Premium Essay

Trx Case Study

In: Business and Management

Submitted By cardinal2218
Words 3438
Pages 14
1) In general, what attributes make a company a good candidate for an IPO?

Explains what type of company makes a good candidate for an IPO in depth. Explains the Advantages and Disadvantages of an IPO.

An initial public offering, often shortened to an IPO, is when a company turns from a private company into a public company. This is done by the first sale of stock to the public by the former private company. This process is usually completed by a smaller company that is trying to increase its capital, and get its name out there. Even though young companies are usually the ones going through the IPO process, larger private companies can also complete the steps in order to be traded publicly. To complete this process, the issuer of the company seeks help from an underwriting company. Together, they determine what the starting price should be, when to enter the market, and whether to issue common or preferred stock. In order for a company to feel good about going public, there are some attributes that they should have. One of these attributes is differentiation. In order for any company to successfully go through the IPO process, it needs to bring something to the table that is not already out there. The company should possess some kind of unique aspect that no other company in the industry demonstrates. In other words, the company should have its own niche. This niche will help a company obtain customers that want something different that is not being offered by the industry. Once a company is able to differentiate itself from its competitors in the industry, it will make it easier for the company to obtain a sustained competitive advantage going forward after the IPO date. Another attribute a company should have before its IPO is a good balance sheet. Even though an initial public offering will boost a company’s capital, they should…...

Similar Documents

Premium Essay

Trx Case

...1. How does the strategic repositioning of the company and the use of the IPO as an exit for minority shareholders affect the attractiveness of the IPO? The strategic repositioning of the company was to gradually shift away and exist from customer care which TRX generated more than 50% in 2000, and Davis’s long term strategy was to focus on the higher margin sectors, such as data transaction and integrations. By shifting away from customer care, of course would reduce operational cost and increase bottom line for the company but I think it would affect the attractiveness of the IPO in negative way. If I was an investor I would be in agreement with TRX only if they were reducing the customer care due to the high operating cost, but I mean reducing, not totally exist. In the service based company, interacting with end consumers is critical even know it has lower margin but the company should be able to profit from it, if it continues to operate in the future which I believe would create higher customer satisfaction and strong long term relationship with end-consumers. Davis decided to use the strategy to make the financial data looking good or positioning the company for the IPO which he knows that he was going to do in the future because the company need capital to support the firm’s growth, however to exist a sector was not good way to start with the risk that they might have lower customer satisfaction, as the company went IPO, any negative issues would tank the......

Words: 1724 - Pages: 7

Free Essay

Case Study Case Study Case Study

...This case study is an excellent example of how different types of parties can be brought together in a large scale transaction and how the original energy of those early meetings can be lost over time. I imagine that when Anthony Athanas was purchasing those old piers back in the 1960s many, if not all, of his colleagues, friends, and family members told him that he was off his rocker. I’m sure Athanas was looking at this land as his family’s ticket to financial prosperity and somewhat of a legacy that he could leave to his descendants for years and years to come. One of the items I wish the case would have divulged is the amount of money that Athanas had invested in the properties. For me this information would have given an insight to his net worth and how much he had riding on this investment. I assume it was substantial given his actions later in the process. Twenty years later Athanas’ dreams came true and all those naysayers were more than likely green with envy. The amount of pride Athanas’ had in his investment at that moment had to have been insurmountable. Being approached by a big time real estate development company and their extremely wealthy client, Hyatt Corporation, must have made Athanas feel larger than life and made him feel like something he isn’t, which is a developer himself. The case doesn’t give much insight into whether Athanas had any representation or anyone consulting him throughout the process. From the beginning, I saw this as matchup...

