Applied Research Technologies, Inc.: Global Innovation’s Challenges
Reflection Paper
Professor: Mane BeglaryanGroup 5
Anna Hayrapetyan Jemma Karapetyan Lida Arshakyan Karen Martirosyan Sevak Davoodian
Yerevan 2013
Contents
Problem Identification………………………………………………………………………...3
Industry, Competitive and Environmental Assessment……………………………………….3
Quantitative Analysis………………………………………………………………………….4
Subjective Analysis……………………………………………………………………………5
SWOT-analysis………………………………………………………………………....5
Alternatives…………………………………………………………………………………….6
Recommendations……………………………………………………………………………...7
Defense of Position……………………………………………………………………………..7
Exhibits…………………………………………………………………………………………9
Problem Identification
Applied Research Technologies, Inc. was one of the giant technology companies in the world grown through the merger and acquisition. It consisted of nearly 60 profitable business units generating $11 billion revenue in 2006. The Filtration Unit was part of the business ART acquired from an oil and gas services company in 1996. Its core product line was in mobile water treatment that allowed oil and gas exploration companies to meet government water recycling requirements at well heads and drilling sites. Unfortunately, the Unit had faced two failures developing its mini oxidation systems. By 2006 it was losing around $6 million annually putting the credibility of the Unit on the line. The first launch of the new generation product was aimed to provide safe drinking water to developing nations. However, this attempt faced a failure because water had a detectable odor.The second generation product was aimed at a potential market of military use and NGO disaster relief activities. Though the new product fixed the odor