...and Venture Capitalists Mildene Faulkner Angel vs Venture Angel investors and venture capitalists operate in the same market, but they both provide a different type of service. The two depend on each other to make business work. These types of investors would be looking to make money fast by investing in someone else’s idea. Entrepreneurs need the financial backings to start up their business and constant set of investor to keep it going thru the start phrase. With Angel investors and venture capitalists, startup businesses had a sure change on thriving in a tough economy. The person who comes up with the idea to start a business would usually need a sales pitch. They would tend pitch the idea to a group of business people who had money. Angel investors would be in charge of the funding the initial startup of the business. Angel investor usually invests their own to startup a new business. Angel investments are high risk and usually are subject to dilution from future investment. Angel investors also require a very high return on their investment. Angel investors are usually often retired entrepreneurs or executives, who may be interested in angel investing for reasons that go beyond pure monetary return. In order to really keep the business going, angel investors seek venture capitalists to provide more financial backing. Venture capitalists are a group of business that provides funds to early stage, high potential, high risk growing startup companies. The venture capitalist...
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...Operational strategy: * The services offered by the venture come under the ‘Food and Beverage’ industry and will initially cater to the 600+ student managers of SIMS. * Ideally, a team of 6 people would be required for handling the day-to-day operations at any point of time along with a team of 3-4 people who would look into element of Marketing and Promotion. The day-to-day operations would involve the preparation of the food-items and beverages as according to the quantity demanded. * Along with this an individual, to manage the daily monetary-transactions, would be continuously required to maintain and keep a track of the finances of the venture. * The work force required would be managed amongst the team-managers by working in shifts and changing the responsibilities as and when required while keeping in-mind the smooth working of the venture. * Expenses will include material-procurement costs, salaries, travel, communication, electricity and internet bills. Risks and challenges: Problem 1: Many other players in the ‘food-industry’ in the market. Solution: Give an unmatched service and the most satisfying experience in the market, take regular feedback from customers, discuss the different options and implement new ideas that would adapt to the ever changing environment. Problem 2: Not enough customers initially. Solution: Work towards creating strong relations with the initial customers, networking and developing strong promotional activities...
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...ADMN417 Assignment 2: Eli Lilly in India: Rethinking the Joint Venture Strategy Executive summary: Eli Lilly entered into a joint venture with Ranbaxy in India in 1992. A decade later both must decide whether this relationship remains mutual beneficial. Both companies have enjoyed a strong working relationship with identical value system as well as strong growth. Ranbaxy has become international and thus needs to concentrate more on generics and growth in US and UK; the joint venture with Eli Lilly no longer seems to be central to Ranbaxy’s current goals. With major changes in India’s regulation and patent protection, Eli Lilly can now enter the Indian market independently and soon would enjoy product patent protection. Dr. Lorenzo Tallarigo, president of Intercontinental Operations at Eli Lilly should end the joint venture with Ranbaxy in India. Eli Lilly will purchase all outstanding shares held by Ranbaxy at a fair market value, rebrand its name in India to simply Eli Lilly, and maintain current staff from the joint venture. The current operation from the previous joint venture should be maintained without any additional major changes since profits are already assured beyond 2005. Ranbaxy will be able to focus on the international markets with additional capital and Eli Lilly to continue growth in India. Problem statement: A decade after the formation of the joint venture, several changes have occurred in both the external environment as well as the expectation of...
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...Journal of Management http://jom.sagepub.com/ New Venture Teams: A Review of the Literature and Roadmap for Future Research Anthony C. Klotz, Keith M. Hmieleski, Bret H. Bradley and Lowell W. Busenitz Journal of Management published online 26 June 2013 DOI: 10.1177/0149206313493325 The online version of this article can be found at: http://jom.sagepub.com/content/early/2013/06/26/0149206313493325 Published by: http://www.sagepublications.com On behalf of: Southern Management Association Additional services and information for Journal of Management can be found at: Email Alerts: http://jom.sagepub.com/cgi/alerts Subscriptions: http://jom.sagepub.com/subscriptions Reprints: http://www.sagepub.com/journalsReprints.nav Permissions: http://www.sagepub.com/journalsPermissions.nav >> OnlineFirst Version of Record - Jun 26, 2013 What is This? Downloaded from jom.sagepub.com at Jonkoping University Library on November 11, 2013 493325 research-article2013 JOMXXX10.1177/0149206313493325Journal of Management / Month XXXXKlotz et al. / New Venture Teams Journal of Management Vol. XX No. X, Month XXXX 1–30 DOI: 10.1177/0149206313493325 © The Author(s) 2013 Reprints and permissions: sagepub.com/journalsPermissions.nav New Venture Teams: A Review of the Literature and Roadmap for Future Research Anthony C. Klotz Oregon State University Keith M. Hmieleski Texas Christian University Bret H. Bradley Lowell W. Busenitz University of Oklahoma As entrepreneurship...
