Electrochem, Inc Case Study

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was recommended by West to Radha in order to get an infusion of cash from the private equity market. Clinton was assigned to develop and prepare a business plan to raise $500,000 from the informal private equity market or business angel investors. Clinton was asking for $150,000 salary with other benefits package, Radha did not agree with that request and have to accept after West convinced her to accept it. However, Clinton did not deliver his task and was didn’t hear to Radha. At the same time, West supported Clinton by call him as “business genius”. Radha really upset with Clinton behaviour and come for decision when Clinton provide two sets of financial statement that lead to difficult to Radha determine exactly the financial resources being utilized.

Solution: This problem was carried since Clinton being part of the company. With that problem Radha must come with the decision as a solution and not allow it to happen further. For Radha to solve it, she will need more strictly when her investor playing a game. Radha must have to express her direction and avoid that killed her entrepreneurial intention as the venture free from immorality investor. Radha should terminate Clinton service and taking risks to avoid that thing in the company long run. She will ask business advice from the company lawyer on how to solve it. Then, to help rectify her dilemma, she was develops a cadre of supporters from her connection with the Massachusetts Technology Development Corporation, the Babson College Entrepreneurial Management Program, and the Small Business Association of New England. Even though, her firm was sued by the investor she should take it as a challenge. From the case study, the investor’s suit was finally resolved when Radha negotiated a prepayment allow her and can afford to settle it. As long as she can fully manage and control of the company daily to daily business operation.

4.0 EVALUATION OF ENTREPRENEURIAL OPPORTUNITY

Radha should continue to invest more in the firm and continue her husband’s journey as important players in fuel research and manufacturing.

Reason :

4.1 The fuel cell technology easier to use and low cost affordable by the customers from small to high scale. Unlike a battery, fuel cell did not require to recharge. A major advantages of using fuel cell are not involved in any hazardous materials and represent a renewable and non-polluting energy source. The fuel cell generates electricity without burning fuel because they operate on pure hydrogen, which not caused by acid rain. Therefore, the fuel cell is better in energy alternatives and makes ElectroChem have a bright future in the fuel cell industry.

4.2 After learning the hard way, Radha takes control by using her new knowledge of contract negotiations in a $1 million licensing and tech development program in 1995 where she is accepting some contracts that she knew would not be profitable, but would strengthen their brand in the industry. She also ensures that her company gets protected if in case the utility company changed the structure of the contracts later. By accepting some contracts that she knew would not be profitable, it would strengthen their brand in the industry.

4.3 The chairman and founder, George Landau was a world-renowned electrochemist who had been a professional colleague of Vinod Jalan. He admired and mentored Radha through some of ElectroChem’s difficult periods. His company products overlapped with ElectroChem and had a number of commercial customers. They both negotiated to merge their company which his company remains intact and Landau would receive 10 percent on future test station sales until selling price was reached. So the merger enables Radha to eliminate a rival and increase market share in some key portions of the test station market.

4.4 They have the potential to get government grants and contracts due to demand for fuel cell technologies and ElectroChem had an advantage in its leadership in the development of the fuel cell test stations. So it’s an opportunity for ElectroChem to get the continuation grant and support from government itself. In the case study, they did successful receive six month grant with the possibilities of contention for two years. They were able to to get and win a large contract from DOE for suitcase fuel cell units.

4.5 Prospect for fuel cell development and commercial use had become increasingly bright, especially when the shortages of oil and natural gas caused the energy prices escalated further. This situation provided opportunities for producers of alternative product such as fuel cells.

5.0 IMPLEMENTATION

Short Term Strategy

Radha will need to focus on short term strategies to be successfully in place in which she will continue her current strategies and step taken besides to remain competitive in the market and sustain ElectroChem business as well.

1. Focus on staying out of debt where possible, and using debt strategically when advantageous

Knowing that cash flow was always problematic and applications were consistently rejected despite ElectroChem profitability and revenue growth. But Radha successfully ended the relationship with angel investors and overcome the circumstances by paying back all debt her company get sued by the angel investors. She also increased profits for four consecutive years with a record $2 million in revenue for 2011. Due to that, every contract she made by the industries. She also ensures that ElectroChem was protected so the other business partner will not breach any contract that will put ElectroChem in debt later.

2. Recognizing and building organization towards becoming commercial fuel cell applications

It is stated in the case study that getting recognition and building organization for technological strengths and potential was a priority for Radha. Hence, ElectroChem began working on the commercialization of the cell and it was appropriate for PEM fuel cells, which is specifically in the small stationary market and more immediate implementation stage of commercial applications. Radha also began working on a business plan by developing competent and experienced management team to oversee business development.

3. Develop strategic alliances with distributors, vendors of electronic commerce, communications industry and nonprofit boards of education and business to raise company reputation and profiling.

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