Ath Microtechnologies

1. Does the earn-out structure focus on the right performance goals?

Not really, because the goal for it now is to develop a competitiveness, but Scepture earn- out structure focuses on growth and earning more.

2.

a. Should Scepter Phramaceutical put additional controls on this entrepreneurial firm?

Yes, they should control technique and on the investment direction of entrepreneurial.

If you were president of ATH MicroTechnologies, how would you communicate and

motivate employees to achieve profit and performance goals?

Set up an action plan with a time bound for the employees and assign a person in responsible for it and follow up the plan regularly. Give a bonus when the employees could achieve to the goal on time.

a. What are the appropriate performance goals for employees to focus on?

Sales and growth: Achieve at least 63 million sales with earnings-sales ratio of 13% by

the end of 2003 and annually increase sale of 60%.

b. Howwouldyoucommunicateandcontroleventsandemployeeactionsthatcould put business objective at risk?

Meeting with employees and explain on earn-out plan, then order them to set up priority of actions plan for the earn-out goal in order to focus on Scepture goal for sales-growth and offer a bonus and payment if they could reach the goal.

3. What are the best financial measures to assess ATH MicroTechnologies’ performance? Why?

Return on investment (ROI), because it could measure profit related to capital invest and also can compare the efficiency of a number of different investments