MBAX 6100 Marshalling Resources Frank Moyes Leeds College of Business University of Colorado Boulder, Colorado Marshalling Resources
Today’s Agenda Ø Barbara Mowry, CEO Silver Creek Systems Ø Strategic alliances Ø Marshalling resources Ø Bootstrapping Ø Mid-term review Marshalling Resources 2
Next Week Ø Legal Issues 4 Intellectual property 4 Employee agreements Ø Read BZ-9 & 10 Ø Case: Mason and Sheppard Ø Cooley Godward Marshalling Resources 3
Strategic Alliances Marshalling Resources
Strategic Alliances Ø Over 75% of technology businesses are active in strategic alliances. 63% said critical or very important. (Pricewaterhouse. Coopers, Trendsetter Barometer 2001). Ø Most are informal Ø Joint venture – jointly owned entity 4 Speed to market 4 Access to markets, technology or knowledge 4 Access to capital 4 Spin-ins & spin-outs Marshalling Resources 5
Strategic Alliances Forms Ø Marketing – access to distribution e. g. Nestle in Europe Ø Technological – joint research, e. g. Celebrex for Pfizer Ø Manufacturing – subcontract operations, e. g. Jurismonitor Ø Investment – Intel had 220 active investments in 2004 Marshalling Resources 6
Advantages to Strategic Alliances Ø Gain access to a resource, e. g. production, skills, capital Ø Economies of scale Ø Risk & cost sharing Ø Gain access to international market Ø Learning Ø Speed to market Ø Neutralizing or blocking competitors Barringer & Ireland, Entrepreneurship Marshalling Resources 7
Risks of Strategic Alliances Ø Loss of proprietary information Ø Management complexities Ø High risk of failure Ø Become dependent on partner 4 Risk of opportunism 4 Non performance Ø Loss of decision autonomy Ø Clash of cultures Ø Precludes partnership with another firm or exit Barringer & Ireland, Entrepreneurship Marshalling Resources 8
Marshalling Resources
What Resources Do New Ventures Have? ØPeople ØPhysical Assets ØIntangible ØFinancial ØSocial & Personal Marshalling Resources 10
Social Network Ø Network 4 Industry contacts 4 Mentors, YPO 4 Family 4 Outside service providers- legal, accounting, bankers 4 Board of Directors and Advisors Ø Owe you favors Marshalling Resources 11
Personal Resources ØStaying power 4 Your personal resources 4 Borrowing capacity 4 Spouse who works ØCulture that you create ØPersonal characteristics 4 You are likeable 4 Integrity Marshalling Resources 12
What is Bootstrapping? Ø“Launching ventures with modest personal funds”, Bhide ØOther People’s Resources (OPR), “Key is not to own resources, but to have use of & be able to control or influence deployment”, Timmons ØScrooge mode Marshalling Resources 13
Bootstrapping Examples Ø Make vs. buy Ø Volume purchasing Ø Hiring employees vs. subcontract or temps Ø Employee benefits Ø Office and location Ø Used equipment Ø PR vs. advertising & promotion Ø Strategic alliances - Jurismonitor Ø Grants Marshalling Resources 14
Benefits of Bootstrapping Enhances Funding Ø Need less capital 4 Reduces financial exposure 4 Reduces amount of money need to raise - less dilution Ø Reduces risk 4 Obsolescence 4 Lower sunk costs Ø Investor's love it 4 Proves concept and management team 4 Reduces risk Marshalling Resources 15
Benefits of Bootstrapping Provides Flexibility Ø Permits strategic experiments Ø Make changes quickly Ø Cost of making a mistake is minimized 4 Mistakes less likely to be fatal 4 Inexperienced entrepreneurs can screw-up 4 Don’t have the pressure of high growth Marshalling Resources 16
Benefits of Bootstrapping Improves Problem Solving Ø Like zero inventory in JIT 4 Reveals hidden problems 4 Forces management to solve them Ø Focus is on profits 4 Forces management to solve problems 4 Price for profitability 4 Reduces costs s Lower fixed costs Higher variable costs, but high Gross Profit Margin solves Lower break-even point Marshalling Resources 17
Benefits of Bootstrapping Sets the Right Culture Ø Employees Ø Suppliers Marshalling Resources 18
Can An Entrepreneur Have Too Much Money? Ø Don’t focus or address real issues 4 Throw money at it 4 Dot. bombs Ø Try-it, fix-it approach is difficult 4“Are we being fooled twice” Ø Try to compete on price – buy market share Ø Don’t focus on achieving high margins Marshalling Resources 19
What Is the Greatest Source of Cash? Marshalling Resources 20
Marshaling Resources Conclusion Ø Control rather than own - OPR Ø Money is not the solution. May be the problem. Ø Bootstrapping is an attitude Ø What is a downside of focusing on resources? Marshalling Resources 21
Скачать презентацию MBAX 6100 Marshalling Resources Frank Moyes Leeds College
201cf45b1d1aa84583eaefa749454e90.ppt