part 1: you and your business idea - macmillanihe.com · • crocs • reliance ... 10 case...

Contentsvi

CONTENTS

LIST OF CASE INSIGHTS x / LEARNING OUTCOMES xv /

LIST OF FIGURES AND TABLES xii / GUIDED TOUR OF THE BOOK xvi /

ABOUT THE AUTHOR xiii / ONLINE TEACHING AND LEARNING RESOURCES xviii /

HOW TO USE THIS BOOK xiv / ACKNOWLEDGEMENTS xix /

1 The New Venture Creation Framework 1• The attraction of entrepreneurship• Barriers and triggers to entrepreneurship• New venture creation• Business planning • The New Venture Creation Framework• The business plan• Summary

Academic insights

• Gazelles and economic growth

• Myths about entrepreneurs

• The Business Model Canvas

Case insights

• Kiran Mazumdar-Shaw and Biocon• Julie Spurgeon and Material Pleasures• John Bird and The Big Issue• Tony Fernandes and AirAsia (1)• Marc Demarquette • eBay

Part 1: You and your business idea

2 What you bring to entrepreneurship 19• Your personal drivers• Your resources• Character traits of entrepreneurs• Factors that influence the entrepreneurial character• Measuring your personal character traits• Measuring your creativity• How entrepreneurs manage• Summary• New Venture Creation Framework exercises

Academic insights

• Cognitive development theory

• National culture• General

Enterprise Tendency test

• Effectuation

Case insights

• Golden Krust (1)• Steve Jobs and Apple (1)

3 Finding your business idea 40• New venture typologies• The ‘eureka moment’• Creating opportunity • Spotting opportunity• Generating a business idea• Connectivity and networking • Techniques for generating ideas• Is the business idea viable?• Characteristics of a good business idea• Summary• New Venture Creation Framework exercises

Academic insights

• How to challenge market conventions

• Sources of entrepreneurial opportunity

• Discovery skills • Connecting good

ideas• Inside the box

thinking• Lean start-up

Case insights

• Bizarre start-up ideas from the USA • Summly App • Streetcar (now Zipcar)• TutorVista• OnMobile• MOMA!• Nuffnang• Swarfega• Great Ormond Street Hospital• The Million Dollar Homepage

Part 2: Market segments and the value proposition

4 Understanding your market/industry 71• Defining your market/industry• Describing your market/industry• Researching your market/industry• Identifying your competitors• Industry futures• Summary• New Venture Creation Framework exercises

Academic insights

• Porter’s Five Forces – assessing industry competitiveness

Case insights

• Novo Nordisk• Bill Gates and Microsoft• Amazon, Apple, Facebook, Google

and Microsoft

Copyright material – 9781137332899




vii

Cont

ents

5 Structuring your business model 86• Identifying your market segments• Defining your value proposition• Core value propositions• Niche marketing strategy• Setting your prices• Price and volumes• Understanding your customers• Channels of distribution• Understanding customer and consumer benefits• Summary• New Venture Creation Framework exercises

Academic insights

• Service-dominant marketing logic

• Core value disciplines

Case insights

• easyJet (1)• Dell Computers• Quad Electroacoustics• Escape to the Cape• Morgan Motor Company• The Pub• Lush (1)

Part 3: Marketing strategy

6 Your values, brand and customer loyalty 113• Your vision and values• Encouraging customer loyalty• Creating an identity• Ethical values and corporate social responsibility

(CSR)• Building the brand• Summary• New Venture Creation Framework exercises

Academic insights

• Strategic intent and kosryoku

• Value-driven marketing

• The value of CSR

Case insights

• Lush (2)• easyJet (2)• Starbucks (1)• Golden Krust (2)• Starbucks (2)• South Beauty• Abel & Cole• Ecotricity• Richard Branson and Virgin (1)

7 Launching your business 134• From prospect to advocate• Finding your first customers• Developing your sales skills• Communications media• Developing a communications campaign• Creating product awareness• Getting customers to buy• Penetrating the market• Summary• New Venture Creation Framework exercises

Case insights

• Bicycle Space• The Fabulous Bakin’ Boys• Good Hair Day • Jack Wills – University Outfitters

8 Growing your business 154• Growth options• Market development• Entering foreign markets• Product development• Developing a product portfolio• Marketing strategy and product portfolios• Financing implications of product portfolios• Diversification• Using acquisition for market and product

development• Summary• New Venture Creation Framework exercises

Academic insights

• Strategies that build potential: playing the odds

• Sticking to the knitting

Case insights

• Web 2.0• Fat Face• B&Q China• American Giant• Crocs• Reliance Industries





Contentsviii

Part 4: Operations plan

9 Legal foundations 179• Safeguarding your business idea• Legal forms of business• Corporate governance• Legal forms of social enterprise• Taxation• Summary• New Venture Creation Framework exercises

Case insights

• Trunki• Xmi• Cobra Beer• Maggie’s Centres

10 Organizing operations 197• Identifying key activities• Retail imperatives• Internet business imperatives• Manufacturing business imperatives• Service business imperatives• Partnerships, strategic alliances and joint ventures• Franchising • Operating plans• Summary• New Venture Creation Framework exercises

Academic insights

• Reasons for international start-ups

• Environmental sustainability and waste reduction

• The benefits of partnerships and strategic alliances

Case insights

• Figleaves• Brompton Bicycle• Kirsty’s• Specsavers • Ahmed Khan and McDonald’s• The Body Shop

Part 5: Risk and strategic options

11 Dealing with risk 219• Identifying risks• Assessing risks• Mitigating risks• Monitoring risks• Generic strategies for managing risk• Structuring your costs• Decision-making• Risk, critical success factors and strategic options• Summary• New Venture Creation Framework exercises

Academic insights

• Affordable loss• Measuring

breakeven point

Case insights

• Richard Branson and Virgin (2)• Jobserve• Gordon Ramsay• Made.com• Smak Parlour• Clippy

Part 6: Resources

12 Building your team 239• People, people, people• Recruiting people• Finding and attracting people• Professional advisors• Selecting and developing your team• Building an organization structure• Controlling people• Creating a culture for your venture• Entrepreneurial culture• Entrepreneurial architecture• Summary• New Venture Creation Framework exercises

Academic insights

• The challenges of growth

• Selecting a team: team roles

• Autonomy and motivation

Case insights

• Google• Tony Fernandes and AirAsia (2)• Virgin Group (3)





ixCo

nten

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13 Leading your team 264• Leadership and management• Defining the role of leader• Personal attributes of leaders• Leadership style and contingency theory• Entrepreneurial leadership• Entrepreneurial architecture• Summary• New Venture Creation Framework exercises

Academic insights

• Seven principles for communicating a vision

• Authentic leaders• Dealing with

conflict• Leadership

paradigms

Case insights

• Gary Redman and Now Recruitment• Steve Jobs and Apple (2)

14 Obtaining finance 286• Selecting the right sort of finance• Bank loans and overdrafts• What banks look for• Banking relationship• Crowdfunding and peer-to-peer lending• Angel and venture finance• What investors look for• The funding ladder• Harvesting your investment• Summary• New Venture Creation Framework exercises

Academic insights

• Sources of finance used by small firms in the UK

• Agency theory and information asymmetry

• Is there discrimination in lending?

