Entrepreneurship Strategy : Changing Patterns in New Venture Creation, Growth, and Reinvention

by Lisa K. Gundry

• ISBN13: 9781412916561
• ISBN10: 1412916569
• Format: Hardcover
• Copyright: 2006-08-14
• Publisher: SAGE Publications, Inc

Summary

The Princeton Review and Entrepreneur Announce America's Top-Ranking Schools for Entrepreneurship. DePaul University made the top three on the graduate side. The Ryan Creativity Center at DePaul received recognition for its Idea Clinic as one of the top ten business programs in universities that are "entrepreneurial hot spots" programs. Lisa Gundry has been awarded the Innovation in Business Education Award in 1997, by the American Assembly of Collegiate Schools of Business (AACSB) Mid-Continent East Association. She has also received the DePaul University Excellence in Teaching Award.A A Jill Kickul A received the 2000 Management Department Teaching Innovation and Assessment Award. In this engaging and practical book, authors Lisa K. Gundry and Jill R. Kickul uniquely approach entrepreneurship across the life cycle of business growtha??offering entrepreneurial strategies for the emerging venture, for the growing venture, and for sustaining growth in the established venture. Written from the point of view of the founder or the entrepreneurial team, the book offers powerful and practical tools to increase a venturea??s potential for success and growth.A A A Key Features: Presents the changing pattern of strategic needs faced by the new venture: The theories, practices, and tools in this book help enhance a venturea??s creativity in the early days of business start-up and maintain the innovative edge throughout the life of the business. The authors emphasize the key strategic roles of creativity, opportunity identification, opportunity evaluation, and innovation in the emergence and growth of entrepreneurial firms. Offers real-world examples and contemporary cases: Each chapter contains up-to-date cases, Strategy in Action vignettes, Speaking of Strategy interviews with real-life entrepreneurs, and a Failures and Foibles segment to help readers learn from othersa?? experiences and missteps. Promotes innovative thinking: The Innovatora??s Toolkit and Strategic Reflection Points give students the opportunity to reflect on the material presented. In addition, Research in Practice sections provide a summary of recent research on the chapter topic. Includes instructor resources on CD available upon request: A This supportive CD contains PowerPoint slides, lecture outlines, sample syllabi, a guide to using the Special Elements in each chapter, and a listing of additional resources.A A IRCDs are available for qualified instructors only. To request an IRCD for this book please contact Customer Care at 1.800.818.7243 (6 am a?? 5 pm Pacific Time) or by emailing [e-mail] with course name and enrollment and your university mailing address to expedite the process. Intended Audience : This is an ideal core textbook for advanced undergraduate and graduate courses such as Entrepreneurship and New Venture Management, Entrepreneurship Strategy, Strategic Management, Entrepreneurial Growth, Management of Innovation, Entrepreneurial Marketing, and Global Entrepreneurship in the fields of Management, Entrepreneurship, Marketing, and Organizational Behavior. A A

Table of Contents

Foreword	xii
Paige Arnof-Fenn
Acknowledgments	xiv
Introduction	xvi
PART I: ENTREPRENEURIAL STRATEGIES FOR THE EMERGING VENTURE
Entrepreneurship and Strategy: A Framework for New Venture Development	2	(30)
Contemporary Entrepreneurship: Trends and Patterns	5	(2)
Entrepreneurship That Matters: Social Value Creation	7	(3)
Strategy in Action: Social Entrepreneurs---Doing Business With a Conscience	8	(2)
Strategic Reflection Point: Exploring a Social Entrepreneurship Mission	10	(1)
