Corporate Venturing Ch 4: Building the Venture Proposal

1
Corporate Venturing Ch 4Building the Venture
Proposal

• Purpose of chapter
• Identify venturing opportunities
• Evaluate venturing opportunities
• Select opportunities likely to be successful

2
Identifying ICV Opportunity

• Match opportunities with base business's vision,
  strategy and goals
• Important to encourage ideas
• Recruit creative people
• Train employees to have acan-do attitude
• Enhance innovative skills
• Encourage flow of ideas

3
Sources of New Opportunity

• Changes and problems may be the best sources of
  opportunities
• Internal sources (within firm)
• Improve quality
• Reduce product rejects
• Better serve customers
• Replace raw material
• Advantage Already familiar with
• Disadvantage May not be worthwhile opportunity

4
Sources of New Opportunity, Cont.

• Opportunities within the industry and market
• Customers a great source
• Mergers can provide new opportunities
• External environment opportunities
• SWOT analysis may reveal
• Changing factors such as
• Demographics
• Life-styles
• Perceptions and values

5
Evaluating Proposals

• Proposal should initially be short
• Proposal should answer the following questions
• Opportunity right for company strategy?
• Will factors producing the opportunity last?
• Character, size and nature of market?
• Does firm possess factors to be successful?
• Which managerial discipline is most appropriate
  to head new venture team? (ex. Marketing)
• Is new venture worth the effort? Is it feasible?