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entrepreneurship
Questions and Answers of
Entrepreneurship
4. Consider an investment deal in which the entrepreneur retains 800,000 shares. The investor is willing to contribute €2 million for an additional 400,000 shares. Calculate the “pre-money
3. Explain the concept of milestone financing, indicating why it might be beneficial to both the outside investor and the entrepreneur. How can staging of finance reduce the information and incentive
2. Classify the main types of options open to an investor and entrepreneur in structuring an investment deal. Why do you think “real” options are useful in entrepreneurial finance?
1. What do you believe are the main contextual differences between finance in a new venture setting and finance in a large corporation?
5. Consider the Facebook IPO in early 2012. Why do you think Zuckerberg decided to undertake an IPO at that time? In retrospect, do you think investors were receptive to it?Facebook filed its
4. Explain how Facebook’s valuation has evolved over time.Facebook filed its application for an IPO with the Securities and Exchange Commission in early 2012 and began trading in May. Its initial
3. What stages of financing has Facebook gone through? How do the financing stages correspond to the milestones you identified in Question 1 and the development stages in Question 2?Facebook filed
2. How would you characterise the various stages of development that Facebook went through up to its IPO?Facebook filed its application for an IPO with the Securities and Exchange Commission in early
1. What milestones do you think would have been appropriate for Facebook to establish early on to help evaluate the merits of the venture and to attract outside funding?Facebook filed its application
5. Identify some of the major trends in the entrepreneurial finance landscape and how they can inform the practice of new venturing.
4. Relate financial theory to new venturing, in a way that leads to better investment, financing and operations decisions and a higher success rate for new ventures;
3. Appreciate the key operational imperatives for the financial planning of a new venture;
2. Understand the centrality of maximising value to the entrepreneur in entrepreneurial finance and recognise the terminology used in new venture funding and financing;
1. Differentiate between funding and financing of new ventures and describe how these activities link to the new venturing process from idea inception to investment;
5. Select a firm of your choice and assess the relevance of the framework in Figure 11.6 for understanding how it develops and sustains its international competitiveness on foreign markets.
4. Referring to the case studies in this chapter (Case Boxes 11.4 and 11.5), identify and explain what strategies the companies used for scaling their operations for global growth.
3. Drawing on relevant sources, discuss the internet as an increasingly used foreign market entry strategy by high-tech ventures. Illustrate your answer with examples of companies who are dependent
2. Discuss the factors a venture needs to consider when selecting foreign markets to enter.
1. Define international entrepreneurship and its relevance to firms operating in high-tech sectors. Select examples of hightech born globals that are less than 7 years old.
6. What is Aerogen’s core competitive advantage on international markets? What type of strategic attributes enable the firm to attain its competitive advantage in foreign markets? Since its founder
5. What do you see as the pros and cons of moving to a direct sales model? Since its founder John Power first established a medical technology business in Galway in 1998 Aerogen(www.aerogen.com) has
4. What factors do you believe may have impacted Aerogen’s decision to move to a direct sales model in Britain and Germany? Since its founder John Power first established a medical technology
3. What type of foreign market entry mode(s) does Aerogen use to enter its foreign markets? Since its founder John Power first established a medical technology business in Galway in 1998
2. What factors do you think Aerogen used to select its foreign markets and segments? Since its founder John Power first established a medical technology business in Galway in 1998
1. What factors do you think brought about John Power’s decision to internationalise Aerogen’s products? Since its founder John Power first established a medical technology business in Galway in
6. Know how to grow and scale the venture for developing and sustaining international competitiveness
5. Describe and compare foreign market entry strategies;
4. Assess the criteria for foreign market selection;
3. Define international market development as a key growth strategy;
2. Define international entrepreneurship and identify the key drivers of high-tech venture internationalisation;
1. Understand the key decisions involved in firm internationalisation;
7. “Fail fast!” has become a mantra for many technology entrepreneurs, acknowledging that they need to learn from failure. Discuss this statement in light of Edmondson’s (2011) three types of
6. To what extent – and how – is it possible to manage in networks?
5. Why is organisational culture particularly important and challenging for a leader, and what are the main ingredients of an innovation-orientated culture?
4. How might needs related to information, roles and decisions, as well as value configurations, inform the organisational design of a growing company?
3. How might the team and its leadership requirements change throughout the entrepreneurial process?
2. What characterises a well-composed team in a technology venture?
1. Identify and discuss the most important internal and external barriers to growth in technology ventures.
5. Can Meltwater’s way of organising (in terms of recruitment, training, culture, growth) be maintained as the company matures? “In my experience culture beats strategy. We have seen how this
4. What problems may Meltwater’s managers meet when moving to a new country to start up new offices? What are the benefits of this growth strategy? “In my experience culture beats strategy. We
3. Discuss how Lyseggen’s role as entrepreneur and CEO may have evolved and transformed over time. “In my experience culture beats strategy. We have seen how this principle works in practice.”
2. What aspects of Meltwater’s organising efforts have strengthened its success? What are the potential weaknesses of its way of organising? “In my experience culture beats strategy. We have seen
1. Discuss whether “culture beats strategy”. What does it mean? Do you agree? “In my experience culture beats strategy. We have seen how this principle works in practice.” Jørn Lyseggen, one
4. What are the key factors that influence a potential investor to invest?
3. Distinguish between the business plan and the business model (discussed in Chapter 6).
2. Describe the key components required for making a successful investor pitch.
1. Discuss the rationale for business planning and the key components of a business plan.
3. What was the most important criterion for investors in the case? When Agustfn, an office worker in a water supply company, came up with the idea of a device to locate leaks in water pipes in
2. Drawing on Figure 9.1, outline Aganova’s pitching process. When Agustfn, an office worker in a water supply company, came up with the idea of a device to locate leaks in water pipes in Malaga,
1. Discuss the opportunity analysis and the value proposition of Aganova. When Agustfn, an office worker in a water supply company, came up with the idea of a device to locate leaks in water pipes in
1. Discuss the key components of a typical business plan
4. What are the main elements of the promotional mix, and what do you understand by the term integrated marketing communications?
