Case Study Analysis : Linda Greedy

Case Study Analysis

EXECUTIVE SUMMARY
This report combines overview on case study of Linda Greedy who wants to take patent
over her innovation that is drug. Its purpose is to activate the mental energy even if an individual
takes sleep of four hours. Linda's objective is to establish small scale biotech enterprise either in
Australia or China market and further sell it to big enterprise if this idea works wonder.
This will also include the demonstration on innovative life cycle which will help in
ascertaining current position of small biotech company in this cycle. Role of world bank in
lending the money along with that comparison will be made on Australia and Chinas country
based on various features such as intellectual property right.

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................5
Current position of Linda on innovative life cycle.....................................................................5
Role of bank to lend or not lend funds to Linda.........................................................................6
Essential indicators while making decision for establishing small medium enterprise either in
Australia or China market...........................................................................................................6
Recommendation of country based on above table.....................................................................9
CONCLUSION................................................................................................................................9
REFRENCES.................................................................................................................................10

INTRODUCTION
Innovation life cycle: Innovation refer to the creation of new idea, imagination or
thought that help to meet the new requirement in existing market. It simply refer to creation or
invention of new goods and services that provide value to customer. Thus, there are various
stages of innovation which are stated below (Binz and Truffer, 2017):
Idea Generation: Innovation starts with idea generation which can be evolved while
improving existing idea or by identifying market opportunity or problem (Carbone and et. al.,
2012). Linda Greedy who has done PhD in Biology has visualised the busy lives of an individual
due which an innovative idea of drug emerged into her mind. The role of the drug is to keep
people mentally active even if they don't take sound sleep of at-least six to seven hours.
Screening: Even if the idea sounds innovative it not not necessary that it is worth
implementing for firm (Oliveira and Breda‐Vazquez, 2012) So this stage helps an enterprise or
individual in identifying the issue or potential advantage associated with the idea. It is therefore
significant for Linda Greedy to pass through this stage to refine the idea, here discussion can be
made with some experienced person such as managers or professors to get a clear view about the
outcome. Thus, at this stage deep analysis will be made on the disruptive idea of Linda that
whether customer will like the product and how will they arrange the finance to take the licence
over their product to gain competitive advantage.
Experimentation: Once idea is generated and passed through screening stage then come
experimentation (Rong and et. al., 2013). Here testing of an idea is done to obtain the merits as
well as suitability of idea. In context to Linda has to experiment the product at clinical trials
before launching and distribution it in market to check the reliability of product. Therefore, this
stage helps in identifying whether it is feasible to convert idea into reality within stipulated time
period. Once experimentation is done successfully Linda can establish small enterprise and
expand its product or services either to Australia or China country to cover huge customer base.
On contrary if the idea fails in that case she can look for any other idea or can make additional;
changes in this idea to make it work successfully.
Commercialisation: After the company gets the permission to manufacture the product in
experimentation stage then they commercialise their innovative idea to generate funds for
company (Danescu-Niculescu-Mizil and et. al., 2013). Additionally, commercialisation refer to
creating market value for the potential product by spreading the awareness about it. In context to

the case study of Linda though she don't have funds to promote its product but once her idea
passes though the experimentation stage she can approach the financial institution. Moreover,
banks will go through the report that carries the implementation of idea and development of
business. If they find it innovation then Linda can fulfil her dream of establishing small business
and commercialising the attribute of product to gain long term advantage. Therefore, customer
finds idea is appealing based on packaging as well as demonstrating the benefit derived from
product. Therefore, commercialisation refer to the shift of an idea from the development stage to
the persuasion stage.
Implementation: At this stage idea is converted into reality, as the company works on the
development of product to gain the acceptance of idea from public. Diffusion of an innovative
idea of Linda Greek will help their business to spread awareness, allow customer to accept the
idea. Along with that company can receive feedback from public work on them and set
benchmark for company accordingly.
MAIN BODY
Current position of Linda on innovative life cycle
Currently Linda is in third stage that is experimentation as she has created an innovative
idea and passed her idea through screening stage. Along with that Linda has taken patent over its
drug so that the procedure of making the drug does not gets copied. Now Linda needs to bear
expenses of clinical trials so that the company gets the approval of government to distribute their
product in market. Along with that she needs to promote their product through various channel or
media such as traditional or digital media. This is done to widespread the reach of product and
spread the band awareness among the customer through repetitive advertisement. Therefore,
clinical centres as well as commercialisation process involve huge funds in that case Linda
Greedy can take the help of financial institution to overcome the capital barrier faced by her.
Therefore, with the assistance of financial institution if Linda fulfil her dream of
establishing small business enterprise then at implementation stage they can sell their product to
some big enterprise. Thus, large enterprise will only approach them if they find that the product
is potential therefore they can help in the further expansion of the product by incurring huge
financial expenses to enhance the market share of product.

