Topic for the day - Take 7
Hey guys,
Here comes the promised case GD. I have written the case myself to make sure that people have not read it somewhere else.
It is a problem that many of us may have faced or may face in future. I want to see people pitching in with good arguments and perspectives. There is lot to talk on this anyway.
Abhi and Kabhi were bright kids doing their b.tech in Comp Sc from IIT Madras. They had consistently topped the class and had won many software contests. While Abhi came from a rich business family, Kabhi’s father was a Government clerk and came from a middle class family. They were very good friends of each other and alway studied and worked together. In their third year at engineering, they jointly hit upon and developed an idea for a software that would enable instant messaging over mobile phones. With mobile phones already being an essential gadget and yahoo/hotmail/Gtalk instant messaging being a rage among the youth, they felt that the idea had a big business potential. So they decided that they would start a company together in future on this and would keep it a secret till the time is ripe. Abhi’s father was enthused by their idea and was ready to completely fund their venture if they wanted to go ahead, if he was given a 40% stake. Kabhi father did not have much idea about instant messaging or cell phones and was concerned about failure and hence wanted him to take up a good job. He wanted Abhi to gain some experience first before venturing and was also skeptical about Abhi’s father’s offer.
At the end their third year, many companies came for placements. Among them, companies of interest to them were Yahoo who were recruiting for developers for their instant messenger and Nokia recruiting for developers for their cellphones. Yahoo was a worldwide pioneer in instant messaging while Nokia was a pioneer in cellphone technology. Abhi and Kabhi had also attended CAT just for the sake of understanding the exam pattern and cracked it big time. Though they had calls from all the top institutes, they were not eligible to join since they had one more year of graduation to complete.
Kabhi, after getting convinced by his father decides to take up the interviews of Yahoo and Nokia after informing Abhi.
1. What should Abhi do in this case?
Click here for the Complete Analysis of the this topic
Previous topic
Next topic
Here comes the promised case GD. I have written the case myself to make sure that people have not read it somewhere else.
It is a problem that many of us may have faced or may face in future. I want to see people pitching in with good arguments and perspectives. There is lot to talk on this anyway.
Abhi and Kabhi were bright kids doing their b.tech in Comp Sc from IIT Madras. They had consistently topped the class and had won many software contests. While Abhi came from a rich business family, Kabhi’s father was a Government clerk and came from a middle class family. They were very good friends of each other and alway studied and worked together. In their third year at engineering, they jointly hit upon and developed an idea for a software that would enable instant messaging over mobile phones. With mobile phones already being an essential gadget and yahoo/hotmail/Gtalk instant messaging being a rage among the youth, they felt that the idea had a big business potential. So they decided that they would start a company together in future on this and would keep it a secret till the time is ripe. Abhi’s father was enthused by their idea and was ready to completely fund their venture if they wanted to go ahead, if he was given a 40% stake. Kabhi father did not have much idea about instant messaging or cell phones and was concerned about failure and hence wanted him to take up a good job. He wanted Abhi to gain some experience first before venturing and was also skeptical about Abhi’s father’s offer.
At the end their third year, many companies came for placements. Among them, companies of interest to them were Yahoo who were recruiting for developers for their instant messenger and Nokia recruiting for developers for their cellphones. Yahoo was a worldwide pioneer in instant messaging while Nokia was a pioneer in cellphone technology. Abhi and Kabhi had also attended CAT just for the sake of understanding the exam pattern and cracked it big time. Though they had calls from all the top institutes, they were not eligible to join since they had one more year of graduation to complete.
Kabhi, after getting convinced by his father decides to take up the interviews of Yahoo and Nokia after informing Abhi.
1. What should Abhi do in this case?
Click here for the Complete Analysis of the this topic
Previous topic
Next topic
Labels: GD Topics
Gyan-ee 12:11 AM
24 Comments:
START- As is evident from d case study,Abhi nd Kabhi r fresh graduates..nd the idea that they have hit upo is still in its infancy..,agreed that it has enormous business potential, but still what needs 2 b kept in mind is that their exists a huge gap beteen conceiving an idea nd its actual implementation from d point of view of realising its true potential..
