Taking the Plunge: New Luxury Ventures

10 Pages Posted: 5 Apr 2010

See all articles by Saras D. Sarasvathy

Saras D. Sarasvathy

University of Virginia - Darden School of Business

N. Ali

University of Virginia - Darden School of Business

Abstract

Students at all levels explore the psychology of entrepreneurship and new product branding and marketing as a young IBM executive decides whether to become an entrepreneur. He must evaluate his business plan; seek advisors; and decide how much money it will take to get started. His product idea? On-the-go water for dogs. With market research complete and a team of advisors assembled, he must decide whether to take the plunge.

Excerpt

UVA-ENT-0070

May 14, 2009

TAKING THE PLUNGE: NEW LUXURY VENTURES

As he paced up and down in his apartment, David Shrank glanced nervously at the clock. An hour and a half had already gone by, and he had yet to make the call. Earlier in the morning, he had finally managed to refinance the mortgage for his apartment at a lower rate. That had allowed him to take out an additional $ 15,000. So much depended on that $ 15,000. He was about to “take the plunge,” and he figured the extra money would sustain him while he put his new venture on the road to breakeven.

Shrank was a senior consultant at IBM. He wanted to call his boss, the head of Global Media Entertainment Strategy, and ask for a leave of absence of six months. That practically meant deferred resignation, and Shrank knew it represented the point of no return.

The Adventures of David Shrank

. . .

Keywords: Entrepreneurship, Risk Management, Decision Making

Suggested Citation

Sarasvathy, Saras D. and Ali, N., Taking the Plunge: New Luxury Ventures. Darden Case No. UVA-ENT-0070, Available at SSRN: https://ssrn.com/abstract=1583302

Saras D. Sarasvathy (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

HOME PAGE: http://www.effectuation.org

N. Ali

University of Virginia - Darden School of Business

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

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