HTVC: Always new substitutes coming up. Market is to be created.

reated. Customers are given solutions for problems they dont know exist. Create a pin point & lead the customers. There are chances that the product/technology that was not accepted because it was ahead of time. E.g.: CCD Creating, sustaining growing HTV is very difficult. 99% die. Only way to survive kill ur own products. Methods to survive: o Base product free extra services are costly E.g.: HP- Printers are sold at loss but the cartridges at highest profit. o Price Skimming E.g.: Mobile Industry o Beta Users: give products to consumers for using for free-they will give u loop holes in the product. Difference from normal business: o Threat of competition o Constant innovation o Rate of change is very fast Very important to apply for IPR (Intellectual property rights)

Growth Management: Growth trap Growth myth Sometimes its not important to grow but its important to diversify The main reason why sometimes company do not go for forward integration: is the company able to create value by forward integration? Disjoint strategies: 2 strategies that do not fit the strategic fit DuPont ratio: profitability is increasing; sales are increasing but units sold are not increasing. Price dipping strategy undercutting e.g. Reliance

Something lecture related to finance: (more of process costing but still went over the head): Convert trade creditors to unsecured loans to increase your current ratio Stocks: sown in excise office & income tax office o Increase in stock , increases profitability because COGS decreases o Stock increases, current ratio improves. Instead of taking unsecured loans route the funds through partners/share capital which will increase share capital. Therefore, Total outside Liabilities/Total Net Worth will improve & so will the current ratio & interest payable also is optional. According to Nayak committee the company should rotate the inventory 4 times every year i.e. at every 90days. In case of bankruptcy : 1st pay the government, 2nd the employees

Disadvantages of CIBIL: o Details updated every 6 months o Not fool proof Dark side of entrepreneurship: o Not motivated for right reasons o Only drive should be passion

Exit Strategy: Reasons: o Opportunity cost o Liquidity o Asset creation o Succession planning: If there is no one there to succeed you, no body is groomed to to take over then exit is the beast strategy. o Clarity of vision o Product reaching maturity stage o You have achieved your goals no further vision Harvesting Business o Steps in selling: Segregate Assets tax saving methods of disposing assets Valuation of Units Timings Finalizing Buyer Remaining involved in closing process