| What distinguishes a Rapid Growth Firm? | 1. Employment grows with 15% per year
2. 3year compound sales growth rate 80% or more
3. Capital, scaling and exit strategy |
| What distinguishes the Flat Growing Firms in the post growth economy ( Rieback, 2019)? | 1. Limits to economy and market
2. Building on working ideas and concepts
3. Appropriate solutions (place, time, resources) |
| Name The 4 area attributes of Rapid Growth Firms (RGF) | -Founder Characteristics
-Firm Attributes
-Business Practices
-HRM practices |
| What are the 5 relevant FOUNDER Characteristics? | 1. Relevant industry experience
2. Higher education
3. Entrepreneurial experience
4. Broad social and professional network
5. Size of founding team |
| What are the 6 relevant FIRM Attributes? | 1. Growth oriented vision and mission
2. Commitment to growth
3. Participation in inter-organizational relationships
4. Planning & goal setting
5. Geographic location
6. High buyer concentration |
| What are the 4 relevant BUSINESS Practices? | 1. Creating unique value for customers
2. Customer knowledge
3. Product superiority(quality)
4. Innovation (R&D) |
| What are the 4 relevant HUMAN RESOURCE management practices? | 1. Selective hiring
2. Training and employee development
3. Performance-based incentives (profit sharing/bonus plans)
4. Stock option plans and employee stock ownership plans |
| Why is it so hard to Build Disruptive New Businesses? | -The great majority of companies are adept at producing products & services for existing customers in existing markets
-New sustainable growth comes from creating new markets & ways of competing
-The reluctance to start new sustainable ventures in good times
-Maintaining growth by launching new growth businesses when core business is strong? (s-curves) |
| What is the s-curve? When should you start Building Disruptive New Businesses? | During growth! Break out of ongoing routine before growth starts to decline. |
| Why try attaining distruptive innovations as opposed to sustaining? | -Pace of technological progress creates disruptive opportunities
-Disruptive innovations are appealing to existing customers
-For new growth one should seek disruptive innovations |
| Name 2 strategies for creating new disruptive growth | 1. Creating a new market as a base for disruption
2. Disrupting the business model from the low end |
| Give some examples of Creating a new market as a base for disruption | -An innovation for customers disabled by money/skills? (e.g. PC-story)
-An innovation for customers looking for a ‘simple’ product (e.g. Apple toy)
-Help customers do more easily and effective (e.g. digital camera) |
| Give some examples of Disrupting the business model from the low end | -Are prevailing products overshooting what customers really use/want? (e.g. 3 or 18 speed bike?)
-A new business model that enables attractive return at prices that can steel the business from the incumbents ( Merck-Medco) |
| Name The three classes of factors to Make the Disruptive Strategy work | 1. Resources (Allocate the required resources for disruptive projects, Right people to lead: Challenges - Experiences – Backgrounds: Capturing ideas for new growth from people in the field)
Cash & Patience are not the priorities)
2. Processes (Start before you need to, i.e. when the company is growing, Well functioning flexible mainstream processes )
3. Values (Setting the right supporting and bold priorities, Create a corporate team responsible for collecting/preparing disruptive innovation ideas) |
| Mention some strong capabilities of young Global Start Ups | -Young firms are more flexible, less bureaucratic
-Internal conditions that encourage innovativeness
-Strong innovation culture to pursue international markets
-Pursuing foreign ventures with a strong marketing orientation |
| What 2 (different) Organisational Culture(s) are there for Born Global Firms? | 1. Int’l entrepreneurial orientation (A leap into new international markets, Overall innovativeness and proactiveness, Support key strategic initiatives)
2. Int’l marketing orientation (Creation of value via key marketing elements, Offer products/services which exceeds the expected value, A foundation to interact with diverse foreign markets) |
| For Born Global firms: what 4 Business Strategies can the Organisational Culture(s) translate into? | 1. Global technological competence (Develop unique products to differentiate)
2. Unique product development (Rise to innovativeness processes and practices)
3. Quality focus (Strong market knowledge with support of competent foreign intermediates)
4. Leveraging of foreign distributor competences (Global technological competences & resources) |
