Berkshire Hathaway Company’s Organizational Planning Essay

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Table of Contents

The company’s internal and external stakeholders
Company’s mission and vision
Company goals
SWOT analysis
References

The company’s internal and external stakeholders

Internal stakeholders	External stakeholders
Warren Buffett (Chairman, President, and CEO)	The public: The company is accountable and responsible for the harm caused to consumers, the community, schools, and health care facilities among others.
Charlie Munger (Vice-chairman)	The media: It has an interest in the company by relaying information regarding business activities and performance to the general public and the competitors.
Board of Directors (CEO, Vice-chair, Bill Gates, Walter Scott Jr., and Ronald Olson). This category is comprised of the owners of Berkshire Hathaway whose chief interest lies in the company’s profits (Bowen, 2014).	The government: Formulation of government laws by policy-makers affects company profits e.g. through taxation and labor laws.
Middle-level management (e.g. operations managers) and junior staff	Legal companies: The company is obliged to a policy of strict regulatory adherence and pursues regular and free communication with policy-makers regarding its activities.
Stockholders e.g. the Vanguard Group, Inc., SSGA Funds Management, and Mutual Funds. The organization’s management is answerable to the owners of the company. The management must on a regular basis, prepare and submit financial reports and any other reports to owners of the company (Bowen, 2014).	Activist organizations: This group of stakeholders acts as a check. These organizations exist so they can ensure that companies fulfill their pledge to product users such as quality, consumer safety, and that of the public and proper disposal methods.

Company’s mission and vision

Company’s mission

The company aims at delivering the right products promptly, exceeding its internal and external clientele requirements through continuous improvement while creating a good working environment for hard-working, committed, educated, and ethical people who are loyal to the company (The Economist, 2014).

Company’s vision

The company envisages seeing itself as the best energy company in serving its customers while delivering solutions on sustainable energy (Bowen, 2014).

Company goals

At least one company goal that can be accomplished through a strategic plan

The company’s goal is to acquire significantly large businesses that have competent management teams at reasonable prices with a primary objective of constructing the company’s earning power on a daily basis (The Economist, 2014).

Berkshire Hathaway’s goal is to build resourceful plans that can help enhance the continued delivery of optimal services to its customers and become the top-ranked company with the highest client satisfaction in the energy industry.

At least one company goal that can be accomplished through an operational plan

The company aims at achieving regulatory requirements by engaging with policymakers in the formulation of environmentally responsible laws and regulations so as to continue the reduction of emissions from its power plant.

The company maintains a long-term economic goal that aims at maximizing its average yearly rate of gain in intrinsic business worth on the per-share index in comparison with that of large American corporations.

SWOT analysis

Strengths	Weaknesses
Diversified portfolios: The company is extremely large. It provides a range of services to various market segments and industries such as utilities, casualty shelter, reinsurance, manufacturing, investments, holdings, energy, and other portfolios (Bowen, 2014).	Overdependence on the image of Warren Buffett, the CEO, and Chairman. He is a highly ranked affluent investor with great investment abilities. Over relying on his image, imposes a high risk to the future prospects of the company especially when he withdraws his membership (Bowen, 2014).
Enormous domestic market. The company has its mother offices in the United States and has a large customer base that gives it high economies of scale and comparative advantage.	Increasing competition in the industry especially from the large Fortune 500 companies in this industry.
The company has a stable financial position and a strong brand name.	Declining cash flows. Increasing competition from S & P Fortune 500 companies makes the intrinsic value of Berkshire Hathaway’s shares fall leading to declining organizational profits.
Opportunities	Threats
New business acquisitions and expansion to other countries.	Constantly changing government regulations
Portfolio diversifying for clients and the growing demand for its products and services.	Inevitable financial crisis such as a recession.
The growing US economy provides new investments opportunities for the company.	High competition from other big American companies.

References

Bowen, R. (2014). Is Warren Buffett’s Commentary on Accounting, Governance, and Investing Practices Reflected in The Investment Decisions and Subsequent Influence of Berkshire Hathaway? Accounting Review, 89 (5), 1609-1644.

The Economist. (2014). Playing Out The Last Hand: Berkshire Hathaway. Economic Intelligence Unit N.A., 411 (8884), 73-73.

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