Introduction
Welcome
Preface of Textbook
About the Textbook
About the Authors
Book Website at McGraw-Hill
DVD Contents
 
Stanford 1e Book Website
McGraw-Hill 1e Book Website
 
Book Contents
Table of Contents
I
Venture Opportunity, Concept and Strategy
II
Venture Formation and Planning
III
Functional Planning of the Venture
IV
Financing and Building the Venture
  Business Plans (App. A)
  Case Studies (App. B)
Online Sources (App. C)
 
Sample Syllabus
Course Overview
Calendar of Sessions
I
Entrepreneurial Perspective
II
Idea or Opportunity
III
Gathering Resources
IV
Managing Ventures
V
Entrepreneurship and You
 
Additional Resources
Schools Using This Textbook
Authors Blog
 

Entrepreneurs can create a new business by acquiring an existing firm and then improving it. The acquirers attempt to create growth and new value for the firm. Another strategy is for entrepreneurs to start and build their own firm and then expand the company by acquiring other firms. A series of successful acquisitions can help build a firm into a powerful leader in an industry. The integration of the newly acquired firm within the existing firm is a large challenge, however, especially when the cultures of the two firms differ significantly. Most new businesses develop, at the appropriate time, a plan for building an international strategy for growth. The forces for globalization are powerful, and new business ventures need to plan for them.

 

 
Spotfire: Managing a Multinational Start-Up
Spotfire, a software start-up, must address the question of dividing its effort between Sweden and the United States in addition to raising venture capital, obtaining new customers, and managing early-stage growth.
 
Palm Computing, Inc. - 1995: Financing Challenges
Donna Dubinsky and Jeff Hawkins, discuss an opportunity to sell their company to U.S. Robotics. They must weigh this option versus accepting venture capital funding, partnering with a large company that could provide distribution channels and capital, or continuing a search for capital from other sources.
 
NetLogic Microsystems
Examines the challenges encountered by a start-up company that seeks to operate on a global basis virtually from Day One. Based in Mountain View, CA, NetLogic Microsystems is a semiconductor company that was founded by a semiconductor industry veteran in 1996. Follows the founder's efforts to identify and research the initial opportunity, hire staff and senior management, fund product development, generate sales, form partnerships and alliances (many of them international), raise institutional capital, and evaluate a possible acquisition. Because of the nature of the semiconductor industry, which finds many steps of its value chain rooted in Asia and other countries around the world, NetLogic had to be global early on in its life cycle.
 
 
(DVD Section 15.3) Stephanie Tilenius: Saving a Failing Acquisition - eBay, Auctionco and Project Golden Bell
Stephanie continues with the story of the acquisition and "Project Golden Bell". A SWAT team was formed to find the right answer. There were 3 platforms and 3 pricing strategies which the SWAT team reduced to one platform and one pricing strategy. Stephanie talks about how they moved to an eBay auction model and restructured Auction Co. while understanding the new community.
John Thompson: Acquisition and Growth for Symantec
There have been 11 acquisitions since John joined Symantec. Early focus was on technology in the security space that had a common attribute to anti virus. Secret tool is not licensed software but the update mechanism that can be used to ship content. Symantec was looking at changing from a software business to content business. They looked for other security technology companies that have the same desire and need to be updated; They can then make a lasting relationship with customers and monetize that relationship by selling content and not just software. John talks about the marriage between Symantec and other companies that they have acquired over the years.
 
Stephanie Tilenius: Global Acquisitions - Lessons Learned
Stephanie talks about the lessons learned as eBay has grown These include: (1) How to execute and keep focus. (2) Setting the bar very high. (3) Doing things fast to maintain momentum. (4) Listening to the community. (5) Acting with integrity and confidence.
Stephanie Tilenius: Acqusition - eBay and Auctionco
Stephanie shares in detail the story of the acquisition of Auction Co, a successful company in Korea. This brings to life management characteristics, values and execution. Stephanie defines the situation, the process within eBay, and eBay's response to a different market place.
Lynn Reedy and Stephanie Tilenius: eBay and PayPal: Going Global
eBay is in 28 countries and the company is looking into cost effective ways to enter new markets. PayPal will attack Europe next year. Typically eBay being global can enter new countries easily; in the case of PayPal it will take more effort. When making an acquisition eBay lets the business strategy define the process or platform. Over time they look for ways to move the country onto the platform as long as it does not put the country or the business model in the country at risk.
 
Lynn Reedy: eBay: The World's Online Marketplace
Lynn Reedy shares a commercial that is going to air later in the week. She talks about the vision - providing a global online trading platform, and the value proposition - making inefficient markets efficient by bring back the fun and the passion.
   
 

Thomas Friedman: Longitudes and Attitudes: Exploring the World After 9/11
New York Times writter Thomas Friedman shares his perspective of globalization and the post 9/11 world. With the rapid integration of markets, transportation systems, and communications, the world is coming together faster, deeper and cheaper than ever before. Superpowers must balance Supermarkets and Super-Individuals.

 

 

Copyright 2004-2007 Stanford University. All Rights Reserved.