1. Scientific Atlanta Inc.
Manufacturer of Electronic Equipment
Decision on Adding a New Product by Acquisition
Bishnu Kumar 11EX-013
Davinder Singh 11EX-015
Prateek Wadhwa 11EX-040
Rajat Goel 11EX-043

2. Scientific Atlanta Inc. – History
1951 - Founded by six professors in Georgia Institute of
Technology
1960 - Earned a place in the space and defence industries as
a manufacturer of electronic testing equipment for
antennae
1971 - New President Sidney Topol sets out to double the size
of company by implementing a long term plan
• Reduce or sell off operations in which company was
losing money
• New opportunities with large growth potential and few
barriers to entry
• Aggressive R&D
• Strong marketing effort

3. Scientific Atlanta Inc. – History
1978 –
• Sales reached $94.2 Million with earnings of $5 Million
• Opened new facilities in Alabama, New Jersey &
Scotland
• Acquired Adar Associates, a company based in
Burlington, Massachusetts
1980 - Became world’s largest supplier of earth stations.
1986 –
• Begins retooling, refocusing and restructuring
• Sold 7 of its 25 business ventures including home
satellite business and coaxial cable subsidiary
• Resulted in $9.2 Million loss

4. Scientific Atlanta Inc. – History
1993 – McDonald became CEO, oversee large investment in
Cable Industry
1997 – Company started focusing on CATV, sold off several
units including its venerable microwave.
2000 –
• Sold satellite networking division to ViaSat for $75
Million
• Consolidated Mfg. and Admin functions across
company divisions
• Expand production & signed several international
deals
2001 – Orders dropped, share price declined half, lay-offs
began
2005 – Purchased by Cisco Systems

5. Scientific Atlanta Business
- Spencer Kennedy wanted to sell its amplifier due to lack of
business caused by FCC freeze on new cable system
construction.
- Scientific Atlanta felt purchasing the amplifiers would promise
• expanded role CATV industry
• makeup for lost business from decrease in military market
- Scientific Atlanta developed products like Electronic instruments
capable of automatically measuring and recording signal patterns
transmitted from high frequency antennas, earth terminals ,
surveillance receivers and manual and slaved satellites and
missile tracking systems
- For CATV industry, manufactured
• a microwave relay system
• full line head-end equipment

6. FCC Freeze
• Prohibited further expansion in top 100 television market.
• Cable TV systems were initiated in local areas where Television
reception was poor or non existent.
• As long as CATV was limited to areas that could not otherwise get
good TV signal broadcasters and FCC were happy.
• With the proliferation of cable systems expansion pressure
increased where 87% of the television sets were located.
• Due to this cable operators had to provide something new to
differentiate their service.
• News and weather reports
• Stock Market tickertape
• Time & temperature report
• Channel from distant metropolitan areas.

7. Channel from distant metropolitan areas
• Broadcasters and FCC expressed concerns.
• FCC decided-
• CATV industry to be regulated
• Agency adopted rules that prohibited further expansion in
top 100 television market
• Remote areas still open for continued development
• If FCC permitted cable into the cities-
• required new technology
• Additional electronics in the houses

8. Should Scientific-Atlanta Inc have purchased the new two-
way amplifier from Spencer Kennedy Laboratories?
Justify your opinion.
Yes –
• The company would become a full-line supplier
• It would mean competing with companies that were formerly
customers
• Being a full-line supplier would mean increase in number of
orders tending to restrict the potential customers to cable system
operators.
No –
• FCC Freeze so no expansion in the current television market.
• Overestimation of sales figures.
• Additional electronic equipment is required at home for the setup
of the two way amplifier which will involve cost for household.
• Acceptability of digital control center for a two way system.

9. What are the dangers of being overly dependent on one
customer, such as the Federal Government? Are there
any advantages?
-Dangers
• Any strategic change such as business line, product
innovation in “customer company” will affect the sales
• Direct Dependence on customer’s sales
-Advantages
• Can become the full line supplier for the company
• Can use the company as testimonial to acquire another
customers
• Brand loyalty will bring word of mouth publicity and
referrals to bring new customer

10. Thank You !!!