What are the pros and cons of company's IPO Should company be floated Essay

What are the pros and cons of company's IPO Should company be floated at all - Essay Example Although the aim of growth is to bring benefits to the company, there exist both pros and cons that can arise from this process of going public (Helwege 2004, p.541). Pros and cons of Initial Public Offer (IPO) There are several advantages that accrue to a company by going public. As mentioned above, the principal advantage is the financial benefit through raising capital. An IPO adds a value on the company's stock. In addition, those insiders retaining stock are able to sell their shares or even use them as collateral (Datta 2000, p.715). Going public also creates a currency type in the form of its stock, which can be used in making acquisitions. In addition, there is a possibility that the company can access the capital markets for its future financing needs. Overall, a company's debt-to-equity ratio improves considerably after an initial public offering, which indicates that the business is likely to earn more favorable loan terms from its lenders (Datta 2000, p. 716). Another adv antage is the increase of public awareness of the company. IPOs normally produce more publicity by increasing the awareness of their products to a new group of potential customers. Subsequently this is expected to increase the company’s market share. The founders can also use the IPO as an exit strategy. Many venture capitalists have tried this in an attempt to open up successful companies (Hao 2007, p.112). For others, the prestige associated with the public companies or a post of a director or officer of any public company has a certain allure. Furthermore, going public puts the company ahead for promotion. The publicly traded companies are mostly better known than non-publicly traded ones. The company can gain publicity and a stable image by trading publicly. This makes the public companies offer a wide variety of stock, which has a considerable potential of significant appreciation in value. Those companies will trade publicly and portray a positive image hence attracting highly qualified personnel at all levels of management. It is possible to view such companies as growth-oriented hence their duty is to answer to a board of directors and shareholders who in turn demand increased profitability as frequent as possible, and also act quickly to solve managerial problems and also replace those senior executives who are performing poorly (Benninga 2005, p.117). Although the benefits of an IPO are many, there are certain challenges. One outstanding challenge is the disclosure of information to investors. There is a high cost of complying with the regulatory requirements. Other costs that will also arise include the generation of financial reporting documents and audit fees (Hao 2007, p.112). This will subject the public companies to added pressure of the market. This may force them to focus mainly on short-term results rather than their long-term growth. Since the investor is keen on profits, management will be under scrutiny. This may trigger the manage ment to engage in questionable practices in order to increase earnings. Another setback of going public is that these public companies operate under precise scrutiny. There is disclosure of confidential information touching on the company including those transactions with management; the prospectus divulges prior violation of security law and executive compensation. This may be confidential information belonging to the company that it may be reluctant to reveal. Furthermore, formalisation of the decision-making process follows and with less flexibility when the shareholders are also there. This may bring complexities to these companies. Previously, decision making was quite flexible due to the presence of few people. The company is also subject to

Cultural Differences Essay Example | Topics and Well Written Essays - 500 words

Cultural Differences - Essay Example In order to understand how diversity comes about of the age, let us take an example of a right-handed individual who is forced to work with his left hand in order to come to terms with the reckoning as to how diversity makes its mark and how workplace understanding is derived. This right-handed person will have a better idea of how the varied workers in terms of culture have to come to terms with the changing work dynamics and how difficult it is to see things through on a day to day basis. It would ask for him to remain head on and very strong with gaining the much-needed insight and understanding that is required here. It will also tell this right-handed worker how he would give space to the culturally diverse workforce when it commits mistakes and when they are unable to understand a particular entity within the business dynamics in the time and age of today. The manner in which this right-handed individual will learn in this context is somewhat of an empathy-building exercise bec ause he will gain the vital comprehension as to how the left-handed workers would be doing their jobs and what they need to do in order to move ahead with their respective lives. An example of understanding gender difference is made clear when women are not given the same rights within the business settings as their male counterparts. This means that their salaries are lower as compared to the males within the workplace and they receive lower cadres within the organizational hierarchies. Also, these women are not chosen for the top echelon of the business enterprise which is a direct distinction between the males and females – a fact that is underpinned by the debate of gender differences.

