Berkshire Hathaway

Inc.

-ByM.Arulkumar

Reg. No. : 13290485

Content :

Introduction / About the BHVision & MissionStrategySWOT AnalysisObjectivesAdvantage/BenefitsDisadvantage/Limitation

Introduction / About of the BH Berkshire Hathaway Inc. Is an American multinational

conglomerate holding company headquartered in Omaha, Nebraska, United States, that oversees and manages a number of subsidiary companies.

Warren Buffett is the company's chairman, president, and CEO, and Charlie Munger is the company's vice-chairman.

Buffett has used the "float" provided by Berkshire Hathaway's insurance operations (paid premiums which are not held in reserves for reported claims and may be invested) to finance his investments.

Subsidiary company’s is retail, railroad, home furnishings, manufacturers of vacuum cleaners, jewellery sales; newspaper publishing; manufacture and distribution of uniforms; as well as several regional electric, gas utilities and etc.,.

According to the Forbes Global 2000 list and formula Berkshire Hathaway is the fifth largest public company in the world.

In 1955 Berkshire Fine Spinning Associates merged with the Hathaway Manufacturing Company which was founded.

After the merger Berkshire Hathaway had 15 plants employing over 12,000 workers with over $120 million in revenue and was headquartered in New Bedford.

Berkshire Cotton Mills, Adams, Mass.

Hathaway Mills, New Bedford, Mass.

Vision :" Berkshire Hathaway strives to be

the largest and most influential investment company in the world. "

Mission :Deliver the right parts exactly on time,

exceed our internal and external customer requirements through

continuous improvement, and provide a place for hard-working, dedicated,

knowledgeable and ethical people who believe in the company.

Strategy :

To plan of action designed to achieve a particular goal.

Strategy of Berkshire Hathaway Inc. :

A Fundamental Analysis of the Corporate Strategy of Berkshire Hathaway Inc. In Relation To the Property and Casualty Insurance Industry.

SWOT Analysis :A tool that identifies the

strengths, weaknesses, opportunities and threats of an organization.

A Strengths & Weaknesses for Internal Environment and the Opportunities & Threats for External Environment of an organization.

SWOT Analysis of Berkshire Hathaway Inc. : Strength:

◦ 1.Strong brand name and good financial position.

◦ 2.High number of stakeholders and growing market position.

◦ 3.Diversified portfolio Weakness :

◦ 1.Cash flow is declining.◦ 2.Over dependent on Warren Buffets image

Opportunity :◦ 1.Expansion in other countries.◦ 2.Diversifying portfolios for customers

Threats :◦ 1.Changing govt regulations and financial crisis

like recessions.◦ 2.Natural calamities

Objectives of Berkshire Hathaway Inc. :The objective of compiling

and organizing Buffett’s Teachings for the Maximum usefulness for others. The webmaster with a list of important quotes organized as answer to a variety of questions grouped in different categories.

- Warren E. Buffett’s

Advantage / Benefits :1) Sell to a competitor and likely see the

employees who helped build the business get sacked;

2) Sell to private equity investors who would likely load the business up with debt and then re-sell it again in a few years, often with the same result for employees; or

3) Sell to Berkshire, where the business will be treated with respect and management can continue to run it without interference from Omaha. (The seller may get less money selling to Berkshire but has a better life and outcome for the employees.)

Disadvantage / Limitation :

1) Size is the disadvantage for Berkshire, such that it cannot grow its value at the same rate as in the past.

2) Munger offered that the aggregate record of the largest companies in the history of the world from the time they became large is not great. [Berkshire is now the fifth largest company by market capitalization after Apple, Exxon, Microsoft and Google.]

3) However, Munger thinks Berkshire has a better system and will do better than the record of large companies that came before.

Conclusion :