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...Sharp Corporation - Beyond Japan: Case Study In: Business and Management Sharp Corporation - Beyond Japan: Case Study Executive Summary: Faced with major losses from operations, Sharp Corporation’s president, Mikio Katayama, questioned the whether it was necessary to reform the current business operating model. Sharp’s current operating model contained several flaws. It placed sensitive, high-value-added operations such as research, development, and component manufacturing near its headquarters in Japan. Faced with threats such as intense industry competition, currency risks, very high transportation and utility costs, and extremely high infrastructure costs and high corporate tax rates, Sharp Corporation needs resources in the forms of new methods, technology, and approaches to doing business in the modern world. It is recommended that the company remodels their operating model in order to emphasize cooperation with other firms. Cooperation with other firms can take place in many forms, such as partnerships and joint ventures, and provides firms with many advantages. Sharp will greatly benefit from cooperative agreements since they are cost effective, provide financial support, and allow for more creative brainstorming. In addition, the economic risk is shared, and firms may help each other to tap into new technologies, methods, and approaches. Sharp Corporation needs outside help in order to achieve a turnaround. Joint ventures and partnerships with other firms open up...
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...Genzyme Memo Genzyme is interested in a joint venture with Geltex to market GelTex’s first product, RenaGel. GelTex was an early-stage biotech research company with two products in its pipeline. GelTex had neither the capital nor the marketing organization to launch RenaGel. Therefore, the company had been looking for a partner that would contribute cash and marketing expertise in exchange for a share of profits in a joint venture. Genzyme had revenues of $518 million in 1996, and had grown rapidly through the innovative use of joint ventures and alliances. In addition to the benefit of increasing earnings through the sale of RenaGel, the joint venture would represent an excellent fit for Genzyme’s specialty therapeutics and allow the firm to tap new markets. Also, building a strong partnership with GelTex might enable Genzyme to strike the same kind of deal for GelTex’s second product, CholestaGel, which was targeting a much larger segment, the multibillion-dollar market of anticholesterol drugs. Overall, the joint venture was very attractive for Genzyme which would lead the firm in capturing a larger market share and capitalizing on the synergies associated with this venture. A joint venture is a partnership between two or more companies which is usually for strategic reasons or to combine capabilities which is beyond the realm of each individual company. On the other hand, an acquisition involves one company buying a controlling interest in the securities of another...
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...International Joint Venture (IJV) is a formal agreement in which two or more of business partners in order to accomplish a particular mutually beneficial project (Park 2010, 55). The aim of this report is to discuss two or more companies successful and unsuccessful to forming an international joint venture (IJV). Transaction cost approach is one of the circumstances to joint venture formation in order to minimize cost of production and also reduce risks of business. Besides, organizational learning is another circumstances that enter and into a joint venture to learn foreign knowledge about the business and skill from another partners. This report has considered several reasons why one succeeded and other one failed of the companies. Daimler Chrysler faced the impact of cultural differences that causes Daimler failure on IJV performance. Language barrier always be the problem of communicating. Moreover, lack of management is one of the failure reasons for Daimler due to the ineffective leadership of the president. Poor management with human resource management can be the main reason of failure. Chery Jaguar Land Rover, the human resource management is providing high standard of service and also attracting talented people to stay is the key success of the organization. The management skill of Chery Jaguar Land Rover is a high top quality management. It is recommended that managers and the partners of Daimler Chrysler must improve the communication skills to understand each other...
