Monisha Perkash cofounded Lumo Bodytech during an incubation program organized by Innovation Endeavors - the venture capital firm started by Eric Schmidt - in 2011. At the time, she had barely met her cofounders and the team was expected to launch a business after six months of design thinking and prototyping efforts. The result was a start-up focused on improving posture and helping solve the common problem of back pain. As of 2018, Lumo Bodytech was still alive and thriving, but the journey had not been free of obstacles and difficult decisions for the CEO. Even before the conclusion of the incubation phase, one of the cofounders had expressed his dissatisfaction with the direction of the ideation process and threatened to quit if nothing changed. He was an accomplished software engineer who had become a friend in just a few months of work. Additionally, the equity for the new business had already been split among the four cofounders, which could further complicate any exit negotiations. Around a year later, Lumo Bodytech had successfully launched but the wearables fever was dying down and the financial needs of the young start-up became more pressing by the day. That was when Perkash was approached by a large Asian manufacturer who would be willing to invest if the company implemented a significant change in its strategy, from focusing on a single product to adopting a platform approach to its product line. It was a hard decision to face so early in their trajectory, but Perkash knew she had to make a choice. The challenges related to financing the company would knock on Perkash's door once again in mid-2014, when the company had to decide between raising venture debt or settling for a smaller round of equity financing. To make matters worse, there seemed to be a central misalignment between the cofounders and one of the board members about how to approach the issue. Finally, Perkash had also experienced a fair amount of human resources problems over the years. Some of those were a superstar engineer who had a huge ego, a former classmate who wanted new responsibilities but was underperforming and a new hire who had come from a much larger company and was not prepared for the challenges of a startup environment. Perkash saw it all.
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Case Analysis of Lumo Bodytech: A Bumpy Journey
Lumo Bodytech: A Bumpy Journey is a Harvard Business (HBR) Case Study on Innovation & Entrepreneurship , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Lumo Bodytech: A Bumpy Journey is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Lumo Bodytech: A Bumpy Journey case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Lumo Bodytech: A Bumpy Journey will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.
Case Study Solutions Background Work
Lumo Bodytech: A Bumpy Journey
case study solution
is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Innovation & Entrepreneurship, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Lumo Bodytech: A Bumpy Journey, is to not only build a competitive position of the organization but also to sustain it over a period of time.
Strategic Management Tools Used in Case Study Solution
The Lumo Bodytech: A Bumpy Journey case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.
Texas Business School Approach to Innovation & Entrepreneurship Solutions
In the Texas Business School, Lumo Bodytech: A Bumpy Journey case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.
We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Lumo Bodytech: A Bumpy Journey
Step 1 – Problem Identification of Lumo Bodytech: A Bumpy Journey - Harvard Business School Case Study
The first step to solve HBR Lumo Bodytech: A Bumpy Journey case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Perkash Bodytech is facing right now. Even though the problem statement is essentially – “Innovation & Entrepreneurship” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Perkash Bodytech, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.
Step 2 – External Environment Analysis
Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Lumo Bodytech: A Bumpy Journey.
The external environment analysis of Lumo Bodytech: A Bumpy Journey will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.
What is PESTEL Analysis? Briefly Explained
PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Lumo Bodytech: A Bumpy Journey case study. PESTEL analysis of " Lumo Bodytech: A Bumpy Journey" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.
How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?
As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Lumo Bodytech: A Bumpy Journey macro-environment and how it impacts the businesses of the firm.
How to do PESTEL Analysis for Lumo Bodytech: A Bumpy Journey
To do comprehensive PESTEL analysis of case study – Lumo Bodytech: A Bumpy Journey , we have researched numerous components under the six factors of PESTEL analysis.
Political Factors that Impact Lumo Bodytech: A Bumpy Journey
Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.
Policy Making Impact on Lumo Bodytech: A Bumpy Journey
Government policies have significant impact on the business environment of any country. The firm in “ Lumo Bodytech: A Bumpy Journey ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.
Data safety laws – The countries in which Perkash Bodytech is operating, firms are required to store customer data within the premises of the country. Perkash Bodytech needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.
Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Lumo Bodytech: A Bumpy Journey has numerous instances where the competition regulations aspects can be scrutinized.
Import restrictions on products – Before entering the new market, Perkash Bodytech in case study Lumo Bodytech: A Bumpy Journey" should look into the import restrictions that may be present in the prospective market.
Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Perkash Bodytech in case study “ Lumo Bodytech: A Bumpy Journey ” should look into these export restrictions policies.
Foreign Direct Investment Policies – Government policies favors local companies over international policies, Perkash Bodytech in case study “ Lumo Bodytech: A Bumpy Journey ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.
Taxation & Regulation Impact on Lumo Bodytech: A Bumpy Journey
Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.
Tariffs – Chekout how much tariffs the firm needs to pay in the “ Lumo Bodytech: A Bumpy Journey ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Perkash Bodytech can compete against other competitors.
Government Scheme & Subsidies Impact on Lumo Bodytech: A Bumpy Journey
Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Lumo Bodytech: A Bumpy Journey case study have to assess whether their business can benefit from such government assistance and subsidies.
Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.
Political System & Stability, and its Impact on Lumo Bodytech: A Bumpy Journey
Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.
Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.
Corruption level – Perkash Bodytech needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.
Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.
Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.
Economic Factors that Impact Lumo Bodytech: A Bumpy Journey
Social Factors that Impact Lumo Bodytech: A Bumpy Journey
Technological Factors that Impact Lumo Bodytech: A Bumpy Journey
Environmental Factors that Impact Lumo Bodytech: A Bumpy Journey
Legal Factors that Impact Lumo Bodytech: A Bumpy Journey
Step 3 – Industry Specific Analysis
What is Porter Five Forces Analysis
PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Lumo Bodytech: A Bumpy Journey case study. PESTEL analysis of " Lumo Bodytech: A Bumpy Journey" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.
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