• Is there a financing gap for small firms?

Case insights

• Softcat• Hotel Chocolat• Lingo 24• InSpiral Visionary Products• Purplle.com• Mears Group• Moonpig• Vivid Imaginations

Part 7: Financial plan

15 Financial forecasts 313• Financial objectives• Forecasting sales/turnover• Forecast income statement• Forecast cash flow statement• Forecast balance sheet• Ratio analysis• Evaluating performance• Valuing your business• Monitoring performance• Controlling performance• Summary• New Venture Creation Framework exercises

Case insights

• Xtreme SnoBoards – building the financial forecast:– Sales/turnover– Income statement and breakeven– Cash flow statement– Forecast balance sheet– Evaluating performance– Valuing the business

16 The Business Plan 343• Purpose of a business plan• Structure and content of a business plan• Using your plan to obtain finance• Presenting your case for finance• Summary• Drawing up the business plan

Academic insights

• Beyond the business plan: strategy development in established firms

SELECTED FURTHER READING 357 /

SUBJECT INDEX 358 /

AUTHOR INDEX 361 /

QUOTES INDEX 362 /





1 THE NEW VENTURE CREATION FRAMEWORK

© Yakobchuk – istockphoto.com



The attraction of entrepreneurshipThe twenty-first century has so far been characterized by turbulent change and disruption. The rise of terrorism led to wars in Afghanistan and Iraq. The banking crisis of 2008 plunged the Western world into recession. The so-called Arab spring of 2011 led on to disruption in many countries in the Middle East. We have seen corporate scandals such as Enron in the USA, Parmalat in Italy and Olympus in Japan that lead us to question corporate ethics. We have seen spectacular corporate failures such as Lehman Brothers in the USA and Royal Bank of Scotland (RBS) in the UK. Alongside this, we have seen unprecedented volatility in just about every market from commodities to exchange rates, from stock markets to bond markets.

Underpinning this volatility is the development of global connectivity – an increasingly complex world full of interconnections formed by a truly global market place linked by new technologies that allow

instant communication with almost anywhere. Small changes tend to be amplified in highly connected systems. Actions in one part of a market can have unexpected and rapid consequences in another part of it. And nobody, not even sovereign states, seem able to control this. And the pace of change has accelerated. Change itself has changed to become a continuous process of often-discontinuous steps – abrupt and all-pervasive. Whilst large firms have increasingly found difficulty in dealing with this new order, start-ups and smaller ventures seem to find opportunities in the changes that these larger, more established firms find threatening. Even in this age of austerity they thrive, despite facing increasingly fierce competition. Never has it been easier to create a new venture. And never have the chances of success on a global basis been higher.

And as we look around for role models, we realize that so many of our most successful corporations have been founded since the 1970s. Bill Gates

Contents

• The attraction of entrepreneurship

• Barriers and triggers to entrepreneurship

• New venture creation

• Business planning

• The New Venture Creation Framework

• The business plan

• Summary

Academic insights • Gazelles and economic

growth



Case insights • Kiran Mazumdar-Shaw and Biocon

• Julie Spurgeon and Material Pleasures

• John Bird and The Big Issue

• Tony Fernandes and AirAsia (1)

• Marc Demarquette

• eBay

Learning outcomesWhen you have read this chapter you will understand and be able to explain:• What a business model is• How it relates to a business plan• How this book will help you develop your business model and draw up a business plan

2





been created since 1980. And small, growing firms create jobs from which the rest of society benefits. They have outstripped large firms in terms of job generation, year on year. At times when larger firms have retrenched, smaller firms continue to offer job opportunities. It has been estimated that in the USA small firms now generate half of GDP and over half of exports now come from firms employing fewer than 20 people. No wonder our governments and media are so fascinated by them. Entrepreneurs have finally been recognized as a vital part of economic wealth generation. They have become the heroes of the business world, embodying ephemeral qualities that many people envy – freedom of spirit, creativity, vision and zeal. They have the courage, self-belief and commitment to turn dreams into realities. They are the catalysts for economic, and sometimes social, change. They see an opportunity, commercialize it, and in doing so become millionaires themselves.

started Microsoft in 1975, the late Steve Jobs started Apple in 1976, Michael Dell set up Dell in 1984, Pierre Omidyar launched eBay in 1995 and Larry Page and Sergey Brin launched Google in 1996. And this was not just happening in the USA. In the UK Alan Sugar launched Amstrad in 1968, Richard Branson started his Virgin empire in 1972, James Dyson started selling his Dyson vacuum cleaners in 1976, the late Anita Roddick opened the first Body Shop in 1976 and Julian Metcalfe and Sinclair Beecham opened their first Pret A Manger in 1986. In India Sunil Mittal started the business that was to become Bhati Enterprises in 1976 and Kiran Mazumdar-Shaw started Biocon in 1978. These are now gigantic corporations that have made their founders into millionaires.

Over the last thirty years or so entrepreneurs establishing new ventures have done more to create wealth than firms at any time before them – ever! Ninety-five per cent of the wealth of the USA has

The Entrepreneurial Revolution is here to stay, having

set the genetic code of the US and global economy for the 21st century, and having sounded

the death knell for Brontosaurus Capitalism

of yesteryear. Entrepreneurs are the creators, the

innovators, and the leaders who give back to society, as

philanthropists, directors and trustees, and who, more than any

others, change the way people live, work, learn, play,

and lead. Entrepreneurs create new technologies, products,

processes, and services that become the next wave of

new industries. Entrepreneurs create value with

high potential, high growth companies which

are the job creation engines of the

US economy.

Jef rey Timmons, New Venture Creation: Entrepreneurship for the 21st Century (1999, Boston: Irwin/McGraw-Hill)

Contents

• The attraction of entrepreneurship

• Barriers and triggers to entrepreneurship

• New venture creation

• Business planning

• The New Venture Creation Framework

• The business plan

• Summary

Academic insights • Gazelles and economic

growth



Case insights • Kiran Mazumdar-Shaw and Biocon

• Julie Spurgeon and Material Pleasures

• John Bird and The Big Issue

• Tony Fernandes and AirAsia (1)

• Marc Demarquette

• eBay

Learning outcomesWhen you have read this chapter you will understand and be able to explain:• What a business model is• How it relates to a business plan• How this book will help you develop your business model and draw up a business plan

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Millionaire entrepreneurs

Born in 1953 in Bangalore, India, Kiran Mazumdar-Shaw

is one of the richest women in India. She is the founder

of Biocon, a bio tech company and India’s largest

producer of insulin. With a degree in zoology, she

went on to take a postgraduate course and trained as

a brewer in Australia, ahead of returning to India with

the hope of following in her father’s foot steps as a

brew-master. Despite working in the brewing industry

in India for a couple of years, she never achieved her

ambition, find ing her career blocked by sexism. Instead,

in 1978, she was persuaded to set up a joint venture

making enzymes in India.