This gap can b bridged by gaining requisite experience in d concerned field of cellphones nd instant messaging..So Abhi should follow d footsteps of Kabhi nd sit 4 d interviews ..through which if they sail smoothly..wud indeed b a blessing in disguise ..
The duo shud luk forward 2 gaining sum quality experience in their respective jobs,while simultaneously keep up d work on their idea in progress..by developing it further through learnings from their experience...
Thereafter they can venture out wid d setting up of their own business unit...by this time they will have garnered sufficient knowledge 2 implement their idea in d right earnest..moreover this won't even invite ny apprehensions on part of Kabhi's father...4 he wud have earned wnough 2 allay his fears..
Thus 2 make a successful foray in2 their venture...it wud b most appropriate 4 Abhi at this point of time 2 sit 4 d interviews.ndaim at getting a job wid yahoo or nokia.....
ANYA....
We can already see that Abhi and Kabhi being such a close friends give rise to the dilemma of their parting when Kabhi decides to join any 1 of the company according to the advice from his dad while Abhi deciding to pursue his interests. Abhi's thinking should focus on him pursuing his dreams though as ppl rarely get the opportunity of family supporting their dreams.
Although the idea looks great but building upon it takes a lot of time. Abhi can take up the job in 3rd year as it is not a compulsion to join it. Meanwhile in the training which he and Kabhi are going to undertake in the 4th yr, the 2 friends can go about pursuing their dreams. And on successful completion or even a foresight of a successful completion, they might just ignore their offer and go about completing their brainchild
Another idea may be for Abhi to go ahead with his dreams for 1 more yr and pursue CAT s well s he might be able to crack it again. With 1 more yr time, he might be able to make something concrete on the messenger. He can also take Kabhi's help for the same.
-PS
@GyanEE: can we have more of case studies as I found myself really struggling in this and I have them coming up in SIBM (31st Jan)
START:This could be analyzed at a slightly higher level,Intellectual Property. If an idea that belongs to many,& they charter different courses, who has the solemn right to it?
More points:
1)Abhi & Kabhi had agreed upon a plan & idea for the firm earlier.Now it is Kabhi who has backed out & changed his mind.
Abhi has the requisite capital & ability. There is no mistake from his point of view, in going ahead with it.
2)There is a chance that Kabhi might sell the idea to Yahoo or Nokia, & Abhi wont be able to go ahead with his plans & market the product.
This would be a deviation from the plan they agreed upon.
In my view, Kabhi has nothing to gain from selling the idea to Yahoo.
Abhi can safegaurd the plan, by getting a legal document from Kabhi protecting the idea or patenting it.
Abhi may explain that Kabhi is free to join the firm & use the idea jointly, but may not sell it to other firms.
Aparna
I wud beg 2 differ wid u PS regarding ur opinion that Abhi shud focus on pursuing his dreams as people rarely get d opportunity of family supporting their dreams..
C the point 2 note here is that it was d result of d combined efforts of both d friends that they hit upon such n idea..1 of them must have struck upon it..nd then surely it wud have been d result of a chain of events encompassing hard work by both of them that resulted in this breakthrough..as such it wudn't b appropriate 2 assume that Abhi can do justice 2 d implementation of d idea all by his own..d combined efforts of d 2 friends is wat wud make d business proposition a success..
As far as Abhi's father's support in d form of funding d venture is concerned ..i'm sure he wud b as willing 2 help him with d funds ..irrespective of when he plans 2 start his business....
ANYA..
Abhi is the story of a boy caught between different and compelling choices. At one hand, is the prospect of starting on his own along with his friend Kabhi, who due to his social circumstances has decided to pursue a different path. On the other hand, is the prospect of job security after joining firms like yahoo, nokia etc. In Addition to these too, He has got good scores in CAT which can open doors to gates of best-B schools in India to him if he decides to prepare for CAT next year.
His Dilemmas:
1) Start on his own, but here he'll have to keep in mind that he wasn't the sole inventor of the software. Kabhi might argue that instead of starting on their own right away, they might choose the entrepreneurship path after 3-4 years of work ex when both have saved some amount of money. Since, if Abhi wants to pursue on his own at this stage, He either will have to ignore Kabhi and risk losing his friendship. In case Kabhi doesn't has any problems in giving the software rights to Abhi, Then too there might be few complications between them.