Role of bank to lend or not lend funds to Linda
Bank are the financial institution that lend money either to an individual or company on
the basis of security (Dewangan and Godse, 2014). Linda Greedy needs fund to establish small
business enterprise and promote their product. To meet their need she depends upon the bank to
lend her funds for the execution of plan. On contrary, bank can or cannot lend funds to Linda
based upon following points which are defined below:
Lending of fund are based on following cases:
Innovative idea: If the managers of bank on the basis of documentation of patent or
report on implementation finds the idea is innovative and working investing. In that case Linda
will get the fund to commercialise her product significantly. On contrary, if bank summarise that
such drug are not good for health and they will get addicted to it. In that case bank won't fund
them.
Collateral: If Linda can give bank valuable assets as a securities on basis of loan. Then
in such case banks can easily give loan because even they have securities which bank can keep if
Linda fails to pay back amount. On other case, if Linda fall short to pay collateral in such case
bank may not give them adequate fund to the establish small business enterprise.
Creditworthiness: Banks identifies the personal guarantee or creditworthiness of an
individual to pay back the loan within stipulated time period (Ding, Eliashberg and Stremersch,
2016). Herein, case of Linda other than her idea bank will find out whether she has taken loan
before. If yes then has she paid back her all dues or liabilities. On other side if she has already
taken loan from other financial institution or not paid her liability. In such case bank would not
pay funds to Linda. Therefore, on this basis bank determine creditworthiness of an individual and
pay amount accordingly.
Essential indicators while making decision for establishing small medium enterprise either in
Australia or China market
Basis of difference Australia country China country

Intellectual property right
protection
Intellectual property right
include trade mark and patent
that is designed by Australia to
encourage the people to do
innovation and gain competitive
advantage over competitors.
Moreover, some of laws in
Australia related to patent of
product is IP Law Amendment
Bill 2014. The purpose of the
law is to establish as well as
make the patent right for
innovation, charge fees for the
patent, protect the right of
product and so on.
China has made laws in relation
to intellectual property right such
as CNIPA that is China's
National Intellectual Property
Administration. The role of
CNIPA is to provide patent on
the designs or innovations of an
entrepreneur. Along with that the
national congress of China has
set up SAMR that is State
Administration for Market
Regulation whose role is to
accept the application as well as
register and publish trademark
(Eden, Jirotka and Stahl, 2013) .
Financing small medium
enterprise
There are various financial
institution in Australia that
provide fund to small medium
enterprise to increase the gross
domestic production of the
country. It also helps in provide
employment due to which
government makes various rules
such as easier credit facility so
that they can expand their
business worldwide. For
instance, one of the proposal
made by Australian small
business as well as family
enterprise Ombudsman was that
they made initiative regarding
China which is a huge country
with large population believe in
innovation of various technology.
It is basically a hub of start up
but most of the small enterprise
are failing because of difficulty
in gaining fund from the financial
institution. Therefore, this is the
most challenging situation faced
SME to operate their business in
such market. Therefore, to
overcome such situation China
has utilised of direct financing
method such as bond, venture
capital, regional equity market
for the growth of small enterprise

business growth fund to provide
long term loan that means up to
seven years for the development
of small business enterprise.
This initiative has increased the
number of small byus9iness
enterprise within the country.
(Hallerstede, 2013).
Number of days to start a
business
As the funding is much easier in
Australia in comparison to
China. Due to which it is
approximately one to two month
depending upon the terms and
condition (Lokuge and Sedera,
2014).
On contrary most of the small
business in China require around
two to three month to establish
their business and start its
operations.
Venture capital
availability
Australian government has
enormous venture capital
programme made to attract
national as well as international
investment. Venture capitalist
basically fund around $11
million to $150 million to those
investors who are willing to
invest in the Australian business
are registered under ESVCLP
that is Early Stage Venture
Capital Limited Partnership.
Moreover, innovation in field of
biomedical can get fund around
$500 million from the public
sector.
The investment done by venture
capitalist is expanding rapidly.
Earlier there were several
restriction due to which raising
fund through venture capitalist
was complicated. With the
passage of time the availability
and extension of credit by
venture capitalist has expanded.

Companies embracing
disruptive ideas
The companies of Australia
faces intensive competition due
to the disruptive innovators.
Thus, thinking out of box or
having unique idea helps to
mitigate the chances of risk and
produce value for the investors.
There are various companies
such as Alibaba in China that
have produced disruptive idea
and boom the huge market by
earning adequate profit. Thus,
there are various venture
capitalist that promote the
innovator with disruptive idea.
Soundness of banks AS Australia is a developed
country due to which are are
enormous financial institute that
provide huge fund either to large
or small business.
Similarly, in China which is a
huge market has various banks
that look after the need of people
and help them to fulfil it by
provide sufficient fund.
Recommendation of country based on above table
On the basis of above table Linda Greedy must develop its small business enterprise in
Australia country rather than China. Though both market are potential market but still funding
are much easier in Australian market in comparison to China market. The Australian government
has made various financial institution that not only provide short term but also long term finance
for five year or more than five year to the small or medium enterprises. Herein this case Linda
require long term finance only to test the product in clinical centre, establish its business and
commercialise it to generate the awareness of product for the potential customer. Moreover, as
the idea of Linda id disruptive idea and there are various venture capitalist in respective country
that promote such idea. Therefore, it is easier for Linda to operate in Australian market and take
the help of local financial institute to extend the credit for the enterprise.
CONCLUSION
From the above report it has been determined that innovation development cycle plays a
significant role in generation of new idea, experimenting it, use different mode of
commercialisation to implement the idea into reality. Thus small business can look for various
financial institution or venture capitalist in order to raise the fund for the disruptive idea.

Therefore, bank give priority to various factors such as creditworthiness or collateral while
expanding the loan.