Using Effectuation to Start up a New Venture Through Instagram
(3 pages of text)
Case (Gen Exp)
In January 2019, a second-year master of business administration student has come up with an idea for a new venture: sourcing products from her social contacts, using Instagram to direct traffic to her company website, and utilizing the postal service to deliver goods. Does a viable business opportunity really exist, or are there too many unknowns?
This case can be used to begin a module on entrepreneurship in an undergraduate- or graduate-level course to give a practical illustration of an effectuation strategy. It offers insights into how people approach, evaluate, and accept or reject new ideas, and it can also be used to illustrate how Instagram can be used for e-commerce and venture start-ups and to demonstrate the role of social media influencers. The case focuses on the generation and evaluation of new business ideas. After working through the case and assignment questions, students will be able to do the following:
- Explain the roles of perceived risk and potential return in the rejection of newly formed business ideas.
- Generate options for a new business beyond those included in the case study (i.e., think outside the box).
- Compare other market research strategies, and outline their value.
Information, Media & Telecommunications
Canada; United States, 2019
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