2) Since Abhi still has got 1 year to study in IIT Madras, he might as well join Yahoo or Nokia and prepare for CAT. In the meantime, He can work on developing the software on his own. After one year, if he finds that there is potential in market for his software, He might take a decision then.
3) Decide to Join a company like yahoo or nokia. After reaching inside the company, He might tell about his product. In case Kabhi too joins the same firm, both will benefit from this. Both of them might not get the full benefit compared to starting on their own, but a comapany like yahoo or nokia has got immense marketing power. Already millions of users use their products and thus, in the long run Abhi and Kabhi might end up benefitting more compared to starting on their own. Because in that scenario, their product might fail due to lack of marketing expenses, lack of users who choose to use their product etc. Their plans might also get stuck in the propriety arrangements with Nokia or mobile phone manufacturers etc.
4) Prepare for CAT which will open doors to Management and Best B-Schools. He will be able to understand the basic concepts behind working of a firm, how to manage an organization, how to market a software product. If his software concept becomes unusable by that time, he might go into a big company and still earn a fair amount.
5) Start on his own ignoring Kabhi's feelings. He might even drop out of IIT Madras or take a temporary break, if he feels that this is the right thing to do at this moment. Since his father is ready to fund his venture, For first few years he may take the risk and rewards may be millions or, even billion of dollars (next YouTube like application!!)
The parties involved here are Abhi, Kabhi, Abhi's father and Kabhi's father. Since Kabhi too has worked so much hard on developing this product, definitely he too will have ambitions of entrepreneurship. However, his family circumstances have forced him for sitting for Job. In fact, if he eventually gets a call from IIMs it might be impossible for him to take the plunge for starting on his own.
In my opinion, Abhi should talk clearly with Kabhi about his plans. If Kabhi is not ready right now for the entrepreneurship bug, then Abhi should professionally manage the issue and should promise a certain amount of money to Kabhi in case the sofware becomes a hit product. Obviously, the bigger gainer will be Abhi but a possible loser too since it is he only who is taking the risk.
I've made the last point assuming that Abhi decides to go on his own, otherwise the sentence seems to have other meanings too..
START - Abhi and Kabhi are both fresh graduates. Though the idea is great, Abhi and Kabhi have to plan things properly before they can implement the idea.
Kabhi comes from an average financial background, and his father is also not confident about the idea, hence Kabhi decided to take up the job.
Abhi also could do the same as both would then gain valuable experience in the concerned filed, which they can later use to implement their idea.
However both have to take care that they do not reveal their plans to their employers.
Since both cracked CAT, 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. By the time Abhi would have completed his management , Kabhi would have learnt the necesarry technical skills required. Howver Abhi chould still sit for the job and later decide whether Job is important of management is important.
Assumption – We all know what IIT is.
Points of Convergence- Relationship- They are very smart close friends who study, work together and hence close bonding, have developed the idea together hence joint ownership of the idea.
Points of Divergence- Differences in background (Rich vs Poor), Influences held by each others family on the final decision making process.
I will name this as Aa-Kabhi venture.
1) The passage indicates that both of them are from Computer Science branch of IIT`s which puts them in India`s brightest bracket of top 0.1% of the students from their respective year. (Joint Engineering Exams having the reputation as one of world`s toughest exams). So henceforth it would be implicit that both of them are very smart.
Although academic background of the two suggest that the idea belongs to two of India`s brightest, there has been no such arguments in the favor of the viability or sustainability of the same idea by any market –study, independent evaluation, or prospective business proposal with any of the potential business partners.
The idea is roughly, just an idea, which is just doing the rounds. We could potentially have the same plan, roughly being executed over in any part of the world by some other party at the same time.
2) Similarly, as encouraging as the idea of being completely funded by Abhi`s father sounds. It needs more clarification in the nature of commitment.
A) What would be the amount of funding he is ready to provide?
B) How long is he willing to support them? Would the funding be one time or spread over the years?
C) Would he be a passive investor or an active investor? What additional infrastructure support, technical guidance, networking skills would he be bringing on the table for them?