Kiran Mazumdar-Shaw started Biocon India with

Irishman Les Auchincloss in 1978 in the garage of

her rented house in Bangalore with seed capital of

only Rs 10,000. It was a joint venture with Biocon

Biochemicals, Ireland. Eventually she found a banker

prepared to loan the company $45,000 and, from a

facility in Bangalore making enzymes for the brew ing

industry, started to diversify. Biocon India became

the first Indian company to manufacture and export

enzymes to the USA and Europe. This gave Kiran a

flow of cash that she used to fund research and to

start producing pharmaceuti cal drugs. The early years

were hard.

In 1989, Kiran met the chairman of ICICI Bank, which

had just launched a venture fund. The fund took a

20% stake in the company and helped finance its

move into bi opharmaceuticals. Shortly

after this Unilever took over Biocon

Biochemicals, and bought ICICI’s

stake in Biocon India, at the

same time increasing it to

50%. In 1996 it entered the

bio-pharmaceuticals and

statins mar kets, then one

year later Unilever sold its

share in Biocon Biochemicals.

Mazumdar-Shaw bought out

Kiran Mazumdar-Shaw and BioconCase insight

Unilever and was able to start

preparing Biocon India

to float on the stock

market, which it

did in 2004 with

a market value

of $1.1bn.

In 2003 Biocon

India became

the first company

to develop human

insulin on a Pichia

expression system. Since

then it has obtained a listing on

the stock exchange and entered into thousands of

R&D licensing agreements with other pharmaceutical

companies around the world. Today Biocon has a

turnover in excess of Rs 24,000 million. It has Asia’s

largest insulin and statin production facilities and

its largest perfusion-based antibody production

facility. It produces drugs for cancer, diabetes and

auto-immune diseases, and is developing the world’s

first oral insulin, which underwent Phase III clinical

trials in 2013.

Kiran Mazumdar-Shaw has enjoyed many awards

and honours. In 2010 TIME magazine included her

in their 100 most powerful people in the world and

the Financial Times had her in their list of the top 50

women in business, while in 2009 Forbes included

her in their list of the 100 most powerful

women. Passionate about

providing af ordable health

care in India, she has funded

the 1400-bed Mazumdar-

Shaw Cancer Centre, a

free cancer hospital in

Bangalore. Every year,

she donates $2 million to

support health insurance

coverage for some

100,000 Indian villagers.

Kiran Mazumdar-Shaw Biocon

India

I was young,

I was twenty five years old … banks were very

nervous about lend ing to young entrepreneurs because they felt we

didn’t have the business experience … and then I had … this strange business called biotechnology which no one

understood … Banks were very fearful of lending to a woman

be cause I was considered

high risk.

BB

C N

ews

Bus

ines

s 11 A

pril 2011

Biocon

4





being offered that do not meet their needs. Some people, just a few, have a genuine ‘eureka’ moment when they come up with a new invention or have an idea that can revolutionize an industry. Whatever the source of their business idea, they feel motivated to do something about it – perhaps wanting to make a lot of money on the way. What defines the entrepreneur is their willingness to act upon the idea.

In fact most new ventures do not grow to become industry titans. More than 95% of small firms in Europe employ fewer than 10 people. Two-thirds employ only one other person. Many people choose to start up salary-substitute firms – ones that simply generate an income comparable to what they might earn as an employee (e.g. plumbers, store owners etc.). Others start up lifestyle firms – ones that allow them to pursue a particular lifestyle whilst enabling them to earn an acceptable living (e.g. sports instructors, artists etc.). In many cases self-employment is the conventional and accepted way of pursuing these life options. You might argue that the people starting these sorts of businesses are not ‘true’ entrepreneurs, and truly entrepreneurial firms are the ones that bring innovative ideas and ways of doing things to the market. They are set up to grow from the start. But both lifestyle and salary-substitute firms are the backbone of societies. And the risks associated with any new venture are high. One-third of businesses cease trading in their first year, although ceasing to trade does not always signify failure or the loss of money. And many of the challenges they face are similar. What is more, the business skills you need to survive can be applied to growth, so these distinctions are not absolute. Lifestyle and salary-substitute firms can become more entrepreneurial – with the right management and leadership.

Entrepreneurs are creating all sorts of new ventures, not just their own commercial businesses. They are creating new ventures for established, larger firms whilst remaining in salaried employment, content for the profits (and risks) of their work to go to their employers. We call them intrapreneurs. They are also creating new ventures for a range of motivations. Some have social or civic objectives and are willing to invest their own time and risk their own capital for little or no financial return, with profits being ploughed back to meet these objectives. We call them social or civic entrepreneurs. Sometimes these entrepreneurial projects do not even result in the establishment of a new venture but are subsumed within an existing organization, to change it subtly over time.

So, if entrepreneurship is not just about becoming self-employed, what is an entrepreneur? The notion of entrepreneur has been crafted over many centuries, starting with the Irish-French economist Cantillon (1755), and has seen many different emphases. In essence, entrepreneurs are best defined by their actions. They create and/or exploit change for profit, even if they do not take it themselves. In doing so, they innovate and accept risk to move resources into areas where they earn a higher commercial or social return.

But profit is not always the prime motivation for creating a new venture. For many people it is simply a badge of success and the attraction of being an entrepreneur lies in being their own boss, doing what they want to do rather than what they are told to do. Some people spot a business opportunity – a product or a service that they do not see offered in the market or a way of doing something better or cheaper. Some people might be frustrated by characteristics of current products or by services

Kiran Mazumdar-Shaw Biocon

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Case insightLife-style start-up

In her mid-forties, Julie Spurgeon graduated with a

first in ceramic design from London’s Central Saint

Martin’s College of Art and Design in the summer of

2008. As part of her final project to design a range

of tableware she had to seek critical appraisal from

retailers and industry experts. One of the firms she

contacted was up-market retailer Fortnum & Mason,

and they were sufficiently impressed to commission

a range of bone china tableware, called Material

Pleasures that was launched in August 2009.

The trade mark Material Pleasures, which goes on

the reverse of each piece, is registered (cost £200)

and Julie joined Anti Copying in Design (ACID), which

allowed her to log her design trail as proof against

Julie Spurgeon and Material Pleasures

copying. Julie has had

to pay for tooling

and manufacturing

costs herself.

The moulds cost

£5000 and the

factory in Stoke-

on-Trent required

a minimum order of

250 pieces. The contract

with Fortnum’s involved

exclusivity for six months. All this was funded with a

£5000 loan from the Creative Seed Fund and a part-

time job.

