DataNaut Incorporated

Abstract

This case was written for the 8th annual Kogod School of Business Case Competition at American University. It discusses a small, locally run company that faced several strategic decisions at the end of 1999: marketing its new high-tech products, securing sufficient venture capital financing, and creating a profit-sharing plan for current and future employees. The case involves an actual corporation (although some of the employee names have been changed) and the issues that confronted the management team at the end of 1999. The case includes a complete description of the companys products, a glossary of terms, a list of Web sites summarizing existing radio market research, detailed operating expenses and pro-forma financial statements (numbers have been altered for confidentiality). This case combines new technology development, HR decisions, marketing and finance, which makes it a true cross-disciplinary case that can be used in several different courses. At the end of 1999, a small software development company located on the outskirts of Washington, D.C. is faced with several strategic decisions regarding the marketing and financing of its high-tech products. The principals of the company must decide the type and dollar amount of financing they will try to secure, which of their two products should be the focus of their marketing efforts and how they should structure an equitable compensation plan for their existing and future employees. Cash flow has been an ongoing problem for this small company, which began as a one-person technical consulting company and has grown into a consulting and product development company with several full and part-time employees. While consulting has traditionally paid the bills, the CEO is interested in becoming a part of the Internet Revolution with the development of multimedia streaming applications.