I.

Time Context: 2001

II. Viewpoint: Mr. Ramon C. Garcia, Jr. - VICE President and the Marketing Director of
HatchAsia.com

III. Major Policy Statement:

HatchAsia is a business incubator for Asian high-technology businesses, known
to nurse promising e-commerce businesses into fruition, at which point the incubator
becomes a part-owner of the business and intends to be one of the leading incubator
business not just locally but globally as well in the next 10-20 years.

IV. Current Operational Plans

Management:

The

core

mission

of

the

firm

is

helping

aspiring

technopreneurs.
Started an educational initiative and become a service
facilities provider as a reformulation of their business strategy.
Established tie-ups with educational institutions.
Marketing:

Provides services such as education and corporate training,

management consultancy, office facilities and services,
human resources, access to legal services/expertise and
public relations.

Finance:

Earn revenue through rents and co-ownership through

business incubation.

Operations:

Large complex with floor area of 7000 sq. m. located in Fort

Global City
The business creates companies by coming up with a
business idea. Then the incubators help the entrepreneurs
formulate the business plan, provide office space and recruit
a top-notch management.
The 21,528 sq. ft. If its building is to be used for the startups it
hoped to nurture while the rest of 172,223 sq. ft. space was
allotted for the use of web programming firms, venture
capitalists, bankers, lawyers and educational institutions.

Human Resources:

Not stated.

V. Social Responsibility Applications:

1 HatchAsia.com will provide opportunities for rapid economic growth from the
introduction of dot-com revolution.
2 HatchAsia.com will introduce high technology to the country for more convenient
and easier way of business communication.
3 HatchAsia.com will help starting businesses to grow and reach different people
and places in just a short period of time.

VI.Statement of the Problem:

How will Hatch Asia Company survive after the dot.com crash?

VII. Statement of Objectives:

Long-Term:
1 To recover the incurred loss of the company in the next 3-5 years.
2 To be once again be a trusted incubator by promising e-commerce businesses
in the next 3-6 years.
3 To become one of the well known educational institution in the Philippines in the
next 10 years.
4

To establish risk-management after the recovery of the incurred loss.

Short-Term:
1 To continue the operation of the business.
2 To gain additional hatchlings.
3 To at least lessen the incurred loss.

VIII. SWOT Analysis

A. Strengths
1. Connections by owners that can help increase capital and promotion of the
business to get potential clients.
2. The senior management composes big people from different industries that
will make the company a very successful one.
3. The company develops a unique and founder friendly program.

4. Established a regional network, combining finance technology support,

education, and incubation service.
5. The people behind the company included big names.
6. The company has a large complex with a floor area of 7,000 sq. m.
7. Incubators are typically compensated with ten to fifty percent sweat equity.
8. HatchAsia reformulated their business strategy to include offering serviceoriented functions.
9. HatchAsia developed an educational initiative to teach old economy CEOs
and their staff.
10. Established tie-ups with educational institutions and helped in integrating
management with technology.
11. HatchAsia is a well-funded business incubator for Asian high-technology
businesses.
B. Weaknesses
1. Lack of financial management.
2. HatchAsia.com didnt expect the dot-com crash coming.
3. Incurred a big amount of net loss.
4. They were not consistent with their mission.
C. Opportunities
1. The first to introduce operating a high-tech start-up company at Internet
speed.

2. The company may develop other products and services that can
accommodate the growing needs of the consumers as to learning and
innovation relating to information technology.
3. Most of the entrepreneurs were young, and lacked adequate experience in
management.
4. In the Philippines, there were only two main incubator companies.
D. Threats
1 The dotcom crash in the 1990s affected both start-up and established IT
businesses in the US and the world over.
2 Investors lost interest to take risk in investing in the company after the dotcom crash.
3 Other IT companies are being established, giving consumers choices.
4 Many aspiring startups could not avail themselves of support from an
incubator.
5 The dotcoms did not deliver, stocks plummeted and the industry was ailing.
6 A number of companies had shut down, had entered into mergers or had
been acquired by larger and stronger firms.
7 HatchAsias exit mechanism of profit through the equity in their incubation
operations was greatly affected by the crash.
8 Dotcoms ready for IPOs were nowhere to be found because of the Asian
financial crisis that hit the country in 1997.
9 Competition is increasing in the educational institutions side of the business.

