New venture management

The new venture is a total business activity organized to introduce a new line of products or penetrate a new market. The emphasis is on a total business organization. Major corporations find that innovative organizational structures, such as new ventures, are necessary to launch new businesses. The characteristics of the new venture are described. The operational aspects of a new venture are emphasized, especially the characteristics required of the manager. To be successful, new ventures demand thorough and effective planning. Plans include market forecasts, a thorough research on customer needs, financial analyses and organizational planning. Advantages and limitations to the divisional versus corporate new venture structure are emphasised. Since the new venture is a financial activity within a corporation, proper support and management guidance must be present to insure its success.