The Role of Innovation in Entrepreneurship Strategy	10	(3)
Research in Practice: Small Firms and Innovation	10	(1)
The Innovator's Toolkit: Are You Right for Entrepreneurship?	11	(1)
Failures and Foibles: The Next Time I Start a New Venture . . .	12	(1)
Beyond Traits: Scripting Our Own Entrepreneurial Strategies	13	(3)
Whole Brain Thinking: An Introduction to Strategy for the Emerging Venture Using the 7-S Model	16	(5)
Strategic Reflection Point: The 7-S's and Entrepreneurship	18	(1)
The Innovator's Toolkit: Diagnostics for Entrepreneurial Systems Throughout the Venture's Life Cycle	18	(3)
Summary of Chapter Objectives	21	(9)
Case 1.1. Floral Design Business in Full Bloom	23	(1)
Case 1.2. Speaking of Strategy: Southport Grocery and Cafe	24	(6)
References	30	(2)
Strategies for Opportunity Identification: The Creative Process	32	(28)
Strategy in Action: Creating the Blissful Salon Experience	33	(1)
Creativity and Entrepreneurship: Turning Ideas Into New Venture Opportunities	33	(3)
Sources of Ideas for New Ventures	36	(4)
Research in Practice: Which Came First---the Idea or the Ownership Decision?	39	(1)
The Opportunity Search	40	(10)
The Innovator's Toolkit: Just Ask!	42	(4)
Strategic Reflection Point: Applying the SEARCH Process to Your Own Idea	46	(1)
Failures and Foibles: Caviar, Anyone?	47	(1)
Strategic Reflection Point: The Proactive Personality	48	(2)
Building the Entrepreneurial Culture to Support Creativity and Innovation	50	(1)
Summary of Chapter Objectives	51	(7)
Case 2.1. Speaking of Strategy: Jacquelyn Corbett Cyr---Innovation by Design	53	(2)
Case 2.2. Matthew Hinson: Changing the World of Student Employment	55	(3)
Notes and References	58	(2)
Strategies for Evaluating Opportunities: The Assessment Process	60	(37)
Strategy in Action: Scott Cook, Founder of Intuit	61	(1)
Opportunity Evaluation: Will the Idea for the New Venture Work?	62	(1)
Four Primary Areas for Assessment	63	(2)
The Innovator's Toolkit: Business Evaluation Scoring Technique (BEST)	64	(1)
Assessing the Feasibility of the New Venture Idea	65	(1)
Fourteen Questions to Ask Every Time	66	(1)
Strategic Reflection Point: ALUO to Evaluate the New Venture Idea	66	(1)
The Feasibility Analysis: Beginning the Evaluation Process	67	(4)
The Innovator's Toolkit: Give Me Five	68	(2)
Failures and Foibles: Knowing What's Not a Good Opportunity	70	(1)
From KIC to OOPs: The Opportunity Organizational Proposal	71	(5)
Research in Practice: New Venture Capabilities	76	(1)
Summary of Chapter Objectives	76	(9)
Case 3.1. Speaking of Strategy: Kate Spade	78	(2)
Case 3.2. Andy Szatko: A Grassroots Approach to Entrepreneurship	80	(5)
Notes and References	85	(1)
Appendix 3.1. Sources for Industry and Market Research	86	(4)
Appendix 3.2. Estimating Start-Up Expenses	90	(7)
Developing New Venture Strategy: Preparation and Launch	97	(34)
Speaking of Strategy: Red Hat---Bringing New Value and New Values to the Marketplace	98	(1)
Strategic Planning and Entrepreneurship	99	(1)
Entrepreneurship and Strategic Management: The Creation of Wealth and Value	100	(1)
Creating the Strategic Vision: Articulating Need and Purpose	101	(3)
The Innovator's Toolkit: Strategic Visioning	103	(1)
Strategic Reflection Point: Communicating the Vision	104	(1)
Values Creation: Developing Strategy in Good Company	104	(4)
Research in Practice: A Comparative Study on the Ethics of Entrepreneurs and Managers	105	(2)
Strategy in Action: The Truth According to Google	107	(1)
Writing a Code of Ethics	108	(3)
Failures and Foibles: Do's and Don'ts on Strategy From a CEO	109	(2)
Summary of Chapter Objectives	111	(18)
Case 4.1. JetBlue	113	(5)
Case 4.2. Haldiram: A Family Entrepreneur Mastering the Intense Competition in the Indian Snack Market	118	(11)
Notes and References	129	(2)
