International Satellite Image Case Study

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I-Current Situation: A. Current performance International Satellite Images (ISI) is one of the three United States companies approved by the government to build and launch an imagery satellite system. ISI is building a satellite to image the world at a resolution of one meter. The resolution allows a trained photo interpreter to identify images that include both military objects and non-military objects. The whole operation is financed by investors or venture capitalist, which relied on contracts before acquisition to guarantee the profitability of their investment. The company will be facing a postponement of one year to eighteen months, as one of its subcontractors would be unable to develop thermal stabilizer. Jim wills the vice president of marketing and sales and Fred Ballard his boss are…show more content…
Venture capitalist will finance the construction and ongoing operations of the program. Venture capitalist will not invest unless they see that ISI has advance contract acquisitions of 150% of the manufacturing and launching costs of the satellite which will result of contracts of 300 million dollars knowing that the cost is 200 million dollars. ISI goal is to get venture capitalist to invest in the company before the launch date. Therefor acquire advance contracts. The contracts should target at least 150% of the cost of building and launching the actual satellite- in this case ISI has to acquire $300 million in advance contracts. 3. Strategies ISI has to compete with the other local companies to get venture capitalist to invest in their company. Venture capitalist will finance the construction and ongoing operations of the program. ISI contracts were written like franchising licensing agreements. Which set a minimum number of images to be bought by the franchisee yearly and gave the franchisee the exclusivity of using the satellites over a given territory. 4.

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