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N12 Technologies Building An Organization And Building A Business

Solution Id Length Case Author Case Publisher
2065 641 Words (3 Pages) David A. Garvin, Aldo Sesia Harvard Business School : 316-002
This solution includes: A Word File A Word File

N12 is taking important measures, in order to bring the organization towards higher profitability. It has decided to scale up its capacity, and target high-end users. Furthermore, it has planned to scale up the capacity, so that in the near future it can also cater to the demand of mass segments. The approach adopted by the organization is “Build It and They Will Come”. Although it is a positive approach, the financial results do not justify such optimistic estimated revenue figures. In 2016, Total EBITDA (Earning before Interests, Taxes, Depreciation, and Amortization) is -$7.1M. However, the projected EBITDA for 2018 is $12.3M. Achieving the desired level of revenue will be a challenge for the organization. Opportunities exist in terms of the usefulness of the products for various segments; however, a more practical way of estimating the numbers should be used, in order to make sure that reliable numbers are used. 

Following questions are answered in this case study solution:

  1. Evaluation of Future Prospects

  2. Challenges in scaling up the Organization

  3. Approach towards Organization Building

  4. Relationships and Duties

Case Study Questions Answers

2. Challenges in scaling up the Organization

It planned to gradually increase its sales volume over the period of time; initially selling test materials, and then go on to meet distinctive requirements of different customer segments at a greater scale. This is a calculated approach, as it allows the company to ascertain the quality of the products. The three phases are prototyping, limited production, and full production through which the process of business development will pass. As far as scaling the technology is concerned, it was important to enhance the capacity level in the organization for the purpose of meeting the desired demand level. The organization was already making use of Gen 1 and 2 reactors, and it was time to use Gen 3 and 4 reactors.

The company successfully managed the transition from 4 to 27 employees. It was a gradual process. The company expanded horizontally at the initial level, and the number of peers working at the same level increased. Thereafter, it expanded vertically, and hierarchies were developed to supervise work.

3. Approach towards Organization Building

The organization has a diverse base of different customer segments, ranging from the consumer segment to the automotive segment. It primarily relied on the pull strategy of creating demand for its products. However, it was implemented keeping in view the nature of different segments that were targeted by the company.

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