Entrepreneurial Growth & Finance
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Questions and Answers

Considering Greiner's growth model (1972), at what specific point does an organization typically shift from an entrepreneurial focus characterized by predominantly internal activities to one that balances internal operations with strategic external engagements, thus necessitating a recalibration of leadership roles?

  • Upon entering the 'Collaboration' stage, marked by maturity and necessitating a delicate balance between internal process optimization and adaptive responses to volatile market conditions via strategic alliances.
  • At the cusp of the 'Direction' stage, where formalized structures begin to take shape, impelling the entrepreneur to refocus on high-level strategic conceptualization rather than daily transactional operations.
  • Precisely during the transition out of the 'Crisis of Leadership', when the emergent professional management cadre compels a strategic realignment towards external stakeholder management and visionary leadership.
  • During the 'Growth through creativity' phase, as the founder transitions from direct resource acquisition to delegating operational tasks whilst simultaneously forging external alliances. (correct)

In the context of Wasserman’s observations regarding the evolving role of entrepreneurs, which nuanced adaptation signifies the most critical departure from the 'entrepreneur as a spider in its web' archetype to a leadership paradigm more attuned to sustainable growth and organizational scalability?

  • The transition from pervasive involvement in resource acquisition and product prototyping towards a concentration on strategic alliances, personnel networking, and the meticulous stewardship of corporate culture and vision. (correct)
  • The delegation of routine analytical tasks coupled with the enhanced monitoring of environmental compliance factors using sophisticated enterprise resource planning (ERP) systems.
  • The incremental outsourcing of internal operational activities, thus allowing the founding entrepreneur to devote more time to personal branding and cultivating venture capital relationships.
  • The strategic relinquishment of direct customer interactions in favor of cultivating robust supplier relationships predicated on mutually beneficial key performance indicators (KPIs).

Considering the pivotal transition from start-up to growth-stage entrepreneurship, which modification in operational emphasis most directly mitigates the inherent escalatory risks associated with unchecked expansion and preserves the entrepreneurial spirit?

  • The strategic decentralization of decision-making authority via the implementation of regional profit centers, fostering both agility and localized market responsiveness.
  • The implementation of Six Sigma methodologies to standardize internal processes, thereby minimizing variability and maximizing operational efficiency at scale.
  • The codification of organizational knowledge through sophisticated knowledge management systems, allowing tacit expertise to be disseminated efficiently across the expanding employee base.
  • The careful alignment of organizational culture and vision, concurrent with empowerment of employees and proactive business/organizational refinement, facilitating adaptability and sustaining entrepreneurial momentum. (correct)

How does the strategic evolution from a 'spider in its web' entrepreneurial model to a growth-oriented leadership approach necessitate a critical re-evaluation of resource allocation priorities, especially concerning intangible assets?

<p>A realignment from concentrating resources on immediate operational efficiencies toward cultivating robust organizational culture, fostering employee empowerment, and establishing enduring supplier relationships based on mutual trust. (D)</p> Signup and view all the answers

What transformative organizational mechanism most effectively facilitates the transition from an entrepreneurial entity heavily reliant on the founder's direct involvement to a sustainable, scalable enterprise characterized by delegated authority and professional management?

<p>The deliberate cultivation of a decentralized decision-making framework buttressed by a shared organizational culture, fostering both autonomy and alignment towards overarching strategic mandates. (C)</p> Signup and view all the answers

Considering the assertion that 'entrepreneurship is permanent crisis management,' which of the following strategic imperatives is MOST crucial for ensuring long-term venture viability?

<p>Cultivating organizational resilience through adaptive leadership, decentralized decision-making, and the capacity to rapidly reconfigure resources in response to unforeseen challenges. (D)</p> Signup and view all the answers

Within the context of venture growth strategies, what is the primary distinction between 'market penetration' and 'product development' as defined in the Ansoff Matrix?

<p>Market penetration concentrates on increasing sales of existing products in existing markets, while product development involves creating new products for existing markets. (D)</p> Signup and view all the answers

When evaluating potential funding sources for a nascent venture, what critical trade-off should entrepreneurs rigorously assess to ensure optimal alignment with long-term strategic objectives?

<p>The balance between immediate capital accessibility and the potential dilution of equity ownership and control. (A)</p> Signup and view all the answers

Considering the inherent uncertainties and resource constraints faced by early-stage ventures, what heuristic BEST guides entrepreneurs in making critical strategic decisions?

