Case Study: AIRTAME Funding Decision and Strategic Management Analysis

This case study examines the funding challenges faced by AIRTAME, a company seeking capital for expansion after its initial product launch. The analysis focuses on the decision-making process of the founders, their roles, and the strategic planning required to secure investment. The company's weak strategic management model is identified as a key issue, hindering their ability to attract investors. The case explores the specific problem of convincing investors, the limitations faced, and the urgency of the situation. Alternatives, including focusing on market expansion, are considered. The study highlights the theme of collaborative problem-solving and the importance of a strong business plan in securing financial support, reflecting concepts from entrepreneurial and strategic management. The assignment includes answers to specific questions related to the case, offering insights into the company's background, financial area of interest, and the decision-making context.

Innovation 1
INNOVATION
Name
Course:
Professor’s Name
Institution
City
Date

Innovation 2
INNOVATION
A Funding Decision for AIRTAME (Case study).
Questions and Answers
1. Who is the decision maker in this case, and what is their position and responsibilities?
Answer
The decision maker in this case is the group of four people who are the founders of Airtame
Company and one graphic designer who joined the team. These are Brian, Marius, Jonas
Gyalokay, Attila Sukosd and peter. They acted as the chief managers of the company business
activities. Each one of them had a solid responsibility to help contribute in to company’s
business growth and development as listed below;
Responsibilities
Brian was the expert in the information and technology department
Jonas was the human resource, marketing and business manager of the company
Attila was the expert in software development sector
Peter was the company’s graphic designer
2. What appears to be the issue (of concern, problem, challenge, or opportunity) and its
significance for the organization?
Answer
The challenge is their weak strategic management model
Its significance to the company is that a weak strategic management model will affect the
company’s ability to growth and development as things done are not strategically organized. This
should help in knowing what is important and what should be achieved first and what to follow.
3. Why has the issue arisen and why is the decision maker involved now?
Answer
The challenge has arisen because the company is not getting the intended support from the target
investors as they are convinced that the company lacks a strategic business plan towards its
targeted development activities. At this point the decision maker is involved so that they can
come up with a relevant strategic business plan as required in order to get support from the
investors (Haleem & Jehangir, 2017).

Innovation 3
4. When does the decision maker have to decide, resolve, act or dispose of the issue? What is the
urgency to the situation?
Answer
The decision maker has to act instantly on solving the issue at hand. The urgency is severe in that
if the right decision is not made on solving the issue it might affect the company’s wellbeing.
5. Explain the situation.
Answer
Airtame Company has an issue on acquiring adequate capital for its expansion after the first
delivery of its products to their customers. The money made during the first round of crowd
campaigning is not enough as it has been used in production and distribution of the 15,000
products. The company needs more capital for its expansion and targets a group of investors but
they disappoint them by saying they lack a strategic business plan. The company’s management
has to come up with this plan in order to get funded failure to which may result to company’s
failure and the investors are the option at the moment (Alnoukari & Hanano, 2017).
6. Provide background information: eg industry, organization, products, history, competition,
financial information, and anything else of significance.
Answer
Background History
Airtame was initially founded by four people namely Marius, Brian, Jonas and Atilla. Peter who
joined the group later came in as a result of needs to having a designer to carry out designing
role. The company was strongly started from crowdfunding funds that was enhanced mainly
through the social media platforms. The company also worn the best startup award in 2014
enhancing their trust in the market. After delivering its first pack of products, the company is
searching for avenues to expand (Hrafnsdóttir, et al, 2014).
7. Explain the specific (functional) area of interest: eg marketing, finance, operations, human
resources, or integrated
Answer

Innovation 4
Finance is the specific area of interest as the company requires capital to be able to provide the
right products and in adequacy to their target market.
8. What is the specific problem or decision(s) to be made, any constraints or limitations, and the
urgency of the situation?
Answer
The specific problem is whether the plan developed will convince the investors. Limitation of the
problem is that the company might be again turned down by the investors. The situation is urgent
to help save the company’s future.
9. What alternatives in the case are open to the decision maker, include any that may or may not
be stated in the case?
Answer
An alternative not mentioned in the case is that, the company management might decide to first
work with the little they have to increasing the available market. This is important to help even
enhancing their trust with future investors on their business plan in place (Hanuláková &
Bečková, 2016).
10. How is the theme of the tutorial module/workshop reflected in the case you have read?
Answer
The theme of workshop is enhanced in cases where the founders are seen working together to
help acquire means of company’s development through gaining financial support as they develop
and enhance crowd funding model. Looking for investors as they also give opinions on how they
can acquire financial support for company’s growth.

Innovation 5
References
Alnoukari, M, & Hanano, A 2017, 'Integration of business intelligence with corporate strategic
management', Journal Of Intelligence Studies In Business, 7, 2, pp. 5-16, Business
Source Complete, EBSCOhost, viewed 29 September 2017.
Haleem, F, & Jehangir, M 2017, 'Strategic Management Practices by Morrison PLC, UK.
Analysis, Lessons and Implications', Middle East Journal of Business, 12, 3, pp. 3-9,
Business Source Complete, EBSCOhost, viewed 29 September 2017.
Hanuláková, E, & Bečková, I 2016, 'Marketing as a Part of Strategic Management of Consulting
Companies', Studia Commercialia Bratislavensia, 9, 35, pp. 266-277, Business Source
Complete, EBSCOhost, viewed 29 September 2017.
Hrafnsdóttir, L., Nielsen, N. Z., Zhang, Y., & Hulsink, W. (2014). AirTame: Reward-based
Crowdfunding. Rotterdam, Netherlands: Rotterdam School of Management, Erasmus
University.