Knowledge that Transforms

The case focuses on Ken Powers, co-founder and CEO of Sparrow Therapeutics, whose young biotechnology company has reached a critical stage where he has to decide whether or not to sell. The company’s three main sets of investors have different priorities: (1) a quick cash sale now (2) delay sale for about a year if returns are greater and (3) delay sale for two years, build company value and retain autonomy. What choice would be best for the company, for its investors and – and for Ken himself? And when would be the best time to implement the exit strategy?

SnoworSand, Student Travel Solutions describes the development of a travel service targeting students abroad for cultural and recreational travel during their foreign sojourns. The case focuses on the decisions needed to transition the venture from a lifestyle hobby into a growing, scalable business. Charlie Bishop, the founder, has created a niche business serving American college students in Europe, providing them with safe, educational, and fun excursions in Europe, Turkey, and North Africa. The venture has significant potential, but to achieve it, Charlie needs to make decisions about marketing strategy, personnel, and logistics, along with the critical issue of how best to finance growth.

The article offers information on the aspects of venture capital (VC) funding in the economic downturn in the last quarter of 2009. It states that Jordan Baltimore, an entrepreneur, unexpectedly had to consider alternative funding sources. It further highlights that VC funding at 1 million dollars and Angel investor LP or Friends-and-Family funding of 360,000 dollars are considered for the financial and strategic effects.

This case takes place in Russia in 2008, not quite 20 years into the post–Soviet developing economy. DiPaul was an authorized dealer of electronic instruments, equipment, and materials for the production and assembly of printed circuit boards as well as soldering equipment. Its core business was supplying measurement instruments and process equipment. In the summer of 2008, the chief executive officer, who was also the majority stockholder, decided to reassign authority in a formal organizational transition so that he could become more engaged in policy and leadership of the Association of Russian Producers of Electronic Appliances and Instruments. The protagonist's concerns were as follows: How to carry out such a management transition? Who among the top management team could fit the position best? How must the organizational structure of the company be changed to accommodate the shift in leadership? And importantly, what should his own future role be?

The case focuses on Ken Powers, cofounder and chief executive officer of Sparrow Therapeutics, whose young biotechnology company has reached a critical stage where he has to decide whether or not to sell. The company's three main sets of investors have different priorities: (1) a quick cash sale now, (2) delay sale for about a year if returns are greater, and (3) delay sale for 2 years, build company value, and retain autonomy. What choice would be best for the company, for its investors—and for Ken himself? And when would be the best time to implement the exit strategy?

This analysis has evaluated the impact of mergers on new entrepreneurial firm entry in the territories of firms making up the local exchange sector of the United States telecommunications industry. An analysis of first and second mergers undertaken by the local exchange companies has revealed that where mergers occurred there was significantly lower entrepreneurial entry. The results have implications for policy, since the approval of mergers has been shown to lead to lower entrepreneurial entry where mergers occur, and the approval of mergers may serve to impede entrepreneurship. Hence, greater thought should be given to merger approvals so that entrepreneurship and the process of economic growth are not compromised as a result.