Case Scenario 2: Raptec

question 62

Essay

Case Scenario 2: Raptec.
Raptec operates in three principal business segments: Direct Attached Storage ("DAS"), Storage Networking Solutions ("SNS"), and Software. These hardware and software products are found in high-performance networks, servers, workstations, and desktops from the world's leading OEMs, and are sold through distribution channels to Internet service providers, enterprises, and medium and small businesses and consumers. Since the time it went public, Raptec has experienced rapid growth and consistently profitable operations. In early 2002, Raptec announced its plan to spin-off the software segment, subsequently incorporated as Axio, Inc., in the form of a fully independent and separate company. Software was Raptec's most profitable and fastest growing segment. By mid-
2002 Raptec had completed the initial public offering of approximately 15 percent of Axio's stock, and then distributed the remaining Axio stock to Raptec's stockholders in a tax-free distribution. Axio's family of products includes category leaders in CD/DVD burning, digital photography, and digital video. Axio's new management team is composed of Lex Luthor, CEO, and previously the President of New Business Development for Universal Studios Recreation Group; Karal Kool, COO, and previously General Manager of Raptec's OEM Solutions Group; and R. Elliot Maxter, CFO, and previously corporate controller for Raptec. The interim four-member board of directors is currently comprised of Raptec senior officers, but the terms of the public offering require them to step down in 2 months. Thus, Axio will need to construct a new board, which in turn will be responsible for overseeing Axio's management and their compensation.
-(Refer to Case Scenario 2). Develop arguments as to why and why not Lex Luthor should be appointed as chairperson of the new board.

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Definitions:

SWOT Analysis

A strategic planning tool that identifies and evaluates a company's Strengths, Weaknesses, Opportunities, and Threats, facilitating informed decision-making.

Perceptual Map

A visual representation used in marketing to display how consumers perceive a product or brand in comparison to its competitors on various dimensions.

Differentiated Marketing

A strategy where a company targets multiple market segments with a unique marketing strategy for each, rather than adopting a mass marketing approach.

Segmenting The Market

The method involves categorizing a wide market of current and prospective customers, both in the consumer and business spheres, into smaller segments that share common attributes.