Homework Question on Berkshire Hathaway Inc.
- Go to http://www.berkshirehathaway.com/letters/letters.html and select one of the shareholder letters between the year 2000 and 2012 and prepare a written strategy analysis of 5-8 pages.
- The analysis should address subject:
- Company Background
- Strategic Goals & Objectives
- SWOT Analysis
- Key Success Factors
- Financial Performance Analysis
Homework Answer on Berkshire Hathaway Inc.
Berkshire Hathaway Inc. is an American holding company with several subsidiaries undertaking diverse business functions and operations globally. It was established in 1839 and registered as Valley Falls Company. Although it was initially engaged in textile milling across United States, it grew and expanded, enabling the production of cotton. The headquarters are in Nebraska, overseeing the company’s subsidiaries, including FlightSafety International, Dairy Queen and NetJets among others.
The company CEO, president and chairman is known as Warren Buffet. Charlie Munger is the vice chairman mainly focused on ensuring the company engages in long term investments across publicly quoted stocks. It is recognized as a highly profitable company recording annual growth rates. More so, it provides employment opportunities to several workers in order to earn higher revenues. This has also led to expansion of business activities (Warren, 2013).
The company’s business activities include insurance operations undertaken on primary and re-insurance basis, transportation, production and distribution of energy and groups of utility. In 2012, the company also acquired real estate brokerage franchise network in form of interest through residential homes. This expanded the company’s number of shareholders improving share values which were valued at 24.1 billion dollars.