PROFESSIONAL DEVELOPMENT PLAN Coursework Example | Topics and Well Written Essays - 1250 words

PROFESSIONAL DEVELOPMENT PLAN - Coursework Example In various departments, I have supported nurses to upgrade and improve services. Record your statements of philosophy of Nursing and of personal philosophy. Explain how these are reflected the values, vision, and personal interests that you recorded in your â€Å"My Vision and Interests† tool. I am committed to accept and respect the unique way in which patients’ view themselves and their world. I have taken nursing as a lifelong learning process guided by ethical values congruent with nursing practice (Wright, Flis & Gupta (2008). I am accountable for practice and participate fully in interdisciplinary activities as part of professional-practice. I am mindful and stop regularly to ascertain my mental state to stay connected to my thoughts and actions as a nurse. I consider my relatively small effort to be of essence and thus I look for opportunities to collaborate with teams to make a large impact.  I get practical experience when facilitating patient care and always try new things to improve the community I work for and with (Risjord, 2011). Clearly utilize information from the Assessment Tools as the basis for formulating your goals. Develop a list of prioritized goals based on your assessments. Goals must be stated in measurable terms, i.e., how can you tell you have accomplished that goal? Identify dates for accomplishing each goal. Apply knowledge and skills from learnt theory, research and practice within the first 3 to 6 months of working. By the fifth year, I need to be competent by collecting the most important data from patients and advocating for patients’ rights, services and treatment regimes. I plan to take further courses that will provide me with specialized skills in neonatal nursing care to offer training to fellow nurses and communities by the next 10 years (Floodet al., 2010). I intend to make use of collaborative

Retail marketing strategy Essay Example | Topics and Well Written Essays - 2000 words

Retail marketing strategy - Essay Example The entrepreneurs behind these ventures risk their capital, invest their time and make a living by offering consumers something they need or want. Most retailing involves buying merchandise or a service from a manufacturer, wholesaler, agent, importer or other retailer and selling it to consumers for their personal use. The price charged for the goods or services covers the retailer's expenses and includes a profit. Each year, this vital sector of the UK economy accounts for about 08 percent of our gross national product--more than $1 billion.. Most are store retailers, though there are other types of enterprises--such as e-commerce, mail order, automatic-merchandising (vending) machines, direct retailing (door-to-door and home party sales), and service providers. There are a considerable number of commentaries on the changing food retailing sector in UK. The sector is seen as being at the fore front of change and the leading food retailers are amongst the largest companies. Growing concentration in the economy has been associated with the increasing power of multiple retailers and a decline in the strength of the co-operatives and independents. The rise of the multiple retailers particularly through economies of scale and replication has produced a situation where only a handful of companies dominate food retailing. Currently the leading food retailers are Sainsbury and Tesco with Safeway in third place.

Texas Government Essay Example | Topics and Well Written Essays - 750 words

Texas Government - Essay Example It required clinics that performed abortion to meet surgical standards as those in hospital-style surgical centers and mandated that a doctor have admitting privileges at a hospital within 30 miles of the facility where he or she performed abortions (National Women Corporate Center). Democrats and abortion rights advocates, in a bid to stop the legislation, said that this law could result to most of the 42 clinics in the state which performed abortions to close as they would incur a lot of expenses in a bid to be licensed as to perform abortion: expensive renovations or relocations to meet equipment and architectural standards (National Women Corporate Center). Given that the legislature was controlled by the Republicans then, passing of the law a simple task as seen on the concept map. By passing the anti-abortion bill, it went against the woman’s fourteenth amendment right to choose to terminate pregnancy before vitality. This was clearly a violation of women’s constitutional right. This law also denied a woman the ability to make an extremely personal medical decision. In addition, mandatory ultrasound laws presented disrespect for women’s decision making abilities and clinical judgment of a doctor. In 2013, Texas passed laws requiring abortion providers to have admission privileges at hospitals. This law clearly gave hospitals more powers than doctors. Passing the laws that many clinics did not meet the stated surgical standards, requiring them to be upgraded to the expected standards, resulted to many clinics being closed. This deprived the women fundamental constitutional rights. In Texas the district court judge blocked this provision from going into effect, this decision was reversed by the appellate court and U.S. Supreme Court did not reinstate the district court’s injunction (Besset, 6). Although the law is in effect, this case is still under

Strategic Management Essay Example | Topics and Well Written Essays - 1250 words - 4