<p>Adopting a 'lean startup' methodology, emphasizing iterative experimentation, validated learning, and pivoting based on customer feedback. (C)</p> Signup and view all the answers

In light of the assertion that 'being new is both a threat and an asset' for entrepreneurial ventures, what strategic imperative should entrepreneurs prioritize to effectively mitigate the inherent threats associated with novelty?

<p>Cultivating strong relationships with established industry incumbents through strategic alliances and partnerships to gain access to resources, expertise, and market channels. (A)</p> Signup and view all the answers

When assessing the strategic implications of the Ansoff Matrix, what fundamental assumption underlies the proposition that 'diversification' represents the riskiest growth strategy?

<p>Diversification inherently involves entering unfamiliar markets with unfamiliar products, thereby exposing the venture to the highest degree of uncertainty and requiring the acquisition of entirely new competencies. (B)</p> Signup and view all the answers

Regarding investor criteria, what BEST encapsulates the due diligence emphasis placed on 'scalability' when evaluating early-stage tech ventures?

<p>The ability to rapidly expand production capacity and distribution channels to meet surging demand without incurring disproportionate increases in marginal costs. (C)</p> Signup and view all the answers

Given that entrepreneurial finance requires a deep understanding of both risk and reward, which cognitive bias poses the MOST insidious threat to effective capital allocation decisions in new ventures?

<p>The 'overconfidence bias,' where entrepreneurs overestimate their own abilities and the likelihood of success, leading to excessive risk-taking. (B)</p> Signup and view all the answers

In the context of Ansoff's matrix, which strategic maneuvering necessitates the most profound shift in an organization's core competencies and resource allocation?

<p>Diversification, venturing into entirely new industries with products and markets unrelated to the firm's current operations. (D)</p> Signup and view all the answers

Considering the nuanced application of vertical integration, under what specific circumstances would backward integration pose a paradoxical threat to a firm's dynamic capabilities, potentially ossifying its competitive advantage?

<p>When the upstream industry exhibits rapid technological change and requires specialized expertise beyond the firm's core competencies. (D)</p> Signup and view all the answers

In the context of horizontal integration, what critical condition must be satisfied to ensure that the merged entity generates synergistic value exceeding the sum of its individual parts, while simultaneously mitigating the perils of diseconomies of scope?

<p>The merged entities must possess highly complementary resources and capabilities, enabling the creation of unique and inimitable value propositions. (B)</p> Signup and view all the answers

When contemplating a market development strategy, what latent barrier relating to socio-cultural dynamics most often undermines a firm's attempt to transpose its established value proposition into a novel geographic context?

<p>Unforeseen cultural nuances and consumer preferences rendering the existing brand messaging ineffective or offensive. (B)</p> Signup and view all the answers

Considering a firm pursuing a product development strategy, what crucial condition must be met to ensure the new product not only attracts existing customers but also fortifies their loyalty and reduces churn, fostering 'stickiness'?

<p>The new product must seamlessly integrate with the firm's existing product ecosystem, creating synergistic benefits and network effects. (B)</p> Signup and view all the answers

Within the context of entrepreneurial ventures, how does participation in established distributor channels most directly mitigate liabilities associated with nascent organizational structures?

<p>Through the transference of operational best practices and established logistical frameworks, thereby diminishing internal competency deficits. (B)</p> Signup and view all the answers

In the context of the Head Ski Company example, the decision to open a chain of retail ski shops represents which type of integration strategy, and what inherent risk is most pronounced in this pursuit?

<p>Forward integration; the risk of channel conflict with existing independent retailers and distributors. (A)</p> Signup and view all the answers

In the landscape of competitive imitation strategies, what critical factor differentiates a franchisor-franchisee relationship from a mere replication of existing products with minor modifications?

<p>The codified contractual agreement providing the franchisee with the explicit, authorized utilization of a pre-validated business model and established brand identity. (C)</p> Signup and view all the answers

If the Head Ski Company were to acquire a company specializing in the manufacturing of carbon fiber, a key material used in high-end skis, this would be an example of:

<p>Backward Integration, securing control over a critical input in their supply chain. (B)</p> Signup and view all the answers

Which of the following strategic moves by the Head Ski Company would best exemplify a market penetration strategy, assuming their primary goal is to increase sales of their existing high-tech skis in the U.S. market?

<p>Launching an aggressive advertising campaign emphasizing the performance benefits of upgrading skis every season. (D)</p> Signup and view all the answers

When contrasting narrow-scope and broad-scope market entry strategies, which of the following accurately delineates the trade-off between competition-related risks and market uncertainties?

