New venture creation
New venture creation
The effect of new venture creation on the company management strategy
New venture creation is a multifaceted phenomenon that features the migration of individuals and companies who are prompted toward a career choice such as entrepreneurship and the resulting satisfaction that forms the main motivating factor for their behavior. Such inspired individuals decide to launch a new business after undertaking substantial research and scrupulous planning that will ensure the business is a success. The process of planning and organizing for the implementation of a new business plan by an entrepreneur summarizes the core of new venture creation.
The processes involved in developing a proper new venture plan are numerous. However, almost all companies and entrepreneurs follow six common behaviors in creating a new venture. First, the location of a potential business opportunity is done. This includes pinpointing the best working conditions, cost of acquisition and survey and research on the field of investment. The next stage involves accumulating the required resources for starting the business. Examples of resources include capital, furniture, office premises and staff. The entrepreneur will then need to market the product or service that they will be dealing in to ensure that it grasps a large part of the consumers and clients. This stage is immediately followed by producing the production and distributing it. At this point, the organization has to start developing, growing branches and making relationships with other entities. Lastly, the entrepreneur will have to respond to legal and administrative requirements by the society and the government (Greiner, 2012).
Organizational effectiveness refers to the degree of effectiveness that a company has that will enable it achieve its targets and results. This kind of concept is especially important for non-profit organizations that may need to find out the extent of their efforts and quantify their results. Organizational effectiveness is normally measured using logic models to evaluate the specific inputs and impacts. Organizational effectiveness is closely related to management and management strategy in that through the results of the effectiveness study, a manager can develop the right management strategy that can make the company realize its objectives.
Corporate venturing developed from the revolution of the digital economy that made traditional practices useless. To accelerate the pace of growth fro new and existing companies, most administrators have resorted to seeking out new ideas and opportunities within the market. Some of processes of corporate venturing include leveraging the resources and potential of the company to assist in creating new businesses. The digital economy provides many innovative tools and best practices that have been developed from sources such as incubators, venture-capital firms and other companies. These innovations can help conventional companies come up with increased capability to generate new business ventures through incubators and venture groups.
Developing these new business opportunities may be beneficial for a company. However, in the process of doing so, the structure and components of the organizations slowly transform into a different entity. Managing a new entity with the same old procedures and management strategy will lead to a breakdown in the operations and a possible realization of losses. Therefore, the introduction of a new venture creation program within a company spurs the development and transformation of the current management strategy that will effectively counter and handle the new acquisitions by the company (Hendricks, 2005).
The Campaign Monitor Company and its development
Campaign Monitor is an upcoming startup based in Sydney that deals with the provision of email marketing services that are tailor made for designers and their customers. The main activities of Campaign Monitor include sending ingenious email campaigns, managing lists and examining the outcomes of each campaign that they have promoted. The company uses carefully designed emails to compliment the work of web designers who lack the ability to manage campaigns, follow the results and manager any customers. The Campaign Monitor software enables the account holders to customize their own templates and design emails to their best needs. However, Campaign Monitor was developed explicitly for web developers and has little prominence outside these circles.
The Campaign Monitor tool has a customer base o over 80,000 customers spread over 100 countries throughout the world. The type of consumers also varies from individual freelance designers to company designers and other marketing companies. The products from this company have been preferred by most people because of their ability to be designed to suit the needs of customer. The opportunity to have free trials of the tailor-made software has also attracted a large number of first-time consumers. Lastly, the process of joining the Campaign Monitor network by subscription is easy and operations begin on the first day of subscription. The company also offers other services such as free hosting for images and objects without any hidden costs. All these qualities make Campaign Monitor a fast growing startup company in Australia (Davidsson & Gordon, 2012).
The concept for Campaign Monitor Company was developed in 2000 by two experts in information technology. Initially, Campaign Monitor started out as web design Company that developed sites, maintained intranets and vital web applications for a range of customers. The growth of the company from the backyard of their father’s home to a conventional office space was prompted by the SSHED business incubator. The transition into an office environment surrounded by aggressive and competitive companies was vital in triggering growth in Campaign Monitor. The SSHED environment, the firm was exposed to companies launching products that gave the partners the idea for developing the Campaign Monitor Software. The efficiency of business incubators originates from the fact that within that environment, entrepreneurs are surrounded by like-minded people that triggers innovative ideas.
The transition from being a backyard small business to a multinational software company operating in 100 countries required a stable corporate venture plan. The plan involved a combination of front-end and server-side development that offered a complete service. The partners worked on their own CMS, email marketing tools and other components. The initial customers include Toyota Company and Foxtel. The major change came in 2005 when they decided to focus on Campaign Monitor and invested in a flexible Microsoft platform that was compatible with most of the other systems such as Python, Java or Ruby (Wickham, 2001).
In the case of Campaign Monitoring, the firm used a combination of innovative technology and flexible approaches. The management strategy by the company also transformed the firm from a small enterprise into a multinational firm. Campaign Monitoring first developed shareholder value by going through the incubation process instead of attaining and incorporating them into the business. Traditionally, companies address the issue by creating a range of startup companies by acquiring new establishments. However, corporate venturing is slightly different from traditional company practices. Venture attempts are more risky and not easily managed as compared to conservative corporate research and development. This is the reason why venture investments are housed in incubators where they are shielded from such controls that are outside the walls of the corporate sector. There is also a pressure within venture investment to focus on producing the expected results by the investors. As a result, venture investment follows the best practices for ensuring that results are achieved.
Davidsson, P. & Gordon, S. R. (2012). Panel studies of new venture creation: a methods-focused review and suggestions for future research. Small Business Economics, 39, 4, 853-876.
Greiner D. Campaign Monitor. (2012). Australia In Front. Retrieved from http://www.australianinfront.com.au/profiles/campaign-monitor/
Hendricks, S. J. (2005). Effectiveness of programs for work site trip reduction: The influence of organizational culture. Transportation Research Record, 1924, 207-214. Retrieved from www.worldtransitresearch.info/research/557/
Wickham, P. A. (2001). Strategic entrepreneurship: A decision-making approach to new venture creation and management. Harlow: Financial Times Prentice Hall.