Strategic Management - Essay Example 277). The Walt Disney Company's mission has evolved through the years as the company has gained more success. Walter Disney founded the company in 1923; it was after he visited amusement parks with his daughters where he would be bored while they played. The original mission was to provide entertainment of the kind that children and adults both could enjoy, making the whole experience family oriented. However, as the years have progressed, the Disney mission has evolved as well. The official mission statement of Disney is the following: â€Å"The mission of The Walt Disney Company is to be the largest and most trusted producer and provider of entertainment and information. Using our portfolio of brands to differentiate our content, services and consumer products, we will become the most responsive and adaptable to serve the needs of the consumers’ in our target markets. We will maintain our integrity and adhere to the core values upon which our company was founded as we creat e the most innovative and profitable entertainment experiences, most reliable and relevant informational services, and related products in the world† (Walt Disney Mission Statement: Creativity + Innovation = Profits, 2013). One of the key reasons due to which it is as successful as it is due to its strong vision, which is to be one of, if not, the mot major producer and provider of entertainment and information in the world. In fact, the company is now seen to be the most innovative and creative in providing entertainment to children and adults alike, with rides, characters, detailed storytelling, hotels, spas and a sports complex. Important Stakeholders: Stakeholders and risk bearers exist in every business, be it a small home-based one or an expansive multinational. Therefore, naturally, the multibillion-dollar worth, Disney Theme Parks has their share of stakeholders. These include the employees, consumers, communities that live near the resorts, suppliers, factories, retai lers, contract workers, nongovernmental organizations and charities, media, governmental organizations and, of course, the shareholders (The Business Communication Casebook: A Notre Dame Collection, pg. 251). Since it is a company of a large scale, it has numerous stakeholders to consider and engage with when making plans or addressing issues (The Business Communication Casebook: A Notre Dame Collection, pg. 251). It is, in fact, a mark of strength of a company of this large a size to engage with its stakeholders in order to better address their needs and the needs of the communities they work in, to result in more cohesion and better returns. Opportunities and Threats: Although Disney has become a huge corporation in terms of the services it provides, there are still several opportunities and aspects that it can perhaps tap into. Disney, due to its major clientele, can be a good source of promoting world peace and other noble causes. Because it is a theme park stemming from childho od stories and cartoons, it could be a rich source of providing education to the needy since it can reach out to many people. Another philanthropic opportunity it could pursue would be to give employment to citizens that cannot find work elsewhere, as a way of giving them a second chance to make a difference to society. Since Disney is

Quantitative Methods and Analysis Essay Example | Topics and Well Written Essays - 750 words

Quantitative Methods and Analysis - Essay Example 190). where, Z is the value of the normal distribution table at given confidence level ? is the standard deviation and E is the desired precision For AIU, Confidence level is 95%. Z (Confidence level=95%) = 1.96 ? = $700 E = $55 Thus, it implies that the institute needs to sample 623 individuals to meet the original requirements of the sample. The sample size that is determined has a significant impact on the budget of the research. An increase in the sample size will mean that the institute will have to spend more amount for carrying out the research. If the budget of AIU is not enough to cover the entire sample of 623, the institute can reduce the sample size or lower down its conditions in confidence level or desired precision. If we see the normal distribution table, we see that the z value deceases with decease in confidence level (Levin & Rubin, 2007). In order to reduce the sample size, one option that AIU is having is to reduce its confidence level. Confidence level is a repr esentation of the surety of the data received. Confidence level can be defined as the likelihood of the true population parameter lying within the range specified by the confidence interval (Stattrek, 2011). Decreasing the confidence level will lead to decrease of the z value, which will reduce the sample size. ... crease the distance from the mean that is permissible for the mean dollars spent by each card holder to $70 at the same confidence level, the sample size becomes: We can see that a slight increase (from 55 to 70) in the marginal error that is acceptable to the researchers lead to a decrease in the required size drastically (from 623 to 385). References Cohen, L., Manion, L., & Morrison, K. (2007). Research Methods in Education, 6th ill. ed. NY: Routledge. Levin, R.I., & Rubin, D.S. (2007). Statistics for Management, 7th ed. New Delhi: Dorling Kinderseley (India) Pvt. Ltd. Stattrek. (2011). Confidence Level. [Online]. Available at: http://stattrek.com/Help/Glossary.aspx?Target=Confidence%20level [Last accessed on 20th June 2011]. Wrenn, B., Stevens, R.E., & Loundon, D.L. (2006). Marketing research: text and cases, 2nd ill. ed. New York: The Haworth Press. Part 2 Surveys are very useful tool to collect information about a population. In a research using surveys a questionnaire is admin istered on a carefully identified sample of respondents (McQuarrie, 2006). Survey questionnaires are typically aimed at identifying particular respondent’s characteristics, attitudes or perception. Surveys find extensive application in areas such as market research, psychological studies, sociology and human resources. One example of a survey can be a survey in the area of market research, where respondents are asked to respond to their opinion about a particular product or service. Such surveys can be administered through questionnaires written on paper. Another type of survey can be the one used by the HR department of organizations to assess the employee satisfaction levels. These surveys can be administered as web-based surveys. Telephonic surveys can be administered to analyze the