IX. Alternative Courses of Action

1 Diversify into IT related and non-related IT products and services.
2 Established a risk-management.
3 Retain and market the companys current business model.
X. Analysis of Alternative Courses of Action
ACA 1
A Can

Advantages
provide support

and

assistance to the aspiring ecommerce entrepreneurs.

B On-going

sales

for

the

related products and services

to the company by not just
the

business,

but

e-commerce
also

products

having
to

be

offered.
D Provide
professions

ACA 2

development may be required.

time where dot-com revolution is

not yet familiar to everyone.

C Can give extra sales from non-

multiple

and

B Need more experts in IT at the

company

nursing

Disadvantages
A Exhaustive
research

jobs

to

other

C May incur a high cost in adding

product lines.
D Need to raise enough capital for
the plan.

Advantages
A. Better information for decision-

Disadvantages

making.
B. Better asset management and
maintenance.
C. Resources are protected.

ACA 3
Advantages
A. The company Is still one of the

Disadvantages
A. There is a chance that the

Main incubator company in the

company will still fail to recover its

Philippines.

losses.

B.

Prevents

the

company to

B.

The

company

faces

many

undergo another restructuring.

competitors like STI and AMA in

C. All workers are already familiar

terms of being an IT educational

in the new model.

specialist.

D. The

C. Marketing the company might be

new business model

shows a positive feedback.

difficult especially in this type of

E. The company will retain its

business.

clients.

D. The tenants might fail to pay rents

F. When the time comes that the

on time.

incubator
attractive

business
again

for

will

be

investors,

chance of becoming a successful

company again.
G. The investors might want to try
investing once they learn about
the new business model.
H. The number of tenants and
hatchlings might increase due to
marketing.

XI. Decision Statement

We chose the alternative course of action #3 because we believe that this will be
the best solution for the problem. ACA #1 and #2 is appealing but ACA # 1 requires
more research about what IT products and services to offer which will incur additional
expenses and may take time. We also didnt choose ACA # 2 because it doesnt solve
the problem immediately. Establishing a risk management may be implemented after
the company has already recovered from its loss. We choose ACA # 3 because it
already shows a positive feedback by bringing revenues to the company, the problem of

having many competitors on the educational side of the business can be solve by
simply marketing the institution and having tie ups.

XII. Implementation Program

Long-term:
1. Establish tie-ups with more educational institutions
2. Construct a new building for more hatchlings and tenants.
3. Monitor how effective and efficient the new vision, mission, goals, objectives and
strategies of the company.
Short-term:
1. Improve the companys mission and vision aligned with the current business
model.
2. Market the companys new business model by giving proposals to potential
clients.
3. Use their connections to gain more clients.

XIII. Proposed Operational Plans

Management:
A. Formulate the new vision, mission, goals and objectives of the company.

B. Set policies and strategies to maintain or improve internal control.

C. Plan for future expansion.
D. Consult experts.
Marketing:
A. Create a business plan to attract potential clients.
B. Distribute business proposals to aspiring startups.
C. Develop tie-up with more of educational institutions.

Finance:
A. Invest in the facilities and research and development.
B. Minimize operating costs.
Operations:
A. Continuous improvement of its services offered.
B. Increase the services offered by the company like IT products and services.
Human Resource:
A. Hire experts.
B. Provide regular trainings and seminars to the employees and top
management.
C. Set standards for hiring employees.

XIV. Other Problems and Recommendations

Other Problems
A How will they develop

Recommendations
Hire experts that may do the R&D for

system that may prevent huge

the company.

effect if dot-com will crash

again?
B How will the company gain

An intensive marketing strategies.

more potential clients even if

Free education on the benefits of the

the

products and services offered.

dot-com

crash

takes

place?
C Many aspiring startups could
not

avail

themselves

of

Offer lower service costs and other

charges.

support from an incubator.

D Other IT companies are being

Market your company better than the

established, giving consumers

competitors and offer services which

choices.

might give you a competitive edge

E Competition is increasing in
the

educational

institutions

side of the business.

over the competitors.

Market your newly
educational

established

institution

and

established more tie-ups with other

educational

institution

to

help

promote your service.

XV. Management Lessons from the Study

A The importance of a more focused and strict detailed business planning,
especially, in the management area.
B The importance of a financial strategy.