Technology Ventures: From Idea to OpportunityChapter 8: Summary
Even if you are on the right track, you’ll
get run over if...
Technology Ventures: From Idea to OpportunityChapter 8: Organizational Forms
Organizational Forms:
•Independent venture: n...
Technology Ventures: From Idea to OpportunityChapter 8: Organizational Forms
Organizational Forms (continued):
•Family-own...
Technology Ventures: From Idea to OpportunityChapter 8: concept
Imitation or replication of a successful enterprise
can le...
Technology Ventures: From Idea to OpportunityChapter 8: Types of New Business Ventures
Types of New Business Ventures:
Sma...
Technology Ventures: From Idea to OpportunityChapter 8: Types of New Business Ventures
Types of New Business Ventures (con...
Technology Ventures: From Idea to OpportunityChapter 8: Table 8.1
Type
Revenue
Growth
Planned
for Most
Likely
Size
Descrip...
Technology Ventures: From Idea to OpportunityChapter 8: Table 8.6
• Newness and Novelty of the Product Relative to the
Fir...
Technology Ventures: From Idea to OpportunityChapter 8: Table 8.7
Strengths Weaknesses
Ready access to capital May be subj...
Technology Ventures: From Idea to OpportunityChapter 8: Table 8.7 continued
The Strengths and Weaknesses of a Corporate Ne...
Technology Ventures: From Idea to OpportunityChapter 8: Table 8.11
1. Identify and screen opportunities. Create a vision. ...
Technology Ventures: From Idea to OpportunityChapter 8: Exercise
A new firm plans to develop and offer a computer
design p...
Technology Ventures: From Idea to OpportunityChapter 8: Cluster
Cluster: Geographic concentration of interconnected
compan...
Technology Ventures: From Idea to OpportunityChapter 8: Table 8.4
The Characteristics for Innovation in a Cluster Setting
...
Technology Ventures: From Idea to OpportunityChapter 8: Principle
An important, vigorous new business venture can emerge
f...
Technology Ventures: From Idea to OpportunityChapter 8: Venture Challenge
VENTURE CHALLENGE
1)Using table 8.1, describe th...
Technology Ventures: From Idea to OpportunityChapter 8: DVD Videos
DVD Videos
“Thinking about Sustainability for Non-Profi...
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Chap8

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Chapter 8- Entrepreneurship lecture International University- HCMcity

