Q 36-40

1. Financial Measures

• Return on Equity (ROE)

• Return on Invested Capital (ROIC)

• Economic Value Added (EVA)

• Market Value Added (MVA)

• Free Cash Flow

1. Market-Based Measures

• Share price appreciation

• Price-to-earnings ratio

• Market capitalization

• Total shareholder return

• Dividend yield

1. Operational Measures

• Customer satisfaction

• Market share

• Brand value

• Innovation metrics

• Operational efficiency

1. Sustainability Measures

• ESG performance

• Corporate reputation

• Community impact

• Environmental footprint

• Social responsibility

Key Components:

1. Innovation Focus

• Technology-based solutions

• R&D emphasis

• Product development

• Technical expertise

• Innovation management

1. Market Opportunity

• Problem identification

• Market needs assessment

• Commercial viability

• Scalability potential

• Competitive advantage

1. Business Development

• Business model innovation

• Resource acquisition

• Team building

• Market entry strategy

• Growth planning

1. Risk Management

• Technical risk

• Market risk

• Financial risk

• Intellectual property

• Regulatory compliance

1. Organizational Characteristics

• Innovation-driven

• Knowledge-intensive

• High R&D investment

• Technical expertise

• Flexible structure

1. Resource Profile

• Limited initial resources

• High intellectual capital

• Technical capabilities

• Research orientation

• Specialized knowledge

1. Market Position

• Niche focus

• Disruptive potential

• High growth potential

• Global market potential

• Early market entry

1. Operational Features

• Agile development

• Rapid prototyping

• Continuous innovation

• Technical excellence

• Learning orientation

Advantages:

1. Control

• Decision autonomy

• Strategic flexibility

• Vision implementation

• Resource allocation

• Operational control

1. Financial

• Full profit retention

• Tax advantages

• Financial privacy

• Investment freedom

• Exit flexibility

Disadvantages:

1. Resource Limitations

• Limited capital

• Personal risk

• Time constraints

• Skill gaps

• Network limitations

1. Operational Challenges

• Work overload

• Limited expertise

• Growth constraints

• Market credibility

• Risk concentration

Definition:

• New company formed from parent organization

• Leverages parent's technology/IP

• Independent operation

• Corporate support

• Market opportunity focus

Key Characteristics:

1. Resource Access

• Parent technology

• Initial funding

• Market knowledge

• Industry networks

• Support services

1. Operational Structure

• Independent management

• Corporate oversight

• Strategic alignment

• Resource sharing

• Performance metrics

1. Examples

• Squake - Lufthansa climate-tech startup

• Bayer - Friedrich Bayer & Co. early spin off