1© 2003 Mark P. Rice

Roundtable on Entrepreneurship EducationsFor Scientists and Engineers

October 20-24, 2003

Working Session:

Best Case ScenarioOctober 23, 11:30 – 12:30

Session Moderator:

Mark P. Rice, Ph.D.

Murata Dean, and

Jeffry A. Timmons Professor of Entrepreneurial Studies

2© 2003 Mark P. Rice

An Approach to Case Analysis (Assume you are the manager who needs to address the challenges.)

Identify the key managerial challenges(or tensions, questions, problems, opportunities).

Select a small number (typically 3 +/- 1) of these thatyou will discuss as described below.

For each of these managerial challenges, present thealternative approaches for dealing with each challenge.

Discuss the pros and cons foreach alternative approach.

For each challenge, select the approachyou would use to address the challenge

and defend you decision.

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MEDICAL EQUIPMENT AManagerial Tensions

Key Issues / Tensions

v “How to deal with Medical Equipment’s entrepreneurial manager, Dr. Sherwood.” (Page 1) -- Need for change in the management / leadership of ME venture: Sherwood and functional managers.

v “What should be done with the Medical Equipment venture?” (Page 1) Need to change ME venture from entrepreneurial to operations culture and systems.

v “You guys are so different. The Corporation doesn’t understand you. You must involve us more in the business.” (Page 1) How can Sherwood and ME build and manage relationships between ME and the rest of the company: e.g., R&D and corporate (strategy and resource allocation)

v “What could have been done better in the case of the Medical Equipment Venture?” “The lessons learned from Medical Equipment were important, as future new ventures were likely to encounter similar problems.” (Page 14) How can the firm build a corporate competency in managing NBD?

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What should be done with Sherwood?

1. Leave him as ME manager

2. Keep him as manager but build amanagement team around him. Hire aCOO.

3. Challenge him to focus on devel-oping the next ME product line.

4. Move Sherwood back to CorporateR&D

5. Fire him

Alternatives Pros Cons

Decision? Why? How wouldyou implement it?

5© 2003 Mark P. Rice

What should be done with theMedical Equipment Venture?”

1. Continue as standalone venture withSherwood

2. Continue as a standalone venture butestablish duality: mainstream undernew leadership; NPD/NBD underSherwood.

3. Absorb ME into an existing SBU.

4. Split up MEV. ANABASE businessgoes mainstream under newleadership. Rest of the businessremains under Sherwood.

Alternatives Pros Cons

Decision? Why? How wouldyou implement it?

6© 2003 Mark P. Rice

How can Sherwood and MEV build and manage rela-tionships between MEV and the rest of the company?

1. Korbin and Burns should challengeSherwood to change and to take oninterface mgt.

2. Korbin should take on this role.

3. Change management structure of ME.

4. Create a board of directors for ME.

Alternatives Pros Cons

Decision? Why? How wouldyou implement it?

7© 2003 Mark P. Rice

How can the firm develop a corporate competency inmanaging new business development?

Alternatives Pros Cons

Decision? Why? How wouldyou implement it?