PETCOs Essay Example | Topics and Well Written Essays - 250 words - 3

PETCOs - Essay ExampleThis discussion highlights that the strategic sack of re-privatizing will help the company in certain aspects, but it will also have unwholesome consequences. One of the benefits of going private is that company does non have to comply with SEC regulations including the Sarbanes-Oxley Act which be millions of dollars a year to comply with. Becoming private increases the power of the ownership team. Some of the cons of not be public are the inability to raise capital in a liquid marketplace much(prenominal) as the NYSE or NASDAQ. I thought that the company acted unethically and did not comply with the FDA jurisprudence when they re-privatize because by not being public they were not obligated to comply with the demands of the FDA. Private companies are not able to build as much goodwill as publicly traded companies. The author believes that PETCOs nature covers its entire supply chain. When a breeder they do business with mistreats animals it reflects bad ly on the image of the company. The libertine has to drop the supplier of help them put in the problem to comply with state regulations. The scandal associated with unsanitary conditions at a PETCO warehouse reflected on the company. The company also did not react quickly enough the fix the problems as the firms stakeholders expected. The company in the future has to react faster to issues that can scandalize its corporate.