The Tale of Lynx Solution Harvard Case Solution & Analysis

Q1.)    Is this more a market base opportunity or a company/target-based opportunity? Why?

Lynx Solution is more like a company or target-based opportunity because it works with an idea of developing a software and then using that software for marketing in a new way and with a new idea. Milmo was a very much experienced person, who had been trying to find an idea for so long and had spend much of his life in order to identify a unique and practicable idea that could be converted into a successful business. Finally, Milmo got an idea  of inventing a new technology software for marketing, which was very first of its kind and since the technology was expected to be successful; hence, it proved to be a successful idea, which started to generate revenues after stressful time and efforts and spent on the development of this idea and software technology. Meanwhile, it was not a market-based opportunity because there had also been other business ideas in the market of technology and development, which badly failed due the inappropriate decision and policies adopted by their owners. Therefore, the uniqueness of business idea and the ability of Milmo, Doug and Pascal in the development, management and implementation of unique marketing idea through wireless technology based on the target set by the owners, which proved to be a successful opportunity.

Q2.)    How might the ownership of this business complicate this transaction?

Since, the ownership of the business was divided among three individuals from different fields of the market where Milmo and Doug each owned 37.5% and Pascal only got 25% of the equity ownership of the Lynx Solutions. Furthermore, Milmo was an entrepreneur, who wanted the business to grow and was willing to take risks by investing in new ideas; whereas, Doug was a sales and marketing person, who had been working for a venture capital firm where he had gained experience of raising money for its venture capitals. On the other hand, Pascal was an engineer with exceptional skills in developing software and this was the reason why he was selected by Milmo for the development of Lynx software. However, Pascal who was given the post of Chief Technical Officer (CTO) was doing his job of developing the software but on the other hand Doug, who was appointed as the Chief Executive Officer (CEO) was not a perfect fit for this role because he had been working as sales and marketing manager in venture capital where he was responsible for raising fund that could be invested in new business ventures but he had no experience of managing the business operations perfectly and instead of doing his job he was usually found in conflict with Pascal for not consulting him because he thought that he was not able to participate in business operations decisions because he should only be concerned with the development of software. This conflicting ownership structure put the Lynx Solution in a difficult dilemma where it was sometimes felt by the President and Chairman, Milmo that he might lose the business opportunity due the ownership complications being faced by the conflicting behavior of Doug.

Q3.)    What are the potential merits of this investment?

The idea of business was very much unique because nobody had previously thought of advertising through a wireless based technology, which could be used to target the huge market of mobile users and the products of different companies could be advertised through this wireless based technology that used a custom made software that was developed by Pascal. In addition, Pascal’s engineering skills made it a more valuable software because he developed this software with the flexibility to adopt various functions that helped Milmo in molding the software in order to incorporate different features in existing software considering the changing habits and requirements of its users. Furthermore, the entrepreneurial skills and Milmo’s ability to find competent personnel for carrying out the development of software made this opportunity more attractive and that was the reason why the venture capitalists invested in this opportunity. In addition to this, since this investment was made in the development of a unique software for advertisement in a new way that would make it a differentiated marketing product; therefore, it would be difficult for competitors to develop or copy it in a short period of time. Furthermore, the patents of this software had also been won by Milmo that gave him the exclusive rights to use this software. Moreover, the understanding among the triumvirate owners was very helpful in developing understanding between them and ..................

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