Kudler Fine Foods Paper and Presentaion Essay Example | Topics and Well Written Essays - 2000 words

Kudler Fine Foods Paper and Presentaion - Essay Example And choosing the proper one for the business is depending on the strength, weakness, opportunity and threat, of the choice that possesses in the available and the unavailable resources. The paper has worked on to address the issues regarding the choice of expansion being a private company and a projection of SWOT of the proposed expansion plans. The overall concept of any expansion plan is to raise fund that is needed to expand the company internally or externally. This is so, because the fund is the life line of any venture at the runway. The very first option that the company has projected is the floating of Initial Public Offer to raise fund from the public. This option of Initial Public Offering (IPO), also known as "public offering", is the concept of issuing common stock or shares to the public for the first time. This concept is pretty handy for smaller, younger companies seeking capital to expand. In an IPO, the Kudler may obtain the assistance of an underwriting firm, which helps it determine what type of security to issue; that is common or preferred, best offering price and time to bring it to market. Weakness: The cost of complying with regulatory requirements can be very high. Some of the additional costs include the generation of financial reporting documents, audit fees, investor relation departments and accounting oversight committees are unwanted by the public (INVESTOPEDIA, 2008). Threat: The actions of Kudler’s management will become increasingly scrutinised as investors constantly look for rising bottom line. This may lead Kudler to perform questionable practices in order to boost earnings. After this brief insight of the IPO based expansion; the second expansion plan is the Acquisition. It is also known as a takeover or is the buying of one company by another (Spaeder, 2004). Here, the companies cooperate in negotiations of purchasing of a smaller firm by a larger one. There is another form of acquisition, known as