Gazelles and economic growthYoung, high-growth firms – called ‘gazelles’ by academics – are

few in number but have a disproportionate importance to national

economies. Definitions of a ‘gazelle’ vary, but in the USA it has been

estimated that they comprise less than 1% of all companies yet

generate about 10% of new jobs in any year. Indeed, the top performing

1% of all firms generate about 40% of all new jobs (Strangler, 2010). In

the UK they have been estimated to represent 2–4% of firms but were

responsible for the majority of employment growth (BERR, 2008).

Middle-sized firms generally have a disproportionate impact on

national economies. In the UK, whilst they represent just 1% of firms,

they generate 30% of GDP and employ more than one-third of the

workforce (GE Capital, 2012). And Europe lags behind the USA, where

SMEs (small and medium-sized enterprises) were on average larger and

expanded more rapidly (European Commission, 2008). Whilst a higher

percentage of UK firms achieve high growth than European firms, the

UK still lags behind the USA (BERR, op. cit).

BERR (2008) High Growth Firms in the UK: Lessons from an Analysis of Comparative UK Performance, Business, Enterprise and Regional Reform (BERR) Economics Paper 3, November,

European Commission (2008) European Competitiveness Report 2008, www.ec.europa.eu/enterprise.

GE Capital (2012) Leading from the Middle: The Untold Story of British Business, London: GE Capital.

Strangler, D. (2010) High-Growth Firms and the Future of the American Economy, Kaufman Foundation Research Series: Firm Growth and Economic Growth.

Academic insight

UK

In the future

I’d like to continue creating specialist

tableware, as well as handmade pieces.

Material Pleasures stands for individual design, not

big-batch production.

Sunday Telegraph 12 July 2009

Macmillan

6



http://www.ec.europa.eu/enterprise

Case insight

Case insight

Social enterprise start-up

The Big Issue is probably the most prominent example

of social entrepreneurship in the UK. Initially started

up as a non-profit organization by John Bird in 1991,

and then backed by Gordon and Anita Roddick (of

The Body Shop fame), it is now a limited company

that donates its profits to the Big Issue Foundation, a

charity that addresses the problems of the homeless.

The scheme started in London, based on a similar idea

in New York.

The Big Issue produces a magazine of the same name

which is sold by homeless people on the streets

of many UK towns and cities. Its aims are to allow

homeless people to work to earn a living – enabling

them to address their personal poverty and retake

control of their lives – and to campaign on social

John Bird and The Big Issue

exclusion issues. The magazine is sold to consumers

on its quality rather than as a means of securing a

charitable donation. However, the fact that it is sold by

the homeless, exclusively on the streets, rather than in

magazine stores or by volunteers, makes the nature of

the transaction not altogether straightforward. When

they are asked to buy, consumers come face-to-face

with beneficiaries and can see that they are trying to

help themselves out of their situation. Sellers are first

given a small number of magazines and thereafter

have to buy copies to sell on. One key aspect of

the transaction is that the consumer is asked for a

limited and relatively small financial contribution

(the cover price was £2.50 in 2013). This legitimizes

small donations. In this way giving small amounts to a

morally justified and legitimate cause is made easy.

Entrepreneurial start-up

Former Time Warner executive Tony Fernandes set up Asia’s first

low-cost airline, AirAsia, in 2001, buying the heavily indebted

state-owned company from the Malaysian government

for only 25p. He set about remodelling it as a short-

haul, low-cost operator flying around Asia. Being

first in the Asian market with an idea copied

from companies in the West, such as easyJet,

the company expanded rapidly from a fleet

of only two planes in 2002 to 86 planes

flying 30 million people around the world

by 2010. It created a new Asian market in

low-cost air travel. By 2007, UBS research

showed it to be the lowest cost airline

in the world. Now with hubs in Kuala

Lumpur and Singapore, it has won the

Skytrax World’s best low-cost airline award

in 2007, 2009, 2010 and 2011. It has also

established associate airlines in Thailand

and Indonesia.

Tony Fernandes and AirAsia (1)

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Malaysia

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larger firms delayer, restructure and even just close, employees are increasingly realizing that there is no such thing as a ‘job for life’. At least with self-employment you control some elements of your destiny.

Despite the barriers to creating a new venture, millions of people around the world do so every year. What is often needed is a ‘trigger’. Some people are ‘pushed’ into setting up their own business because they are made redundant, they find they just do not fit into the company they work for or, simply, that they have no alternative, for example because they are immigrants to a new country. Typically these are situational factors that push you towards self-employment. Immigrants are often ‘pushed’ into being highly entrepreneurial. They have few alternatives. The USA, famed for its entrepreneurial culture, was built by immigrants and many millionaire entrepreneurs are first- or second-generation immigrants. Sergey Brin, co-founder of Google, immigrated to the USA with his family from the Soviet Union at the age of six.

Barriers and triggers to entrepreneurshipCreating a new venture is not easy. And running it can be even harder. It is an all-consuming, 24-hour,

seven-day-a-week activity – at least until you have a

management team you can rely on. You

need commitment and dedication. You need stamina – ‘90% perspiration, 10% inspiration’.

It can break up relationships

and split families. It is risky, without

guaranteed results. So, you need to be able to bounce back from

set-backs, because there will be many. You need determination and persistence. You need to be emotionally self-sufficient – it can be lonely. You need to be task-orientated – motivated to deliver the best product or service to your customers. You need to be attuned to the opportunities generated by these customers and the market you operate in. Most of all you need to be able to live with a degree of risk and uncertainty. If you crave certainty, routines and regular pay, entrepreneurship is not for you.

For most people there are blocks or barriers that prevent them from creating a new venture, even if they have a good idea. These can come from situational factors. Your personal background and your commitment to others might create barriers – things like the need for a regular income to support a family or the lack of start-up capital. These barriers can also be psychological – lack of self-belief. It takes a degree of courage to risk the capital your family might rely on in an uncertain business venture. Fear of the unknown is a strong de-motivator, but increasingly paid employment is not seen as a guarantee of regular income. As

Neither my

grandfather nor my father would be surprised if they

could see me now. My success didn’t just happen. As a young boy, I was always working. My parents and brothers and sisters

all had high energy.

Tom Farmer, founder Kwik-Fit Daily Mail 11 M

ay 1999

My wife

didn’t mind me working

14 hours a day on the business

and not being at home to read

the children bedtime stories. But

we had, and still have, a good

relationship. We have

no regrets.

Bhar

at S

hah

, fou

nder

Sig

ma Pharmaceuticals Kenyan Jewels www.alusainc.w

ordp

ress.com

We got the

inspiration (for Lush) because we were

broke. The previous business had gone bust. We had

mortgages, three children and

no money. So – make a living!

Mar

k Co

nst

anti

ne, f

ounder L

ush RealBusiness 26 May 2009

8





Case insight

– they derive from people’s character traits and the influences on them. When ‘push’ and ‘pull’ factors combine it is little wonder that the result is a powerful trigger to potential entrepreneurs to create a new venture – as long as they have that all-important business idea. The combination of these triggers – the push and pull factors – and the barriers they face in setting up their own business are shown in Figure 1.1. It is no coincidence that the peak ages of entrepreneurs creating new ventures – in their early 20s or early 40s – match periods when barriers might be low because they have least to lose or have reducing family commitments as children leave home.

