Muhammad Asif Shaikh BD_24/2011 MBA-Evening Technology and Operations Management
Case 3 Borono-198
Introduction of case
Agro Limited was founded in 1998 by Kathy Lewis. Kathy appointed Jon Shantz as COO of Agro Limited. Kathy Lewis was a graduate student in organic chemistry in the well-known laboratory of Dr. Robert Krzyewski at a top research university in Illinois. She then obtained her Ph. D in bio-medical organic chemistry and joined prestigious university in South Texas. University funded her 50,000 for her research laboratory set up which were not very sufficient. So she tried external sources to fund. And finally a persuasion clicked in her mind to open her own company which will convert her patents to the compounds which can be mercantile and the profit can be again spend to research work. And finally she started working on it after getting approved from university administration. Jon Shantz has a business background and a friend of Kathy. He has been a business consultant. He had a good experience in managing start-up companies and developing their business plans. Agro limited deals with the special type of chemical compound named Borono-198 which is was a new fungicide in the market. Borono-198 was combination of boron and chloro group effective for biological activities.Borono-198 had tremendous results against harmful fungus in cash crops, oak trees and fluid tanks. It was available at low prices from all other fungicides from competing companies. 10,000 gallons of fluid requires only 1 gallon of Brono-198 and it will last its effect for 4 to 6 months where-as the nearest competing product Xanon-128 requires 4 gallons of it to clean the same amount of fluid. Also, Brono-198 is one fourth to the prise of Xanon-128.
Agro limited faced problem in its initial launching months of low sale of about 50 boxes per month to the forecasted sales target of 2500 boxes per month due to ineffective marketing strategy.
Agro limited was...
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