Podcast
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?
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?
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?
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?
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?
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?
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?
Considering the assertion that 'entrepreneurship is permanent crisis management,' which of the following strategic imperatives is MOST crucial for ensuring long-term venture viability?
Considering the assertion that 'entrepreneurship is permanent crisis management,' which of the following strategic imperatives is MOST crucial for ensuring long-term venture viability?
Within the context of venture growth strategies, what is the primary distinction between 'market penetration' and 'product development' as defined in the Ansoff Matrix?
Within the context of venture growth strategies, what is the primary distinction between 'market penetration' and 'product development' as defined in the Ansoff Matrix?
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?
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?
Considering the inherent uncertainties and resource constraints faced by early-stage ventures, what heuristic BEST guides entrepreneurs in making critical strategic decisions?
Considering the inherent uncertainties and resource constraints faced by early-stage ventures, what heuristic BEST guides entrepreneurs in making critical strategic decisions?
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?
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?
When assessing the strategic implications of the Ansoff Matrix, what fundamental assumption underlies the proposition that 'diversification' represents the riskiest growth strategy?
When assessing the strategic implications of the Ansoff Matrix, what fundamental assumption underlies the proposition that 'diversification' represents the riskiest growth strategy?
Regarding investor criteria, what BEST encapsulates the due diligence emphasis placed on 'scalability' when evaluating early-stage tech ventures?
Regarding investor criteria, what BEST encapsulates the due diligence emphasis placed on 'scalability' when evaluating early-stage tech ventures?
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?
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?
In the context of Ansoff's matrix, which strategic maneuvering necessitates the most profound shift in an organization's core competencies and resource allocation?
In the context of Ansoff's matrix, which strategic maneuvering necessitates the most profound shift in an organization's core competencies and resource allocation?
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?
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?
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?
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?
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?
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?
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'?
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'?
Within the context of entrepreneurial ventures, how does participation in established distributor channels most directly mitigate liabilities associated with nascent organizational structures?
Within the context of entrepreneurial ventures, how does participation in established distributor channels most directly mitigate liabilities associated with nascent organizational structures?
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?
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?
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?
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?
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:
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:
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?
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?
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?
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?
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?
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?
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?
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?
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?
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?
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?
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?
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?
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?
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?
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?
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?
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?
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?
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?
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?
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?
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?
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?
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?
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?
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?
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?
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?
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?
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?
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?
Considering the investment criteria applied by investors, which scenario exemplifies the MOST sophisticated application of competitive analysis to determine investment viability?
Considering the investment criteria applied by investors, which scenario exemplifies the MOST sophisticated application of competitive analysis to determine investment viability?
Which assessment regarding the 'Management / Team' investment criteria would MOST likely indicate a 'very high' risk profile despite a promising product?
Which assessment regarding the 'Management / Team' investment criteria would MOST likely indicate a 'very high' risk profile despite a promising product?
In evaluating the 'Product / Technology' investment criterion, which of the following scenarios represents the MOST precarious situation regarding intellectual property protection?
In evaluating the 'Product / Technology' investment criterion, which of the following scenarios represents the MOST precarious situation regarding intellectual property protection?
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?
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?
How does mezzanine financing, situated 'Between Debt and Equity,' MOST distinctively mitigate risk for investors compared to traditional debt financing in distressed asset acquisitions?
How does mezzanine financing, situated 'Between Debt and Equity,' MOST distinctively mitigate risk for investors compared to traditional debt financing in distressed asset acquisitions?
In what way do business accelerators MOST significantly differ from traditional venture capital funds in their approach to supporting new ventures?
In what way do business accelerators MOST significantly differ from traditional venture capital funds in their approach to supporting new ventures?
Which of the following aspects of crowdfunding represents the MOST significant challenge for ventures seeking substantial capital for complex product development?
Which of the following aspects of crowdfunding represents the MOST significant challenge for ventures seeking substantial capital for complex product development?
Flashcards
Distributor Channels
Distributor Channels
Ways a company distributes products to customers by improving customer satisfaction, gaining expertise and legitimacy.
Technological Uncertainty
Technological Uncertainty
Uncertainty related to new or changing technologies.
Market Uncertainty
Market Uncertainty
Uncertainty related to changing customer demands and market conditions.
Imitation Strategies
Imitation Strategies
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Franchising
Franchising
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Narrow-Scope Strategy
Narrow-Scope Strategy
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High-End Market Advantage
High-End Market Advantage
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Broad-Scope Strategy
Broad-Scope Strategy
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Entrepreneurship as Crisis Management
Entrepreneurship as Crisis Management
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Newness: Threat and Asset
Newness: Threat and Asset
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Venture Growth Strategies
Venture Growth Strategies
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Ansoff Matrix
Ansoff Matrix
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Sources of Startup Funding
Sources of Startup Funding
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Investor Evaluation Criteria
Investor Evaluation Criteria
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Early-Stage Entrepreneurship
Early-Stage Entrepreneurship
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Growth-Stage Entrepreneurship
Growth-Stage Entrepreneurship
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Greiner's Growth Model
Greiner's Growth Model
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Entrepreneur's Role in Start-up
Entrepreneur's Role in Start-up
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Entrepreneur's Role in Growth Stage
Entrepreneur's Role in Growth Stage
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Start-up Activities
Start-up Activities
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Growth Stage Activities
Growth Stage Activities
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Product Development Strategy
Product Development Strategy
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Advantages of Product Development
Advantages of Product Development
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Diversification Strategy
Diversification Strategy
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Backward Integration
Backward Integration
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Forward Integration
Forward Integration
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Horizontal Integration
Horizontal Integration
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Penetration Strategy
Penetration Strategy
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Market Development Strategy
Market Development Strategy
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Turnaround Investing
Turnaround Investing
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Mezzanine Financing
Mezzanine Financing
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Competition Analysis
Competition Analysis
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Market Growth Potential
Market Growth Potential
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Management Team Quality
Management Team Quality
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Competitive Edge
Competitive Edge
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Business Accelerators
Business Accelerators
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Crowdfunding
Crowdfunding
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Capital Infusion
Capital Infusion
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Expenditures
Expenditures
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Cash Sales
Cash Sales
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Accounts Receivables
Accounts Receivables
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Distributions
Distributions
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Cash Flow Cycle
Cash Flow Cycle
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Factors Affecting Financial Needs
Factors Affecting Financial Needs
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P&L vs. Cash Flow Differences
P&L vs. Cash Flow Differences
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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.