3. What special distribution issues must be considered in high-tech markets?
2. Identify some examples of value propositions of established technology companies. Using Table 8.3, develop a value proposition for your own innovation.
1. Define market segmentation and discuss the basis for segmentation methods used in consumer and organisational (business-to-business) markets.
5. Discuss how HMS can develop its marketing strategies to continue to grow. HMS (Hassbjer MicroSystems), a high-tech company situated in the south-west of Sweden, was founded in 1988 by Nicolas
4. Discuss the importance of different relationships for HMS’s development. HMS (Hassbjer MicroSystems), a high-tech company situated in the south-west of Sweden, was founded in 1988 by Nicolas
3. Describe and discuss the buying decision process by HMS customers. HMS (Hassbjer MicroSystems), a high-tech company situated in the south-west of Sweden, was founded in 1988 by Nicolas Hassbjer.
2. Which distribution channels does HMS have in different segments? Discuss why the company has chosen different channel strategies. HMS (Hassbjer MicroSystems), a high-tech company situated in the
1. How does the offer differ between HMS’s different segments? HMS (Hassbjer MicroSystems), a high-tech company situated in the south-west of Sweden, was founded in 1988 by Nicolas Hassbjer. The
10.Write up a marketing plan for the technology venture.
5. Discuss the importance of branding and understand the branding strategies available;
4. Understand the relationship between the positioning of the value proposition and the marketing strategy;
3. Distinguish fully between consumer and organisational customers and appreciate the different market strategies for both types of customers;
4. Distinguish between methods and data sources when conducting secondary and primary market research.
3. Identify and explain the steps in the marketing research process.
2. Conduct a marketing ecosystem analysis for your technology venture using the 5C framework. (Refer to the book’s online material for a template guide.)
1. Identify and explain the key processes involved in market validation.
5. How could Skype benefit from customer driven innovation to reinstate its relevance? Can you identify a crowdsourcing opportunity for Skype? The telecommunications industry has undergone tremendous
4. With its generic value proposition, did Skype still need to address the consumer and organisational markets differently? The telecommunications industry has undergone tremendous changes in the
3. In your opinion, what were the advantages of Skype’s early entry into the VoIP market? The telecommunications industry has undergone tremendous changes in the last two decades, through the
2. Outline the factors in Skype’s meso-context, which have had an impact on the company during its life span. The telecommunications industry has undergone tremendous changes in the last two
1. Given the global nature of Skype’s operations, which changes in the macro-context have posed the greatest threats to its survival and expansion as part of the Microsoft Corporation? The
5. Demonstrate the importance of marketing research in the market validation process and explain key market research concepts.
4. Understand and conduct secondary desk research in the validation process and recognise the value of private information not in the public domain in gaining first-mover advantage;
3. Undertake and employ the necessary frameworks for carrying out a full market ecosystem analysis for the technology;
2. Identify and employ the required methods for validating the business concept;
1. Conduct the market validation process for your idea;
4. What is the difference between vanity metrics and growth metrics? How should growth be measured?
3. What is a business model, and what is it useful for? Can you explain the scalability of business models?
2. Can you describe the three value configurations? What are their value and cost drivers? How do value configurations inform business models?
1. What is a vision, and what difference can it make in a new venture?
6. Discuss possible modifications to Spotify’s revenue model to make the company more profitable while respecting its values (i.e. remain a low-cost music provider, pay musicians, maintain
5. What aspects of the Spotify solution make listeners path dependent? Does the Spotify service do enough to ensure loyalty to its solution? In 2006, two Swedish serial entrepreneurs – Daniel Ek
4. Is Spotify’s freemium revenue model too risky given that the company faces significant threats from other major entrants while more than half of users enjoy the free, advertisement-supported
3. In what ways did Spotify grow as a solution while it completed multiple iterations of innovation and business modelling? In 2006, two Swedish serial entrepreneurs – Daniel Ek and Martin
2. What aspects of Spotify’s business model strengthen its value network? What aspects weaken it? In 2006, two Swedish serial entrepreneurs – Daniel Ek and Martin Lorentzon – founded Spotify, a
1. Discuss the ways in which Spotify satisfies customer needs. In 2006, two Swedish serial entrepreneurs – Daniel Ek and Martin Lorentzon – founded Spotify, a European-based, ondemand music
4. Develop relevant growth metrics for systematic testing and learning of your business model.
3. Understand the challenge of moving from testing to scaling business models;
2. Describe, develop and test business models for your business;
1. Understand the value configurations of different businesses and industries;
7. What are the factors that influence the choice of commercialisation route?
6. What are the main routes of commercialisation available to the developers of intellectual property?
5. Briefly outline the complexities in protecting intellectual property for software. What are the typical intellectual property rights associated with software?
4. What are the advantages of filing a Patent Cooperation Treaty international patent application?
3. What is the difference between a copyright and a patent?
2. What are the rights bestowed on the owner of intellectual property?
1. Briefly outline the requirements for a new invention to be patentable. What are two critical steps in the inventorship process?
3. Investigate the claims of US Patent 7615393. Do you believe the claims to be broad enough to provide Innovalight and its customers with a sustainable competitive advantage? Unlike emerging
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