Alcor Ventures is planning to become airport developers that will provide development and management services for several government-owned airports in Eastern European. The focus of the case is to answer the following questions:
Is there a global market opportunity demand for this service?
What are the strategic issues facing this type of business?
What alliances would ensure the greatest chance for success?
What is the most effective method of financing the venture?
What are your recommendations for the company: go it alone, merge, or be acquired?
This case was prepared by (Team Leader) Aretin Altmann, Cristina Ghets and Jeremiah Stoldt
Background: This proposed venture would provide development and management services for several government-owned airports in Eastern European. The rationale for this corporation is the high demand for modern and technological advanced airports in these countries after the recent destabilizing effects of the fall of communism and the need to compete in a capitalistic world economy. Lack of resources within these countries to make the necessary improvements is curtailing infrastructure development. Therein lies a prime opportunity for privatization. Governments, easier to offload the development and management of their public services, provide a vehicle for enterprising developers to realize substantial returns in a contract with an eager government in countries at the low point of their potential for development.