Berkshire Hathaway Company Essay Example | Topics and Well Written Essays - 1750 words

Berkshire Hathaway Company - Essay Example The company is now a holding company that holds many diverse subsidiaries. What is the company’s Mission Statement? What is the company’s Vision Statement? Who are the Primary Stakeholders of the company? Primary stakeholders are those who have a direct interest or stake in the organization. The stakeholders of almost all the companies are same. Stakeholders can affect or be affected by the actions of a business. The primary stakeholders of Berkshire Hathaway include the owner of the company, the employees, its customers, suppliers, its creditors, the trade unions, its stockholders and the government. The employees of Berkshire have a great stake in the organization because they are directly linked to the company’s performance (BERKSHIRE HATHAWAY, INC 2010) Similarly the stockholders share the same stake in the business of Berkshire Hathaway. What are the five forces of Competition and how they impact on the company? The five forces of competition present in the environment and that affect the competition include the competitors of a firm, bargaining power of suppliers, bargaining power of the customers, new entrants and the substitutes available. Competitors of a firm result in rivalry. ... Berkshire Hathaway has very good relations with its suppliers. Plus the company owns so many subsidiaries that it has a large numbers of suppliers, thus resulting in a low bargaining power of the suppliers. Looking at the customers as a force, they have a high bargaining power as opposed to the suppliers. Berkshire Hathaway honors its customers in every possible way. Then comes the threat of the substitutes. Berkshire has a very diverse range of business activities and it offers so many products to so many different markets. There is a threat of substitutes but Berkshire Hathaway has a very strong financial and capital position that whenever there is an alternative investment available in the market, it does not hesitate in acquiring that alternative. Berkshire faces competition but the competition is not very huge because the number of firms present in the holding industry is not very large. There are only few holding firms that equal the size of Berkshire Hathaway. So the competiti on is low as compared to other industries. All the forces of competition lead to rivalry, but in the case of Berkshire these forces are not that intense and thus do not result in huge rivalry. SWOT Analysis SWOT analysis is a tool that is used to look into the strengths and weaknesses of the company. It helps to determine the opportunities and threats posed by the external environment. Basically the analysis sets a direction for the organization as to how it should use its strengths to minimize the threats posed by the external environment and also to make use of the opportunities in order to overcome its weaknesses. Though Berkshire Hathaway is well established holding company but still it is not possible that it won’t have any weaknesses or