Science Technology Company Essay -- Science Technology Company Busines

lore Technology CompanyBill Watson of Science Technology Company (STC) should non discuss thecurrent 5-year financing plan prepared by hassle Finson, the chieffinancial officer, at the forthcoming board meeting. The industrythat STC is in has short product life cycle, rapid technologyobsolescence and fast development with increasing controversy. In fact,STCs strategy to survive the competition is to continue leadership inATE segment and to further compete in the too large scale integrated(VLSI) circuits segment by chasing market deal out and spreading high R&Dcost over large sales. However, the large sales growth seems to bemore difficult to accommodate with the newly added competition. Based onhistorical trend, level of competition, and other associate industryfigures It is suggested that a more reasonable 12.8% annual growth sound projection be used. STC is losing cash flow in both its operating and put activities therefore projections of 30% sales growth areoverly cheerf ul and unreliable.When STC began they only competed against a handful of companies, andalthough they currently hold the dominant luck of the market, thisincrease in competition could upset future revenue. Increasingcompetition in the ATE segment will inevitably induce impairment wars,which will further deplete the profit margin of the company. If pricewars were to regard place, Teradyne seems to be the reasonable winner. In fact, over the last 5 years, Teradyne has amassed a tota...