Concept explainers
Case summary:
Company G is involved in the business of providing in-flight internet service. It has made a major strategical change in its approach as soon as it acquired a 10-year license from the Federal Communication Commission for in-flight internet services.
The company plans for international expansion as a part of its long-term plan which is most critical for generating profit. It signed an agreement with company D to install its equipment in 170 international planes.
The company entered an IPO in June 2013, raising $187 million with $17 per share. Within months the price of the stock fell to bottom hitting $10. The enormous technological cost resulted in the loss and in December 2016, the balance sheet has more liabilities than assets.
The company has made a big investment decision by improving its speed of service and started to penetrate deeper into the international market where the stocks of the company will increase.
To determine: The role of underwriters such as Company MS, Company JM in an IPO.
Want to see the full answer?
Check out a sample textbook solutionChapter 17 Solutions
Business Essentials (12th Edition) (What's New in Intro to Business)
- E-commerce Is Growing – Are You Growing with It? By the end of 2019, e-commerce was a fast-growing business channel continuously evolving and adapting to ensure revenue growth and profitability of businesses of all sizes. For some organizations, an e-commerce strategy was a no-brainer. Implementing the right technology and effective supply chain solutions to ensure customer satisfaction and boost sales. For other organizations, adoption was slower and sometimes non-existent. But even in those cases, business leaders were aware e-commerce was inevitably on the horizon, however far they perceived it to be. When the COVID-19 pandemic hit the world at the beginning of 2020, many businesses started to react and rethink their operations; first, ensuring the health and safety of employees and customers alike, and second acting quickly to guarantee their economic survival. And so began the accelerated growth of e-commerce, far beyond what any forecast would’ve predicted. According to a…arrow_forwardE-commerce Is Growing – Are You Growing with It?By the end of 2019, e-commerce was a fast-growing business channel continuously evolving and adapting to ensure revenue growth and profitability of businesses of all sizes. For some organizations, an e-commerce strategy was a no-brainer. Implementing the right technology and effective supply chain solutions to ensure customer satisfaction and boost sales. For other organizations, adoption was slower and sometimes non-existent. But even in those cases, business leaders were aware e-commerce was inevitably on the horizon, however far they perceived it to be.When the COVID-19 pandemic hit the world at the beginning of 2020, many businesses started to react and rethink their operations; first, ensuring the health and safety of employees and customers alike, and second acting quickly to guarantee their economic survival. And so began the accelerated growth of e-commerce, far beyond what any forecast would’ve predicted.According to a new IBM…arrow_forwardE-commerce Is Growing – Are You Growing with It? By the end of 2019, e-commerce was a fast-growing business channel continuously evolving and adapting to ensure revenue growth and profitability of businesses of all sizes. For some organizations, an e-commerce strategy was a no-brainer. Implementing the right technology and effective supply chain solutions to ensure customer satisfaction and boost sales. For other organizations, adoption was slower and sometimes non-existent. But even in those cases, business leaders were aware e-commerce was inevitably on the horizon, however far they perceived it to be. When the COVID-19 pandemic hit the world at the beginning of 2020, many businesses started to react and rethink their operations; first, ensuring the health and safety of employees and customers alike, and second acting quickly to guarantee their economic survival. And so began the accelerated growth of e-commerce, far beyond what any forecast would’ve predicted. According to a new…arrow_forward
- E-commerce Is Growing – Are You Growing with It?By the end of 2019, e-commerce was a fast-growing business channel continuously evolving and adapting to ensure revenue growth and profitability of businesses of all sizes. For some organizations, an e-commerce strategy was a no-brainer. Implementing the right technology and effective supply chain solutions to ensure customer satisfaction and boost sales. For other organizations, adoption was slower and sometimes non-existent. But even in those cases, business leaders were aware e-commerce was inevitably on the horizon, however far they perceived it to be.When the COVID-19 pandemic hit the world at the beginning of 2020, many businesses started to react and rethink their operations; first, ensuring the health and safety of employees and customers alike, and second acting quickly to guarantee their economic survival. And so began the accelerated growth of e-commerce, far beyond what any forecast would’ve predicted.According to a new IBM…arrow_forwardE-commerce Is Growing – Are You Growing with It?By the end of 2019, e-commerce was a fast-growing business channel continuously evolving and adapting to ensure revenue growth and profitability of businesses of all sizes. For some organizations, an e-commerce strategy was a no-brainer. Implementing the right