the management of Kudler’s which are as follows:
• Going public through an Initial Public Offering (IPO) • Acquiring another organization in the same industry • Merging with another organization In the following paragraphs, we will discuss each of these options and will recommend the best possible solution that would suit Kudler’s scope of business expansion. Initial Public Offering (IPO) Initial Public Offering (IPO) is a process in which business cycle of a company is reviewed. This also includes reviews by the Securities and Exchange Commission (SEC).
Now option for Kudler’s of going public through IPO would basically lead to exposing company’s weaknesses to the public. This is due to the attention and time required in the process. Furthermore,
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However, a negative aspect associated with this sort of expansion plan is that apart from the other company’s assets, the low ratings of that company also becomes part of the acquiring organization and now it becomes their headache to overcome all those ills. Merging with another Organization Another expansionist plan could be to get Kudler’s merged in another organization. This will benefit Kudler in this way that the company in which it will merge would definitely be some big giant, thus having the opportunity to use the already established resources of that organization.
However, this will cost Kudler’s own identity and name at the cost of its expansion, since people would sooner or later forget the uniqueness of Kudler’s and would refer to it with the new merger organization. Conclusion Having gone through all the expansion plans, it seems that acquiring another organization within Kudler’s would be a better option since it would on one end maintain its identity and on the other hand help the management of the company to further their expansionist plans. References Kulder’s (2010). Kulders Website. Accessed on August 13, 2010 from www. jlk-custom. com