EXECUTIVE SUMMARY

Hatch Asia (Helping Technopreneurs Change Asia) is an incubator that

provides e-commerce entrepreneurs with an education and incubation
experience that substantially reduced the attendant risk of operating
a high-tech start-up company at Internet speed. Through their unique,
founder friendly program, they had established a regional network,
combining finance technology and support, education and incubation
services to harness the abundant talent and energy of Asian
entrepreneurs in technology sector that was born in late 1990s dotcom revolution. The incorporation and development of HatchAsia was the
idea of Ramon Garcia, Jr., a young businessman and visionary who was
the vice president, marketing director of HatchAsia, and the Chief
Executive Officer (CEO) of Diversified Financial Network, Inc. (DFNN).
HatchAsia is dedicated to provide potential start-up businesses and
dot-com companies. This is an easy and convenient way to ease their
problem in starting up their own business and creating more revenues
to lead institutions. HatchAsia not only provides financial
consultation services but also gives convenient facilities that cater
their clients customers. They add value to their credibility by means
of having comfortable surroundings, credible employees, and reduce the
potential risks outside the company.
HatchAsia did not prepare for sudden outburst of the companies in
order to take part of the institution. Thus, it created more income
that the management can no longer assess the inflows and outflows of

cash. It also created liabilities to its outside and inside creditors.

Unfortunately, the management and personnel are no longer qualified
and effective to maintain the operation of the company. Compared to
other companies that also undergo a thorough identification and
qualification

STRATEGIC ALTERNATIVES FOR SOLVING RPOBLEMS

A. MERGING WITH POTENTIAL COMPANIES
BENEFITS OF ALTERNATIVE 1
IMPROVED PROFITABILITY

COSTS OF ALTERNATIVE 1
DOWNSIZING

Merging can give the company the

Some potential employees may

ability to acquire more resources

undergo thorough evaluation and be

and further raise its funds and

terminated by the other merged

opportunities to perform

company.

activities or conduct events in

order to increase its sales.

INCREASE IN OPERATING EXPENSES

Service pricing may be
significantly affected because
merging may also entail a lot of
expenses.

When two firms merge, their debt and equity are also combined, and the
resulting corporation may have a very different debt-to-equity ratio
than either of the original companies. A company with low debt-toequity ratio may target a business with a high ratio as a means of
better balancing it finances. Ideally, merging can provide sufficient
resources to cover up the companys daily dues and can have an
advantage for expansion to further pursue more income generating
businesses.

B. INCREASE SALES THROUGH DIVERSIFICATION AND INTEGRATION

Diversification is a corporate strategy to enter into a new market or

industry which the business is not currently in, while also creating a
new product for the new market. While integration helps elaborate more
to other institution of the purpose and usefulness of the business.
HatchAsia could deliberately offer its services to respectable
institutions like academic institutions, economic development
organizations and the likes such as shared support services, access to
copier and professional services, including business and legal
planning, accounting and marketing support. Provide IT-based
solutions, innovation forums, fields for strategy visioning, research
and development, and marketing initiatives and fundraising events.
BENEFITS OF ALTERNATIVE 2
INCREASE MARKET SHARES

COSTS OF ALTERNATIVE 2
The greater the number of business

As the company acquires more

activities, the more difficult is

resource resource, it gains the

the total management task

capability to pay its debts and

The risk of maintaining the

more investors would be encouraged

management in dealing with

to invest.

its operations.

GAINING COMPETITIVE ADVANTAGE AND

DIFFERENTATION
The company may have an edge and
an extra hedge in terms of
finances and differentiation to
new possible ideas and
investments.

C. BUSINESS EXPANSION TO POTENTIAL MARKETS