Integrative Problems and Virtual Organization Strategy Paper Research

Integrative Problems and Virtual Organization Strategy - Research Paper Example IPO. An initial public offering provides an opportunity for organizations to raise more capital which can be used to accomplish a myriad of business related activities such as doing market research and development, acquisitions, expansions, marketing or use it as working capital. In addition, organizations are able to gain access to a larger pool of customers and market. As a result, the public trading of the organizational shares automatically sets the value for the company’s share through the stock market (Bragg, 2009). This is advantageous to organizations as they can easily form mergers and acquisitions than when they are privately owned. Through an IPO organizations are able to attract talented, competent and dedicated employees by offering them stock incentive packages. Conversely, the IPO enables organizations to gunner investors’ confidence thereby their shares can readily trade in the stock market (Bragg, 2009). Therefore, a private company will manage to incre ase its wealth, scope of customers and investors by going public through an IPO. However, the process of offering an IPO is time consuming and quite expensive.