D) Would he be ready to accommodate Kabhi on yearly salary , with kabhi taking a slight cut in his share holding in the venture?
The concerns of Kabhi`s father are genuine regarding Kabhi`s future. He seems like a man who wants Kabhi to take a controlled risk. He wants him to have a bright future but also a secure one.
In light of all these developments, we can look forth for following workout.
3) Abhi`s father, in light of being enthusiastic about the proposal can provide them with initial seed money for further market study. In lieu of that , Aa-Kabhi would grant him certain ownership(<5 %) which could be exercised if the idea goes through.
That seed money would be used for an initial market study, initial development of business blue print, and pitching this blue print after exhaustive in house work to Venture funds and Business School competitions in India(Lots of IIT`s, IIM`s and other conduct these.
In case these talks materialize and the venture goes through ahead. They would have all the points mentioned in point 2 sorted out.
If point 2-D is resolved with VC funding, Kabhi`s father would have nothing to complain about either.
A possible case might be the idea is in so nascent stage that without help of Kabhi, Abhi can't do anything. Or, he doesn't want to start the venture without his friend due to emotional reasons. In such case, the only option will be to wait for few years and in the meantime, keep developing the product. After few years, when Kabhi and Abhi have become somewhat self-reliant in terms of financial expenses, they might take the plunge depending on the market potential of their product.
Few points which I missed out earlier.
CAT is a good idea but after initial study if they find that the idea is viable. Measure the pro`s and cons.
A) Would the idea still sell after 2 years it will take to graduate?
B) Can you pursue it from IIM`s? Doubt so but can you?
Additionally, if one of them decides not to go ahead and the other one did.
In case of failure, other one would not bother. But in case of success, the other one can`t put claim to it. Since for reasons mentioned.
To make it from an idea to execute it to a successful business plan, its a long way.
Hi b2b, your analysis of the case study was really very good. But since the idea being talked about here is instant messaging for mobile phones, it belongs to the one of the fastest changing fields of technology. So, in some respects, it is obvious that time in hands of Aa-Kabhi venture is very short, something at most about 6-8 months. Because already there are players like Skype, gtalk ,yahoo messenger in market and they will definitely try to use WAP or EDGE technologies for such kind of application. So, the idea needs to be tested in terms of ease of use, speed and bandwidth required, The kind of channels through which this messaging service can work (Internet, bluetooth etc.). Such things need to be considered now only.
I did mention regarding Kabhi lending help if required. An idea cannot be left if another is not willing to take risk. As said, "To earn a dollar, u need to take risk". And if Kabhi is planning to heed his father's advice and to take controlled risk, then Abhi can as well go ahead with their plan.
-PS
I think I misread the implications of the case earlier. Would like to add other points.
1)CAT is a definite plus for both, but since they have an idea to work on, it is more of a time delay than anything else.
CAT/IIM would take 2 years + 1 final year, which means a 3 year delay of their plan. By that time, the idea would have definitely been done & over with.
If they have the capacity, they will be able to crack CAT even at a later stage.Additionally, in case they plan to sell their product to a bigger firm, they dont need a lot of knowledge about marketing, planning etc.
2)Like Himanshu said, the timeline is in question here. Abhi does not have the luxury of waiting for 2 years & then taking action.
There is an option that Abhi has of venturing out on his own, & leaving Kabhi out of the picture. But he would have to do it all alone, & bear the burden of the entire expenses of marketing it himself. Having Kabhi in a firm would help them.
The point about the nature of the investment provided by Abhi's father is valid too. If they decide to market their idea to Yahoo, or Nokia, it might not be a big problem.Since only the startup capital would be necessary.
3)A possible solution could be, that Abhi & Kabhi start working & developing on the idea now.
One year hence, Kabhi joins a firm, & Abhi continues with the company.
As soon as the idea takes a little shape in terms of a concrete prototype, they can sell it jointly an product to Yahoo. This would be better than them just selling the idea, which would get them nothing.
A product prototype, would have to be bought.
Since Kabhi will be employed, & he would have better access to the managers in the firm,to do the marketing & selling end of the deal.
4)There is a chance that the idea is not feasible, or is already implemented by the time they start working on it. In that case, CAT could be an option for Abhi.