Words: 1190 - Pages: 5

Premium Essay

Trx Case Study

...developed an excellent business model that will show the company's ability to compete in adverse market conditions. Also, the company should be in a industry that can stand its ground and is on the upswing, and not one that is diminishing. 2. How does TRX compare on these dimensions? I feel as though TRX did well when doing the comparison on those dimensions. For example, let's take the Management component, the case says that the CEO Trip Davis has had at least one year in the new ventures group of a large firm before founding a Web development technology-integration company for the travel industry in San Francisco in 1995. Also, when the company was acquired by iXL Enterprises, Inc., which was a rapidly growing Internet services firm, Trip joined to run the travel practice business. With help of three co-workers, Davis felt as though he had a strong team behind him. First there was Thomas Weisel LLC, they were known for its aggressive sales and trading efforts. The second and third, Legg Mason Wood Walker and Sun Capital Markets, Inc., who had both had a wide investor client base in the central and southern United States. Let's look at the history of the company. In December 1999, TRX officially became a spinoff company. TRX spun off the company WTP, which was the third-largest travel agency. If you look at their Total Revenue Section of their Income Statement (Exhibit 2), you can see how their revenue has grown from $63,204 in 2000, to $113,459 in 2004, that......

Words: 1938 - Pages: 8

Premium Essay

Case Study

...Yin (2005) suggested that researchers should decide whether to do single-case or multiple-case studies and chose to keep the case holistic or have embedded sub-cases. This two-by-two combination can produce four basic designs for case studies. When selecting a case for a case study, researchers often use information-oriented sampling , as opposed to random sampling [3]. This is because an average case is often not the richest in information. Extreme or atypical cases reveal more information because they activate more basic mechanisms and more actors in the situation studied. In addition, from both an understanding-oriented and an action-oriented perspective, it is often more important to clarify the deeper causes behind a given problem and its consequences than to describe the symptoms of the problem and how frequently they occur. Random samples emphasizing representativeness will seldom be able to produce this kind of insight; it is more appropriate to select some few cases chosen for their validity. But this isnt always the case. Three types of information-oriented cases may be distinguished: Extreme or deviant cases Critical cases Paradigmatic cases. [edit]Critical case A critical case can be defined as having strategic importance in relation to the general problem. For example, an occupational medicine clinic wanted to investigate whether people working with organic solvents suffered brain damage. Instead of choosing a representative sample among all those......

Words: 1244 - Pages: 5

Premium Essay

Case Study

...1. ------------------------------------------------- Determine the main objective of the case study. You may be writing a case study to fulfill an academic requirement or to help solve problems in real-life situations. An academic assignment typically will come with a specific objective and instructions, whereas a professional assignment might require you to define the objective. ------------------------------------------------- Ad 2. ------------------------------------------------- 2 ------------------------------------------------- Select the best approach. * Choose an analytical approach to increase awareness. In the preliminary stages of solving management problems, an analytical case study might best meet the goal of alerting upper management to core facts and issues. An analytical case study primarily focuses on what has occurred and why. * Select a problem-solving approach to pinpoint and solve major issues. If the goal is to make solution recommendations, write a problem-solving case study that clearly outlines problems and solutions. 1. ------------------------------------------------- 3 ------------------------------------------------- Conduct research for your case study. Examine the facts, dynamics, communications and all relevant aspects of the particular situation. Research might involve interviewing people in an organization, reviewing written documents or looking up relevant statistics. Method 2 of 5: Set the Scope for Readers ...

Words: 487 - Pages: 2

Premium Essay

Case Study

...Select a case study from the University of Phoenix Material: Young and Middle Adulthood Case Studies located on the student website. Write a 700- to 1,050-word paper describing the influence the experiences have made on the person’s development. Address the following in your paper: Discuss the family, social, and intimate relationships of the person in the case study. Identify any role changes that have occurred. Explain the immediate and future effect of healthy or unhealthy habits practiced by this person. Include at least two peer-reviewed resources. Format your paper consistent with APA guidelines. University of Phoenix Material Young and Middle Adulthood Case Studies Read the following case studies in order to complete the Week Three Individual Assignment. Case Study 1: Jackson Jackson is a 25-year old male who has recently been admitted to a substance abuse program in Chicago, Illinois. He has been arrested several times for possession of a controlled substance but has not served any time in jail. He grew up in a single-parent household with his mother, Tina. Tina, 45, is employed as a high school teacher; his biological father is not involved in his life. Tina’s boyfriend, Michael, often attempts to serve as a father figure to Jackson. Jackson went to college immediately after high school, focused on a degree in chemistry. In high school, he was a good student who earned A’s and B’s in most courses. After a car accident, a slight head......

