This is very similar to the Harley Davidson case.

You need to address all the issues on the rubric and

answer the following four questions. You need to submit your assignment to dropbox and bring the
printout to class. Let me know if you have questions.

Describe environmental conditions that influenced Atuls decision to

entertain TA Associates unsolicited investment proposal.

How will the partnership change TEOCOs business?

Since it was established, TEOCO grew at a very high rate due to the gap in the market
and the services Atuls company, TEOCO was offering. One of the reasons why Atul always
avoided venture capital investments is because, in his opinion, it affects the culture of the
organization since the venture capital investor might have different ideas in mind or might just
have a different culture that would somehow contaminate the original culture and company
(TEOCO). Due to its growth, investors from all around the country were eyeing the company
and its lucrative potential, which is exactly why TA associates were interested in investing a
minority investment of 60 million US dollars. Even though Atul had never been interested in
outside investment, since he always thought that outside investments are very rarely in the best
interest of the company, he did, however, allow TA associates to invest in TEOCO.
A few years ago, Atul spoke about how the venture capital investment stuns the
entrepreneurs competitive edge, and that venture capital forces a company to constantly
accelerate in the forward direction, and that TEOCO was not that organization (unlike Google),
which needs to be constantly accelerated, as the venture capital wants. However, recently after
TA associates offer of investment, Atul reconsidered the rather different context that his
company was in currently, which was in a rapidly changing technologies industry where there
are always new directions to explore and the technological environment constantly shifts, which
would actually need constant acceleration. In order to stay a viable company in the industry,
TEOCO would eventually need to change gears, that is, bring in investment and constantly keep
changing with the environment and technological changes.
Moreover, until recently the company focused on cell phone carriers in the north
American region, but with expected consolidation of the said industry, TEOCO would need to
focus on international markets in order to expand, enter the operations support system
(OSS)/global business support system (BSS), and in-turn increase its profit potential. In orde to
expand, TEOCO would also need to leverage their expertise in cost, routing and revenue, it
would definitely need the help if a venture capital. Outside or international expansion would
mean that TEOCO would need to focus on much larger and much more powerful competitors.

What are the expectations of both parties?

How can the companies ensure that these expectations will be met?

Discuss TEOCOs strategy.

What challenges does the TTI acquisition pose for the company?

What suggestions do you make for Atul as he adjusts to anticipated

organizational changes and executes revisions to his strategy?

What steps can or should be made in light of the companys new

circumstances?