BUSINESS CASE

MILTON KAYNES ELECTRONICS

1. EXECUTIVE SUMMARY
Kaynes Technology India Private Ltd, Mysore, India is a leading domestic player in the
Electronics System & Design Manufacturing Services Space with Global foot print. Apart
from its mother plant and additional manufacturing facility at Mysore it has five
manufacturing plants at Bangalore, Chennai, Manesar, Parwanoo, and Selaqui. Kaynes also
has State of the Art Design and Development Centre (Kaynes Embedded Systems) at
Bangalore for Embedded Design and Engineering services to support customers from
Concept to Manufacturing. Customers looking for Pre and Post warranty Component level
Hardware Repair, Design Development, re-engineering and obsolescence management
Services and Support, Kaynes has Electronic repair, Design and Re Engineering Centers at
Mumbai. In addition to Mumbai, Kaynes has Centers at Bangalore, Delhi as well as at
Cochin for Support Services. Apart from products required for various industry segments
Kaynes undertakes conceptual design, manufacture and testing of high reliability PCBAs,
Box Build, Products and Systems Integration Services, Military Wire/Cable Harness for
Defence and Aerospace Electronics and all other segments of Industry. Kaynes Technology is
an ISO 9001/14001/18001 BVCI Certified Company making it one of the unique and leading
EMS players in the niche business of Professional Electronics with an integrated
Management System in place.

1.1. Issue

Keynes Electronics has to decide between bringing one of two projects to market. The first
product is a combination telephone and TV. The second product is an iPod clone. Either
could be used for watching 15.053 podcasts.

2. BUSINESS CASE ANALYSIS

Keynes asked student and Professor A what they thought about the products. Based on their
responses, he believes the following.
iPod clone :
0.4 chance of losing $40 million
0.6 chance of gaining $100 million

1
 Phone/TV :
0.5 chance of gaining $50 million
0.5 chance of gaining $60 million

2.1. Goals and Objectives

1. Based on those information, how much would it be worth? (please use decision tree
diagram)
2. If, Keynes Electronics hire another Professor in Marketing to find out whether the
iPod clone will be successful. He will conduct a test market using tools developed with
other OR faculty. Suppose that the test market will give perfect information on
whether or not there will be a loss. How much is this information worth to Keynes
Electronics?