Biosonics Incorporated Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Introduction

Biosonics Incorporated is involved in the business of measuring manufacturing and selling measurement systems. The owners of this business are Ron Warner, Karen Miller and Ian Mitchell. In the initial years of the operation, this business incurred losses as well as the cash flow problems. However, the situation has improved over the years with the rise in sales of its existing product. Now, it has employed six full time staff. Moreover, Peter, who used to do a part-time job initially have also left it to concentrate on the business. After the first two years of losses, it has finally achieved profits of $113,297 in its third year of operation.

Problem Statement

Peter has pointed out to the new product which the company can opt to sell. It includes the redesign of the ultrasound technology to be used as an application to track the location of catheters used by doctors during surgery to correct irregular heartbeats. However, the market of this product requires a huge distribution network. The problem was the way to finance the project. However, other partners were not interested and wanted to continue with the existing product.

Peter feared that Biosonics operated in the industry where the technology changes rapidly, which could threaten the survival of the company like Biosonic because it is dependent on only one product. There, he also thought that the company could be sold off to the larger company. Amongst many alternatives, he should choose any option to improve the company’s performance.

Discussion of models

The models which are discussed here are SWOT and PEST.However, these models are the most appropriate one of the conditions of Biosonics, all of them have their benefits and drawbacks.

SWOT Model Analysis

This model discusses the strengths, weaknesses, threats and opportunities of the business, allowing it to analyze its external environment and decide about the strategy it follows. This method is not a process in itself, such as strategic planning, opportunity analysis or competitive analysis. On the other side, this is the weapon to brainstorm about the situation of the company (Nordmeyer).

Advantages

This model can easily be applied to a small company like Biosonics. It would allow Peter to determine its strengths, weaknesses, threats and opportunities. By applying the model, Peter may able to think whether it is advisable to go to venture capitalists with the idea of clinical product. Peter may identify the areas which must be addressed in a business plan to investors so that he can convince. As far as the weaknesses are concerned, he should shave a plan to counter them if he wants to be successful in convincing the investors (Nordmeyer).

This method becomes the foundation to conduct other important analysis, including strategic planning, opportunity analysis, competitive analysis etc. because it starts with the specification of the objective and identifying the internal and external environments which are favorable and unfavorable (Nordmeyer).

This analysis would inform Peter the chances of getting funds from venture capitalist for the new idea. For instance, the Biosonics operates under a significant amount of debt which itself increases the financial risk of the company. Moreover, there is uncertainty about the success of the clinical idea and Biosonics may not able to bear the negative impact of the failure of the product.

The main advantage of this model is that it does not require technical skills or special training to conduct this analysis because of its simplicity.

Biosonics Incorporated Case Solution

Disadvantages

However, there are many disadvantages of this model which Peter should consider. Firstly, it does not weigh individual strengths, weaknesses, threats and opportunities instead it just lists them down, thus making it worthless for decision making to some extent. This study forms part of the strategyas design and strategy as planned where the SWOT is considered as a formal process. Investors may be in a disadvantageous position if the Peter is not objective while collecting data for SWOT analysis and present it in a way that is favorable for Biosonics.

PEST Model

This model analysis the external environment faced by any company. It allows the company to identify political, economical, social and technological factors which can affect the business. As far as Biosonics is concerned, it is important to consider these factors, especially the technological factors that are important for the survival of the business...............

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