Business, Technological, and Legal Issues the Hailstorm Team Must Consider in Crafting an Offer (Essay Sample)

Business, Technological, and Legal Issues the Hailstorm Team Must Consider in Crafting the OfferStudent's NameInstitutional AffiliationCourseProfessor's NameDate Business, Technological, and Legal Issues the Hailstorm Team Must Consider in Crafting the Offer Issue Hailstorm Inc. has decided to approach Prohibitious LLC and offer it an opportunity to market its products on one of its flagship games that rely on AI software. This deal will allow the company to advertise to the hundreds of millions of gamers who use Hailstorm's platform. Prohibitious, LLC deals with brewing products. The issue for consideration, in this case, is whether there are business, technological, and legal issues that the Hailstorm team needs to consider in crafting their offer and if the offer will be structured using the primary contractual elements, which are that it should be communicated (orally, in writing, or by conduct) to the offeree, clear and definite, and intended to create a legal relationship. Rule The general rule is that in crafting an offer, a company must be guided by business, technological, and legal issues of doing business. The business aspects to consider are the customer base, growth potential, financial strength, and the rate charged by competitors. An organization must consider its technology's customers and how the users perceive their business, brand, or identity (Yoon et al., 2023). For example, the offeror should look at the reviews they get for the online game to determine how much they will charge the offeree to advertise products on the platform. Moreover, the offeror must scrutinize the business aspect of the offeree's business growth over the past few years to establish the ability of the organization to pay a particular amount of money to be allowed to advertise its products on the offeror's gaming platform (Bai et al., 2020). Also, the offeree's cash flow- whether steady, seasonal, or sporadic- will be a key business factor to consider. Finally, the offeree's financial strength will be a key consideration, informing whether they can pay a considerable sum for the advertisement. Apart from the business factors, organizations should consider technological issues of adoption costs, capabilities, threats, usability, and interoperability. Companies should contemplate the costs and workload required to implement a new technology. For example, the expected price to compensate for the costs of developing the new technology should be put in mind (Haleem et al., 2022). Organizations must ensure that their offer to sell a new technology will cover the costs already incurred and provide the organization with profits. Additionally, since technology comes with unanticipated risks and incomes, establishing the threats will inform the most appropriate offer (Haleem et al., 2022). Also, companies should be aware of the capabilities of their technology. For instance, they should ask themselves about the business potential, application scope, and potential impact the company using the technology will realize. Moreover, usability, which refers to how effective or efficient consumers can use the technology, should be a primary consideration (Bai et al., 2020). Interoperability should be considered, including the likelihood of a new technology advancing a company's competitive advantage. The legal factors usually considered when offering proprietary AI software are intellectual property protection, data privacy and security, licensing, and regulatory compliance. Organizations should consider how they will safeguard their innovations, branding, and creative works to ensure they are not misappropriated (Rodrigues, 2020). Furthermore, intellectual property protection ensures exclusivity and prevents unauthorized use or infringement on their patent, trademark, or copyright. Additionally, it is critical to consider the legal issue of data privacy and security, considering that giving access to a platform will allow others to handle vast amounts of sensitive data (Yoon et al., 2023). Therefore, it is critical to establish whether robust data protection measures exist to ensure the maintenance of data security protocols and protect the privacy and security of the users (Rodrigues, 2020). Moreover, companies should ensure compliance with the existing licensing terms and the legal implications of using open-source software (Haleem et al., 2022). Compliance considerations are vital in the prevention of potential infringement claims. Furthermore, industry-specific regulations are essential to consider to prevent penalties or legal challenges for noncompliance. In making and structuring an offer, the contractual elements that a company must consider are whether it is clear and definite, effectively communicated to the offeree, and intended to create a legally binding relationship. Companies must make sure that the terms of the offer are clear and definite to avoid vagueness because the knowledge of the intention of the parties is essential (Bai et al., 2020). In addition, communication of the offer is vital because it shows the willingness of the parties to enter into a legally binding relationship. Communication of the offer can be written, oral, or by the conduct of the offeror (O'Sullivan, 2020). Therefore, the offeror must ensure that the offeree understands that they intend to enter into legal relations. Moreover, a valid offer must be made with the ultimate intention of creating a legal relationship. Therefore, it must be clear to the offer that they are making an offer, which, when accepted, would lead to legal obligations instead of an invitation to treat (O'Sullivan, 2020). While an offer seeks to create a legally binding relationship, an invitation to treat invites a party to negotiate or make an offer. Application Because of the rules on the technological factors and issues to consider when drafting the offer, the Hailstorm team needs to conduct a cost-benefit analysis to establish the optimal price they should include in the offer and how much Prohibitious will be willing to pay based on their income and financial strength. A cost-benefit analysis will determine the expenses of providing and maintaining the AI-based software (Yoon et al., 2023). For the offer to make business sense, the costs of providing the service to Prohibitious should be more than the benefits (Peyravi, Nekrošienė, & Lobanova, 2020). In addition, the Hailstorm team should consider its customer base in terms of the millions of gamers that use their platform across Asia, Europe, and the US. Because of the millions of users, Hailstorm should ensure that its offer will provide them with maximum value for their products based on what Prohibitious will get from advertising its brewing products to such an audience (Haleem et al., 2022). Moreover, the price offered by competitors should be considered using a competitive analysis since it is critical to make a viable offer that aligns with the industry rates. Also, Prohibitious's cash flow and financial performance should be used since the company can only pay for what it can afford and what is within its means. Due to the general rule that the offer should cover the costs of developing the technology, implementing it, and still provide profits to the offeror, Hailstorm should ensure that it considers in its offer the minimum price that will cover such costs and the potential benefits that Prohibitious will realize from accessing Hailstorm's customer base. Since technology comes with risks, Hailstorm should identify and consider such threats and ensure that the offer is well-designed to prevent the risks from becoming hazardous to the organization (Peyravi, Nekrošienė, & Lobanova, 2020). Capability, interoperability, and usability will be key considerations because it is only by understanding the value of its AI-based technology that Hailstorm will charge the right price and make the most appropriate offer to Prohibitious (Haleem et al., 2022). If the projected benefits that Prohibitious will get from advertising its brewing products on Hailstorm's gaming platform are huge, the offer should reflect such likely exploits, and it should be structured to ensure maximum value for Hailstorm's investment in the development of the proprietary AI software. Since the AI software integrated into Hailstorm's flagship game will involve the sharing of customer data, the legal issues to consider in structuring the offer are protecting its intellectual property rights and ensuring that the gamers' private information is prevented from unauthorized access. In the offer Hailstorm makes, it is critical to indicate that it will still possess and own the intellectual property rights to the technology and the platform it provides to Prohibitious (Peyravi, Nekrošienė, & Lobanova,...