Analysis of Berkshire Hathaway Company

Document Type:Research Paper

Subject Area:Marketing

Document 1

Its internal environment features a decentralized system of management. As for the external environment, aspects, like high inflation rates have played a great role in the advancement of this company. The other factors that are central to the environment of Berkshire Hathaway Inc. are political policies, the culture of the citizens, and the vicious leader, Warren Buffet. The major competitor of this company is Leucadia National Corporation (LUK). It deals in two major classes of stock: A and B shares in the New York Stock Exchange. Some of the companies that Berkshire Hathaway controls include FlightSafety International, Helzberg Diamonds, Dairy Queen, and NetJets (Cunningham, 2014). Mission, Vision, and Goals of the Company The organization’s vision entails being the provider of choice in its community in terms of financial solutions and comprehensive real estate.

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Its mission is to achieve its vision through the utilization of a world-class team of professionals and systems that act as a guide individuals’ decision making regarding real estates and finance (Powell, 2014). Berkshire Hathaway Inc. The internal environment of Berkshire Hathaway Inc. features a decentralized form of management. This essentially means that the responsibility of regulating the business performance is conferred upon the local managers of subsidiaries. These operation managers have two main responsibilities: to send free cash flow and also, submit financial statement information (Powell, 2014). The internal environment further features diversified investments, which ranges from airlines to insurance corporations. The enhancement of a culture that favors the acquisition of health insurance during the reign of President Obama has also worked effectively in advancing Berkshire Hathaway Inc.

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given the fact that it deals in the health insurance industry. Competitors of Berkshire Hathaway Inc. The fact that the subsidiaries of this company are diverse means that its competitors are many. The main competitor of Berkshire Hathaway Inc. Failure in one sector or even a geographical area would, therefore, have less impact on the business. Thirdly, the company is in a position to utilize the float funds that are not part of the reserved portion of insurance premiums; this way, it does not indulge in debts whenever it makes a new investment. The good management practice that features decentralized system is also another strength of Berkshire Hathaway Inc. It ensures that there is sufficient supervision across its holdings. The fact that most of its directors have invested in the company also presents another strength since they work effectively given that their success is tied to that of the company.

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Opportunities The company has the opportunity to sell some of its poor performing subsidiaries and engage in the acquisition of successful companies (Cunningham, 2014). Berkshire Hathaway can also utilize the social media platforms, like Facebook, to enhance its social media presence. The aspect of social media advertising has been gradually on the rise. Furthermore, there is an opportunity for the company to expand internationally (Powell, 2014). For years, it has only concentrated on investments within the US borders. There are a number of recommendations that Berkshire Hathaway Inc. can consider if its to attain and retain more success in the market. For one, the company can work towards enhancing the sustainability of its insurance subsidiaries hence combating the risk of unfavorable government regulations requiring raised levels of the reserved portion of the insurance premium (Cunningham, 2014).

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