Monday, January 22, 2007

Topic "Abhi n Kabhi" - Complete Analysis

Hey guys,

Good analysis of the case. Though people hovered around the average many times, they were able to get in a few very good points and that made the case worth it. My analysis goes thus.

1. Kabhi’s family is concerned about his financial security (Please note not about ‘job security’). He can be compensated with the salary in the new venture. It is important to understand such subtle nuances

2. Since they are the crème-la-cream of the country, they can get a job anytime. So they need not 'join' jobs rightaway and hence it is not a concern. Kabhi’s father may be satisfied for now by Kabhi picking a job at campus

3. If Kabhi’s father was fine with him going to MBA, it means that there is no financial ‘crisis’. Only that he is concerned about financial security, which can be taken care of anyway. So Kabhi’s father’s concern becomes almost irrelevant after some discussion

4. Most of you seem to have decided that Kabhi is risk-averse. Please note that it is his father who is risk-averse and Kabhi has agreed only to "sit for campus placements" (not to join a job) due to family pressure

5. CAT or MBA is also an irrelevant piece here. Since they have less time and MBA takes two years, they can take it again after 2-3 years of experience. MBA certainly may add skills to them, but it will be too late anyway.

6. Abhi and Kabhi may not have many skills like finance. Marketing etc. But they can hire people for this. Abhi’s father can also help them in searching for the right talent

7. They can pick up jobs in the campus so that they have more options at the end of the final year. But they have to make the in-principle decision of trying for the venture rightaway since they have 1 year to work on it during college. The Nokias and yahoos will still be waiting for them :)

8. If the group really thought that the experience with Nokia and Yahoo was relevant, then one of them could have joined Nokia and the other yahoo to maximize their learning

9. Note that many ventures only have some portion to start with, in this case a technology idea. The idea is to get other complementary things from the market by hiring or giving a small stake to the key people. Anyway they do not have the concerns of finance, which is a problem for most new ventures

Important points made by the group and my comments on some
1. Though the idea may look great, it may still be in its infancy. One of the option to hone it up is to pick up the yahoo/Nokia opportunity
2. Abhi should focus on pursuing his dreams since he has good support and potential
3. Both should take up the idea and further develop it in their final year project. If they see potential at the end of it, they should think of pursuing further
4. Abhi may not be wrong to start without Kabhi, since Kabhi dropped out by his pwn will ---- Has Kabhi really dropped out ??
5. Kabhi should not and cannot sell the idea to yahoo/nokia since it belongs to both of them
6. The ability of Abhi to implement the whole thing alone is doubtful --- nice point, though it is an assumption
7. Abhi’s father would support him irrespective of when he wants to start --- may not be factual, but may be a fair assumption.
8. Abhi and Kabhi may join Yahoo/Nokia and tell about their idea. The companies have immense experience and marketing power and both may benefit from this ---- these companies will own the IP and the whole point is lost. The product could be a better success, but abhi and kabhi may not be
9. Abhi can even consider dropping out of college and pursuing his idea ---- One, his father may not support. Two, the risk is too high and probably unwarranted
10. Abhi could go on his own and may share a part of the profit with Kabhi if he succeeds on his own ---- you should have dug it further and discussed the roles of IP and entrepreneurial aptitude in the success of a company
11. Abhi can also look at the option of giving CAT next year and try joining a good B school as management experience will also be an important ingredient for the success of their idea --- question of how important is education in success
12. Abhi and Kabhi needs to understand the interest of Abhi’s father and details of his support to them
13. Understand if Kabhi can be accommodated on a salary + stake basis ---- Wow point, it takes the trophy and makes the solution so simple. One thing is they need not check this with abhi’s father but need to inform him of the same. If not willing, they can check with a VC. It is equivalent of having an employee, which they will be having anyway.
14. Abhi`s father, in light of being enthusiastic about the proposal can provide them with initial seed money for further market study --- brownie point argument
15. The idea may not sell after 1-2 years since technology space is fast moving ---- a half trophy point. Management jargon like ‘Time to market’ could have been used :)
16. if one goes ahead and succeeds, the other may not have a claim since there is too much gap from ideation to execution
17. Pick up a job and continue on developing the product and release it on internet in Beta version under some free licence form. If it succeeds, many companies may become interested in buying it off
18. Kabhi may not sell the idea to Nokia/yahoo since their friendship would suffer and there is nothing for him to gain
19. The preparation of CAT can be put on backburner this year if both are willing to take risk
20. Job opportunities can land in your lap many times but enterprenurship requires a level of courage and a chance to perform
21. Abhi can offer Kabhi a minor share and go ahead with the venture ---- Good point. Share proportional to the role IP in the success. Complementary to the point b2b made
22. Neither Steve jobs, nor Bill gates or larry page from google has a MBA degree. So CAT is irrelevant ---- Oh really!! And you have the guts to say this sitting in an IIM campus :)) Note that these successes are not generic and hence are not supportive of your point, though your point may be true.

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Anonymous Anonymous said...

hey gyan-ee, can u give us the start so that we will know the nuances involved here


7:14 PM, January 22, 2007  

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