Market Entry: Positioning the Firm for Strategic Advantage	131	(41)
Speaking of Strategy: Travelocity and Innovation---How CEO Michelle Peluso and Her Team Make Decisions	132	(3)
Designing Your Firm's Value Solution(s)	135	(2)
The Innovator's Toolkit: Market-to-Market Creative Connections	136	(1)
The Key Drivers Integral to Buyers' Demands and Expectations Within Your Industry	137	(2)
Matrix Comparisons: Further Examining the Framework	139	(2)
Strategic Reflection Point: Going Beyond the Map---Assessing a Competitor's Will	140	(1)
Research in Practice: Pioneers and Followers---Competitive Tactics, Environment, and Firm Growth	141	(1)
Developing the Go-to-Market Strategy	141	(5)
Strategy in Action: Ciena Corporation---Developing the Go-to-Market Strategy for a Business Venture	143	(2)
Failures and Foibles: Not All ``Joe'' Is Java	145	(1)
The Strategic Plan Outline	146	(3)
Strategic Reflection Point: Strategic Direction for ABC Company	148	(1)
Strategic Positioning: From SWOT to TOWS	149	(2)
Shifting the Focus of Strategy: Creating New Markets Versus Competing Directly	151	(1)
Summary of Chapter Objectives	152	(14)
Case 5.1. RentABook.com: A Strategic Analysis	155	(11)
Appendix 5.1. Student Book-Buying Behavior Survey	166	(1)
Appendix 5.2. RentABook.com Financial Statements	167	(3)
References	170	(2)
PART II: ENTREPRENEURIAL STRATEGIES FOR THE GROWING VENTURE
Financial Resource Capabilities	172	(60)
Strategy in Action: Raging Bull	172	(2)
The Differences Between Debt and Equity Financing: Two Similar but Separate Audiences	174	(3)
Strategy in Action: On Understanding Debt Versus Equity	174	(2)
Speaking of Strategy: Terra J. Sinkevicius and S & S Kid Express, Inc.	176	(1)
Understanding the Financing Stages Along the Life Cycle of the Business	177	(3)
Speaking of Strategy: Paul White, Novazone	178	(2)
Further Descriptions of the Common Sources of Financing From a Debt Perspective	180	(5)
Failures and Foibles: Truth and Consequences	184	(1)
Preparing Your Information for the Lender	185	(1)
Equity Investors: Angel Investors and Venture Capital Firms	186	(13)
Speaking of Strategy: An Interview with Kathleen Elliott, Angel Investor	187	(2)
Research in Practice: Venture Capitalists and Angels	189	(2)
Strategic Reflection Point: Perspectives on Raising Venture Capital	191	(6)
The Innovator's Toolkit: Catching the Investor's Attention	197	(2)
All Told, Why Entrepreneurs Don't Get Funding	199	(1)
Summary of Chapter Objectives	200	(7)
Case 6.1. Benchmark Mobility, Inc.	202	(2)
Case 6.2. Adam Makos and Ghost Wings: Making History by Sharing History	204	(3)
Appendix 6.1. Explanatory Term Sheet Sample	207	(12)
Appendix 6.2. Due Diligence Checklist Table	219	(8)
Appendix 6.3. Additional Guidelines for Presenting Your Business Plan	227	(4)
Notes	231	(1)
The Evolving Management Team	232	(31)
Strategy in Action: Potbelly Sandwich Works---Teamwork That Works	233	(1)
Up and Running: Managing the Growing Firm	234	(4)
Speaking of Strategy: Six Principles for Retaining Loyal People and Partners	237	(1)
The Innovator's Toolkit: Creating a Collaborative Team Environment	238	(1)
Building an Advisory Board: Seeking Advice and Advisers	238	(3)
Research in Practice: The Role of Advice and Advisers	240	(1)
Boards of Directors: Corporate Governance Considerations	241	(3)
Failures and Foibles: Knowing When to Hire and Delegate	243	(1)
Forms of Ownership: Legal Structure of the Organization	244	(10)
Strategic Reflection Point: Entrepreneurial Leader Behaviors	252	(2)
Summary of Chapter Objectives	254	(7)
Case 7.1. College Nannies and Tutors: Taking Care of Business---and Families	255	(6)
Note and References	261	(2)
Building Networks and Strategic Alliances	263	(31)
Speaking of Strategy: A Conversation With Julie E. LeMoine, President and Founder of U C How Technologies	264	(2)