In the UK, six of the most successful wholesale medicine and drug supply companies were founded by Kenyan Asians who came to Britain in the 1960/70s as forced immigrants and are now millionaires (Navin Engineer, Bharat Shah, Bharat and Ketan Mehta, Vijay and Bikhu Patel, Ravi Kari and Naresh Shah).

Many people, however, are ‘pulled’ into starting up a business for more positive reasons. They yearn for independence and recognition of their achievements. This gives them drive and determination. They look for personal development. And the prospect of becoming rich might be attractive. Push factors are typically psychological

Running your own business

Half-French and half-Chinese, Marc Demarquette

was born and lives in London. He was a

management consultant until a life-threatening

accident caused him to reconsider his priorities. His

interest in catering led him to the prestigious Maison

Lenôtre in Paris to learn the art of making chocolate,

and then to the Alps to work with a master chocolatier.

In 2006, with the help of a £40,000 bank loan, he opened

an up-market artisan chocolate shop, Demarquette, in

Fulham, south west London, and a small production

facility nearby. Since then the business has been entirely

funded out of cash flow. He sells his range of high quality,

award-winning chocolates through his store and through

other retailers like Fortnum & Mason, but about one-third

of sales come through his website.

Up-to-date information on Demarquette can be found on:

www.demarquette.co.uk

Marc Demarquette

UK

You need to

have nerves of steel but it has been a

fantastic experience. I’m loving it.

I just wish I had a couple of extra hours in the day to

enjoy my own life.

Sunday Times 24 May 2009

Demarquette

Marc Demarquette

9Th

e N

ew V

entu

re C

reat

ion

Fram

ewor

k





• Personal character traits that incline you towards entrepreneurship – Not everybody is well-suited to self-employment. Some people get pushed into it reluctantly. But to make a success of it you need to be able to live with the stresses it produces and enjoy the challenges it presents. Even if you are pushed rather than pulled into starting a new venture, it is a lot easier if you have a positive psychological attitude towards it. We shall look at this in the next chapter.

• A good business idea – Finding good business ideas is not as difficult as many people think. Chapter 3 outlines a systematic process for finding them, rather than just relying upon the happenstance of having that ‘eureka moment’.

• The necessary skills to deliver your product/service idea – There is no point in starting out as a plumber without the necessary skills. Experience of an industry or sector can also be very valuable. It can provide knowledge of how the sector works and a network of contacts who could become customers or suppliers. It also helps to learn these things and make mistakes at somebody else’s expense. So you do need to have some specific skills and knowledge about the business you want to set up. This book will give you a set of general business and management tools that will help you launch and grow your new venture based upon your specific skills. It will show you how to develop a business model that will improve your chances of success.

BARRIERS TO START-UP(SITUATIONAL AND PSYCHOLOGICAL)

• Need for regular income• Fear of loss of capital• No capital• Risk aversion• Doubts about ability

TRIGGERS

Business idea Start-up

PUSH FACTORS (SITUATIONAL):

• Unemployment• Disagreements• ‘Misfit’• No other option

PULL FACTORS (PSYCHOLOGICAL):

• Independence• Recognition• Personal development• Wealth

F1.1 Barriers and triggers to entrepreneurship

New venture creationUnless you are pushed, getting over the barriers to entrepreneurship may not be easy. The most fundamental fear of all is that of failure. So how might you improve the chances of success? Figure 1.2 summarizes the things you need, which this book will help you to develop.

BUSINESS IDEA

Start-up Success

CHARACTER TRAITS

SKILLS & ABILITIES

RESOURCES A PLAN

F1.2 New venture creation

I want to see that the

person who is doing it [the business] has a very clear

grasp of what he or she is trying to accomplish. At this high risk,

understanding the nuts and bolts goes a long way to

reducing the risk.

Ajith Jayawickrema, s

eria

l ent

rep

ren

eur a

nd b

usiness angel Sunday Times 2 June 2013

10





AAbel & Cole 127acquisition 157, 170–172, 174advertising 16, 89, 140–142, 145, 161, 201, 203, 204, 230

affordable loss 225agency theory 295, 303AirAsia 7, 43, 256Alternative Investment Market (AIM) 303

Amazon 82–83, 174, 199American Giant 164analogy 61–62antecedent influences 32Apple 15, 35–37, 54, 55, 57, 82–83, 93, 123, 130, 142, 145, 147, 174, 199, 244, 250, 280–283

asset management 328–329asset security values 294attribute analysis 62AULIVE creativity test 32, 53, 54average cost 320, 327

B B&Q China 162–163balance sheet 34, 299, 315, 326–327, 334, 335, 347

bankruptcy 224, 323; see also failurebanks/bankers 4, 22, 30, 187, 288–289, 293–298, 299, 305, 306, 314, 315, 328, 329, 345, 349–351, 352

barriers to entry/exit 42, 73, 75, 77, 78, 79, 90, 159, 162–163, 199

batch manufacturing see production typologies

Belbin team roles 247–248benchmark/benchmarking 47, 97, 117, 245, 328, 329

benefits (of product/service) 13, 73, 88–89, 99, 100

Bicycle Space 142Big Issue 7Biocon 4blue ocean strategy 47board of directors 187, 190–192, 244, 246, 347, 352, 353

Body Shop, The 47, 104–107, 161, 214bootstrapping 21, 22, 226–227, 291, 287

BP 125, 252brainstorming 59, 60, 61, 62, 63, 80brand/branding 89, 90, 93, 103, 120, 125–126, 130–131, 143, 346

brand extension 163–164, 174brand identity 119–123, 125–126Branson, Richard 123, 130–131, 141–142, 171, 199, 226–227, 259–261

breakeven 67, 227–230, 294, 315, 320–321, 330, 334, 350, 353

British Airways 91, 93, 142, 210British Business Angel Association (BBA) 301

British Franchise Association (BFA) 213

British Venture Capital Association (BVCA) 301

Brompton Bicycle 208budgets 191, 206, 296, 253, 335–336

SUBJECT INDEXbusiness angels 246, 288, 292, 299, 300–301, 302–303, 305, 309, 351, 352

