Case Study Open View
Case Study: Open Views, Warm Breezes, And Client Delight IB B&M HL 24 Danah Agustin
Cindy Chao
Johnny Zhou
Daniel Zhou
1. Discuss why Joseph Obeng believe the best growth strategy for Open views is organic growth, rather than going public or merging with other companies? [4 marks] Joseph Obeng believes that the best strategy for
Open Views to grow is through organic growth. He also sees that strategic alliances and joint ventures can also benefit the business. This is because Joseph Obeng wants to maintain his control over the business. He wants to be able to make decisions himself. He doesn’t want to lose any control due to mergers with other businesses in the travel industry. When a business gets too big, problems revolving loss of control or overtrading may result. He is extremely satisfied with the uniqueness in his company. Therefore its harder to manage once the company grows and stretches in different ways. Organic growth is also cheaper because it all comes from retained profits. The amount of capital involved in a joint venture is relatively low which reduces risks for the company. 2.
Analyse whether small and mediumsized firms, such as Open views, have commercial and competitive advantages over multinationals like McGregor’s and
Blue Sea. Small and mediumsized firms, such as
Open Views has less commercial and competitive advantages over multinational firms. This is because of the lack of recognition from the public. Therefore, not many people know about
Open Views
.
Open
Views isn't able to compete in the travel industry and be a factor. They lack specialized staff to niche in their own speciality. Therefore the products produced are less diverse.
They cannot invest on different products because they lack the money and employees.
Unlike multinational companies, small firms have problems with increasing finance and
Cindy Chao
Johnny Zhou
Daniel Zhou
1. Discuss why Joseph Obeng believe the best growth strategy for Open views is organic growth, rather than going public or merging with other companies? [4 marks] Joseph Obeng believes that the best strategy for
Open Views to grow is through organic growth. He also sees that strategic alliances and joint ventures can also benefit the business. This is because Joseph Obeng wants to maintain his control over the business. He wants to be able to make decisions himself. He doesn’t want to lose any control due to mergers with other businesses in the travel industry. When a business gets too big, problems revolving loss of control or overtrading may result. He is extremely satisfied with the uniqueness in his company. Therefore its harder to manage once the company grows and stretches in different ways. Organic growth is also cheaper because it all comes from retained profits. The amount of capital involved in a joint venture is relatively low which reduces risks for the company. 2.
Analyse whether small and mediumsized firms, such as Open views, have commercial and competitive advantages over multinationals like McGregor’s and
Blue Sea. Small and mediumsized firms, such as
Open Views has less commercial and competitive advantages over multinational firms. This is because of the lack of recognition from the public. Therefore, not many people know about
Open Views
.
Open
Views isn't able to compete in the travel industry and be a factor. They lack specialized staff to niche in their own speciality. Therefore the products produced are less diverse.
They cannot invest on different products because they lack the money and employees.
Unlike multinational companies, small firms have problems with increasing finance and