Business Plan: Global Fleet Operations, Inc. Harvard Case Solution & Analysis

Emergence of Industry

Logistics is the process to provide right type of products at right place and price along with suitable conditions. The history of logistics industry can be referred to old ancient times in Greek and Roman war times. This is the time period when the military officers were called as Logistics who used to render distribution and supplies’ services.

These services were conducted in order to shift their locations from one hide out or base position to another. This also included the role of destroying the warhead supply locations of the employees and to safeguard their own warhead locations. This concept was effectively evolved in World War II where the logistics of US armies and alliances were far superior tithe logistics of German army.

Not only the US army’s logistic services were strong, it was ensured that the supplies and logistics of warheads were provided timely on regular basis without any delay that was a major reason to the positive result of victory associated to United States of America.

These logistics services are still a part of almost every military force of a nation, especially US with advancements in technologies. Logistics have now been considered as an art and science, however it is still not considered a perfect set of science as logistics does not comprise of any defined rule or sets. The company Global Fleet Operations will specifically operate in the logistics industry where it will provides services to companies where they can deliver their goods from one place to another. The company will serve the needs of being a service provider where it will ensure timely delivery of goods.

Management Structure GFO

The legal form of the company would be public limited company. The shares of the company would be listed on NYSC NASDAQ. This legal form taken by the company would benefit in limited liability for the shareholders as the company would have a separate legal entity. Apart from this, the company would continue to operate even if any shareholder quits, dies or retires. Furthermore, the most essential need for a large growing business is to raise a large amount of capital.

The listing on stock exchange would lead to raise a high amount of capital to be invested into the company. This is because the shares would be publically traded on the stock exchange and anyone would invest in to the company, therefore overcoming the issue of limited investments and shareholding pertaining to partnership, limited liability partnership and private limited company.

However there would be some issues related to the public listing of the company. There would be a lot of legal obligations and formalities to be fulfilled in listing a company publically. These formalities and obligations are extremely time consuming to be fulfilled, therefore its costs must be me estimated before listing the company on stock exchange.

Furthermore, there are many stringent rules and regulations that the company has to follow and comply with in instances of a public limited company. This is because the company has to publish their financial accounts to a public at large on which the shareholders take their decisions to invest or not. The compliance with regulations prevailing in the industry ensures that the data disclosed is true and fair.

Business Plan Global Fleet Operations, Inc. Case Solution

Furthermore, there is a high probability of losing the ownership if the company is listed publically. This is because the buying and selling of shares are not restricted to any limit on stock exchange. The purchase of shares by several shareholders can reduce the percentage holding of the major shareholders of the company. Apart from this a significant purchase by any existing shareholder can shift the decision making power and true ownership of the company to the other party in context of voting rights and power.

Lastly, most of the public listed companies are large in size; same is the case with Global Fleet Operations, Inc. The expansion and growth of a company does enable the company to achieve competitive advantage and economies of scale, however in some cases the issues related to dis economies of scale can arise where management issues hinder the overall effectiveness of the company...................

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