Case Scenario 2: Raptec

question 147

Essay

Case Scenario 2: Raptec
Raptec was incorporated in 1991 and went public on the Nasdaq Stock Market in 1996. Raptec's strategy is to become the global leader in innovative storage solutions. Raptec is an S&P 500 and a Nasdaq Stock Market 100 member. The company's hardware and software solutions for eBusiness and Internet applications move, manage, and protect critical data and digital content. 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, medium and small businesses, and consumers. Since the time it went public, Raptec has experienced rapid growth and consistently profitable operations. In early 2007, the company 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-2007 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.
-(Refer to Case Scenario 2). Why would a successful firm like Raptec spin off its most promising business?

Understand the concept and purpose of a control group in experimental studies.

Recognize the importance of random assignment in reducing preexisting differences between experimental groups.

Identify the independent and dependent variables in an experimental study.

Distinguish between different types of research methods (experimental, correlational, case study) and their applications.

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Definitions:

Proposed Solution

A suggested plan or method to solve a problem or address a specific issue.

Chlorofluorocarbons

Man-made chemical compounds used historically in air conditioning, refrigeration, and aerosol propellants, known for their damaging effects on the ozone layer.

Carbon Tetrachloride

A colorless, heavy, volatile liquid used in various industrial applications, known for its environmental and health hazards.

Halons

Compounds used in fire extinguishers that contain bromine and chlorine, known for their ozone-depleting properties.