Words: 414 - Pages: 2

Premium Essay

Case Study

...A Case Study by any Other Name Cathy Foster Liberty University   A Case Study by any other Name Researchers have different methods of observing their subjects. Among the most popular is the case study. Case studies are used a lot in psychology and one of the most famous psychologists that used case studies to detail the private lives of his patients was Sigmund Freud. What is a Case Study? “A case study is an observational method that provides a description of an individual” (Cozby & Bates, 2012). During a case study the individual is usually a person however that’s not always the situation. The case study can also be a setting, which can include a school, business, or neighborhood. A naturalistic observational study can sometimes be called a case study and these two studies can overlap (Cozby & Bates, 2012). Researchers report information from the individual or other situation, which is from a “real-life context and is in a truthful and unbiased manner” (Amerson, 2011). What are some Reasons for Using a Case Study Approach? There are different types of case studies. One reason to use a case study is when a researcher needs to explain the life of an individual. When an important historical figure’s life needs explaining this is called psychobiography (Cozby & Bates, 2012). The case study approach help answer the “how”, “what”, and “why” questions (Crowe, 2011). What are Some Advantages and Disadvantages to the Case Study Approach? Some......

Words: 548 - Pages: 3

Premium Essay

Case Study

...The Case Study Approach Linda P. Williams Liberty University Online Author Note Linda P. Williams, Department of Psychology, Liberty University Online Correspondence concerning this article should be addressed to Linda P. Williams, Department of Psychology, Liberty University Online, 1971 University Blvd, Lynchburg, VA 24515, E-mail: lwilliams91@liberty.edu The Case Study Approach Introduction At some point during the pursuit of a degree psychology, the time comes when a student must learn various research techniques. One of the many approaches is case study, which this paper will focus on. Areas of discussion include reasons for using a case study, advantages/disadvantages to the approach, and ways acquire information to perform a case study. The essence of a case study A case study is used to offer a mental accounting of a person, school, neighborhood, business, or group of individuals over the course of time, way of research. It is sometimes referred to as naturalistic observation, but does not always follow the same protocol. Mental accounting is done by means of observation of various behavior or mind sets operating in their natural environment. This is noteworthy, especially when participants have a distinct disorder worthy of being studied to further the cause of research and development. Depending on the purpose of the investigation, the case study may present the individual’s history, symptoms, characteristic behaviors, reactions to......

Words: 671 - Pages: 3

Premium Essay

Case Study

...Tanglewood Case Study 2 Ratings: (0)|Views: 6|Likes: 0 Published by Megan Purdy Tanglewood Case Study 2 See more Tanglewood Case Study 2 Page 1 Tanglewood Case Study 2Megan PurdyHRM 594Keller Graduate School of Managementr! CardenMay 2"# 2$%4 Tanglewood Case Study 2 Page 2 Recru&tment Gu&dePos&t&on' Store Associate Re(orts To' Shift Leader and Department Manager )ual&f&cat&ons' Prefer to have some ac!ground in customer service or retail" no specific list of minimal educational ac!ground re#uired Rele*ant +a,or Mar-et' Pacific $orthwest% ®on and 'ashington T&mel&ne' This is a continuous recruiting effort with no set timeline% however the ideal process from initial contact with the applicant to the final hiring decision would ideally e within a month(s time) .ct&*&t&es to underta-e to source well /ual&f&ed cand&dates' *se of media" such as regional newspaper advertisements" online +o postings on oth pulic wesites as well as the company wesite" !ios!s in the stores" +o services groups and staffing agencies" Staff Mem,ers 0n*ol*ed' ,- -ecruiting Manager" Assistant Store Manager" Department Manager 1udget' .etween /1000 and /000 Tanglewood Case Study 2 Page  n loo!ing to the est targets or applicants for the position of store associate" it would e ideal to recruit individuals with some prior ac!ground" !nowledge or e3perience in the customer service or retail fields) &ne of the ig complaints from our......