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...BUS107: Fundamentals of e -Business ASSN 1:Starting a business online part 1 By Minh Thai Professor: William Simonpietri Date: 1/2/2014 Business as of today has become more competitive and more sophisticated than ever before. Owning a small clothing line has it’s complications but taking it to an e-commerce level is a total new logic. Before going to any new business venture, an evaluation must be done correctly in a professional manner. I think it’s best to have a SWOT analysis planned out prior to starting out. A SWOT analysis helps analyze the 4 compartments for either a business venture or project. The 4 compartments are Strengths, Weaknesses, Opportunities, and Threats. According to the text Strengths measures the advantages of the characteristics the business may have. Weaknesses measure the disadvantages of what a business may have. Opportunities help analyze new ideas for growth. Lastly Threats shows what factors that may cause a danger towards a business or project. The advantages under Strength, I would say for owning a small local clothing store along the Jersey shore is by taking constant current customers and showing them your e-commerce site, so that they may be able to spread the word for you. Secondly it’ll attract more tourists and people around the globe that are able to check the web-site out instead of only dealing within the retail environment and having only physical contact. Another advantage is more income and revenue will increase substantially...
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...Entrepreneurial Ventures Lecture 10: Pre-start Analysis, Part 3: Assessing Business Model 胡秋江教授 1 What We Shall Discuss This lecture is Part 3 of our discussions on pre-start analysis. In this final part, we shall discuss the following: What business models are and what they are not The elements of a business model Assessing new venture business models: What makes a good business model Examples of effective and flawed business models 2 Business Opportunity & Business Model On recognizing a promising opportunity, an entrepreneur will formulate hypotheses relating to the following: The likely customers that the venture should target How the opportunity can be exploited to develop and deliver products/services that target customer need or want at an appropriate cost, allowing the venture to make a good profit The resources required to pursue the identified opportunity In formulating these hypotheses, the entrepreneur is essentially formulating the underlying premises for a business model. 3 What Is a Business Model, Really? ‘Business model’ is a widely used but remains a fuzzy concept with no universally accepted definition. Nevertheless, a good business model is essential to every successful enterprise, new or established. It is… A valuable analytical and communications tool Tool for realizing value from technological innovation Our working definition of business model: A representation of (1) what value a new venture proposes to offer...
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...Shepherd find themselves with respect to their existing employers. What legal and ethical issues do you see and how would you advise them to proceed? Mason's endeavor for the venture creation is strictly bounded by her employment agreement with ATS. That is to say, she will be in clear violation of the Noncompetition, Nonsolicitation, Nondisclosure and Development provisions, if she plans to pursue the venture within one year by utilizing the information and social network she gained from the company. So the first barrier she need to tackle is to prove this new business is not in competition with ATS at all. Also she cannot speak with any current customers of ATS. These limitations will probably strangle the venture in embryo. Also, Mason had recently played golf with a colleague, who told her that if she ever left the company or came upon an idea. he wanted to be involved. Yet, because she signed an employment agreement with a non-solicitation clause, she was very skeptical. Another possible sticky situation is that ATS claims ownership of the data in her office computer, which contain many resources and information useful for her and accounts about her new venture. First aid for this situation is to remove all the incriminating data and information about the venture as soon as possible. Beyond that she can hire a legal consultant and lawyer to negotiate with ATM. Shepherd's problem is more about intellectual property law. In his agreement with NOVA, he is mandated to...
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...Mason's endeavor for the venture creation is strictly bounded by her employment agreement with ATS. That is to say, she will be in clear violation of the Noncompetition, Nonsolicitation, Nondisclosure and Development provisions, if she plans to pursue the venture within one year by utilizing the information and social network she gained from the company. So the first barrier she need to tackle is to prove this new business is not in competition with ATS at all. Also she cannot speak with any current customers of ATS. These limitations will probably strangle the venture in embryo. Also, Mason had recently played golf with a colleague, who told her that if she ever left the company or came upon an idea. he wanted to be involved. Yet, because she signed an employment agreement with a non-solicitation clause, she was very skeptical. Another possible sticky situation is that ATS claims ownership of the data in her office computer, which contain many resources and information useful for her and accounts about her new venture. First aid for this situation is to remove all the incriminating data and information about the venture as soon as possible. Beyond that she can hire a legal consultant and lawyer to negotiate with ATM. Shepherd's problem is more about intellectual property law. In his agreement with NOVA, he is mandated to inform the company of all his invention. However, this doesn't mean he is not allowed to own his invention. Therefore I suggest he patent the translation...