Business Link 246, 301business model canvas 14–15business plan 15–16, 294, 302, 344–353

buying signals 139

C capital

financial 13, 21–22, 187–188, 287–307, 326, 347

social and human 13, 21–22capital asset pricing model 172cash cow see product portfoliocash flow 13, 149, 166, 168, 315, 334, 353

cash flow forecast/statement 315, 322–323, 347

Centre for Interfirm Comparison 329channels of distribution 42, 76, 79, 88, 89, 99, 100, 102

character traits (entrepreneurial) 9, 10, 22–31, 256, 266, 275

charitable social enterprise 194, 195charitable incorporated organization (CIO) 194, 195

civic entrepreneurship 5cognitive processes 114, 254cognitive theory 27Clippy 234Cobra Beer 188–189collateral 288, 293–295, 306communications campaign 143–144community benefit society (BenCom) 194

community interest company (CIC) 194

Companies Acts 187, 188company valuation see valuationcompany voluntary arrangement (CVA) 189

competitive advantage 13, 79, 89, 123, 346

competitive position 148–149competitors 67, 73–79, 346conflict 273conglomerate 170–172Constantine, Mark 104–107, 352contingency theory 271–273, 276contract of employment 244contribution margin 98–99, 227, 228, 230, 328, 334

control (organizational) 241, 242, 249–250, 251–253, 254, 258, 268, 271, 278: see also locus of control

cooperatives 194copyright 183core value propositions/disciplines 90, 93, 99, 199

corporate governance 190–192corporate social responsibility (CSR) 115, 124–126, 130, 192, 207

corporate venturing 174cost and pricing see pricing, full–costcost profit volume see breakevencounterfeiters 184–185

creativity 23, 25, 32, 242. 250, 252, 254, 258, 278

critical path 215critical success factors 13, 198, 199, 215, 233

Crocs 168–169cross elasticity of demand see price elasticity of demand

crowdfunding 299customer, loyalty 118–119customers, understanding 99cultural web 257culture

definition 27, entrepreneurial 256–257, 258firm or organization 114, 115, 120, 124, 130, 192, 243, 247, 252, 254–255, 267, 268, 274–275, 277, 278

group/national 27–29current ratio 329customer loyalty chain/ladder 136–137

D Death Valley Curve 322–323debtor/receivables turnover 328decision-making 33–34, 230Dell Computers 93, 94, 122, 199demand-pull 101, 146Demarquette 9depreciation 321, 326design 122–123, 145differentiation 50, 71, 90, 93–95, 103, 122–123, 130, 148; see also generic marketing strategies

directors see board of directorsdiscovery skills 53–55, 57—58, 65discrimination 298–299disruptive innovation 42, 45–47, 171distribution channels see channels of distribution

distributor 100–102, 130, 145, 146, 148, 161

diversification 170–172dominant logic 46, 90dot.com see internet

E early adopters 147–148easyJet 43, 47, 91–92, 93, 97, 102, 116, 199

eBay 15, 16–17, 174, 198, 202e-business/commerce see interneteconomies of scale 42, 47, 78, 90, 93, 148, 159, 174, 206, 219, 229

economies of scope 93, 174Ecotricity 128effectuation 34–35elasticity of demand see cross elasticity of demand

emergent strategy see strategy development and strategizing

emotional intelligence 269, 270, 275empowerment 254, 255, 257Enterprise Finance Guarantee 289entrepreneur, definition 5entrepreneurial

architecture 257–258, 276, 277–279

358Subject index





character/personality see character traits

firms 5Escape to the Cape 95ethics 114, 115, 124–126, 130, 254, 270, 275

ethnic/ethnicity 30, 298–299exit route 302–303, 305exporting 148, 160–162

F Fabulous Bakin’ Boys, The 143Facebook 50, 82, 141, 144, 158, 174, 331

factoring (of debts) 289, 292failure (of business) 27, 188, 189Fat Face 160Fernandes, Tony 7, 43, 256fiduciary duty 190Figleaves 204financial drivers 334–335financial forecasts/plan 13, 314–336financial gearing/leverage see gearingfinancial ratio/performance analysis 315, 327–329, 331, 335, 347

financing gap 306–307first-mover advantage 73franchise 161, 211, 212–213funding ladder 304futures thinking 60–61, 80

G Gantt chart 215–216gap analysis 62–63Gates, Bill 81gazelles 9gearing

financial 229, 294, 301, 315, 328, 329, 347, 350

operating 229, 315gender 30, 298–299General Electric 125, 207General Enterprise Tendency (GET) test 31–32

generic marketing strategies 93Golden Krust 30, 118Good Hair Day 146Google 44, 50, 66, 82–83, 142, 158, 174, 198, 204, 243, 250, 253

grants 291, 298Great Ormond Street Hospital 59gross profit 320, 328growth

firms see gazellesmodels 242options 155–156

growth share matrix 165–168guerrilla marketing 140, 141

H Haji-Ioannou, Stelios 91Handy’s Gods of Management 277–279

hire purchase (HP) 288, 289, 291, 292, 294, 305

horizontal integration 171Hotel Chocolat 291, 301

I ICC Business Ratios 329IKEA 243immigrants/immigration see ethnicityincome forecast 13, 320–321income statement see financial forecasts/plan

information asymmetry 295, 296, 303, 306

innovation 23, 25, 41–47, 49, 54, 57, 58, 64, 73–75, 90, 125, 144, 145, 148, 162, 170–171, 205, 211, 250, 254, 257, 258continuous 157disruptive/discontinuous 41–43, 45–47, 52, 66, 76, 79

open source 120innovators 147insight selling 139InSpiral 300, 301intellectual property (IP) 42, 64, 67, 180–183, 347, 348

interest cover 329internationalization 148, 174, 202, 205internet 16, 43, 49, 58, 60, 75, 76, 88, 89, 94, 118, 120, 130, 137, 140–142, 171, 182, 202–204

Internet Corporation for Assigned Names and Numbers 182

internet domain names 182intrapreneur 5invoice discounting see factoring

J Jack Wills – University Outfitters 150–151

Jaguar 72, 123, 211jobbing see production typologiesjob description 243Jobs, Steve 25, 35–37, 43–44, 57, 280–283,

Jobserve 228joint venture 161, 174, 210–211

K Kirsty’s 208–209, 303

L launch strategy 143–144, 146, 346leaders’ personal attributes 269–270leadership

entrepreneurial 274–277paradigms 270, 274–275, 276role 267–268style 254, 258, 266, 271–273

lean start-up 66lease/leasing 288, 289, 291, 305legal forms of business 185–188legal forms of social enterprise 192–194

leverage see gearinglife cycle (of product) 62, 73–74, 159, 165–168

lifestyle firms 5, 21limited liability companies 185, 187, 192, 194, 195

Lingo 24 292liquidity event see exit route

liquidity management 329loans 288, 289, 291, 292, 293–294, 299, 305

Local Investment Network Company (LINC) 301

locus of control 23–24, 31, 242Lush 104–107, 115, 122, 352

M McDonald’s 122, 165, 213Made.com 231Maggie’s Centres 193management buy–ins/buy-outs 301, 309

management team 8, 13, 241, 247–248, 279, 295, 302, 303, 309

manufacturing 199, 206–207, 210margin of safety 229, 334market

development 42–43, 156, 159foreign 260–262life cycle 73–75niche 42, 60, 74, 94–95, 125, 149, 156, 167

penetration 73, 155, 156, 159research 44, 54, 63, 73, 76–77, 79, 80, 120, 212, 317, 348

segment/segmentation 13, 66, 72, 77, 87–88, 90, 93, 94, 97, 99, 103, 120, 137, 145, 147, 159, 163, 227, 346

size 77typologies 73–75

marketing mix 87, 89, 90, 93, 94, 97, 99–103, 118, 136, 146, 159, 161, 201

marketing strategy 13, 147, 166–168, 227, 353, 346; see also generic marketing strategies