Aparna
One possible option for both might be to to sit in campus placements for yahoo or nokia and take the job. At the same time, they should continue on developing the product and release it on internet in Beta version under some free licence form. A lot of web widget developing companies do the same - They develop the product. When their product gains critical mass and a lot of users start using their product, companies like yahoo, google, microsoft may become interested in them and buy their products at a much higher price. Eventually, if Aa-Kabhi product is good and a lot of youths start using their product, Nokia/Yahoo might intend to club their offering along with their core products. This will give them an option to have a healthy ROI as well as the chance to take their product to the consumers without much hassle or without taking too much risk, which anyways Kabhi wants to avoid.
Aparna..I appreciate ur line of thought that there is a possibility that Kabhi might sell d idea 2 yahoo or nokia 4 that matter....but herein u r failing 2 realise that d 2 people in question here rnt strangers..but friends..who have always studied nd worked together...
Moreover as it is evident from d case study..their friendship has already cleared d test of status..Abhi being a rich fellow nd Kabhi a poor one....if this cud not come in between their friendship...i believe it wud surely pass through d test of time...
As such it wud b naive 2 assume that Kabhi wud sell d idea 4 monetary gain...which wud weigh very less when compared with d weight of friendship....So i believe there's a very remote possibility of nything of this sort happening..provided Kabhi is sensible enough 2 make a choice between money n friendship..
ANYA...
Just Consolidating what has been discussed till now as it has already been a long discussion. Initially the discussion was focussed on ownership of the idea between Abhi and Kabhi. If anyone of Abhi or Kabhi decides to drop out of the plan of starting a new venture, He might straightforwardly go to companies like yahoo/nokia and get selected in the campus placements. Other person might get offended by this act.
However, the other idea was to let both of them join the companies, gain some technical and management knowledge. Some people even argued in favour of going for MBA as it would increase Abhi and Kabhi's corporate and organizational understanding.
b2b came up with beautiful analysis of the venture capital to be provided by Abhi's father. What, How and When of the seed money was elucidated in detail by him. Even discussions regarding one of them continuing to work in firm like yahoo/nokia whereas other giving his full time to product development were considered.
In the later stages, The point of timeline of product completion was brought to picture. I and Aparna agreed that the probable lifetime of Abhi and Kabhi's budding idea is at most around 6-8 months. This can cause a huge churn in both Abhi and Kabhi's plans on starting on their own as they will have to manage their studies, Job aspirations, CAT preparation along with nurturing their idea.
Finally, the viability, demand and distribution and rollout plans of Aa-Kabhi venture were discussed. Market research, free-licensing for some time to release product in Beta version to create demand etc. too were discussed.
I think that the area which has not been discussed in very detail till now is, whether Kabhi is ready to put in all the efforts in this last year for the development of Product. Abhi due to his family's sound financials might risk that However, Kabhi'll have to find an incentive. In fact, Abhi and Kabhi might start their firm even while remaining in IIT-Madras. As the timeline being considered here is around 6-8 months, they both might take jobs in yahoo/nokia and work hard on development of their idea. The preparation of CAT can be put on backburner this year if both are willing to take risk. If their idea fails, they both can go to their respective companies and pursue MBA as career after some work experience. Some complications which may arise here - Kabhi's father might want Kabhi to prepare for CAT as he already has cracked it big time. If Kabhi has belief in Aa-Kabhi's idea he might persuade his father to let him have a go at his dreams.
Although most of the stuff has been discussed, I would still like to add-on:
Since it can be safely assumed that the feasibility of the idea is around 6-8 months, Abhi should talk to Kabhi and they can start up their venture during their summer internship program. The internship is of around 3 months and that is a sufficient time to ascertain the success/failure of their product. Kabhi can sit for job interviews of other companies and so could Abhi. Once Kabhi has a job his family will be assured. Then he can devote himself completely to their venture. Before their internship period begins, they can look up for market feasibility and for companies or institutes who can help them fully develop their idea.... After the internship they would definitely have some idea as to how their idea is going to be taken up in the market. If Kabhi is convinced they are going to make it, then he can convince his father that he can devote some more time after his B.Tech. in pursuing his dreams. he being an IItian, there would be no dearth of jobs for him. And if he makes it big, then there would be no looking back. As far as Abhi is concerned, he would also come to know the feasibility of his venture. If he sees that there is even a glimmer of hope then he can continue with the venture, else he can take up job or appear for CAT.
appikap
Hey,
Some very good points from you guys. I am happy but as usual not satisfied :) I guess the moderator is not supposed to be satisfied.