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...including the approval of operating budgets, marketing and sales plans, capital requirements, and distribution channels. Each partner has an equal vote on all matters involving the venture and equal representation on the board of directors. The board of directors has four positions; Banana designates two, while Berry designates the other two. In the event that the two parties cannot reach an agreement on an issue requiring a board vote, an independent arbitrator will be used to resolve the conflict. • Embedded in its equity interest, Berry has an option to put its investment in Cherry common stock back to Cherry for the greater of $20 million or appraised value after two years. The option expires after year five. • In the event that either joint venture member chooses to sell a portion, or all, of its ownership interest, the other member has the right of first refusal to acquire the available interest. • Cherry expects losses of $20 million. • Cherry sells its product directly to end customers. Additional Facts: • Each entity has all the requisite information to determine whether it is a variable interest. • There are no other arrangements that give Banana or Berry power beyond the stated agreement. In anticipation of filing its year-end financial statements, Banana reviewed the joint venture arrangement and determined that consolidation of Cherry was not required. Required: * Question 1 — Determine if Banana, Berry, or both, are required to apply the provisions...
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...and the former Soviet Union present a profusion of consumers and immense growth potential for multinational corporations. The trick is for senior management to fully understand that this market possibility exists and that tapping into it may require a radical departure from the traditional, developed-economy mindset. As Nike’s financial record indicates, market saturation and intense competition in Tier One economies has squelched Nike’s growth trajectory. While the Swoosh continues to penetrate typical Western markets, tapping into the increasing numbers of “middle and lower class” consumers in emerging markets could offer a phenomenal expansion opportunity if the firm can create the right business model. In addition, beyond the potential economic benefits from this venture, Nike’s World Shoe Project also offers a credible response to the labor issues that have buffeted the company, and leverages their efforts to minimize the environmental impact of their production activities. • Introduction/Background of the study The words “Just make me the shoe!” echoed down the boardroom table to Tom Hartage a 17 – year veteran of the running shoe company, Nike Inc. Tom Clarke, president of the company in 1998, had attended the meetings, seen the presentations and reviewed the numbers related to the market potential of China a rough gem with a booming population of 1.2 billion. He also knew that in many parts of the world, including China, people couldn’t afford Nike’s...
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...Shepherd 1. What legal and ethical issues do you see with Mason and Shepherd’s plan to leave their current employer? How should they proceed from here on? Mason's endeavor for the venture creation is strictly bounded by her employment agreement with ATS. That is to say, she will be in clear violation of the Noncompetition, Nonsolicitation, Nondisclosure and Development provisions, if she plans to pursue the venture within one year by utilizing the information and social network she gained from the company. So the first barrier she need to tackle is to prove this new business is not in competition with ATS at all. Also she cannot speak with any current customers of ATS. These limitations will probably strangle the venture in embryo. Also, Mason had recently played golf with a colleague, who told her that if she ever left the company or came upon an idea. he wanted to be involved. Yet, because she signed an employment agreement with a non-solicitation clause, she was very skeptical. Another possible sticky situation is that ATS claims ownership of the data in her office computer, which contain many resources and information useful for her and accounts about her new venture. First aid for this situation is to remove all the incriminating data and information about the venture as soon as possible. Beyond that she can hire a legal consultant and lawyer to negotiate with ATM. Shepherd's problem is more about intellectual property law. In his agreement with NOVA, he is mandated to...
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...How to Write a Great Business Plan by William A. Sahlman Harvard Business Review Reprint 97409 Which information belongs – and which doesn’t – may surprise you. How to Write a Great by William A. Sahlman Few areas of business attract as much attention as new ventures, and few aspects of new-venture creation attract as much attention as the business plan. Countless books and articles in the popular press dissect the topic. A growing number of annual business-plan contests are springing up across the United States and, increasingly, in other countries. Both graduate and undergraduate schools devote entire courses to the subject. Indeed, judging by all the hoopla surrounding business plans, you would think that the only things standing between a would-be entrepreneur and spectacular success are glossy five-color charts, a bundle of meticulouslooking spreadsheets, and a decade of month-bymonth financial projections. William A. Sahlman is Dimitri V. d’Arbeloff Professor of Business Administration at the Harvard Business School in Boston, Massachusetts. He has been closely connected with more than 50 entrepreneurial ventures as an adviser, investor, or director. He teaches a secondyear course at the Harvard Business School called “Entrepreneurial Finance,” for which he has developed more than 100 cases and notes. Nothing could be further from the truth. In my experience with hundreds of entrepreneurial startups, business plans rank no higher than 2–on a scale from...
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