Download - Last Class Fall2005
-
8/6/2019 Last Class Fall2005
1/22
Did CV really make a mistake? vendor logic vs. customer logicEx-post classification of structural barriers vs. ex-ante building.
The fallacy of technological determinism, first mover advantages
Sun case = Network economies.Audacious Goals beat IBMStrategy a few good betsAnd execution
Bluff, bluster, sellingTactical ingenuity/The dramatic gestureNever say dieThe lean and hungry look.
Similarities and contrasts with PSS
Sun Recap
-
8/6/2019 Last Class Fall2005
2/22
Profitability based on a few factors Niche Markets
Multiple Assets Embedded Coordination Mechanisms Mass Markets
FLEDGLING BUSINESSES MATURE CORPORATIONS
Huge gap between fledgling andmature business
-
8/6/2019 Last Class Fall2005
3/22
Decades of initiatives and effort
No foreknowledge of path or outcome
But purposive not random
Evolutionary, purposive transformation
-
8/6/2019 Last Class Fall2005
4/22
Distinctive entrepreneurial tasks
Necessary traits
Diagnostic questions
Todays talk
-
8/6/2019 Last Class Fall2005
5/22
Articulation of audacious goals and purpose
Formulation of a strategy
Effective implementation
1. Distinctive entrepreneurial tasks
-
8/6/2019 Last Class Fall2005
6/22
Impetus for search
Justification
Securing resources
Cooperation
Articulation of Goals
-
8/6/2019 Last Class Fall2005
7/22
TRANSITIONAL FIRMSProvide impetus for search, justify investments,help secure resources and promote cooperation
PROMISING STARTUPSConcerns about survival and cash flow dominate
LARGE CORPORATIONSLimited by history and sizeAudacious goals for individual units/initiatives possible
Firm Size and Maturity
Importance
IMPORTANCE OF ARTICULATING AUDACIOUS GOALS
-
8/6/2019 Last Class Fall2005
8/22
Articulation of audacious goals and purpose
Formulation of a strategy
Effective implementation
Rules to channel initiatives and investmentstowards the achievement of firm goals
1. Distinctive Entrepreneurial tasks
-
8/6/2019 Last Class Fall2005
9/22
Where and how firm will add value Breadth and attributes of product line
Distribution channels Technology and R&D
Organizational: Structure, staff, culture...
Elements of a strategy -- rules for:
-
8/6/2019 Last Class Fall2005
10/22
-
8/6/2019 Last Class Fall2005
11/22
Goals
Prior experience
Adaptation
Limited analysis and research
Formulation of strategies:
-
8/6/2019 Last Class Fall2005
12/22
-
8/6/2019 Last Class Fall2005
13/22
Articulation of audacious goals and purpose
Effective implementation
Formulation of strategy
Translation of broad rules into specific
investments and initiatives
1. Entrepreneurial tasks
-
8/6/2019 Last Class Fall2005
14/22
Strategy = map of Everest, not winning lottery ticket
Limits to delegation
Importance of implementation:
-
8/6/2019 Last Class Fall2005
15/22
Customers
Capital providers
Staff
Upgrading resources
Building the organizational infrastructure
Norms and culture
Reporting relationships, incentives, control systems
Critical implementation tasks:
-
8/6/2019 Last Class Fall2005
16/22
2.Necessary traits:
Pursuit of audacious goals
High ambition
the dream and will to found a private kingdom; thewill to conquer, to succeed for the sake not of thefruits of success, but of success itself; and finally the
joy of creating, of getting things done."
-
8/6/2019 Last Class Fall2005
17/22
Re-investment
Developing new assets
Personal guaranteesLoss of control
Head on competition with large companies
Delegation of responsibilities
Pursuit of audacious goals
High ambition and tolerance for risk
-
8/6/2019 Last Class Fall2005
18/22
RISKS FACED BY TOP-DECISION MAKERS
PersonalRisk
TRANSITIONAL FIRMSEntrepreneurs wealth tied to value of firm equity,May also have to guarantee debt
LARGE CORPORATIONSSeparation of risk-bearing and managementCEOs can diversify personal portfolios
PROMISING STARTUPSRequire little initial capital or valuable intellectual propertyLow opportunity costs of founders time
Firm Size and Maturity
-
8/6/2019 Last Class Fall2005
19/22
Constancy
Inspiration and Intimidation
Learning new skills
2. Necessary traits:
Implementation
-
8/6/2019 Last Class Fall2005
20/22
Opportunistic Adaptation Risk- transfer and syndication
...require different qualities ...
Articulating goals Formulating strategies
Implementation of strategies
Tasks
DistinctiveQualities
DIFFERENCES IN INITIATIVES, TASKS AND QUALITIES
STARTING A PROMISING BUSINESS BUILDING A LARGE CORPORATION
New initiatives and tasks...
Tolerance for ambiguity Decisiveness Open-mindedness Managing internal conflictTactical ingenuity Self-control Perceptiveness Sales skills
Grand ambition Willingness to take risk Imagination Creative Synthesis Abstraction Constancy Inspiration and intimidation Learning new skills
Initiatives One-Off, Low Investment, High Uncertainty Initiatives
Complementary, multi-period with more investment and lessuncertainty
-
8/6/2019 Last Class Fall2005
21/22
Hierarchy of questions:
Goals?
Founders Role?
Strategy?
Implementation?
-
8/6/2019 Last Class Fall2005
22/22
Wrap up
Significant opportunities and risks Overwhelming issues and options One-size-fit-all models dont work Broad periodic self-examination