Blue Buffalo Pet Company which was set up in 2003 is a company dealing with the production of healthy pet food is based in Wilton. The idea behind the formation of this company was because the founders had a hard time finding a cure for their pet Blue who was suffering from cancer. They, therefore, decided to come up with a company that produced healthy pet food to help other people who would be dealing with such scenarios. Additionally, the company incorporated a Pet Cancer Awareness Foundation to expand its business prospects and become more profitable in the long run. These choices have a result facilitated the growth of this company seeing that it now boasts of having a 6 percent share in pet food market. This has further pushed this company to seek a $ 502 million IPO on NADSAQ with $ 3.3 billion market capitalization which is a great leap (Seeking Alpha, 2015).
Blue Buffalo Pet Food has an array of options when it comes to the trading of its shares where it can either choose the NYSE or NASDAQ as they serve healthcare industry which this company is all about. However, there is need to understand the dynamics of the stock market before making any significant decisions. Some of the considerations that should be made include the instruments traded, exchange listing standards as well as the significant industries these stock markets serve to come up with the right conclusion when making public offers (Muzatko et al 2004). By comparing both the NYSE and NASDAQ the Blue Buffalo Pet Food should be able to come up
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The macro environment in any business concerns itself with both the external and internal factors that any business venture finds itself in as it tries to make good its objectives. According to Hoskisson et al., (2013), these factors affect business either directly or indirectly, positively or negatively. Blue Buffalo Pet Company being a business venture is a product of these elements as it has had its share in the 15 years it has been operating. This company is a witness to a myriad of economic factors most specifically the 2008 economic recess in the USA which saw many business ventures collapse with the economic downturn of the time. However, this company was able to weather these storms and remain strong to rise beyond the crisis and remain profitable. Apart from the economic factors, businesses are faced with social and political factors which determine the kind of environment that companies operate in. The social factors which are highly demographic in nature are vital in determining how the clients receive a product. This is primarily in terms of gender, age, racial differences or any other distinguishing factor with other people preferring to get their services from Blue Buffalo Pet Company while others chose other companies. The political factors on the other hand deal with legislation and policies which are vital in determining how businesses are conducted. Other notable elements determining the macro-environment surrounding the running of activities in Blue Buffalo Pet Company include Inflation, interest rates, bonds and stocks markets all of which should be put in consideration if this organization is to remain relevant and profitable.
The government plays a lot of roles in ensuring that businesses and other regulatory bodies and authorities work to optimum standards to ensure that the economy remains stable. This is done through the formulation of policies which ensure proper oversight and governance measures. If the companies and regulatory bodies are left to their own devices, there is a likelihood that the economy may be affected negatively. Thus the government can pass regulations to regulate the stocks markets, insurance companies, manufacturers, business organizations, charities among other enterprises to cushion its people against exploitation. Additionally, such governance and oversight roles ensure that businesses have increased shareholder value, improved capital growth, increased access to capital sources, stronger company profile among others.(Bell, 2016) Knowing this, Blue Buffalo Pet Company should ensure that it understands the concept and stick with it to ensure that it succeeds in a competitive market. More so increased market regulation and oversight especially,y in the insurance and stock markets increase transparency in the way business deals are conducted. Individual business operators can have a platform where they can air out their grievances in case they feel that these companies do not exhaustively meet their desires.
Companies are usually faced with many challenges when it comes to establishing ways of getting returns and reducing the risks associated with running businesses. However, they can increase their returns, especially in the stock market by making a proper determination of the best types of stocks they should invest in terms of maturity rates, prices as well as interest rates. As such, a company may opt for bonds, stocks, exchange-traded fund or mutual fund depending on the factors mentioned above (Deventer, Imai, & Mesler, 2013). Consequently, a company such as Blu Buffalo Pet Company may gain in terms of getting dividends, capital gains which will go a long way in increasing business. However, it is essential for any business to conduct a prior market research to determine the prevailing factors before deciding on the kind of returns they stand to gain. More so the market research is crucial as it helps such companies to be aware of the risks associated with whichever choice and find if the risk is worth the returns it stands to gain by making any of the above options. More so according to Philips (2012), it is important to make global comparisons to find out if a company is likely to do better outside the United States. As it is the US has 46 percent of the market share of the global market share making it a better investment choice. With this in mind business can thus increase their returns while careful not to get into many risks which can significantly reduce their profit margins.
References
Bell, J. (2016). U.S. securities offerings and exchange listing by foreign private issuers . Morrison Foerster.
Deventer, D. R., Imai, K., & Mesler, M. (2013). Advanced financial risk management: Tools and techniques for integrated credit risk and interest rate risk management . Singapore: Wiley.
Hoskisson, R. E., Wright, M., Filatotchev, I., & Peng, M. W. (2013). Emerging multinationals from mid‐range economies: The influence of institutions and factor markets. Journal of Management Studies, 50(7), 1295-1321.
Muzatko, S. R., Johnstone, K. M., Mayhew, B. W., & Rittenberg, L. E. (2004). An empirical investigation of IPO underpricing and the change to the LLP organization of audit firms. Auditing: A Journal of Practice & Theory, 23(1), 53-67.
Philips, C. (2012). Considerations for investing in non-U.S. equities. Vanguard research . Retrieved October 21, 2017, from https://personal.vanguard.com/pdf/icriecr.pdf
Seeking Alpha. (2015). IPO Preview: Blue Buffalo Pet Products. SeekingAlph a.com. Retrieved from https://seekingalpha.com/article/3344465-ipo-preview-blue-buffalo-pet-products.
