Micro Solutions (MS) is a privately owned highly technology company established in 2012 by a computer engineer, Steven Luka. It is situated in the country of Najialand, a prosperous developed nation with a stable well established political system. Successive government in Naijaland have promoted technology by providing grants and tax incentives. Tax credits are also provided to offset company investment in Research and Development (R&D). The government, like many governments Worldwide, have invested heavily in a national telecommunications infrastructure. However, in 2014, the company suffered an economic downturn that led many companies to postpone technological investment. By 2014, MS had employed 75 full-time staff in a new multi-purpose factory. These employees included technically qualified engineers, working in R&D, factory staff, manufacturing and assembling products, and a small sales and service support team. Product area In 2014, MS had three distinct productive/service areas data communication components, network management systems and technical support. MS sells data communication components to Original Equipment Manufacturers (OEMs), who use these components in their hardware. Both the OEMs and their customers are predominantly large international companies. MS has established a good reputation for the quality and performance of its components, which are competitively priced. However, MS has less than 1% of the domestic market and faces competition from over twenty significant suppliers, most of who also compete internationally. Furthermore, one of the companys OEM customers accounts for 40% of its sales. The international market for data communication components had increased from N3.3 trillion in 2001 to N8.1 trillion 2014. Forecasts 2015 and beyond predict growth from increased sales to currently installed networks rather than from installation of new networks. The maturity of the technology means that product lifecycles are becoming shorter. Success comes from producing high volumeof reliable components at relatively low prices. MS produces components in a relativelyprosperous country where there is a significant legislation defining maximum work hours and minimumwage rates. All new components have to be approved by an appropriate government approval body in each country that MS supplies. This approval process is both costly and time consuming. The second product area is network management systems. MS originally suppled fault detection systems to a small number of large end-user such as banks, public utility providers and global manufacturers. MS recognized the unique requirements of each customer and so it customized its products to meet specific needs and requirements. They pioneered a modular design which allowed customers adapt standard system modules to fit their exact networking requirements. The success of its products led to it being honoured with a prestigious government technologyaward for technological innovation in data communications. This further enhanced the companys reputation and enabled it to become a successful niche player in a relatively low volume market with gross margins in excess of 40%. They only have two or three competitors in this specialist market. Unlike component manufacture, there is no requirement to seek government approval for new network products. Finally, the complexity of MS products means that technical support is a third key business area. It has an excellent reputation for this support. However, it is increasingly difficult and costly to maintain the required level of support because the company does not have a geographically distributed network of support engineers. All technical support is provided from its headquarters. This contrasts with the national and international support services of its large competitors. Current issues MS currently manufactures 40% of the components used in its products. The rest of the components, including semiconductors and microprocessors, are brought in from a few selected global suppliers. Serious production problems have resulted from periodic component shortages, creating significant delays in manufacturing, assembling and customer deliveries. MS is still a relatively young organization. There are small functional departments for sales and marketing, technical R&D, manufacturing and procurement. Steven Luka still personally undertakes all staff recruitment and staff development. He is finding the recruitment of high calibre staff a problem. MS small size and geographical location make it difficult to attract the key personnel necessary for future growth.

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