Blue River Technology Case Study Solution
One of the major financing alternatives for the company is the Khosla Ventures (KV). Another finanicing alternative for the busimess could be the acquisition of debt. Heraud could also consider to raise the required fujds by issuing stocks in the market. However, the most desirable financing altermative as considered by Heraud is the acquisition of funds through KV. Although, KV has set up various conditions that must be fulfilled to acquire the desired funds, but, the partnership with KV could bring numerous considerations for the nascent organization. KV along with its global market reputation could build the image of the nascent business in the market and could attract new potential investors in future. Moreover, KV could assist the new business in its all other startegic decisions including human resource management, operational managemnt etc. Through the investemnt of KV in the new business, Heraud could strech its business towards potential global markets i. e. The US organic markets. Overall, in order to raise the required funds for teh implementation of new business, Heraud must consider a financing option, and KV with its technical expertise along with the strong international reputation could bring various considerations along with the funds.
In order to achieve success in the automated agriculture business, Heraud must decide the right time to enter in the row crop and the organic US markets. It first should start from providing Lettuce thinning services as the lettuce is an all season crop with the highest revenue per acre as compared to other crops. Moreover, due to the concentrated plantation of lettuce towards Salinas Valley, it could be easy to target most of the potebtial Lettuce farmers in the US. Therefore, Heraud should start with the row crop markets, and then it should utilize the excess funds and profits to kove towards the organic crop markets in the US.
Recommendations
On the basis of above analysis, Heraud is recommended to consider the service business model and accept the proposal of KV for raising the required funds. As service business could provide even revenues with 75% of gross margin, along with a risk diversification through offering normal and deluxe services. Moreover, KV with its technical expertise along with the strong international reputation could bring various considerations along with the funds.
Implementation Plan
In order to efficiently implement the business plan, Hearuld could consider various financing alternatives i.e. to raise the required funds for developing the machines and for o the initial expenses. It a hould hire a team of certain technical and business expertise that could assisst various business operations. After the development of the required equipment along with the required team, Heraud should go for marketing the business through equipment providers and retailers. After that it should make a consumer base with targetting most of the Califinian Lettuce farmers. After the intial impelmentation of the business it must keep on evaluating the performance of the busienss model on the basis of certain metrics including; the time consumed by automated thining process, the quality of Lettuce cultivation provided and the crop yield per acre…….
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