Jeff Trailer and Chester Wolford
This article presents examples for improving the effectiveness of business plans by focusing on the logical structure of their composition.
The growth of firms is fundamentally based on selfreinforcing feedback loops, one of the most important of which involves cash flow.When profit margin is positive, sales generate…
Abstract
The growth of firms is fundamentally based on selfreinforcing feedback loops, one of the most important of which involves cash flow.When profit margin is positive, sales generate cash, which may then be reinvested to finance the operating cash cycle.We analyze simulations of a sustainable growth model of a generic new venture to assess the importance of taxes, and regulatory costs in determining growth.The results suggest that new ventures are particularly vulnerable to public policy effects, since their working capital resource levels are minimal, and they have few options to raise external funds necessary to fuel their initial operating cash cycles.Clearly, this has potential consequences in terms of gaining competitive advantage from experience effects, word of mouth, scale economies, etc. The results of this work suggest that system dynamics models may provide public policy-makers a cost-effective means to meet the spirit of the U.S. Regulatory Flexibility Act
Kirk C. Heriot, Noel D. Campbell and R. Zachary Finney
This article argues that existing research poorly specifies the link between planning and performance because of omitted variable bias. Researchers agree planning is a critical…
Abstract
This article argues that existing research poorly specifies the link between planning and performance because of omitted variable bias. Researchers agree planning is a critical part of creating any new venture. Many researchers assess planning by whether a small firm has a written business plan. Unfortunately, efforts empirically to validate this relationship have been inconclusive. This article proposes that researchers should assess business plans both on the quality of the plan (and the planning process that produced it), and on the quality of the underlying business opportunity. Failure to account for both aspects of a business plan amounts to omitted variable bias, frustrating attempts to accurately estimate the true relationship.
Robert D. Dewar, Hayagreeva Rao and Jeff Schumacher
Describes how UPS created UPS Supply Chain Solutions, an entirely new business, with carefully selected target market segments for which unique and extensive value offerings were…
Abstract
Describes how UPS created UPS Supply Chain Solutions, an entirely new business, with carefully selected target market segments for which unique and extensive value offerings were designed. To build this business UPS made numerous acquisitions and successfully resolved post-acquisition integration challenges in compensation, information systems, personnel policies, and organizational culture.
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![Kellogg School of Management](/insight/static/img/kellogg-school-of-management-logo.png)
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Prescott C. Ensign and Nicholas P. Robinson
This case aims to illustrate the hurdles that a young venture might experience in the early stages of its life cycle and showcase how managers must use ingenuity to climb over…
Abstract
Purpose
This case aims to illustrate the hurdles that a young venture might experience in the early stages of its life cycle and showcase how managers must use ingenuity to climb over obstacles.
Design/methodology/approach
The case is based on interviews with the founders and additional secondary data.
Findings
RepositBox, a Canadian-based provider of credentials verification solutions, is a new venture coping with the challenges posed by the introduction of its innovative new product to the marketplace.
Originality/value
The case is suitable for use in undergraduate or graduate courses in new venture creation, entrepreneurial marketing and launching a technology-based enterprise.
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This case pertains to the foundational underpinnings of the accounting process and the statement of cash flows. In Part I, students are presented with 23 business events that they…
Abstract
This case pertains to the foundational underpinnings of the accounting process and the statement of cash flows. In Part I, students are presented with 23 business events that they must evaluate for recording in the financial records. Part II requires students to prepare a 2012 statement of cash flows using the information presented in the company's 2011 and 2012 year-end balance sheets along with its 2012 income statement. In Part III, students must rely on a 2011 balance sheet and a 2011 statement of cash flows to work backward to derive the 2010 year-end balance sheet. There are two versions of this case: Option 1 and Option 2. The Option 2 case is a bit more challenging than the Option 1 case. Instructors should use Option 2 if they feel students are well grounded in their understanding of financial statement relationships and the customary financial reporting of a typical set of business events. Both cases reinforce students' learning related to the accounting process and the connectivity between the financial statements. Please note that only one version of the case should be used due to the existence of some overlap between the two.
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![University of Virginia Darden School Foundation](/insight/static/img/university-of-virginia-darden-school-foundation-logo.png)
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Fei Ying, John Tookey and Jeff Seadon
Construction logistics is an essential part of Construction Supply Chain Management for both project management and cost aspects. The quantum of money that is embodied in the…
Abstract
Purpose
Construction logistics is an essential part of Construction Supply Chain Management for both project management and cost aspects. The quantum of money that is embodied in the transportation of materials to site could be 39–58 per cent of total logistics costs and between 4 and 10 per cent of the product selling price for many firms. However, limited attention has been paid to measure the logistics performance at the operational level in the construction industry. The purpose of this paper is to contribute to the knowledge about managing logistics costs by setting a key performance indicator (KPI) based on the number of vehicle movements to the construction site.
Design/methodology/approach
A case study approach was adopted with on-site observations and interviews. Observations were performed from the start of construction until “hand-over” to the building owner. A selection of construction suppliers and subcontractors involved in the studied project were interviewed.
Findings
Data analysis of vehicle movements suggested that construction transportation costs can be monitored and managed. The identified number of vehicle movements as a KPI offers a significant step towards logistics performance management in construction projects.
Originality/value
This research paper demonstrates that framework of using vehicular movements meet the criterion of effective KPI and is able to detect rooms for improvements. The key findings shed valuable insight for industry practitioners in initiating the measurement and monitor “the invisible logistics costs and performance”. It provides a basis for benchmarking that enables comparison, learning and improvement and thereby continuous enhancement of best practice at the operational level, which may accelerate the slow SCM implementation in the construction industry.
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A corporate innovation strategy implies that a firm’s strategic intent is to continuously leverage entrepreneurial opportunities for growth- and advantage-seeking purposes…
Abstract
A corporate innovation strategy implies that a firm’s strategic intent is to continuously leverage entrepreneurial opportunities for growth- and advantage-seeking purposes. Corporate innovation has gained greater research attention with a focus on the factors that influence an organization’s willingness to initiate and sustain an innovation strategy. In the current disruptive age, firms acknowledge the importance of corporate innovation (also referred to as corporate entrepreneurship) as the critical element for sustained competitive advantage in the global economy. Yet, it has been reported that many organizations struggle with the actual implementation of an innovative strategy. While there are key challenges that must be addressed by today’s corporate innovative leaders in this age of disruptive innovation, many of today’s technological companies are finding success in reaching for the future. As research on corporate innovative activity has evolved, there is still a need to examine some of the latest innovative developments with the technological sector since they are regarded as leading this disruptive age. This chapter examines the most recognized companies in the technological space and discusses their newest explorations. In addition, a framework is presented to illustrate similarities and differences in their approaches to corporate innovation activity.