Filter Innovations

2101 WordsJun 23, 20129 Pages
Case #1 - Filter Innovations Inc. Critical Issues 1.) How to comply with government regulations so that FII can sustain their corporate goals and vision of being an innovative leader within their industry. 2.) How to effectively brand FII with the MBR technology within the scope of their current market so that they can sustain their existing customer centric competitive advantage. 3.) FII is behind innovation due to managerial decision of only allocation 5% of EBIT towards R&D. Analysis The waste water management industry is experiencing significant growth around the world and expected to be worth $348 billion by 2010. The opportunities in North America are growing due to rising population, government regulations…show more content…
This is very important to their competitive advantage as ongoing service and support will allow them to win contracts. FII will need to hire a technology expert that already has experience in MBR systems and for this they may look to Europe because Europe is more advanced in this technological aspect. A decrease in net income had an adverse effect to R&D because 5% of EBIT is allocated towards further research and due to the decline in net income, FII’s R&D budget decreases as well. Therefore, FII is losing their innovative edge within the industry. This is evident as they are currently behind in the MBR technology. Options A.) Status Quo If FII were to go into 2009 without investing into MBR technology, they will continue to lose revenue due to the new government regulations making some of their products and services more obsolete. FII will lose even more clientele because they will not pass future regulations. Based on their decline in profit in 2008¹ and if FII’s product line were to remain the same, FII would continue to see a loss in the coming years. Dragasevich’s vision for the company is to be a leader in innovations and the company’s corporate goal is to be socially and environmentally responsible. Neither the vision or cooperate goals will be met if FII continues its current product line. B.) Investment and launching MBR products in 2009 Investing in the MBR technology would give FII the ability to serve clients with
Open Document