<p>Narrow-scope strategies reduce competitive risks but increase risks linked to market uncertainties, whereas broad-scope strategies do the opposite. (C)</p> Signup and view all the answers

Considering the dynamics of technological and market uncertainty, which strategic posture would a firm likely adopt to optimally balance the dual imperatives of first-mover advantage and resource accessibility?

<p>Cultivate strategic alliances with complementary firms, facilitating resource pooling while mitigating the risks associated with technological obsolescence. (C)</p> Signup and view all the answers

Under what conditions does a narrow-scope strategy's focus on customized products and localized operations paradoxically amplify its exposure to market uncertainties, despite purportedly mitigating competition-related risks?

<p>All of the above. (D)</p> Signup and view all the answers

What fundamental trade-off must organizations navigate when selecting between imitation strategies predicated on 'proven formulas' versus pioneering innovative solutions in nascent markets characterized by substantial technological uncertainty?

<p>The inherent tension between minimizing immediate operational risks and maximizing long-term competitive differentiation. (A)</p> Signup and view all the answers

How might the pursuit of a broad-scope market entry strategy engender organizational vulnerabilities stemming from heightened exposure to competition, even while ostensibly mitigating risks associated with market uncertainties?

<p>All of the above. (D)</p> Signup and view all the answers

How does the strategic deployment of franchising as an imitation strategy interact with the inherent challenges of technological and market uncertainty, particularly concerning franchisee autonomy and franchisor control?

<p>The equilibrium varies; Franchisor control over operations reduces tech uncertainty, but limits market adaptation. Local autonomy in franchising increases market adaptation, but increases tech uncertainty. (C)</p> Signup and view all the answers

Within the context of a rapidly scaling entrepreneurial venture, what advanced simulation technique could most accurately forecast future cash flow needs, accounting for stochastic variations in sales growth, reinvestment rates, and shifts in working capital efficiency?

<p>Using a Monte Carlo simulation that integrates probabilistic distributions for key variables, coupled with scenario analysis to model extreme events. (D)</p> Signup and view all the answers

Considering a firm's strategic decision to aggressively expand its market share through credit sales, which advanced working capital management technique would most effectively mitigate the resultant strain on its cash conversion cycle, assuming a context of imperfect information and asymmetric risk?

<p>Employing dynamic discounting and factoring, coupled with a sophisticated credit scoring model that leverages machine learning to predict default probabilities. (C)</p> Signup and view all the answers

In the context of a family-owned enterprise aiming for sustainable growth, how does the interplay between equity returns expectations, debt service obligations, and tax liabilities most critically influence the firm's reinvestment capacity, and what optimization strategy ensures long-term value creation for all stakeholders?

<p>Balancing stakeholder expectations, optimizing capital structure through sophisticated financial engineering, and employing tax-efficient reinvestment strategies to free up resources for growth. (D)</p> Signup and view all the answers

Given the cyclical nature of cash flow in entrepreneurial ventures, which advanced risk management strategy would be most effective in buffering against unforeseen economic downturns or industry-specific shocks, ensuring the firm's solvency and continued operational viability?

<p>Implementing a comprehensive hedging strategy utilizing financial derivatives, coupled with stress-testing scenarios and proactive diversification of revenue streams. (D)</p> Signup and view all the answers

Considering the dynamic interplay between profitability, internal cash flow generation, and sales growth, what optimization model would best determine the optimal level of reinvestment in a high-growth firm, maximizing long-term shareholder value while maintaining adequate liquidity and financial stability?

<p>Using a dynamic optimization model that incorporates real options valuation, scenario planning, and sensitivity analysis to balance growth, liquidity, and shareholder value. (D)</p> Signup and view all the answers

What advanced financial instrument could a rapidly growing firm utilize to optimize its capital structure, minimizing the weighted average cost of capital (WACC) while maintaining sufficient financial flexibility to capitalize on emerging market opportunities while ensuring minimal dilution of ownership?

<p>A convertible bond offering with a flexible conversion ratio, combined with a share repurchase program to offset potential dilution and a dynamic hedging strategy to mitigate interest rate risk. (B)</p> Signup and view all the answers

Assuming a firm operates in a market characterized by intense competition and rapidly evolving consumer preferences, which advanced inventory management technique would best minimize obsolescence risk and optimize working capital efficiency, while ensuring high levels of customer service?

