nanogene

657 Words2 Pages

In this paper, I will try to explain how the Bird-in-the-Hand principle and the Resource- Based View can be used to analyze the creation and future direction of NanoGene Technologies.

The Bird-in-the-Hand principle is one of the five principles of effectuation. When expert entrepreneurs set out to build a new venture, they start with their means: who I am, what I know, and whom I know. Then, the entrepreneurs imagine possibilities that originate from their means. So firstly, I will use the Bird in the Hand Principle to illustrate how NanoGene Technologies was created by the founders. Bird-in-the-Hand principle and its components can be found in this case. Firstly, who are the founders? The CEO Tompkins was a scientist in the biophysics group at AMSL. Mark Masterson was a senior scientist in biophysics group. Ravi Rhoota was a scientist in the biology group. Gary Garfield was s post-doctoral fellow in biology. Don Rupert was the director of AMSL. Secondly, what do they know? They have educational background in biophysics and biology. The team comprises of people with different experience and expertise level in nanotechnology. Lastly, who do they know? They know Paige Miller, a Harvard Business School graduate who has been doing some consulting for NanoGene. The CEO Tompkins knows Susan Stone, a venture capitalist who he hoped would become a lead investor for NanoGene’s Series A funding. And one of Tompkins’s contacts was a former CEO of a biotech company who was an active angel investor. Don also has wide contacts in biotech industry.

So the NanoGene founders have some means to start something new. But are they starting with means rather than goals? Can the Bird-in-Hand principle be applied in their business? My answer is NO. Bec...

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.... Indeed, NanoGene’s technology has promise, but the most creative ideas and cutting-edge innovations are not sufficient to set up a business venture. Without resources to exploit an opportunity, even the best opportunity cannot create an entrepreneur (Barney, 2001).

In summary, the Bird-in-the-Hand principle and the Resource- Based View offered a theoretical basis for the importance of being means driven to the creation and future direction of NanoGene Technologies. The NaneGene founders have a set of means and resources. However, so much research and testing is still needed before product release. And their business plan is somewhat goals-driven rather than means-driven and some necessary resources are missing.

Reference:
Barney, J., Wright, M., Ketchen, D.J. (2001) The resource-based view of the firm: Ten years after 1991, Journal of Management, 27, 625-641

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