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  • Chap8

    1. 1. Technology Ventures: From Idea to OpportunityChapter 8: Summary Even if you are on the right track, you’ll get run over if you just sit there Will Rogers What forms do new businesses take and what are corporate ventures? The appropriate legal and organizational format used to organize a new venture will vary according to several factors such as context, people, legal and tax consequences, and cultural norms. New ventures can range from small businesses or consulting services to high-growth, high- potential enterprises. Other organizations start out operating in a niche market and grow into a broader one. An important contrast to these independent ventures is the corporate new venture. It emerges within larger existing enterprises and is granted autonomy so it can fulfill its promise. Summary
    2. 2. Technology Ventures: From Idea to OpportunityChapter 8: Organizational Forms Organizational Forms: •Independent venture: new venture not owned or controlled by an established corporation. •Corporate venture: new venture started by an existing corporation. •Nonprofit organization: Corporation, member association, or charitable organization that provides a service but does not earn a profit, nor does it distribute dividends or payments to its employees, donors, or volunteers. Today, these organizations are often called not-for-profit.
    3. 3. Technology Ventures: From Idea to OpportunityChapter 8: Organizational Forms Organizational Forms (continued): •Family-owned: includes two or more members of a family who hold control of the firm. •Franchise: legal arrangement in which the owner of a business format has licensed it to an individual or local firm, called a franchisee. The franchisor is the organization that owns and operates a firm that controls the business format and its associated trademarks and logo.
    4. 4. Technology Ventures: From Idea to OpportunityChapter 8: concept Imitation or replication of a successful enterprise can lead to success Examples: Wal-Mart Starbucks Williams-Sonoma
    5. 5. Technology Ventures: From Idea to OpportunityChapter 8: Types of New Business Ventures Types of New Business Ventures: Small business is a sole proprietorship, a partnership, or a corporation owned by a few people. Niche business seeks to exploit a limited opportunity or market to provide the entrepreneurs with independence and a slow- growth buildup of the business. High-growth business aims to build an important new business and requires a significant investment to start up.
    6. 6. Technology Ventures: From Idea to OpportunityChapter 8: Types of New Business Ventures Types of New Business Ventures (continued): Radical innovation business seeks to commercialize an important new innovation and build an important new business. Nonprofit organization is a corporation or a member association initiated to serve a social or charitable purpose. Corporate new venture (CNV) is that started by an existing corporation for the purpose of building an important new business unit as a solely owned subsidiary or a spin-off as a new independent company.
    7. 7. Technology Ventures: From Idea to OpportunityChapter 8: Table 8.1 Type Revenue Growth Planned for Most Likely Size Description Objective 1.Small Business Slow Small Sole proprietorship, and family business Provide independence and wealth to partners by serving customers 2.Niche Slow to Medium Small to Medium Slow growth of corporation Provide steady, lower-risk growth, good income 3.High Growth Fast Medium to Large Fast growth, needs large initial investment Important new business 4.Radical Innovation Fast Large Requires R&D and seeks disruptive innovation To commercialize an important innovation 5.Non-Profit Organization Slow Small to Medium Serves members or a social need To serve a social need 6.Corporate New Venture Medium to Fast Large Independent unit of an existing corporation To build an important new business unit or separate firm The Six Types of New Ventures
    8. 8. Technology Ventures: From Idea to OpportunityChapter 8: Table 8.6 • Newness and Novelty of the Product Relative to the Firm's Existing Products • Independence or Semi-Autonomy from Existing Corporate Structure • High Potential for Significant Innovation • Unique Entrepreneurial Team Leadership Capabilities Characteristics of Corporate New Ventures
    9. 9. Technology Ventures: From Idea to OpportunityChapter 8: Table 8.7 Strengths Weaknesses Ready access to capital May be subjected to a corporate budget process Access to capabilities of corporate employees Multiple control and review levels Suppliers willing to help in the design process Limited autonomy Emphasis on the marketing plan Limited access to strong entrepreneurial talent Gain from brand equity of parent firm Risk-reward may be less attractive than for an independent entrepreneur Access to processes and technologies of the parent Limited to parent firm's technologies and processes The Strengths and Weaknesses of a Corporate New Venture
    10. 10. Technology Ventures: From Idea to OpportunityChapter 8: Table 8.7 continued The Strengths and Weaknesses of a Corporate New Venture (cont.) Strengths Weaknesses Ready access to capital May be subjected to a corporate budget process Access to capabilities of corporate employees Multiple control and review levels Suppliers willing to help in the design process Limited autonomy Emphasis on the marketing plan Limited access to strong entrepreneurial talent Gain from brand equity of parent firm Risk-reward may be less attractive than for an independent entrepreneur Access to processes and technologies of the parent Limited to parent firm's technologies and processes
    11. 11. Technology Ventures: From Idea to OpportunityChapter 8: Table 8.11 1. Identify and screen opportunities. Create a vision. Designate a venture champion and an entrepreneurial team. 2. Refine the concept and determine feasibility. Prepare the concept and vision statement. Draft a brief Business Plan Summary or Outline for review and gathering support. 3. Prepare a complete Business Plan. Identify the person to lead the new venture. 4. Determine the best form of the corporate new venture: internal new venture unit; spin-out, subsidiary, or internal project. 5. Establish the Corporate New Venture with talent, resources, and capabilities transferred from the parent company. The Five-Step Process for Establishing A Corporate New Venture
    12. 12. Technology Ventures: From Idea to OpportunityChapter 8: Exercise A new firm plans to develop and offer a computer design program for creating and machining hip replacement joints. Describe the cluster this firm should locate within. What sources of legitimacy should it focus on? Should it outsource the software programming of its design software product?
    13. 13. Technology Ventures: From Idea to OpportunityChapter 8: Cluster Cluster: Geographic concentration of interconnected companies with an existing infrastructure system.
    14. 14. Technology Ventures: From Idea to OpportunityChapter 8: Table 8.4 The Characteristics for Innovation in a Cluster Setting •High Quality Human Resources •Research in Local Universities •Availability of Investment Capital •Representative Customers •Suppliers and Compl3mentors •Competitors •Consultants, Attorneys, and Accountants
    15. 15. Technology Ventures: From Idea to OpportunityChapter 8: Principle An important, vigorous new business venture can emerge from a large firm when afforded the appropriate balance of independence, resources, and people to respond to the opportunity.
    16. 16. Technology Ventures: From Idea to OpportunityChapter 8: Venture Challenge VENTURE CHALLENGE 1)Using table 8.1, describe the specific type of new venture selected by your team. 2)Assuming your venture was developed as a corporate venture, describe the advantages and disadvantages of this approach using table 8.7
    17. 17. Technology Ventures: From Idea to OpportunityChapter 8: DVD Videos DVD Videos “Thinking about Sustainability for Non-Profit Organizations” Kavita Ramdas (Global Fund for Women) “Classes of Innovations in the Product Leadership Zone” Geoffrey Moore (Mohr Dardon Ventures)

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