Words: 550 - Pages: 3

Premium Essay

Trx Finance Case

...TRX Inc. (Home Assignment). The Financial Analysts Melissa Gottschall, Jillian Marchand, Scott Duggan, Cary Konopka, Blair MacLaughlin, Jake Baker 1) In general, what attributes make a company a good candidate for an IPO? - Good Business History and Background: Investors will forecast future earnings off of the historical background of the company. It will also show that your company is stable. Many investors will be looking to hold the stock long-term, so if investors trust the background of the company, more people will be willing to invest. - Experienced Management: Good management can ensure that the company will make decisions that are best for the company and to ensure profitability. Also, good management is the basis for growth and performance. Strong management will creates a good public image. - Profitability: A profitable company tells investors that they will actually get a return on their investment. It also shows potential for growth, which can lead to dividends for investors. - Growing Industry: A company can’t grow in a shrinking industry. In a growing industry, the company has better potential to capture a larger portion of market share. - Growing Company: More is better. Investors will reach their maximum utility with a growing company. The objective is to maximize shareholder wealth. A growing company has the best chance of reaching this goal. 2) How does TRX compare on these dimensions? - Good Business History and Background:......

Words: 1627 - Pages: 7

Free Essay

Case Study

...Case Study Complete Case History The patient in this case study reports being ‘sick with flu’ for 8 days. She has been vomiting, and cannot keep any liquids or food down. She also reports that she has been using antacids to help calm the nausea. After fainting at home, she was taken to the local hospital, severely dehydrated. Upon looking at her arterial blood gas result, it would appear that this patient would be suffering from metabolic alkalosis. This patient’s pH is greater than 7.45 (normal: 7.35-7.45) and her bicarbonate (HCO3) is greater than 26 (normal 22-26). Blood gases indicate that case study patient is suffering from hypochloremic metabolic alkalosis. Focused Assessment The case study patient reports being “sick with flu” for eight days. She reports vomiting several times a day and taking more the recommended dose of antacids. She reports that she fainted today at home and came to the hospital. The case study patient reports that this all started approximately eight days ago. The case study patient also reported taking excess amounts of antacids. Ingesting large amounts of this medication can cause metabolic alkalosis. When antacids are taken in large doses, the ions are unable to bind, and therefor the bicarbonate is reabsorbed and causes alkalosis (Lehne, 2013). Renal and Respiratory systems response Hypochloremic Metabolic alkalosis occurs when there is an acid loss due to prolonged vomiting which causes a decrease in the extracellular...

Words: 289 - Pages: 2

Free Essay

Case Studies

...Case studies Name: Tutor: Course: Institution: Date: Flying to the Auto Bailout on a Private Jet Basic problems In this case study, there is wastage of resources. The CEOs of the nation's three largest automobiles uses private jets to attend the corporate public relations congress. This is wastage of resources since they are using private jets to travel when their companies are struggling to stay afloat. Ignorance is another basic problem evident in this case study. These CEOs are very ignorant. They attend the corporate public relation congress in Washington unprepared and thus appear to know nothing about their problems. The three companies, GM, Ford and Chrysler, lack the concepts of public relations. The main issues American economy is melting down. Most of the workers are losing their jobs since the companies cannot handle many workers anymore. The companies have got inadequate cash. Bankruptcy is another main issue experienced in this case study. The General Motors Company and the Chrysler can no longer pay their debts. Key decisions * According to the case study, the leaders have to come up with a new public relations strategy. * The CEOs should correct any mistakes they have made before such as using private jets to travel. * Introduce innovation in products * The auto industry of the US should promote its products. * Ensure transparency in business operations. SWOT analysis Strengths * Availability of resources for the......