Marketing 3.0 see value-driven marketing

market paradigm shift 41–43, 46–47, 73

Material Pleasures 6matrix organization structure 250, 251–252, 277, 278

Mears Group 304Mercedes Benz 122, 123, 163Microsoft® 36, 81, 82–83, 174, 203, 211

Million Dollar Homepage, The 59mind maps 61–62mission/mission statement 116, 346MOMA! 55, 200Moonpig 308Morgan Motor Company 93, 96

N net profit 320networks/networking 10, 14, 21, 22, 29, 33, 34, 53, 55, 57–58, 89, 137, 140–141, 145, 180, 192, 205, 224, 225, 257, 258

network effects 14, 17new products see product developmentnew-to-the-world industries 41, 43new venture typologies 41–43niche markets/marketing see market niche

non-executive directors 190–191

359

Subj

ect i

ndex





non-metric mapping 63Novo Nordisk 80Now Recruitment 267

O objections (sales) 138–139objectives 20, 116, 136, 144, 156, 191, 192, 211, 215, 254, 314–315, 346

OFEX 303Omidyar, Pierre M. 16OnMobile 51operating gearing/leverage see gearingoperating profit 320, 328operating risk see gearing and margin of safety

operations plan 13, 215operations processes see production typologies

opportunity recognition techniques 49–50, 52, 54–55, 58–64

organic structures 251–252, 254, 258, 262, 274, 277, 278

organizational architecture 257, 275organization slack 251, 252–253organization structures 248–250overdraft 288, 291, 292, 293–294, 296, 298, 305

P partnership(s) 33, 161, 186, 187, 192, 195, 210–211, 224, 246, 347

patent 180, 181, 199PayPal 17, 174peer-to-peer lending see crowdfunding

perceptual mapping 63personal guarantees see collateralpersonality traits see character traitsperson specification 244porter’s Five Forces 77–78, 159, 162Power distance 28price–earnings (PE) ratio 331price elasticity of demand 98–99 pricing 74–75, 89, 97–99

full-cost 97product

awareness 144–145development 99, 125,136, 159, 162–165, 167, 174

expansion 163, 167extension 159, 163, 167, 174life cycle see life cyclemodification 175portfolio 165–168

production typologies 206, 251–252professional advisors 245–246profit forecast 13, 320–321; see income forecast

profit management 328public relations (PR) 141–142Purplle.com 301

Q Quad Electroacoustics 93, 95quick ratio 329

R Ramsay, Gordon 230ratio analysis see financial ratio analysis

recruitment 243–244registered design 182relationship marketing 120Reliance Industries 171, 173repertory grid 63retail/retailing 60, 72, 89, 100–103, 199, 200–202, 215, 216

return on total assets 328return to shareholders 327–328risk

classification 222–223factor 223index 223–224indicator 224 management 220–235mitigation 34, 67, 171–172, 174, 223, 224–226, 302

routes to market see channels of distribution

S salary-substitute firms 5sales

agent 146, 148, 161–162close 139objections 138–139skills 137, 138–139

scalability 67, 346, 347scenario planning 80–81search engine optimisation (SEO) 203–204

segment/segmentation 13, 72, 77, 87–88, 90, 99, 346

segment pricing 97–98served available market (SAM) 77, 317service business 199, 207service dominant marketing 90share capital 288, 301, 315, 326shareholders’ agreement 244skills profile 243slack see organization slackSLEPT analysis 49, 60, 61, 80, 81social entrepreneur 11social media 118, 120, 140–141, 145social networks and media 140Softcat 291, 301sole traders 185, 186, 187, 192, 195South Beauty 124Southwest Airlines 43, 47, 93, 125Specsavers 211–212spider’s web (organization) 248–249, 277, 278

stage models of growth see growth models

Starbucks 116, 121, 250stock exchange/market 188, 191, 303, 305, 309

stock/inventory turnover 328strategic

alliance 161, 174, 210–211, 223, 258intent 33, 117, 269, 354options 13, 16, 33, 67, 81, 116, 140, 221, 223, 225, 233, 277, 279, 354

strategizing 16, 33, 258, 354strategy development 15, 33, 354; see also strategizing

Streetcar 48–49, 90, 174Summly 46

supply-push 100, 146sustainability see corporate social responsibility

Swarfega 56switch costs 77, 78, 79, 89synergy 174, 309; see also economies of scope

systematic risk 172

T tax/taxation 194–195team building/working 240–258, 270, 277, 278, 279; see also management team

team roles see Belbin team rolesTesco 162, 209Thomas–Kilmann conflict modes 273total available market (TAM) 77, 317trade mark 181–182trade sale 303trait theory see character traitsTrunki 184trusts 192TutorVista 51Twitter 144, 158

U uncertainty 8, 11, 23, 26, 28, 33, 35, 248, 251, 274, 277, 278; see also risk

unincorporated associations 192unique selling proposition (USP) 346

V valuation (company) 244, 309, 321, 331–332, 353

value chain 50, 68, 94value-driven marketing (Marketing 3.0) 119--121

value proposition 13, 14, 88–93, 99, 103, 345–346, 348, 353

values 114–117, 247, 254, 267, 277, 279ethical 124–126, 254, 270 see also corporate social responsibility

variable cost 218, 227–229, 320, 321, 328, 334, 348

venture capital/capitalists 259, 292, 300–301, 302–303, 309

vertical integration 171viability 64–65, 225viral marketing 140–141Virgin 123, 130, 131, 141, 163, 171, 174, 199, 211, 226, 259–261

vision 11, 33, 114–118, 120–121, 192, 252, 254, 267–268, 274, 276, 277, 279

Vivid Imaginations 309voluntary liquidation/arrangements 189

W Web 2.0 158website 16, 60, 66, 76, 100, 102, 140–142, 158, 183, 198–199, 202–204, 305, 348, 353

what if? questions 11, 54

X Xmi 185

Y/Z Yahoo! 46, 125, 243

360Subject index





3i European Enterprise Centre 156–157

A Abell, D.F. 172Aggarwal, R. 205Anderson, E. and Weitz, B. 210Aston Business School 306–307Avolio, B.J., Bass, B.M. and Jung, D.I. 274–275

B Bank of England 299Bass, B.M. 274–275Bass, B.M. and Avolio, B.J. 274–275Belbin, R.M. 247–248BERR 6Birkinshaw, J. 252–253Birley, S. and Westhead, P. 156–157Boston Consulting Group 156–157Boyd, D. and Goldenberg, J. 64Bradford, D.L. and Cohen, A.R. 274–275

