Assignment:
A Virtual Organization, Riordan Manufacturing. Assume Riordan Manufacturing is privately held, wants to expand operations, and is faced with three options for expansion:
- Going public through an IPO
- Acquiring another organization in the same industry
- Merging with another organization
In 300 words paragraph in which you compare and contrast the options and make a recommendation about which strategy the organization must choose. Address the following:
What are the threats of each approach?
Format the paragraph consistent with APA guidelines, including in text citations, and reference(s).
The course work text is Titman, S., Keown, A.J., & Martin, J.D. (2011). Financial management: Principles and applications (11th ed.). Upper Saddle River, NJ: Pearson/Prentice Hall.
“Riordan Manufacturing, Inc. is an industry leader in the field of plastic injection molding” (Apollo Group, 2004, para. 1). The organization has three facilities in the United States (U.S.) and one facility in China. The organization is currently privately held and is considering expanding its operations with the following three options: Going public through an Initial Public Offering (IPO), acquiring an organization in the same industry, or merging with another organization. A recommendation will be made about which approach should be taken based upon the strengths, weaknesses, opportunities, and threats of each approach. If Riordan Manufacturing were to pursue another international location, the effects of globalization on financial decisions will be discussed as well as factors that contribute to exchange rate risks and mitigation of the exchange rate risk.