Some good points on the way they can share revenues, personal rapport, risk vs return etc
Will also try and do a post on how to tackle case GDs pecifically. but you guys will have to wait till Monday for that
Wanted to leave one more small note before i leave. though there aer good points, most starts have been average. try and re-attempt on that if you like.
The start is very important in a case GD and it SHUD NOT give a solution. It shud elucidate the issues and probably set priorities as to what needs to be discussed in the available time
Also note that it is important for the group to consolidate as they go along and as consensus on some points emerge
Start-> The decisions taken by a individual in his life are influenced by his upbringing and surroundings. The same can be seen int his case. While Financial Soundness and apetite for risk enables Abhi to Dive into the venture, Kabhi is taking the conservative and cautious approach.
Points:-
1) Abhi should go ahead with the idea keeping in mind the cutioning guarranteed by his parents. Job opportunities can land in your lap many times but enterprenurship requires a level of courage and a chance to perform.
2) He can try to pursuade Kabhi to come with him and if in vein can offer him a minor stake in the venture as the idea has to be petented in the name of both the innovators.
3) If Kabhi's presence has to be instrumental in the venture then maybe he can go ahead and get his idea patented and join Nokia/Yahooto get a greater perspective of real lie business situation. Then later he can start his own company .Then there will be greater chances of Kabhi joining him due to financial security and change in environment/exposure.
I would like to differ from the views expressed about the necessity of CAT.
Wile i agree that aMBA degree while teach them the nuences of business, it is not necessary. Neither Steve jobs, nor Bill gates or larry page from google has a MBA degree..they were fresh graduates out of college with a great idea in mind and requiring only a venture capitalist which is luckily present with Abhi..
Attempting d start once more:
The case study that we have b4 us presents d situation of an IIT student Abhi ..who along with his friend Kabhi has hit upon an idea 4 a software that wud enable instant messaging over mobile phones possible...both of them r really excited about d business prospects of d idea....but a turn of events takes place when Kabhi backs out...leaving Abhi at crossroads as 2 which direction he should take... At d face of it.there r several routes he cud opt 4...4 instance he cud go ahead wid d idea..or 4 that matter sit 4 d interviews...but then each of them has its pros n cons..which is wat we need 2 discuss here 2 b able 2 arrive at d decision that Abhi shud take in such an impasse....So that he does justice 2 both - d idea as well as his friendship with Kabhi...
ANYA..
Specific comments for some people. Lot of learning for others. As the saying goes, ‘learn from other’s mistakes. Life is too short to make them all on your own’
Anya,
Good to see you do a restart. You are putting in good efforts and it will show.
Aparna,
Though you did not start great, you were willing to change course and that was great. It is the most important success factor in a GD. A brownie point just for that
Himanshu,
You are clarifying to the group all the options that are open to abhi. You haven’t taken any stands.
Your last point was good, but needed further elaboration
You have taken time to talk about case points. Remember that everyone knows them and hence they may not allow you to speak so long in an actual GD. So be crisp, avoid repetition of case facts.
Good to see someone summarizing. Could have been more crisp.
Admission milega,
You have talked more about the case facts than your points. Be careful of falling in the trap.
B2b,
Congratulations. You take two trophies. More details in the analysis
Good view on Abhi’s father’s interest. Probably cud have avoided going into too much detail since it is not the focal point of the case. Should have made some fair assumptions and proceeded.
Naming it Aa-kabhi venture is a waste of your ‘thinking’ time
Start has to be better. And avoid repetition of case facts
Appikap,
Good points, but you need to be crisp. In a case GD, everyone has something to say and if you are not crisp people will not listen to you.
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
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 by Kabhi picking a job
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 success are not generic and hence are not supportive of your point, though your point may be true.
Post a Comment
<< Home