Ath Technology
Case1: ATH Technologies, Inc.:Making the Numbers
PartA:
Questions: 1. The performance goals of a business set by managers and determined by business strategy, which is refer to how a company creates value for customers and differentiate itself from competitors in the marketplace. Here, the earn-out structure focus on development of a new product, product superior to existing technologies these two are obviously the business strategy foe setting goals, and the last point is directly relate to growth in earning goals , so this structure focus on the right performance goals.
Scepter pharmaceutical should employ the skilled person in the technology area, especially the founder of ATH technology for future development or control.
2. By clearing explaining the ATH’S organization structure and goals to employees and also measure the performance of employees on each division, set the prize for employees give good ideas for innovation or who did excellent job. Also, give challenge work to appropriate employees let them fell important.
As employees want a high salary, stable work, and generous post-retirement benefits. So the performance goals for employees to focus on are the survival of the organization and liquidity, which is relate to the profit and return on earnings
Collect the information about the transactions of a business make sure the inflow of resources must exceed the outflow and set od procedures and dictate hoe and by whom information should be recorded and verified-provide checks and balances to ensure that assets are safeguarded and information collected are accurate.
3. The best financial measure is to look at the profit of the ATH, as its technology was an lower expensed, so it is important to make sure that the increase in growth does not lower the profit, . profibility is the key indicator to reflect the business success.
Part B:
Questions:
1. The ATH did bad during the growth period, it focus too much on development
PartA:
Questions: 1. The performance goals of a business set by managers and determined by business strategy, which is refer to how a company creates value for customers and differentiate itself from competitors in the marketplace. Here, the earn-out structure focus on development of a new product, product superior to existing technologies these two are obviously the business strategy foe setting goals, and the last point is directly relate to growth in earning goals , so this structure focus on the right performance goals.
Scepter pharmaceutical should employ the skilled person in the technology area, especially the founder of ATH technology for future development or control.
2. By clearing explaining the ATH’S organization structure and goals to employees and also measure the performance of employees on each division, set the prize for employees give good ideas for innovation or who did excellent job. Also, give challenge work to appropriate employees let them fell important.
As employees want a high salary, stable work, and generous post-retirement benefits. So the performance goals for employees to focus on are the survival of the organization and liquidity, which is relate to the profit and return on earnings
Collect the information about the transactions of a business make sure the inflow of resources must exceed the outflow and set od procedures and dictate hoe and by whom information should be recorded and verified-provide checks and balances to ensure that assets are safeguarded and information collected are accurate.
3. The best financial measure is to look at the profit of the ATH, as its technology was an lower expensed, so it is important to make sure that the increase in growth does not lower the profit, . profibility is the key indicator to reflect the business success.
Part B:
Questions:
1. The ATH did bad during the growth period, it focus too much on development