Welcome Aboard the U'S'S' ABB in Space

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Welcome Aboard the U.S.S. ABB in Space
Starring
BOLDLY GOING WHERE NO GROUP HAS GONE BEFORE
Adrian
Gina
Stephen
Nate
Scharee
Jim
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History Executive Summary

• Changed name from Covol
• Headquartered in Utah
• Alternative Fuel Technology Producer

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BriefingStrengths and Core Competencies

• Patented Technology
• Licensing Capabilities
• Organizational structure and culture

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Key Issue 1 Technological Changes

• Competitors Advancing at Quick Pace
• Any Technology is Short-lived
• RD Costs Are Rising
• Down Experience Curve
• Technology is Core Competency

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Key Issue 2 Tax Credit Implications

• IRC SEC.29 (26 Tax Credit Per Ton To Alternative
  Fuel Facilities
• Forces Analysis
• Buyers (Indirect / Direct)
• Competitors Krystal Bond Inc., KFX Inc.,
  StarTec Inc
• Substitutes Coal and Oil Producers
• New Entrants

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Key Issue 3 Age and Maturity of Company

• Headwaters is lacking in
• Experience Curve Effects
• Name Recognition
• Strong Relationships With Other Alt Fuel Companies

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Recommendation 1 (Key Issues Technology and
Size) Pursue Active Acquisition Strategy

• Why?
• Differentiate into related Alt Fuel Technology
• Grow in Brand Recognition and awareness
• Capitalize from Acquisitions Learning Curve
  Benefit From Economies of Scope

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• Problems With The Plan
• Cultural Clash and Organizational Politics
• Increase in Bureaucratic Costs
• Slow Moving Less Adaptive

• Strategic Steps to Hedge against Problems
• 1 (one) Acquisition Per Year
• Annual Planning Conference
• Acquisitions will maintain autonomous Condition

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Recommendation 2 - Lobbying

• Key Issue Tax Credit
• Congressman Hansen
• Sen. Hatch
• Utah Delegation

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Thanks!