Make up a critique for prof kim
Th1nkingnow
what_i_write_of_assignment_1.docx1
Jie Peng
Jiabin Yuan
BUSI 4963: Issue of Business Strategy
Nov 18th, 2015
Prof. Conor Vibert
,
Introduction:
Philip Kerr had to deal with an issue that was a bit complex in nature. The issue being that a client shows up to meet Philip and enlighten him with a technological product that he has been working on at home. Thus, the client wasn’t in the line of manufacturing at the moment but desired to obtain the patent for his product. The issue was to understand if the product would actually work in the market and would actually perform well enough to dominate the cost of obtaining the patent. The invention along with inventor seems very unique and promising but despite the impression it needs to analyzed on how it could be worthy in the market and how much market share it can obtain.
SWOT Analysis
Strength:
The new technology seems promising and if the product does well in the market then Kerr Nadeau would secure a very promising client.
Weakness:
The client has no relevant previous experience that could justify his invention’s capability on the paper work and that could stand as a hurdle to obtain the patent.
Opportunity:
Kerr Nadeau on the success of launch of this technology can have a good branding and exposure. That would bring in more clientele based on the success of this one.
Threat:
The client is inexperienced and an individual, the product that he brings require extensive investigation and that means more time. Since payments are made on timely basis and the person being dealt with is an individual it could be a problem for the company if the client cannot afford such bills.
Decision Criteria
The decision is to be based on the cost versus benefits of the product as its primary criteria. The decision should be that could help the product achieve patent whilst keeping the cost minimized.
Alternatives
For the decision to be finalized it would be better for the firm to analyze the entire possible outcome in every aspect. The alternative should be that which benefits the firm and the client collectively. To develop an understanding of the alternative a short table would help in deciding the solution. The colors on the table mark the risks associated, red being the most risky, yellow being a fifty-fifty chance of risk and reward and green being highly recommended that minimizes the risk and maximize the profit from the proposal.
|
|
Alternative 1 |
Alternative 2 |
Alternative 3 |
|
Action |
Accept the client’s request for patent |
Refer an existing corporate client to undertake its manufacturing after patents are assigned to the client |
Help client with patent and link them to venture capitalists. |
|
Financially |
There are chances that the client might not be able to pay for the extensive time input of the company |
The initial cost of patents would still be at risk but the future financials would be promising. |
The venture capitalist would invest in the new formation of the company and that in turn will be a good future client |
|
Sustainability |
Client’s further motives are still unclear and he could probably lose the advantage of the situation due to lack of experience |
The existing corporate client would undertake the operations and that could make the power of and established company add value to the project. |
The company would be in influence of the new client and his lack of experience in business can be a going concern issue but he might deal better than expected as well. |
|
Capabilities |
The client is well equipped and is capable enough to take the technology further. |
An established to team combined with a capabilities of the new client can create synergy in the market |
The capabilities of the client are too good but his business skills are still questionable. |
Hence Alternate 2 would be more favorable considering that its suitability combined with capabilities are at minimal risk and maximum profit potential. Financially the project is fifty-fifty but in comparison to other alternative it seems a better option.
Justification for Choice
Alternate number 2 is in favor of the client as well as the firm. It secures the sustainability and capabilities of the project (David Parkinson, 2000). It can provide a good start in the market. The existing company with the help of its goodwill and foundation can accommodate an aggressive market share approach in the market therefore competitors would have tough time catching up. It is in favor of all the parties involved. The client gets his technology patent and work with the manufacturer that can benefit both the parties and on the other hand the firm merges its two clients on a project that could benefit the firm’s success in long run.
As compared to just helping the client with patent can put the sustainability of the project and financials for the firm at risk due to inexperience of the new client. However, helping client start his own company would only solve half the problem as client’s business skills still remains doubtful.
Implications for the Organization
It is a great opportunity for Kerr Nadeau to accept the new client as the success of the invention would revert back its effect to the firm that helped bring the entire project together (Newtek - The Small Business Authority, 2013). It will also be financially rewarding in terms of branding and assisting the new formation project could increase client’s financials. As the market is growing and competitions is tougher in the near five years as stated by Philip it would be in firms best interest to align itself with a rising project that could help it be outstanding in the future
References：
David Parkinson. (2000). Maintaining objective long-term relationships with clients. Retrieved from http://www.techrepublic.com/article/maintaining-objective-long-term-relationships-with-clients/ Newtek - The Small Business Authority. (2013). Tips for Building Long-Term Client Relationships. Retrieved from http://www.forbes.com/sites/thesba/2013/04/25/tips-for-building-long-term-client-relationships/
