Everyone Does It

...

IV. Recommendations:

My recommendation is that ISI meets in the middle as in going public about their delay. Yes they should tell the Japanese that there is a delay, but maybe not express it that its 12 to 18 months delay. Possibly stating that there is only a 6 to 8 month delay. This gives ISI time to communicate with the camera subcontractor and maybe speed up the problem. This also puts them on the same page as there competitors as in delays. This way if the Japanese look elsewhere they will see the same delays and most likely stay with ISI. Company ethics are everything, yet on the other hand there are two other competing companies in their industry that ISI can loose their clients too. In the end the companies needs to do what is ethical and still stay in business.

V. Alternative Recommendations:

A second alternative would be to contact Global Science and see if they have solved the problem for their satellite’s thermal stabilizer. From the sounds of it, Global Science is not doing so well due to the continuing delays. If they do have the thermal stabilizer problem solved, then maybe ISI could possibly buy them out. I would say that offering a trade to fix each company’s problem would be hazardous, because in the end they are ISI competition.

VI. Conclusion:

Overall there are some pretty serious decisions that need to be made. In order for ISI to survive it requires 150 percent of the project cost. Funding must be made before the satellite launches, so pre orders are a must. In order to keep it’s funding, it is important to keep the scheduled launch date. As it has been seen in it’s industry competitors, delays have lead to ongoing international contract negotiations with the company had been either staled or terminated. With this said ISI is facing a possible 12 to 18 month delay for themselves. ISI president Fred Ballard does not want to discuss the delay due to potential lost in clients. Japan has show interest in invest 10 million per year and Fred is afraid the delay will cause their contract to be delayed.

Reference

Corporate Governance Definition | Investopedia. (2003, November 19). Retrieved from http://www.investopedia.com/terms/c/corporategovernance.asp

Oppel, R. A., & Sorkin, A. R. (2001, November 28). ENRON COLLAPSES AS SUITOR CANCELS PLANS FOR MERGER. Retrieved from http://www.nytimes.com/2001/11/29/business/enron-s-collapse-the-overview-enron-collapses-as-suitor-cancels-plans-for-merger.html

Wheelen, Thomas L., J. David Hunger, Alan N. Hoffman, and Charles E. Bamford. Strategic Management and Business Policy: Globalization, Innovation, and Sustainability. N.p.: n.p., n.d. Print.