Words: 657 - Pages: 3

Premium Essay

Trx Case Study

...Case  Questions  for  TRX  Inc.,  IPO     ! What attributes make a company a good candidate for an IPO? Good business history: Investors will expect the long-term sustainability through historical financial data. Therefore, the good business history can reach investors’ expectation. Profitability: A profitable company can indicate investors that the company can get a positive ROI. The positive ROI can not only suggest potential growth but also lead to dividends for investors. Visibility and recognition: Visibility enables investors’ better understanding of the business model and increases the recognition. Growth potential: In the growing industry, the company has the higher potential to grow in the future. Solid and experienced management: The good management can act the best interests of shareholders, maximizing the profitability. Furthermore, the decent management can ensure the growth and performance of the company as well as create positive public image. ! How does TRX compare on these dimensions? Good business history: A six-year data shows that the number of travel transactions grew from 9.3 million to 73.5 million in 6 years. In terms of revenues, TRX generated 113.4 million in revenue in 2004, compared with the number of revenue, 63.2 million in 2000. Therefore, the business history indicated the company was growing. Profitability: According to the income statement in Exhibit 2, TRX experienced net loss from 2000 to 2005, which may be unfavorable to TRX...

Words: 931 - Pages: 4

Premium Essay

Case Study

...[pic] OPERATIONS MANAGEMENT MGCR 472 CASE STUDY ASSIGNMENT Due on November 23 in class INSTRUCTIONS: 1. Make sure to write down the name, student # and section # for each student in the group on the cover page of the case study report. 2. This assignment counts for 14% of your final grade. 3. Late submissions and submissions by e-mail will not be accepted. 4. You have to work in this assignment in groups. The number of students that can be in a group is 5. Group members can be from different sections taught by other OM professors. Each group should submit only one case study report. Reports can be submitted to any instructor. 5. Good luck! CASE STUDY REPORT In the Delays at Logan Airport case, there are different proposals for reducing congestion. One of the methods proposed to tackle the impact of delays was peak-period pricing, PPP. The other one was to build a new runway. In this case study, your objective is to evaluate these alternatives using waiting line models and to provide a recommendation to FAA to solve the delay problem at Logan Airport. Make sure you demonstrate that you have thought through your recommendations and the effects on other related activities. Also demonstrate that you understand the concepts and tools from the class that apply. Prepare an action-oriented advisory report, which presents concisely your analysis and recommendations for solution of the primary management problems. In order to assist you in......

Words: 1960 - Pages: 8

Premium Essay

Case Study

...ASSIGNMENT GUIDANCE – NRSG258 ASSESSMENT 1: CASE STUDY Dear students here are some guidelines to assist you in writing Assessment 1: Case Study. If, after reading through these, you still have questions please post on the relevant forum. If you are still unsure then please contact your campus specific lecturer to arrange to discuss your assignment. We ask that you bring these guidelines to any meeting and highlight the areas about which you are still unsure. In this case study you do not need an introduction or conclusion for this case study of 1500 WORDS ± 10% due by midnight 8th April Turnitin. Just answer the questions. Turnitin is located in your campus specific block. Although we suggest you do your background reading in the current textbooks for basic information, the case study also requires you to find current literature/research/articles to support your discussion throughout the case study. Do NOT use Better Health Channel, WedMed, dictionaries, encyclopaedias etc. These are NOT suitable academic sources. If you use these you will not meet the criteria for this question and you will lose marks. You must follow the APA referencing format as directed by ACU in your case study and in your reference list. The Library website has examples of how to do this referencing and you can find the correct format at the end of your lectures and tutorials as well as in the free Student Study Guide. This essay should have approximately 10 relevant sources.......

Words: 1111 - Pages: 5