How would you evaluate the performance of ATH Micro-Technology during the growth

period?

During the growth period, ATH's goal was to acquire as much market share as possible through
its aggressive product development and marketing strategy. While senior managers of ATH were
preparing for such a strategic move, they were not yet prepared to do this in a successful way.
Senior managers are too focused on gaining market share by aggressively pushing their goods
that they have overlooked other considerations such as the executive incentive program that
was not aligned with individual performance. The bonus system was more likely to be biased by
senior management priorities which resulted in decreased productivity of the worker. ATH has
not carried out the technology rate required to be competitive. Throughout Europe, a new
successful product will dilute the market shares. The R&D expenses incurred throughout the
production of the brand were overhead that took a significant amount of income in 2011 and
2012. The aims of ATH were to increase sales and profits, but the price of production was totally
ignored. Following a large rise in revenue, the company was unable to turn the business windfall
into a profit or a contribution margin that was breakeven.

What is the strategy of the business?

Throughout their growth phase, ATH's approach is similar to most new businesses. The
emphasis was on gaining market share, investing large amounts of capital on advertising on
marketing, sales and improving material. ATH's senior management claimed that gaining
greater market share and customer awareness while increasing volume would be more essential
for long-term success irrespective of how much money was spent on meeting sales volume.
Their entire plan was to produce a huge volume of sales in a short period of time.

How should performance be measured and analyzed? Which additional measures would you
use to implement the strategy? What are the characteristics of a good measure?

Performance assessment is a strategic tool for controlling the performance of operations-related

actions. A quality measurement system should be a necessary tool in any management's hand
to provide timely information. It's a system that can have a significant impact on activities.
There are a wide range of ways to measure performance. The most important first move is to
decide what to measure in the evaluation of results. The aim is to measure factors linked to
specific components that propel a particular business performance in a particular sector.

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 A growing business needs financial quality assessment. While assessing productivity, the specific
financial metrics of net profit margin, return on equity, operating margin, and gross profit
margin may all be applicable to business success. Informal conferences and regular reviews are
a realistic way of monitoring the success of people. Regular staff meetings can be helpful in
maintaining a consistent message throughout the organization. Employee quality can be
calculated by measuring each employee's revenue, contribution percentage from each
employee, and profit volume per employee. Benchmarking is a tool that lets you better
understand your industry in terms of market quality correlations when comparing your success
in the same environment against another rival. It is also possible to perform internal
benchmarking by having a specific focus area that would be important for business success.

A strategic plan includes a blueprint for companies – achievable performance goals and clear
strategic objectives, providing value to consumers and other investors while being successful.
However, if there is no proper implantation plan then you can't be sure of the desirable level of
performance. Implementation is also a mechanism that converts plans and strategies into
actions to achieve desired strategic goals and goals. Another possible measure would be a
transparent profit plan with an understandable agreement regarding expectations.

If you were president of ATH Technologies, what would you do to focus the attention and
efforts of your employees?

Maintain a simple and clear communication. Stay focused on the clear goals critical to holding
the interest of the worker. Be transparent about what distracts worker attention and distracts
them from their assigned targets and administrators can be pragmatic about how to push their
team away from it. Create a system that uses scarce resources effectively, especially human
resources. To create opportunities that inspire workers to achieve their goals, implement
performance incentives. Foster a culture of collaborative cooperation for successful projects
through the sharing of ideas and appreciation for workers within the organization.

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