This case study introduces students to the nuances of deal structuring between company founders and venture capital firms. Specifically, the learning objectives for the case exercise include the following: (1) apply the venture capital method to value entrepreneurial ventures and structure financing between entrepreneurial firms and venture capitalists; (2) use capitalization (cap) tables to understand the dilution effects of multiple rounds of venture financing; and (3) gain an appreciation for the importance of arriving at a realistic value estimate for the entrepreneurial firms that gives the firm and its founders the best chances of long-run success.
{"title":"Kirkanson, Inc. (A)","authors":"John D. Martin, J. Petty","doi":"10.2139/ssrn.1791782","DOIUrl":"https://doi.org/10.2139/ssrn.1791782","url":null,"abstract":"This case study introduces students to the nuances of deal structuring between company founders and venture capital firms. Specifically, the learning objectives for the case exercise include the following: (1) apply the venture capital method to value entrepreneurial ventures and structure financing between entrepreneurial firms and venture capitalists; (2) use capitalization (cap) tables to understand the dilution effects of multiple rounds of venture financing; and (3) gain an appreciation for the importance of arriving at a realistic value estimate for the entrepreneurial firms that gives the firm and its founders the best chances of long-run success.","PeriodicalId":124895,"journal":{"name":"EduRN: Entrepreneurship Research & Policy Education (ERPN) (Topic)","volume":"2 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-03-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134589244","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
A firm’s managers can measure a company’s risk exposure in several ways. This teaching note illustrates another measure of risk: How much can the firm lose by this time next year?
{"title":"How Much Can I Lose by this Time Next Year?","authors":"Ramon P. Degennaro","doi":"10.2139/SSRN.1737992","DOIUrl":"https://doi.org/10.2139/SSRN.1737992","url":null,"abstract":"A firm’s managers can measure a company’s risk exposure in several ways. This teaching note illustrates another measure of risk: How much can the firm lose by this time next year?","PeriodicalId":124895,"journal":{"name":"EduRN: Entrepreneurship Research & Policy Education (ERPN) (Topic)","volume":"27 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2011-01-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133638133","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This paper describes how entrepreneurial firms can use superior architectural knowledge to open up a technical system to gain strategic advantage. The strategy involves, first, identifying "bottlenecks" in the existing system, and then creating a new open architecture that isolates the bottlenecks in modules and allows others to connect to the system at key interfaces. An entrepreneurial firm with limited financial resources can then focus on supplying superior bottleneck modules, and while outsourcing and allowing complementors to supply non-bottleneck components. I show that a firm pursuing this strategy will have a higher return on invested capital (ROIC) than competitors with a less modular, closed architecture. Over time, the more open firm can drive the ROIC of competitors below their cost of capital, causing them to shrink and possibly exit the market. The strategy was used by Sun Microsystems in the 1980s and Dell Computer in the 1990s.
{"title":"When Open Architecture Beats Closed: The Entrepreneurial Use of Architectural Knowledge","authors":"Carliss Y. Baldwin","doi":"10.2139/ssrn.1549645","DOIUrl":"https://doi.org/10.2139/ssrn.1549645","url":null,"abstract":"This paper describes how entrepreneurial firms can use superior architectural knowledge to open up a technical system to gain strategic advantage. The strategy involves, first, identifying \"bottlenecks\" in the existing system, and then creating a new open architecture that isolates the bottlenecks in modules and allows others to connect to the system at key interfaces. An entrepreneurial firm with limited financial resources can then focus on supplying superior bottleneck modules, and while outsourcing and allowing complementors to supply non-bottleneck components. I show that a firm pursuing this strategy will have a higher return on invested capital (ROIC) than competitors with a less modular, closed architecture. Over time, the more open firm can drive the ROIC of competitors below their cost of capital, causing them to shrink and possibly exit the market. The strategy was used by Sun Microsystems in the 1980s and Dell Computer in the 1990s.","PeriodicalId":124895,"journal":{"name":"EduRN: Entrepreneurship Research & Policy Education (ERPN) (Topic)","volume":"39 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2010-10-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122226072","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Appropriate for marketing and operations management courses. The director of CS at a customer-focused catalog electronics company has asked a Six Sigma Black Belt for assistance in evaluating several ideas to effectively obtain and analyze feedback from users of its CS department. A Design For Six Sigma project was run six years previously and discovering why the company used the Six Sigma project, as opposed to one of the many new customer-satisfaction-survey tools available from third-party vendors is a goal. Students are asked to discuss the Design For Six Sigma methodology as it applies to the project.
