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
Venture Opportunity, Concept and Strategy
Venture Formation and Planning
Functional Planning of the Venture
Financing and Building the Venture
  Business Plans (App. A)
  Case Studies (App. B)
Online Sources (App. C)
Sample Syllabus
Course Overview
Calendar of Sessions
Entrepreneurial Perspective
Idea or Opportunity
Gathering Resources
Managing Ventures
Entrepreneurship and You
Additional Resources
Schools Using This Textbook
Authors Blog

A new business is defined by the wants or needs customers satisfy when they buy a product or service. To create a theory of a new business, the entrepreneur must cogently and clearly describe the customers and their needs and how the new venture will satisfy those needs. To describe the business, the entrepreneur prepares a series of statements and propositions that clearly outline the business. These are ultimately summarized in a model of the business activities and goals. Based on the core competencies of the organization coupled with the business model and the key resources available, the firm acts to attempt to create and retain a sustainable competitive advantage.

Chapters 16-18 go into more depth discussing the business model and financial considerations necessary for a new venture.

Federal Express: Early History
Describes key events in the startup of Federal Express. Outlines the company's value proposition and provides an overview of key competitors in the air freight industry. Teaching Purpose: To use with Teledesic (Abridged), HBS No. 9-804-096, which describes a failed project with a value proposition similar to Federal Express'. To encourage students to compare the two companies and to analyze the nature of network effects in each context. A revised version of an earlier case.
Describes the evolution in and its business model since its founding. Specifically, discusses Amazon's transformation from an e-Tailer to a commerce platform and its marketplace initiative, which has driven this. Also describes the economics of various commerce models that Amazon employs and a decision confronting Jeff Bezos regarding how the company should participate in the apparel segment. Teaching Purpose: To explore the changing dynamics of the online retailing/e-commerce world and the evolution in's business model that has transpired.
(DVD Section 3.2) Guy Kawasaki: Don't Write a mission statement, write a mantra
Mission statements, while touted as necessary for any company, often is not representative of the true meaning of the company. Instead, a mantra is shorter and captures the essence of the organization.
(DVD Section 3.5) Larry Page: Innovate Technology AND Business - The Founding of Google
Not many companies are innovators in both technology and business. In order to be successful in technical innovation, you must also understand the business and marketing side.
(DVD Section 3.8) Pam Marrone: The Product Vision
Pam formed focus groups to change policies to correct the wrongly done artificial testing done by academic scientists to test the efficacy of AgraQuest's product.
John Thompson: Stick to Core Mission, Focus, and Keep It Simple
John Thompson talks about the #1 driver at Symantec - FOCUS! This involved purging products that were not core to our network centric vision. This makes hiring and making partner relationships, among other things, easier. As we move forward we have to continue to innovate and be attentive to customer needs. We believe that execution is what matters. "Its not how good the strategy is, but how well you execute it"
Lynn Reedy: Three Key Factors in eBay's Success
Lynn talks about the 3 key factors in eBay's success: 1. Great idea. 2. Great business model - no sales force or inventory. 3. Management team that ensured that eBay was at the right place at the right time.
Randy Adams: You Must Have Vision
Randy Adams takes a stab at defining vision and what it means to have vision. He also explains the importance of vision to the success of a company.
Matt Hershenson: Danger's Business Model
Danger's revenue comes from three sources: initial sign up fees, monthly service fees, and through a web share on content and applications that get downloaded to the device.
Note on Business Model Analysis for the Entrepreneur
Describes the primary elements and defining characteristics of a company's business model from the perspective of an entrepreneur. Introduces several analytic techniques and provides illustrative examples of business models to support the analytic framework presented. Teaching Purpose: To provide conceptual ideas to enrich case discussions about entrepreneurial opportunities.

Building Your Company's Vision
Companies that enjoy enduring success have a core purpose and core values that remain fixed while their strategies and practices endlessly adapt to a changing world. The rare ability to balance continuity and change--requiring a consciously practiced discipline--is closely linked to the ability to develop a vision. Vision provides guidance about what to preserve and what to change. A new prescriptive framework adds clarity and rigor to the vague and fuzzy vision concepts at large today. Managers who master a discovery process to identify core ideology can link their vision statements to the fundamental dynamic that motivates truly visionary companies--that is, the dynamic of preserving the core and stimulating progress.


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