Business Finance Homework Help

Initila Post – Locate and post a link to an article in The Wall Street Journal about a company that fell victim to one or more of these traps.

• Identify the trap(s) and discuss why you believe the company’s management missed the warning signs.
• What were the impacts that resulted from falling for the trap(s)?
• Drawing on the guidance offered by Sherman in Chapter 6, what could they have done differently to avoid the trap(s)?

PART A – PLEASE RESPOND TO CLASSMATE DISCUSSION WHETHER YOU AGREE OR NOT & A DETAILED WHY:

• Locate and post a link to an article from The Wall Street Journal or other reputable source, published within the last year, about an organization whose business strategy was upended by a crisis, but was able to reinvent itself and capitalize on new opportunities in the face of adversity.

The article I selected for this week’s discussion, “DoorDash sells shares at $102 in IPO, pricing above range” https://www.cnbc.com/2020/12/08/doordash-sells-shares-at-102-in-ipo-pricing-above-range.html During the pandemic DoorDash became one of the biggest beneficiaries due to restaurants forced to close their dining rooms and move to delivery. While many software and Internet companies have benefited from Covid-19, very few have experienced the kind of growth seen by DoorDash. Revenue in the third quarter surged 268% from a year earlier to $879 million, following growth in the second quarter of 214%. Through the first nine months of 2020, DoorDash’s order volume climbed to $16.5 billion from $5.5 billion a year earlier. DoorDash was named one of the biggest Initial Public Offering (IPO’s) ever being a US tech company that take advantage of a post-election stock and led the market this year. DoorDash skyrockets in market debut, closes up 85% their investors leaving the CFO to see opportunities of the high demand and piled into the stock despite the competitive market.

• Drawing on insights presented in Chapter 5 of Sherman, explain what techniques they leveraged to find a way forward – DoorDash Executives and investors utilized effective strategy formulations as discussed in Sherman’s chapter 5, to leverage their way forward. The strategy techniques use to draw this conclusion include create value, capture value and sustain value giving the company a competitive advantage in the marketplace. As their order volume increased, so did the opportunities lead to the high demand and stock choices despite the competitive market. DoorDash IPO increased due to high demand of food services and increase of technologies in businesses. Their Initial IPO was $102 and closed at $190 each. Executives were able to solicit bids from investors and look at the entire order book before determining a price, giving them a better ability to sell shares based on actual demand, without providing the typical discount. DoorDash raised their initial range and then priced well above the top end.

PART B – PLEASE RESPOND TO CLASSMATE DISCUSSION WHETHER YOU AGREE OR NOT & A DETAILED WHY:

The article I’ve chosen looks into how Amazon maintained steady profits run throughout the pandemic and how the company avoided the loss of income by capitalizing on the quarantine and expanding its services to accommodate the consumer’s needs. Although they didn’t suffer loss in wages, they quickly capitalized on customer demand and tailored their new approach.

After reviewing this week’s lesson, I think the strategy that most closely aligns with Amazon is the effective strategy used to create value, capture value, and sustain value, giving the company a competitive advantage in the marketplace. (1) With so many people now confined to their homes and not grocery shopping routinely, Amazon created and captured value by increasing the marketing of the home grocery delivery service. This allowed the customer to complete their shopping and have the groceries hand-delivered to their homes.

Over the last year, Amazon has seen an increase of more than 40% in subscribers. (2) This is the only area where the company has seen growth. Overall sales have increased over 80% and have remained steady do the positive marketing and quality of service received on deliveries. They have been able to sustain the value of the services by evolving with the needs of their customers and expanding their manufacturing facilities, and increasing their vehicle fleets to meet the new demands.