{"title":"We Can Hear You Now (a): A Customer Survey Design for a Six Sigma Project at Crutchfield Corp","authors":"R. Landel, Laure Taylor, Alan Zimmerman","doi":"10.2139/ssrn.1585661","DOIUrl":"https://doi.org/10.2139/ssrn.1585661","url":null,"abstract":"Appropriate for marketing and operations management courses. The director of CS at a customer-focused catalog electronics company has asked a Six Sigma Black Belt for assistance in evaluating several ideas to effectively obtain and analyze feedback from users of its CS department. A Design For Six Sigma project was run six years previously and discovering why the company used the Six Sigma project, as opposed to one of the many new customer-satisfaction-survey tools available from third-party vendors is a goal. Students are asked to discuss the Design For Six Sigma methodology as it applies to the project.","PeriodicalId":124895,"journal":{"name":"EduRN: Entrepreneurship Research & Policy Education (ERPN) (Topic)","volume":"48 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2010-04-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121683182","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2010-04-05DOI: 10.1515/9780804777568-015
Edward D. Hess
This case is appropriate for students interested in becoming entrepreneurs, growing small businesses, and the decision making required. The case presents the conflict between what is in the best interests of the business and the pressure caused by family dynamics. A successful family business has as its chief operating officer a son-in-law who is an outstanding performer. When the daughter of the CEO files for divorce, the wife of the founder and mother of the daughter demands that the son-in-law be fired.
{"title":"Appalachian Commercial Cleaners: Family Dynamics Versus the Business","authors":"Edward D. Hess","doi":"10.1515/9780804777568-015","DOIUrl":"https://doi.org/10.1515/9780804777568-015","url":null,"abstract":"This case is appropriate for students interested in becoming entrepreneurs, growing small businesses, and the decision making required. The case presents the conflict between what is in the best interests of the business and the pressure caused by family dynamics. A successful family business has as its chief operating officer a son-in-law who is an outstanding performer. When the daughter of the CEO files for divorce, the wife of the founder and mother of the daughter demands that the son-in-law be fired.","PeriodicalId":124895,"journal":{"name":"EduRN: Entrepreneurship Research & Policy Education (ERPN) (Topic)","volume":"20 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2010-04-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128581468","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Suitable for MBA and executive learners, this case series presents an engaging narrative that prompts students to discuss entrepreneurial thinking. An entrepreneur who loves his native Swedish Lapland uses his natural gift for effectuation to ask What? What next? And What now? As his ventures evolve, students begin to ask themselves how they would master similar challenges to their own entrepreneurial plans and expectations. The case can be taught in either one or two sessions of a 90-minute MBA course or a four-hour executive education class. An effective complement is the technical note entitled, "What Makes Entrepreneurs Entrepreneurial"? (UVA-ENT-0065).
适合MBA和高管学习者，这个案例系列提出了一个引人入胜的叙述，促使学生讨论创业思维。一位热爱他的家乡瑞典拉普兰的企业家用他天生的能力问:“什么?”下一个什么?现在怎么办?随着他的企业的发展，学生们开始问自己，他们将如何应对与自己的创业计划和期望类似的挑战。这个案例可以在90分钟的MBA课程的一节或两节课中教授，也可以在4小时的高管教育课程中教授。一个有效的补充是题为“什么使企业家具有企业家精神”的技术说明?(uva - ent - 0065)。
{"title":"Cold Opportunity (a): The Nils Bergqvist Story","authors":"S. Sarasvathy, Magnus Aronsson","doi":"10.2139/ssrn.1583308","DOIUrl":"https://doi.org/10.2139/ssrn.1583308","url":null,"abstract":"Suitable for MBA and executive learners, this case series presents an engaging narrative that prompts students to discuss entrepreneurial thinking. An entrepreneur who loves his native Swedish Lapland uses his natural gift for effectuation to ask What? What next? And What now? As his ventures evolve, students begin to ask themselves how they would master similar challenges to their own entrepreneurial plans and expectations. The case can be taught in either one or two sessions of a 90-minute MBA course or a four-hour executive education class. An effective complement is the technical note entitled, \"What Makes Entrepreneurs Entrepreneurial\"? (UVA-ENT-0065).","PeriodicalId":124895,"journal":{"name":"EduRN: Entrepreneurship Research & Policy Education (ERPN) (Topic)","volume":"81 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2010-04-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"114705328","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This video walks the viewer through the student team project component of an MBA elective that focuses on the process of developing a new product or service, from idea to working prototype. For the team project, each student team identifies an unmet market, develops a working prototype of a new product to fulfill that need, and showcases the product and the process used in a design fair at the end of the classADDITIONAL MATERIALS: Video tape #M1250
{"title":"A Note on the Video 'Creating New Products'?","authors":"Kamalini Ramdas","doi":"10.2139/ssrn.1422344","DOIUrl":"https://doi.org/10.2139/ssrn.1422344","url":null,"abstract":"This video walks the viewer through the student team project component of an MBA elective that focuses on the process of developing a new product or service, from idea to working prototype. For the team project, each student team identifies an unmet market, develops a working prototype of a new product to fulfill that need, and showcases the product and the process used in a design fair at the end of the classADDITIONAL MATERIALS: Video tape #M1250","PeriodicalId":124895,"journal":{"name":"EduRN: Entrepreneurship Research & Policy Education (ERPN) (Topic)","volume":"16 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2009-06-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116513161","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
InterActive Productions is a start-up company providing on-line, interactive software accessible through the Internet. The company had received $350,000 in seed money from Compuline Online Services to bring its first interactive product, Golf Interactive, live for Compuline subscribers and other Internet users. The company is now negotiating with Redden-Post, a Silicon Valley venture-capital firm, for "first-round" financing. The issues under consideration include valuation of the company, equity ownership for the investors and founders, composition of the board of directors, operating covenants, and equity-incentive clauses for the owners should they achieve or exceed their goals. This case and its companion, "InterActive Productions: Cameron Alexander" (UVA-QA-0495), form a two-party, multi-issue, scorable negotiation exercise.
