Tuesday 20th March 2012

Stefan Chiu, Chang Song, Kai Kang, Tian Lu and Cindy Liu

Alan Bates Products Ltd.

Suitability, Acceptability & Feasibility Analysis of the four strategic plans

Strategy 1: Acquire a software company

Strategy 2: New satellite receiver technology

Strategy 3: Design a heart monitor

Strategy 4: Target the European market

Conclusion and recommendation

Outline

Alan Bates Products Ltd.

Acquire a software company

Existing resources and competenciesHigher margins£2.5 million

Give up ¼ of equity

Strategy 1

Alan Bates Products Ltd.

Develop new satellite receiver technology

Global potentialResearch and development£1 million

Resistance to change

Strategy 2

Alan Bates Products Ltd.

Design a smaller and more effective heart monitor

Expertise

Market shiftTechnological risks£5 millionLack of experience

Strategy 3

Alan Bates Products Ltd.

Sell the existing tablet computer to the European market

Low cost knowledgeBrand awareness

Interest rate risksCostly - £3 million

Strategy 4

Alan Bates Products Ltd.

Suitability Acceptability Feasibility

Strategy 1 Capitalise on current strengths Higher margins Existing resources

Strategy 2 Potential venture Positive NPV Highly affordable

Strategy 3 Unforeseeable market Technological risks Costly

Strategy 4 Brand awareness Interest rate risks Costly

Conclusion

Alan Bates Products Ltd.

Suitability Acceptability Feasibility

Strategy 1* Capitalise on current strengths Higher margins Existing resources

Strategy 2 Potential venture Positive NPV Highly affordable

Strategy 3 Unforeseeable market Technological risks Costly

Strategy 4 Brand awareness Interest rate risks Costly

Recommendation

*Acquire a software company for £2.5 million

Alan Bates Products Ltd.

Stefan Chiu, Chang Song, Kai Kang, Tian Lu and Cindy Liu

Alan Bates Products Ltd.