<p>Implementing a lean manufacturing system integrated with predictive analytics to forecast demand, coupled with dynamic pricing strategies to manage obsolescence risk and multi-echelon inventory optimization. (B)</p> Signup and view all the answers

Considering the increasing complexity of global supply chains, what cutting-edge financing mechanism would most effectively mitigate the risks associated with international trade, ensuring timely payments to suppliers while optimizing the firm's cash flow and minimizing currency exposure?

<p>Utilizing supply chain finance solutions integrated with blockchain technology for enhanced transparency and security, coupled with currency hedging strategies to minimize exchange rate volatility. (C)</p> Signup and view all the answers

In the context of investing in established but underperforming firms for restructuring and optimization, which of the following considerations represents the MOST critical departure from traditional venture capital investment strategies?

<p>Emphasis on tangible asset valuation and collateralization to mitigate downside risk, diverging from the typical focus on intellectual property and future growth potential. (C)</p> Signup and view all the answers

Considering the investment criteria applied by investors, which scenario exemplifies the MOST sophisticated application of competitive analysis to determine investment viability?

<p>Developing a dynamic simulation model that integrates competitor strategic response functions, market elasticity, and technological innovation to forecast long-term competitive advantage. (B)</p> Signup and view all the answers

Which assessment regarding the 'Management / Team' investment criteria would MOST likely indicate a 'very high' risk profile despite a promising product?

<p>A highly specialized team with deep technical expertise but limited experience in scaling operations and navigating regulatory complexities. (D)</p> Signup and view all the answers

In evaluating the 'Product / Technology' investment criterion, which of the following scenarios represents the MOST precarious situation regarding intellectual property protection?

<p>A pending patent application with broad claims facing prior art challenges, amidst rapid technological evolution. (A)</p> Signup and view all the answers

Considering the 'Strategy' investment criterion, which element would be MOST critical in assessing the feasibility and attractiveness of a late-stage investment in a mature market?

<p>A well-defined exit strategy outlining potential acquisition targets or IPO timelines, considering market saturation. (B)</p> Signup and view all the answers

How does mezzanine financing, situated 'Between Debt and Equity,' MOST distinctively mitigate risk for investors compared to traditional debt financing in distressed asset acquisitions?

<p>Through incorporating equity warrants or conversion options that allow participation in the upside potential of the restructured firm, creating a hybrid return profile. (C)</p> Signup and view all the answers

In what way do business accelerators MOST significantly differ from traditional venture capital funds in their approach to supporting new ventures?

<p>Accelerators offer intensive mentorship, networking opportunities, and structured programs over a fixed duration, emphasizing rapid iteration and validation of business models with very specific requirements. (C)</p> Signup and view all the answers

Which of the following aspects of crowdfunding represents the MOST significant challenge for ventures seeking substantial capital for complex product development?

<p>The reliance on a large number of small contributions, making it challenging to raise significant capital amounts and hindering their ability to go to market. (D)</p> Signup and view all the answers

Flashcards

Distributor Channels

Ways a company distributes products to customers by improving customer satisfaction, gaining expertise and legitimacy.

Technological Uncertainty

Uncertainty related to new or changing technologies.

Market Uncertainty

Uncertainty related to changing customer demands and market conditions.

Imitation Strategies

Copying existing products with minor changes to gain an advantage.

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Franchising

Acquiring the use of a proven business model from a franchisor.

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Narrow-Scope Strategy

Offering a small product range to a small customer segment.

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High-End Market Advantage

Expertise in niche markets; profitable due to specialized products.

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Broad-Scope Strategy

Offering a range of products across many different market segments.

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Entrepreneurship as Crisis Management

Entrepreneurship involves managing constant challenges and uncertainties.

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Newness: Threat and Asset

Entering a market with a novel product or service presents both risks and unique advantages.

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Venture Growth Strategies

Ventures can expand by increasing existing activities, diversifying into related areas, or innovating entirely new offerings.

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Ansoff Matrix

A tool to evaluate different growth options based on market and product newness.

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Sources of Startup Funding

Bootstrapping, angel investors, venture capital, loans, and grants.

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Investor Evaluation Criteria

Market size, team experience, competitive advantage.

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Early-Stage Entrepreneurship

The initial actions and choices, like team formation and opportunity validation, which lay the groundwork for a new business.

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Growth-Stage Entrepreneurship

Expanding market reach, optimizing operations, and innovating to sustain competitiveness are key challenges during business expansion.