technology and effective supply chain solutions to ensure customer satisfaction and boost sales. For other organizations, adoption was slower and sometimes non-existent. But even in those cases, business leaders were aware e-commerce was inevitably on the horizon, however far they perceived it to be.When the COVID-19 pandemic hit the world at the beginning of 2020, many businesses started to react and rethink their operations; first, ensuring the health and safety of employees and customers alike, and second acting quickly to guarantee their economic survival. And so began the accelerated growth of e-commerce, far beyond what any forecast would’ve predicted.According to a new IBM…arrow_forwardAdd more to this paragraph Amazon Business's economic impact on businesses is notable. Through Amazon Business, small and medium-sized businesses have access to a vast customer base, which can help them expand their market reach. Economically, Amazon has played a significant role in shaping the e-commerce industry and has contributed to economic growth.Additionally, Amazon offers competitive prices and excellent customer service, which can help businesses save costs and improve their efficiency. However, Amazon's dominance in the e-commerce sector has led to the displacement of traditional retailers, affecting their economic viability. This has led to concerns about the concentration of market power and the potential negative impact on small businesses, which could negatively affect the economic pillar of sustainability. Additionally there are also concerns about Amazon's market monopolisation and the impact this may have on smaller businesses. Therefore, responsible management…arrow_forward
- Home academy is an e-learning concept started by two young graduates to create a platform for preschool, kindergarten, primary and junior high school students across Ghana to learn. The portal will have lots of learning materials available for users. They have hired you as a consultant to help them formulate a strategy to be able to make some income from this venture. Explain 4 models of e-commerce that will help them maximize revenue.arrow_forwardYour organization has a web site used for advertising your products or services around the world. The site is used only for disseminating information about your organization and its mission. What requirements (if any) should be in place regarding confidentiality, integrity, and availability?arrow_forwardYou have recently been hired to be the COO (Chief Operating Office) of a start-up company and your primary goal is to help grow the business. The company reported sales of $2 million last fiscal year. The company currently does not offer trade credits because the majority of its customers use credit cards. In a bid to expand the business, you are asked to determine whether extending trade credits is a good idea. (a) List and explain two factors that will be important for you to make this decision? Meaning, as the COO, what factors do you need to take into consideration if you are planning to start offering trade credit. (b) Given what you know, are you for or against the company offering trade credits.arrow_forward
- Describe any services listed that enable you to make a call without paying for it yourself. What help does the directory offer in guiding telephone users on how to make international calls? Briefly describe some of the information contained within the directory, apart from telephone listings, and explain how useful the information you have researched is to businesses in particular. Registered telephone customers are listed in alphabetical order. Prove this is a true statement. To what extent would you agree that the order of listing in the telephone directory could be useful to someone trying to decide the order in which to place items in a filing system?arrow_forwardThe majority of M&A deals never appear in the financial press because they involve small, privately held businesses or family-owned businesses. What are some of the reasons a family owned or privately held firm may want to go public, i.e. through a reverse merger? Can you think of any reasons that discourage such firms from going public?arrow_forwardFor an industry of your choice, describe how a CBIS could be used to reduce costs or increase profits, as well as the security measures of this system. I expect you to demonstrate the understanding of CBID system and explain how the systems help business "save cost" and "improve profit" in real life practice. Please share the security measures of this systems to prevent cyberattack. Below is an example of CBID used in large retail industry. You do not need to mention all four systems as below but I want to see at least two systems in your essay.arrow_forward
- Understanding BusinessManagementISBN:9781259929434Author:William NickelsPublisher:McGraw-Hill EducationManagement (14th Edition)ManagementISBN:9780134527604Author:Stephen P. Robbins, Mary A. CoulterPublisher:PEARSONSpreadsheet Modeling & Decision Analysis: A Pract...ManagementISBN:9781305947412Author:Cliff RagsdalePublisher:Cengage Learning
- Management Information Systems: Managing The Digi...ManagementISBN:9780135191798Author:Kenneth C. Laudon, Jane P. LaudonPublisher:PEARSONBusiness Essentials (12th Edition) (What's New in...ManagementISBN:9780134728391Author:Ronald J. Ebert, Ricky W. GriffinPublisher:PEARSONFundamentals of Management (10th Edition)ManagementISBN:9780134237473Author:Stephen P. Robbins, Mary A. Coulter, David A. De CenzoPublisher:PEARSON