Brubaker, D.L. 270Burns, P. 66, 156–157, 257–277, 354Business Green 126Buzzell, R.D. and Gale, B.T. 156–157Buzzell, R.D., Heany, D.F. and Schoeffer, S. 156–157

C Caird, S. 32Carroll, A.B. and Shabana, K.M. 126Carter, S. and Rosa, P. 299Cavalluzzo, K. and Wolken, J. 299, 306–307

Chaleff, I. 275Chaston, I. 47, 66Chell, E. 247–248Chen, P.C., Greene, P.G. and Crick, A. 27

Coleman, S. 299Cope, J. 354Cosh, A. and Hughes, A. 306–307Coviello, N.E. and Munro, H.J. 205

D Delmar, F. 27Department of Business, Enterprise and Regulatory Reform 210

Drucker, P. 52Dunkelberg, W.G., Cooper, A.C., Woo, C. and Dennis, W.J. 156–157

Dyer, J.H., Gregersen, H.D. and Christensen, C.M. 54–55

E Egri, C.P. and Herman, S. 274–275European Commission 6

F Fraser, S. 292, 299, 306–307

AUTHOR INDEX G GE Capital 6George, B. 270, 275George, B. with Sims, P.E. 270, 274–275

Goleman, D. 274–275Grant, R.M. 172Green, P., Brush, C., Hart, M. and Saparito, P. 299

Greenleaf, R.F. 274–275Greiner, L.E. 242

H Hamel, G. and Prahalad, C.K. 117, 156–157

Handy, C. 277Harrison, J. and Taylor, B. 157–158Heifetz, R.A. 274–275Hisrich, R. and Brush, C.G. 299Hofstede, G. 29Hofstede, G. and Bond, M.H. 29

J Johnson, J.E. 58, 205

K Kay, J. 355 Kim, W.C. and Mauborgne, R. 47Kotler, P., Kartajaya, H. and Setiawan, I. 120–121

Kotter, J. P. 268Kurucz, E., Colbert, B. and Wheeler, D. 126

L Levenson, A.R. and Willard, K.L. 299Levy, H. and Sarnat, M. 172Lewis, J.D. 210Litvak, I.A. 205Lorange, P. and Roos, J. 210Luffman, G.A. and Reed, R., Mason, R.H. and Goudzwaard, M.B. 172

M Macmillan, H. 299Macrae, D.J.R. 156–157Margolis, J.D. and Walsh, J.P. 126, 172Marlow, S. and Patton, D. 299Mason, R.H. and Goudzwaard, M.B. 172

McCarthy, B. and Leavy, B. 354Michel, A. and Shaked, I. 172Mintzberg, H. 274–275, 354

N Nohria, N. and Joyce, W. 156–157

O Oakley, P. 205Ohmae, K. 117, 210Orlitzy, M., Schmidt, F.L. and Rynes, S.L. 172

Osterwalder, A. and Pigneur, Y. 15Oviatt, B.M. and McDougall, P.P. 205

P Palich, L.E., Cardinal, L.B. and Miller, C.C. 172

Park, C. 172Peters, T.J. and Waterman, R. 172Piercy, N.F. 120–121Pink, D. 252–253Porter, M. 78, 93, 156–157Porter, M.E. and Kramer, M.R. 126

R Ram, M., Smallbone, D. and Deakins, D. 299

Ray, G.H. and Hutchinson, P.J. 156–157

Read, S., Sarasvathy, S., Dew, N., Wiltbank, R. and Ohlsson, A.V. 11, 225

Ries, E. 66, 225

S Sarasvathy, S.D. 34–35, 225Sashkin, M. 274–275Scott, J. 207Siegel, R., Siegel, E. and MacMillan, I.C. 156–157

Solem, O. and Steiner, M.P. 156–157

Storey, D.J. 306–307Storey, D.J. and Greene, F.J. 306–307

Storey, D.J., Watson, R. and Wynarczyk, P. 156–157

Stormer, R., Kline, T. and Goldberg, S. 32

Strangler, D. 6

T Treacy, M. and Wiersema, F. 93, 156–157

Treichel, M.Z. and Scott, J.A. 299

V Vargo, S.L. and Lusch, R.F. 90Ven de Velde, E., Vermeir, W. and Corten, F. 126

Vera, D. and Crossan, M. 274–275

W Wernerfelt, B. and Montgomery, C.A. 172

Weston, J.F., Smith, K.V. and Shrieves, R.E. 172

Woo, C.Y., Cooper, A.C., Dunkelberg, W.C., Daellenbach, U. and Dennis, W.J. 156–157

Wynarczyk, P., Watson, R., Storey, D.J., Short, H. and Keasey, K. 156–157

Y Yelle, L.E. 156–157

361

Aut

hor i

ndex





A Arno, C. 292

B Bannatyne, D. 114, 351Bennis, W. 267Bilimoria, K. 188, 189Branson, R. 21, 116, 125, 131, 144, 227, 259, 260, 261

Burmester, D. 140Butler-Adams, W. 208

C Cadbury, A. 122Chew, E. 25Constantine, M. 8, 21

D D’Aloisio, N. 46Dawes, M. 94, 352Dell, M. 46, 57, 122, 241, 256Demarquette, M. 9Deshpande, G. 241

E Ebrahim, S. 95Elliott, J. 287, 293, 304Elvidge, J. 26, 33Ewington, T. 289

F Farmer, T. 8, Ferguson, A. 246Fernandes, T. 256Flanagan, B. 189

G Garland, C. 24Gates, B. 245

QUOTES INDEX Gittins, E. 159Gooch, E. 191, 294Griffiths, S. 49

H Haji-Ioannou, S. 91Hall, C. 189Hamel, G. 274Hawthorne, L. 30Hemsley, S. 76Hoffman, R. 12

I Ingram, C. 22, Isaacson, W. 276, 282

J Jayawickrema, A. 10, 302, 303Jenkins, N. 308Jobs, S. 37, 276Johnson, L. 348

K Kelly, N. 42Khan, A. 213King, W. 302

L Lashinsky, A. 281, 282Leaver, J. 160Lee, L. 33, 224Lee, R. 185Levinson, J.C. 135Li, N. 49, 231

M Mason. M. 334Mazumdar-Shaw, K. 4Mittelman, J. 142

Muirhead, C. 24Murray, S. 245

N/O/P/Q Nanus, B. 267Ndhlukula, D. 241Notley, A. 26

R Redman, G. 267Rose, C. 87, 203, 314

S Shah, B. 8Shah, E. 23Shah, R. 57, 140Shen, C.M. 56Smith, S. 130Speakman, D. 229Spurgeon, J. 6, 16Surace, K. 155

T/U Teneja, M. 301Thirlwell, A. 291Thompson, R. 24Timmons, J. 3

V Valentine, A. 21, 48, 49Valery, N. 45

W/X/Y/Z Wasmund, S. 266, 269Weiner, J. 79, 352Whitehorn, W. 259Winthrop, B. 164Williams, P. 150, 151

362Q

uotes index





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