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Greiner's Growth Model

Greiner's model describes how a company's growth progresses through various stages, each marked by specific characteristics and challenges related to firm's age and growth rate.

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Entrepreneur's Role in Start-up

In the early stages, entrepreneurs often act as a central figure involved in many aspects of the business such as resource acquisition, product development, and customer relations.

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Entrepreneur's Role in Growth Stage

During growth, entrepreneurs shift towards strategic management, alliances, and employee empowerment, often delegating tasks and focusing on external relationships.

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Start-up Activities

Start-up entrepreneurs focus on internal activities: resource acquisition, product development/prototyping, purchasing major equipment, analytical/conceptual work, and environmental monitoring

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Growth Stage Activities

Growth-stage entrepreneurs focus on external & internal activities: strategic management, alliances & networking, supplier relationships, management of culture & vision, and business & organizational development.

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Product Development Strategy

Growing by creating and selling new products to existing customers.

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Advantages of Product Development

Leveraging existing distribution and brand reputation with current customers.

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Diversification Strategy

Growing by introducing a new product to a new market.

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Backward Integration

Moving closer to raw materials in the value chain.

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Forward Integration

Moving closer to the end customers in the value chain.

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Horizontal Integration

Expanding at the same level of the value chain with complementary activities.

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Penetration Strategy

Increasing market share with existing products in current markets.

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Market Development Strategy

Entering new markets with existing products.

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Turnaround Investing

Investing in underperforming companies to restructure and improve them.

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Mezzanine Financing

A financing option between debt and equity, often with features of both.

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Competition Analysis

The number, strengths, and weaknesses of other companies in the same market.

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Market Growth Potential

The potential for a market to grow in size and value.

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Management Team Quality

The experience, skills, and motivation of a company's leaders.

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Competitive Edge

How a product stands out and performs against others.

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Business Accelerators

Organizations that support new businesses with resources and guidance.

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Crowdfunding

Raising small amounts of money from a large number of people.

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Capital Infusion

Funds from equity and debt used to finance a firm's operations.

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Expenditures

Resources spent by a business, including materials, employee wages, and fixed assets.

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Cash Sales

Cash received immediately from sales.

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Accounts Receivables

Sales made on credit which are yet to be collected.

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Distributions

Payments to equity holders and debt providers.

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Cash Flow Cycle

A cycle that includes Capital, Expenditures, Cash sales, Accounts receivables, Distributions, and Ending Cash.

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Factors Affecting Financial Needs

Profitability, Internal cash flow generation, Sales growth, Working capital management.

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P&L vs. Cash Flow Differences

Differences occur in timing of revenue and expense recognition.

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Study Notes

Session Overview

  • Explores entrepreneurial growth and entrepreneurial finance
  • Addresses the role of newness and venture growth strategies
  • Identifies financing sources, investment criteria, and relevant case studies

Managing Newness in Entrepreneurship

  • Liabilities of Newness arises from unique conditions, leading to costs in learning new tasks.
  • Conflict arises from unclear responsibilities.
  • Assets of Newness involves capitalizing on the opportunities that come from not having established routines.
  • A heightened ability to learn new knowledge in a continuously changing environment is a competitive advantage.

First-Mover Advantage

  • First-Mover Advantage refers to the gain that a firm attains when is first to market a new product or enter a new market.
  • Less competitive rivalry and the chance to secure supplier and channel relations are some benefits
  • Some disadvantages include technological and market uncertainty and uncertainty in value creation for customers
  • Late-Mover strategies include refining instead of inventing, reduced R&D costs, and lower uncertainty.
  • Need to catch up with first movers.

Imitation Strategies: Franchising

  • A franchisee acquires use of a “proven formula” for new entry from a franchisor.
  • Copying products that already exist and attempting to build an advantage through minor variations.

Entry Strategy: Narrow-scope strategy

  • A narrow-scope strategy offers a small product range to a small number of customer groups to satisfy a particular need.
  • It focuses on customized products and localized business operations.
  • A narrow-scope strategy leads to specialized expertise, represents a profitable niche, and reduces some competition risks but does not reduce market uncertainties.

Entry Strategies: Broad-scope strategy

  • Offers a range of products across many different market segments
  • Strategy emerges through learning.
  • A broad-scope increases exposure to competition.

