Company room :
Melinda and Gates planned to launch its own specialised ‘Chinese Silk’ to enter the apparel industry. It has once again heated the environment of the company as people are divided over the opinion. Some want to invest in a patented technology so that fresh and new business opportunities open up. While other wants to invest in an existing market. CEO Taylor and VP of R&D Stelena are already divided over the issue of launching. If the company invests in existing technology patents will get expensive to defend and soon our company too would be in a price war with copycats. Stelena mentioned it would be tough to manage in a market where we don’t have a partner. But it is a battle one should fight. And this fight would not get restricted to the company’s walls but in new markets too, where our competitors are present and are well aware of our weaknesses. They might defeat us but what will be the cost of it? If we work efficiently and timely we can make more out of our investment. Taylor paused and stood, to leave the meeting room while confronting the fact that we can’t throw our stakeholder’s money in a flowing river just to try something new. Taylor wants Stelena to give him a more detailed report of why she thinks other ways are more opportunistic? Stelena’s character is unbiased and more deep seated.
R&D scientists Melinda and Gate were sure about the success of the ‘Chinese Silk’ even with lots of hurdles and high investment, revenues are mind-blowing . But Stelena was more focused towards commercialisation as working model on spreadsheet will not gain money. Stelena emphasised the numerous difficulties that can occur in increasing the production. Melinda is famous for good commercialisation but this product is different and is a new market. Taylor admitted if we see our investment in environmental regulation and in land, equipment and then we see our present earning, we will see yourself at loss. But if we set aside profit there is a great opportunity with this product. Like its quality, heat resistant and long lasting fiber.
G: K challengers want to take a considerable amount of stake in this product and there is no reason to block them. But announcing Melinda & Gates dividend policy in public can make them back off. This way we can also generate huge customers and we can also step in joint ventures. But presenting this idea in front of powerful people of Melinda and Gates requires strong analysed data. Stalena can present her usual unbiased side to head executive and actions that can be taken. But people who are required to advertise ‘silk clothes’ are still not ready. Plus this can damage her relationship with her boss at organisation and limit her future options. Also there is no surety that the executive team will accept her idea.
As a key thinker and chief officer at Melinda and Gates, Stelena should write key reasons highlighting why the company should not enter into acquisition and try for a test market. It might lead the company towards a successful launch. She doesn’t need to be harsh wIth words and can use polite words in a persuasive manner. Her boss agrees with her or not is their choice but she must do her best. Even everyone has their own views but indirectly everyone’s goal is for the company’s betterment. As a chief officer Stelena has a responsibility to take care of the head’s views as well as the company’s monetary status. Her goal should be value creation. Two aspects she needs to take care off are:
- Keeping the company ‘s financial situation intact.
- Keeping her powerful colleagues informative without making them unhappy, acknowledging her reputation in future.
But so far she is not completely ready as she is still unclear about people’s views outside the company. Commercialisation process is still on spreadsheet and her advertisement team is still not ready. Her team needs to check out what challenges ‘Chinese Silk’ will face in the market, who are their competitors. In today’s world information is free and allies companies are already changing their strategy every next day. Also Stelena needs to be ready for a potential takeover with good strategy so that she can court stakeholders and leading people of the company.