{"title":"Interactive Productions: Jessica Sanders","authors":"D. Clyman, S. Henley","doi":"10.2139/ssrn.1422947","DOIUrl":"https://doi.org/10.2139/ssrn.1422947","url":null,"abstract":"InterActive Productions is a start-up company providing on-line, interactive software accessible through the Internet. The company had received $350,000 in seed money from Compuline Online Services to bring its first interactive product, Golf Interactive, live for Compuline subscribers and other Internet users. The company is now negotiating with Redden-Post, a Silicon Valley venture-capital firm, for \"first-round\" financing. The issues under consideration include valuation of the company, equity ownership for the investors and founders, composition of the board of directors, operating covenants, and equity-incentive clauses for the owners should they achieve or exceed their goals. This case and its companion, \"InterActive Productions: Cameron Alexander\" (UVA-QA-0495), form a two-party, multi-issue, scorable negotiation exercise.","PeriodicalId":124895,"journal":{"name":"EduRN: Entrepreneurship Research & Policy Education (ERPN) (Topic)","volume":"75 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2009-06-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131037718","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This case is useful in teaching marketing strategy as part of a marketing course. It can also be used to teach promotional strategy. Only one week into Zenith Bank of Nigeria’s initial public offering (IPO), Jim Ovia and his management team faced a new regulation that required that the capital base of banks be raised from (Nigerian naira) NGN2 billion to NGN25 billion. They needed to review their approach to marketing the IPO and try something outside the traditional marketing campaigns of public offerings in Nigeria. The highest amount ever realized from the Nigerian capital market was NGN11 billion. The new regulations resulted in Ovia’s needing to revise the marketing objectives for the IPO from about NGN9 billion to an unspecified amount that would increase the bank shareholders’ fund to well over the minimum requirement of NGN25 billion.
{"title":"Zenith Bank: The Marketing of an Initial Public Offering","authors":"Gerry Yemen, J. Clawson, Chinyelu Amangbo","doi":"10.2139/ssrn.1420585","DOIUrl":"https://doi.org/10.2139/ssrn.1420585","url":null,"abstract":"This case is useful in teaching marketing strategy as part of a marketing course. It can also be used to teach promotional strategy. Only one week into Zenith Bank of Nigeria’s initial public offering (IPO), Jim Ovia and his management team faced a new regulation that required that the capital base of banks be raised from (Nigerian naira) NGN2 billion to NGN25 billion. They needed to review their approach to marketing the IPO and try something outside the traditional marketing campaigns of public offerings in Nigeria. The highest amount ever realized from the Nigerian capital market was NGN11 billion. The new regulations resulted in Ovia’s needing to revise the marketing objectives for the IPO from about NGN9 billion to an unspecified amount that would increase the bank shareholders’ fund to well over the minimum requirement of NGN25 billion.","PeriodicalId":124895,"journal":{"name":"EduRN: Entrepreneurship Research & Policy Education (ERPN) (Topic)","volume":"54 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2009-06-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127552752","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Netflix pioneered the online video rental industry and developed a successful business model that effectively managed customer acquisition, retention, and lifetime value. Blockbuster Video intends to slow Netflix's growth by launching an online rental program that appears to be seamlessly integrated with its huge network of offline video stores. Will Blockbuster's multichannel program hurt Netflix's customer acquisition and rentention rates? Simultaneously, competition from video retailers such as Wal-Mart challenges the core business model that Netflix built to maximize customer lifetime value.
{"title":"Netflix, Inc.: DVD Wars","authors":"G. Sarolli, R. Venkatesan","doi":"10.2139/ssrn.1420592","DOIUrl":"https://doi.org/10.2139/ssrn.1420592","url":null,"abstract":"Netflix pioneered the online video rental industry and developed a successful business model that effectively managed customer acquisition, retention, and lifetime value. Blockbuster Video intends to slow Netflix's growth by launching an online rental program that appears to be seamlessly integrated with its huge network of offline video stores. Will Blockbuster's multichannel program hurt Netflix's customer acquisition and rentention rates? Simultaneously, competition from video retailers such as Wal-Mart challenges the core business model that Netflix built to maximize customer lifetime value.","PeriodicalId":124895,"journal":{"name":"EduRN: Entrepreneurship Research & Policy Education (ERPN) (Topic)","volume":"93 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2009-06-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126365292","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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