Ath Technologies Strategic Implementation
Essay by anirudh sharma • July 14, 2019 • Case Study • 687 Words (3 Pages) • 1,621 Views
Case Analysis
of ATH Technologies
For Strategic Implementation Course at
[pic 1]
Indian Institute of Management Kozhikode
11th April 2019
Submitted by
ANIRUDH SHARMA (EPGSCM-11-008)
- Given the type of organization ATH Technologies is, should Scepter have a centralized or de-centralized control over it? How does your learning on organizational structure help you? (Not more than half length of A4 size paper- soft copy-1.5 spacing)
ATH technologies were basically run by Charles and John, which was more of a centralised approach on the business, as they were the creator/Founder and also knew the know-how of the business. With this advantage by their side, Sceptor should follow a decentralised control over ATH technologies and let Charles and John run the business as they had been doing. Further it is necessary for Scepter to impose additional control on ATH in order to determine the performance achievements upon which the earn outs are based on at least close monitoring at regular intervals of the activities and decisions of ATH’s Senior staff will enable it to track any deviations from its merger objectives.
Advantages of Autonomy:
- ATH management will be more motivated.
- Scepter is unfamiliar with the area specialized by ATH
- Gives more freedom and chance to innovate new ideas within the division without the constant supervision
- ATH can focus on ways to accomplish Scepter’s objectives without having to take stress about raising funds
Do you think it was a good decision for Scepter Pharmaceuticals Inc. a pharma and medical products company, to acquire ATH? Why? (Not more than half length of A4 size paper- soft copy- 1.5 spacing)
Yes, it was a good decision to acquire ATH technologies, which has new equipment and could facilitate market opportunity and business growth.
- Increase Market reach - with new technology and equipment, business always have an increased market reach and opportunity.
- Product Assortment this facilitates new product range with the existing lines of product and thereby help achieve monopoly in competitive market
- Innovation & Research and development ATH has invested in product development, production tooling and marketing, this will help bring out better products and this would there by help business growth
- Access to New technology- ATH is known as an innovative entrepreneurial firm and which invests on new technology and its success on the same.
2) How well and in what ways will structure of earn-out payments help Scepter to achieve its objectives? What controls will it give scepters on its managers? (Not more than half length of A4 size paper- soft copy-1.5 spacing)
...
...