Firm Size and Growth Categories

  • Micro-firms have under 10 employees and turnover is less than 2 million euros
  • Small firms have under 50 employees and turnover is less than 10 million euros
  • Medium-sized firms have under 250 employees and turnover is less than 50 million euros
  • Large firms have 250+ employees and turnover is greater than 50 million euros
  • High/Rapid growth firms have at least 10 employees and an average annual growth of over 20% over 3 years

Gazelle and Unicorn Growth

  • Gazelle companies are under 5 years old, have at least 10 staff, and experience avg annual growth of over 20% over 3 years
  • Unicorns are valued at over $1 billion.
  • Examples include OpenAi and SpaceX

Growth Model by Greiner

  • Firms tend to lose their entrepreneurial way throughout the organizational lifecycle
  • The stages are creativity, direction, delegation, coordination, and collaboration.
  • There are five potential crises that can occur in organizational life: leadership, autonomy, control, red tape, and unknown

Entrepreneurial Role Changes

  • Start-up entrepreneurs take on the role of the "spider in its web" and focus on internal operations, customer interactions, and resource acquisition.
  • Growth-stage entrepreneurs focus on strategic management and have more specialized roles.

Growth Strategies: The Ansoff Matrix

  • The Ansoff Matrix helps ventures decide which strategies to take
  • Penetration strategies encourage existing customers to buy the firm’s existing products.
  • Market Development involves expanding existing product in new locations.
  • Product Development includes selling new products to existing customers
  • Diversification Strategy involves selling a new product to a new market.

Head Ski Company Growth Analysis

  • As a case study, the Head Ski Company which started by producing high-tech skis in the US market, employed a number of growth strategies to expand
  • Increased their marketing budget - Penetration strategy
  • Sold skis in Europe, Argentina, and New Zealand - Market development strategy.
  • Develop and sell hats gloves, boots, and other ski accessories - Product development strategy.
  • Designing and manufacturing equipment used to make skis - Diversification: Backward integration.
  • Opened a chain of retail ski shops - Diversification: Forward integration.
  • Ownership of ski mountains - Diversification: Horizontal integration.

Funding Sources across Venture Stages

  • Sources change as firms develop
  • Initial stages are self funded and supported by family and friends
  • Once product is viable, the firms look to subsides, angel investors, VC and business loans

Types of Financing: Equity vs Debt

  • Equity Financing involves an investor providing capital in exchange for ownership
  • Venture capitalists and angel investors often take this path
  • Major advantage of equity investment is no repayment required
  • Debt Financing is a loan that has to be repaid including interest
  • Advantage there is the creditor has no control, however it can be difficult to aquire without pledge

Advantages of Family as a Source of Financing

  • Altruistic ties between borrower and lender, leading to flexibility and a renegotiation opportunity.
  • Family downsides include relational conflicts.

Business Angels

  • Wealthy individuals with expertise and knowledge to add value to the new venture
  • Act as informal/private investors to small ventures.
  • Investors may invest individually or as business angel networks (BAN's)

Venture Capital

  • Equity capital with shared risk profile, combined with management support
  • Venture capitalists aim to sell the business after a certain period, and need to know the venture
  • Venture capitalists typically invest with an investment horizion of 5 to 10 years and 20 to 30% of the start up

Later Stage Financing

  • Strategic partners become shareholders to gain access to new technologies or expand geographically.
  • Private equity and similar funds invest other peoples money into unquoted firms and seek to restructure failing established firms

Between Debt and Equity

  • Mezzanine financing uses instruments situated between traditional debt and equity to support cash flow

Investment Criteria

  • Investors want to know the market, competition, risk, management/team, product/technology, external partners, strategy
  • Investors look at objectives feasibility

Alternative Business Financing

  • Business accelerators give ventures financing, advice, offices, networks, etc over 3-6 month, taking a equity share (6-10%)
  • Crowdfunding sees entrepreneurs presents unique projects for compensation
  • Peer-to-peer lending, equity based or otherwise, helps individuals acquire financials

Financing Options

Government Subsidies

  • Bootstrapping, relying on cash flow without outside capital, to government subsidies (grants) for early stage, technology-linked ventures
  • Targeted toward very early stage ventures and are tied to technology
  • These will support regional development and Industry-specific programs

Defining Financial Needs

  • Determine a forecasting period, create profit and loss statement, create a balance sheet and model the cash flow
  • Revenue is not always cash, a company needs to understand the time value of cash
  • Establish cash burn rate

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Description

Examines the shift in organizational focus from internal activities to strategic external engagements as companies grow. Covers the evolving role of entrepreneurs and the transition from start-up to growth-stage entrepreneurship. Explores how leadership adapts to manage growth risks.

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