Case Analysis Of International Satellite Images
I-Current Situation:
A. Current performance
International Satellite Images (ISI) is one of the three United States companies approved by the government to build and launch an imagery satellite system. ISI is building a satellite to image the world at a resolution of one meter. The resolution allows a trained photo interpreter to identify images that include both military objects and non-military objects. The whole operation is financed by investors or venture capitalist, which relied on contracts before acquisition to guarantee the profitability of their investment. The company will be facing a postponement of one year to eighteen months, as one of its subcontractors would be unable to develop thermal stabilizer.
Jim wills the vice president …show more content…
Venture capitalist will finance the construction and ongoing operations of the program. Venture capitalist will not invest unless they see that ISI has advance contract acquisitions of 150% of the manufacturing and launching costs of the satellite which will result of contracts of 300 million dollars knowing that the cost is 200 million dollars. ISI goal is to get venture capitalist to invest in the company before the launch date. Therefor acquire advance contracts. The contracts should target at least 150% of the cost of building and launching the actual satellite- in this case ISI has to acquire $300 million in advance contracts.
3. Strategies
ISI has to compete with the other local companies to get venture capitalist to invest in their company. Venture capitalist will finance the construction and ongoing operations of the program. ISI contracts were written like franchising licensing agreements. Which set a minimum number of images to be bought by the franchisee yearly and gave the franchisee the exclusivity of using the satellites over a given territory.
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And most of them are solved without the customer knowing, if it is a small problem the customer doesn’t have to know. However if the problem is major it is the company duty to report back to the customer. Disclosing important information from the customer can result in severe consequences including the impossibility of further deals. Nowadays, the market is a very tough place because of intense competition, everyone is fighting to dominate the market so with a bad move and acting unethically ISI should consider that even though it signed a contract with HTC and short term profit is made. That unfortunate and unethical behavior, “lying” by keeping official the same delivery date although having technical problems, long term relationships with HTC or even new customers might be jeopardized so ISI might lose potential customers and capitalist investors. But if it is the case in every of the satellites imagery company ISI won’t face any problems later, and business will take its regular course. That is why it is better for ISI to disclose the information about the new launch date and stick with the official launch date. ISI should focus on long-term orientation and plan for the future especially in satellite kind of business that why ISI should strive in the future to deliver on time in order to differentiate it self from its competitors.
VII-Implementation
ISI should focus on long-term efficiency and profitability this event
A. Current performance
International Satellite Images (ISI) is one of the three United States companies approved by the government to build and launch an imagery satellite system. ISI is building a satellite to image the world at a resolution of one meter. The resolution allows a trained photo interpreter to identify images that include both military objects and non-military objects. The whole operation is financed by investors or venture capitalist, which relied on contracts before acquisition to guarantee the profitability of their investment. The company will be facing a postponement of one year to eighteen months, as one of its subcontractors would be unable to develop thermal stabilizer.
Jim wills the vice president …show more content…
Venture capitalist will finance the construction and ongoing operations of the program. Venture capitalist will not invest unless they see that ISI has advance contract acquisitions of 150% of the manufacturing and launching costs of the satellite which will result of contracts of 300 million dollars knowing that the cost is 200 million dollars. ISI goal is to get venture capitalist to invest in the company before the launch date. Therefor acquire advance contracts. The contracts should target at least 150% of the cost of building and launching the actual satellite- in this case ISI has to acquire $300 million in advance contracts.
3. Strategies
ISI has to compete with the other local companies to get venture capitalist to invest in their company. Venture capitalist will finance the construction and ongoing operations of the program. ISI contracts were written like franchising licensing agreements. Which set a minimum number of images to be bought by the franchisee yearly and gave the franchisee the exclusivity of using the satellites over a given territory.
4. …show more content…
And most of them are solved without the customer knowing, if it is a small problem the customer doesn’t have to know. However if the problem is major it is the company duty to report back to the customer. Disclosing important information from the customer can result in severe consequences including the impossibility of further deals. Nowadays, the market is a very tough place because of intense competition, everyone is fighting to dominate the market so with a bad move and acting unethically ISI should consider that even though it signed a contract with HTC and short term profit is made. That unfortunate and unethical behavior, “lying” by keeping official the same delivery date although having technical problems, long term relationships with HTC or even new customers might be jeopardized so ISI might lose potential customers and capitalist investors. But if it is the case in every of the satellites imagery company ISI won’t face any problems later, and business will take its regular course. That is why it is better for ISI to disclose the information about the new launch date and stick with the official launch date. ISI should focus on long-term orientation and plan for the future especially in satellite kind of business that why ISI should strive in the future to deliver on time in order to differentiate it self from its competitors.
VII-Implementation
ISI should focus on long-term efficiency and profitability this event