Kudler Foods management is considering taking one of the following methods in the expansion plan of the business. They can expand the business through initial public offer (IPO), through acquisition or by merging with a similar business in the food industry. Each of these methods has some points of weaknesses and strengths as well as a given degree of threats. The IPO will enable the company to acquire large capital from the public. The cost of acquiring this capital is relatively low as compared to other sources of capital that may be available for the company. Capital that will be acquired through IPO will form a permanent capital base for the company. The IPO will also help Kudler Foods to attract and retain competent employees by offering them incentives in terms of stocks listed in the stock exchange. Also, the visibility of the company in the market will increased as a public company as compared to its visibility in the market as a private company. Another reason why Kudler Foods should consider an IPO is to enable the company to get market valuation for future expansions through mergers and acquisitions. However, the method also presents some challenges to the company. In case the value of the shares listed by the company drops, chances are that the market confidence for the company will also decrease. Flexibility to make decisions may also be reduced since shareholders’ input will be required in making some strategic decisions. This may reduce the ability of the company to respond promptly to changes in the market. In case Kudler Foods require a large amount of capital, the company will have to list a large number of shares. This potentially can make the company to be vulnerable for takeover and loss of internal control by the management. The other option that Kudler Foods can take is the acquisition. The main advantage of this method is that, it will give Kudler Foods market power. That means that the number of competitors will reduce and the market that the company serves will increase. Kudler foods will also overcome barriers to entry in the markets that it does not serve since the company will have acquired an existing business in this market. Kudler will also acquired essential competencies and resources from the acquired business which will further give the company a competitive edge over other competing businesses in the food industry. However, this method also presents some challenges to the organization. Different businesses have different cultures. Therefore, this may cause problems to the company in trying to integrate the culture of Kudler Foods and the acquired business. Acquisition may also reduce return on investment besides being costly. There is also a possibility of unnecessary focus by the management on acquisition which can affect development of the company internally. Mergers on the other hand, will enable the company to create economies of scale in production and marketing. It will also enable to company to increase its competitiveness by serving a large market. The main challenge of mergers is the conflict of objectives between business partners. This will affect decision making by the organization. The increase in the size of the business may also create the diseconomies of scale. Given the merits and