Lecture 8

Question 1

Time for shutting down or repositioning

Answer 1

Maximum loss reached

No more money

Failure to acquire resources

Failure to acquire customers

Question 2

Entrepreneurial
failure

Answer 2

Learning from what did not work

Define a new maximum loss

Try again and learn

Question 3

Pivoting

Answer 3

describes the process of changing direction when the current strategy is not delivering the desired results.

Question 4

For establishing firms? Pivoting or shutting down

Answer 4

Pivoting can help with
- problems by the market
- Unrealised growth
- Problems aligning stakeholders

Pivoting can not help with (shut down)
- Lack of competence, skills, network
- Fundamental problems with accessing resources

Question 5

Steps in a Pivot

Answer 5

1. Decision to pivot
2. Stage of “collective indeterminacy” (should be very fast to not raise panik among stakeholders)
3. Decision makers decide on a new positioning, strategy, which ends the “collective indeterminacy”
4. Internal re-organisation and external communications (develop new product ex)

Question 6

Not losing stakeholders in a pivot

Answer 6

Pivot endager stakeholder relations

In particular stakeholders that are highly identified tend to react negatively

Develop a new narrative, while remaining some form of consistency