Baderman Island Resort
Essay by berry829 • November 12, 2012 • Research Paper • 1,225 Words (5 Pages) • 2,990 Views
Baderman Island Resort is a place that you can get away to relax and just enjoy yourself. The Island has great accommodations, amenities, restaurants, and space for business meetings where companies can work, relax, and have fun at the same time. The resort is looking at various options to expand the island and one option is going public. When a company goes public it is issuing a new group of stocks for the very first time to the public. The strength of any company going public is to raise capital in order to fund other projects to begin expanding the company. The weakness of going public is that you are now regulated by other agencies such as the Securities and Exchange Commission (SEC). The disadvantage of a small company going public will assume more cost because of additional fees and reporting after going public. Some of the opportunities of going public are the growth of the organization and other adventures that a company can bring in and in the case of the Balderman Island it could broaden the amenities of the resort. The threat of going public is that the Island will be overwhelmed with cost and fees associated with going public that they could create a loss for the company.
The Baderman Island Resort is located in a historic area and builds on an estate and appears to accommodate the needs of both families and businesses. The organization could benefit and meet its goals to expand if they merge with other organizations on the island. The strengths of merging with other companies and organizations could increase visibility and bring in more profits to the resort. The approach to merge with other popular ongoing businesses promotes unity, marketing and stands the possibility to increase revenue through both direct interactions and reservations from visiting customers as well as shared profits with external organizations to include their businesses in current vacation packages and possible business conference ideas and reservations through Baderman Island Resort.
Potential weaknesses from the merge could mean that the resort also accepts responsibility and risk of external partners customer service and business practices not being stellar, causing both reputable damage to the Baderman Island Resort experience and potential profit loss resulting from bad experiences from external organization interactions. The opportunities from each approach can benefit the organization in both a positive or negative way. The analysis of the risk is what will determine which approach is most beneficial towards the growth of Baderman Island Resort. Potential threats of merging are that the merge would have a direct and possibly significant impact on the resorts ability to sustain its reputation and continue to generate enough revenue to sustain. Companies always take a risk when merging with other organizations, there is much to consider in regard to their financial situation and debt.
Effects of Globalization on Financial Decisions
The location of Baderman Island is one of the company's main priorities of making accurate decisions toward globalization. Baderman Island first had to research to the land and gather resources in order to earn capital that enables the company to compete internationally. The resort entered markets that would gain the attention of new investors to allow growth and the expansion of the company. Although the company is brand new, it has already become a premiere vacation destination for many families visiting the 750 acres of the island. Baderman Island is growing so rapidly, leaving only 800 acres of wilderness left to expand their innovation with an additional 375 acres of the botanical gardens as the main destination on the island. This island offers its guest 175 acres as permanent wilderness and Private Villas throughout the island designed for secret getaway, it has the largest conventions center, and offers guest 50 acre of recreational areas that is being doubled to make Baderman Island a pleasant stay. Therefore, Baderman Island has increased their revenue by going public in international waters, they decreased their expenses for the merging, which allowed them to gain market share, and become competitive.
Factors of Exchange Rate Risks
The Chamber of Commerce and the Baderman Family are the Management Group that oversee that Baderman Island is safe in the industry on the grounds of appropriate licensures, foreign exchange, and resort operations. Baderman Island has been managing foreign exchange to enhance their associated gains and remains important to avoid risks rate factors for the company. This company's management group investigates and manages exposure risk attached with their foreign exchange management policies.
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