Introduction
About This Site
About The Textbook
About The Authors
McGraw-Hill Book Website
 
Book Contents
Table of Contents
I
 Opportunity and Strategy
II
 Creating New Ventures
III
 Functional Development
IV
 Growth and Financing
  Business Plans (App. A)
  Case Studies (App. B)
Online Sources (App. C)
 
Sample Syllabus
Course Overview
Calendar of Sessions
I
 Entrepreneurial Perspective
II
 Idea or Opportunity
III
 Gathering Resources
IV
 Managing Ventures
V
 Entrepreneurship and You
 
Additional Resources
Courses Using This Textbook
 


Synopsis

This case is centered around the 'growing pains' that a rapidly growing company faces. RADCO Electronics grew out of the successful commercialization of a simple method for probing agricultural fields with inexpensive chemical sensors. Expanding to different industries, the rapidly expanding company is challenged with organizational, political and strategical issues. The company is outgrowing its centralized management and organizational hierarchy and is considering the restructuring of its upper management and budgeting procedures. Questions arise in how customers are billed and which departments are actually bringing in revenue.

When should this case be discussed?

RADCO Electronics is a good case study to jumpstart discussion on organizational dynamics as well as strategy challenges that a startup faces as it grows up. This case will enrich concepts learned in Sections II and III of the text.

Relevant chapters and questions

Ch 10: Legal Formation and Intellectual Property
Ch 11: The Marketing and Sales Plan (11.9)
Ch 12: The New Enterprise Organization

1. What are the intellectual property issues that RADCO Electronics faces? What are the advantages and disadvantages of keeping their software algorithms a trade secret rather than patenting the idea? Given that they do not have the patent to the sensors, how can they better approach the sensors issues?

2. What are the major flaws in the current organizational design and what are the effects on RADCO? What can be done to improve the organizational and management structure? What should be done about Poulos and Sells, if anything?

3. Given that Moore's 'Crossing the Chasm' model suggests that a company should 'put all its eggs in one basket' and secure a vertical before branching out to other industries, can you gage how well RADCO is doing? " Analyze Exhibit 3. Do you agree with ExCom's centralized budget or Braun's decentralized budget? What are the advantages and disadvantages of each? Consider the effects beyond the financial context.




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