Exploiting Entrepreneurship and New Ventures

Question 1

What is a business alliance?

Answer 1

A transitional mechanism that propels a companies strategies forward faster than each company would achieve on their own.

Question 2

Name four things to consider for a successful alliance.

Answer 2

1) Chose a partner with compatible strategic goals and objectives.
2) Seek complementary skills, products and markets.
3) Work out how each partner will deal wit proprietary knowledge or sensitive information.
4) Recognise that most alliances only last a few years.

Question 3

How to manage alliances?

Answer 3

Network (I know/like you), competence (I believe you have the skill) and commitment (we work towards the same goal).

Question 4

How can intellectual property rights be protected?

Answer 4

Patents, design registrations, design rights, copyright, trade marks.

Question 5

What is a licencing agreement?

Answer 5

A contract between two parties about right to e.g. produce, sell, apply brand name, etc.

Question 6

What are some benefits of a licencing agreement?

Answer 6

Reach a larger market, reduce development costs and risks, block competing developments.

Question 7

Which are the two types of innovation?

Answer 7

Sustaining (focus: mainstream market) & Disruptive (focus: niche market).