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Making wine and making successful wineries.pdf

Point of view new ventures need to develop andor

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point of view, new ventures need to develop and/or acquire significantly enhanced management expertise to successfully navigate the commercialization stage, as well as continue efforts to build financial resources. Successfully commercializing also requires a much clearer understanding of how things work. The manufacture of products or services demands that management knows explicitly how physical assets can be deployed. So part of the resource development challenge during this phase is combining and making explicit the tacit nature of the combination of resources it has assembled. Now, the firm is becoming externally focused and needs to ensure that the accumulation of various resources translates effectively into manifesting the product or service and responding to the market. By seeking to articulate internally the various tacit dimensions of its resource positions, new venture management can facilitate enhanced learning about the market and can, thus, improve the effectiveness in their business model (Winter, 1987). Once more, the Cult and Boutique wineries exhibited precisely this combination of enhanced management knowledge, organizational and physical resources as they moved into commercialization and growth expansion stages of development. The market development of Avocateur firms was halting because they still lacked financial resources, possessed poor management knowledge and were just beginning to understand winemaking technology: P3 . Successful new ventures are those which develop management and physical resources during their developing phase. 137 Making wine and making successful wineries Downloaded by Walden University At 08:05 13 November 2018 (PT)
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Theintegrationphaseaddressesthesignificantchallengesthatnewventuresconfrontwhen they seek to grow to a self-sustaining level. During this phase, the primary strategic challengeforthenewventureistocreateefficiencybyexpandingthescopeofitsoperations, accommodating greater volume and generating profits ( Kazanjian, 1988 ). This is largely accomplished externally through market expansion ( Lumpkin and Dess, 1996 ) in combination with internal improvements in organization and coordination ( Greiner, 1972 ; Miller and Friesen, 1984 ). Now, the venture must invest in additional organizational resources to effect improved routines and efficiency in internal operations and in additional financial resources to fund a higher volume of business across a broader market scope and to secure necessary physical assets and infrastructure. The nature of the resource development challenge during the integration phase is also qualitatively different from what the new venture has previously encountered. Whereas in earlier phases, resource development has been characterized largely by acquiring, combining and leveraging different types of resources, in the integration phase, the true challenge is to achieve the kind of coordination (bundling) among the various resource positions such that the firm can be both efficient and effective ( Alvarez and Busenitz, 2001 ; Penrose, 1959 ) and leads to firm growth and sustainable advantage ( Kogut and Zander, 1992 ).
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  • Spring '14
  • Dr.SeanStanley
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