REV: JANUARY 14, 2009
ATH MicroTechnologies, Inc. (A): Making the
This case describes the development of an impressive, entrepreneurial firm in the medical technology sector. The successesвЂ”and difficultiesвЂ”of the organization are credited in large part to management's efforts to design and use formal control devices to achieve profit and performance desired goals The case can be structured in five date sections that is to be discussed in the lecture. To prepare for the initial debate, please solution the queries at the end with this case.
In 97, Dr . Charles Casper and John Ice founded ATH MicroTechnologies Inc. to develop, produce, and sell a fresh medical image resolution product. Dr . Casper (47), a radiologist, had skilled at Johns Hopkins medical school and, after a research fellowship by Harvard Medical School, joined up with a private practice in Fl. Casper specialized in the use of imaging systems pertaining to the medical practice. After some time, he had tried different procedures, such as ultrasounds and x-ray, until this individual became enthusiastic about a new technology based on mailing electronic impulses through electrodes attached to your skin and observing how these kinds of impulses changed as they had the body. Combined with John FrostвЂ”an engineer who specialized in digital imaging for medical applicationsвЂ” Casper enhanced the technology, reducing the expense and increasing its resolution. Both pioneers anticipated a substantial market possibility of their product. Relatively affordable combined with better image quality made it a really attractive alternative for applications where additional imaging devices were prohibitively expensive to use. With these kinds of expectations, they convinced a team of doctors to invest in the endeavor. The company started with $3. 6 mil in paid-in capital. Over 10 years ago, ATH MicroTechnologies received regulating approval to market its 1st productвЂ”an imaging system to work in association with minimally invasive surgical procedure. Building with this initial accomplishment and after an in depth sales and profit output over a five year period, a deal was struck with Alumni Capital Partners, a venture capital company, which decided to invest $8. 7 , 000, 000 to support the launch with the new product. The business plan awaited the introduction of new releases with increased graphic resolution and a wider range of applications to pull the company into earnings by the end of 2001. During this time period, all the funds of the organization would be invested in product development, development tooling, and marketing.
________________________________________________________________________________________________________________ Professor Robert Simons and Doctoral Prospect Antonio DГЎvila prepared the initial version on this case, " ATH Technology, Inc. (A): Making the Numbers, вЂќ HBS Number 100-016, which is being substituted by this type prepared by Mentor Robert Simons. Certain specifics have been hidden. HBS situations are created solely as the basis to get class discussion. Situations are not designed to serve as real reviews, sources of primary data, or illustrations of effective or ineffective supervision. Copyright В© 2008, 2009 President and Fellows of Harvard School. To purchase copies or request authorization to replicate materials, phone 1-800-5457685, create Harvard Organization School Submitting, Boston, MUM 02163, or perhaps go to www.hbsp.harvard.edu/educators. This distribution may not be digitized, photocopied, or reproduced, placed, or transmitted, without the authorization of Harvard Business College.
This doc is certified for use just in Tactical Cost and Profitability Managing by Doctor Bala V Balachandran coming from January 2012 to July 2012.
ATH MicroTechnologies, Inc. (A): Making the Numbers
The merchandise was launched in December 98 and gained a toehold in the marketplace. Additional managers, experts, and marketing personnel were hired. Some were given fairness positions in the...