The Benefits and Outcomes of Creating and Sustaining Strategic Alliances	266	(6)
Research in Practice: NFIB National Small Business Poll---Strategic Alliances	270	(1)
Strategy in Action: Achieving Best ``Fit'' Among Partners and Resources	271	(1)
With Whom Should You Partner?	272	(2)
Failures and Foibles: Setting the Tone by Planting Weeds	273	(1)
Understand the Value of Investing in the Social Capital That Can Drive Your Business	274	(4)
The Innovator's Toolkit: Information Network Component Tool	275	(3)
Strategic Reflection Point: Building Your Own Social Capital	278	(1)
Summary of Chapter Objectives	278	(14)
Case 8.1. FOX Relocation Management Corp.: Building a Code of Ethics Within a Networked Community	279	(11)
Case 8.2. Laura McCann and Zweave: Building and Maintaining Social Capital	290	(2)
Note and References	292	(2)
PART III: ENTREPRENEURIAL STRATEGIES FOR SUSTAINING GROWTH IN THE ESTABLISHED VENTURE
Innovative Strategies for Entrepreneurial Growth	294	(33)
Strategy in Action: Innovation Made E-Z---Annette Ricci and Reel E-Z Display, Inc.	295	(1)
Strategies for Innovation: Incremental to Revolutionary Perspectives	296	(5)
Strategy in Action: Constant Compliance, Inc. (2Ci)	298	(2)
Speaking of Strategy: Technology for a Better World---Improving Life Through Innovation	300	(1)
Strategic Thinking: Ideas for Future Expansion	301	(1)
The Five Innovation Mistakes	302	(4)
The Innovator's Toolkit: Challenging Your Assumptions for Breakthrough Thinking	303	(2)
Failures and Foibles: Developing a Portfolio of Initiatives	305	(1)
Maintaining an Innovation-Friendly Environment in the Established Venture	306	(3)
Research in Practice: Benchmarking Best Innovation Practices	307	(1)
Strategic Reflection Point: Expand Your Boundaries	308	(1)
Summary of Chapter Objectives	309	(16)
Case 9.1. Netflix	310	(2)
Case 9.2. Neeta Narula and Ebony Department Stores: Continuing Entrepreneurship in an Indian Family Business	312	(13)
Notes and References	325	(2)
Strategies for the Growing Venture: Mergers, Acquisitions, Franchising, and Exit Strategies	327	(34)
Speaking of Strategy: Carolyn Sanchez Crozier: CS&C-Julex Learning	328	(1)
Mergers and Acquisitions: Growth Strategies of Promise and Peril	329	(7)
Franchising: Growth Through Systems Creation	336	(3)
The Innovator's Toolkit: Assessing Franchise Readiness	338	(1)
Exit Strategies for the Entrepreneurial Firm	339	(9)
Failures and Foibles: ProjectMine	340	(2)
Strategy in Action: Christini Technologies, Inc.	342	(2)
Strategic Reflection Point: Understanding the IPO Process	344	(2)
Research in Practice: The Status of Women in Corporate Governance in High-Growth, High-Potential Firms	346	(2)
Valuation of the Business	348	(1)
Summary of Chapter Objectives	349	(10)
Case 10.1. Noodles & Co., Franchising for Growth	351	(2)
Case 10.2. The Lizard King of SoBe Beverages	353	(6)
Notes and References	359	(2)
Beyond the Strategic Entrepreneurial Model: Learning From Failure	361	(26)
Speaking of Strategy: An Interview With Addie Swartz, CEO of Between Productions, Inc.	362	(1)
The Other Side of Success: Rapid Growth	363	(1)
Solutions for Problems During Rapid Growth	364	(2)
Entrepreneurs and Failure: The Warning Signs	366	(12)
The Innovator's Toolkit: Problem-Solving Checklist	366	(2)
Strategy in Action: Is Your Business in Trouble?	368	(4)
Research in Practice: Entrepreneurial Failures---A Research Overview	372	(2)
Speaking of Strategy: Yomega and the Yo-Yo With a Brain	374	(2)
Failures and Foibles: What-If, Inc. Versus Get-It-Right, Co.	376	(1)
Strategic Reflection Point: Look Who Failed	376	(2)
Learning From Failure	378	(1)
Summary of Chapter Objectives	379	(7)
Case 11.1. Ken and Michael Xie, Fortinet, Inc.	380	(1)
Case 11.2. The Bay House Cafe: Against All Odds	380	(6)
Notes and References	386	(1)
Index	387	(13)
About the Authors	400