Thiel devises a simple framework for predicting an enterprise’s future performance. He asks: 1) Do the enterprise’s leaders and employees have a perspective on the business that is definite or indefinite? 2) Do the leaders and employees have a perspective that is optimistic or pessimistic? Bottom line: there are four distinct combinations of these perspectives: definite-optimists, indefinite-optimists, definite-pessimists, indefinite-pessimists.

a. Briefly describe the characteristics of each of these four outlooks. Please illustrate your points with examples.

b. Which outlook is best-suited to establishing a start-up that can grow into a great enterprise? Explain. Please illustrate your points with examples.

c. What is your opinion on Thiel’s framework? Does it make sense to you? Why or why not? Please answer this question in a business context (no gut feeling, non-specific responses, please).

4. When examining new ventures to see whether they merit support from his venture capital company, Thiel raises and answers seven questions about the initiative:

a. The engineering question: Can you create breakthrough technology instead of incremental improvements?

b. The timing question: Is now the right time to start your particular business?

c. The monopoly question: Are you starting with a big share of a small market?

d. The people question: Do you have the right team?

e. The distribution question: Do you have a way to not just develop but deliver your product?

f. The durability question: Will your market position be defensible 10 to 20 years in the future?

g. The secret question: Have you identified a unique opportunity that others don’t see?