Sample 1

Suggested Discussion Points

1. Why has Russia's relationship with the West soured?

• Russia's President Vladimir Putin has come under increasing fire from the western world for his autocratic methods. The U.S. has been criticizing Putin about his democratic record, the war in Chechnya, the government's attacks on private enterprise, the government's clampdown on the media and the increasing concentration of power in the Kremlin.

2. According to the article, how does Putin perceive what happened recently in the Ukraine?

• Ukraine's “Orange Revolution”, in which a pro-western reformer won a run-off vote last year after hundreds of thousands of Ukrainians took to the streets to protest the allegedly fraudulent election of the Moscow-backed prime minister, is perceived by Putin as a western attempt to isolate Russia and strip it of regional influence.

3. Why is Russia looking towards China and India rather than the West as potential business partners?

• There is a sense in Russia that the West has rejected Russia, and China and India seem closer to Russia, both politically and economically. Putin likes the fact that Indian and Chinese partners are more flexible than highly regulated and transparent western companies.

4. What economic models and business practices in China and India does Putin like?

• Putin is looking at the Chinese economic model and liking what he sees: a strong state role in an economy that's attracting a lot of investment.

• Putin is increasingly drawing inspiration from the Chinese way of doing business. Instead of having foreign companies buying assets in Russia, he is looking to have Russian companies buy them and invite foreign investment.

5. In what economic sectors in Russia has Kremlin positioned itself as the dominant force?

• energy, mining and metals

Student Assignments

• Explain how Kremlin consolidated its control of energy flows in Russia. Why the control of this sector so important for Putin, especially in view of Russia's relations with China and India? concentration of power in the Kremlin.

• Why are Canadian mining investors concerned about what is happening in Russia?

• Putin is increasingly following the Chinese way of doing business: Instead of having foreign companies buying assets in Russia, he is looking to have Russian companies buy them and invite foreign investment. Why do you think he is drawn to this model? What benefits and advantages does he see in this approach?

Sample 2

Suggested Discussion Points

1. What is Auto-Ref? What are the capabilities of this product?

• Auto-Ref is a computerized line-calling system that uses high-speed cameras and software algorithms to determine the location of a ball within four millimeters.

• If adopted, the product could potentially eliminate the need to linesmen and forever change the way we watch tennis on TV, with more accurate replays and a wealth of new statistical data with which to entertain fans.

2. What is the main challenge Peter Szirmak has had to deal with? What strategies has he tried? How successful were they?

• Money. He needs funding to turn his dream into a winning play. He's tried venture capital, banks, and government aid, but so far, hasn't obtained sufficient financing. He has managed to get some small angel investors, but nothing major, and is funding the company with his own money.

3. Why is financing difficult to obtain for entrepreneurs such as Szirmak?

• Finding money for innovation in Canada is difficult. According to Szirmak, “The financing market kind of settled in the early part of the 21st century, and angel investors became venture capitalists, venture capitalists became bankers. VCs will only talk to you if revenues are coming in, contracts are signed and everything, so there's not a heck of a lot of venture about it.”

• He's talked with several private and public financiers, including the Business Development Bank of Canada, but they get thousands of applicants every year.

• Potential backers tend to shy away when they find out there's nothing to compare Auto-Ref with to judge potential revenues and pricing models.

4. Where must Szirmak spend most of his money?

• On marketing. Convincing the conservative tennis world that the game needs a digital upgrade has proven expensive. There is also a competitor on the horizon—a product known as Hawk-Eye—which is much better funded, and is already being used by several major TV networks. A potential marketing war with this competitor might get costly.

5. What progress has Szirmak made with Auto-Ref, and what developments should help Szirmak make his business successful?

• In November, Auto-Ref received a U.S. patent for its optical line monitor for tennis, and it was successfully demonstrated and tested by the International Tennis Federation.

• The organizers of the Australian Open have expressed interest in Auto-Ref.

• Szirmak has managed to finance the business so far on his own, and his track record in making successful businesses in the technology market is good.

• Auto-Ref has potential applications in markets other than tennis tournaments (professional training, tennis clubs, cricket, and volleyball).

Student Assignments

• The article offers much detail on the capabilities of Auto-Ref. Review these, as well as such selling points as Auto-Ref's potential markets, and prepare a presentation Szirmak might use in pitching his venture to a potential VC.

• “The financing market kind of settled in the early part of the 21st century, and angel investors became venture capitalists, venture capitalists became bankers. VCs will only talk to you if revenues are coming in, contracts are signed and everything, so there's not a heck of a lot of venture about it.” Research the definitions of angel investor, venture capitalist, and banker, and explain the quote above.

• “The fact is that we probably would have had an easier time if we were a good product in an existing marketplace. If you try to really revolutionize something, there really is no competition, and for any VC or fund, that's a red flag.” Explain what Szirmak means by this statement.

• Why would the tennis world be reluctant to adopt Auto-Ref? What marketing strategies could Szirmak employ to persuade the tennis world to adopt Auto-Ref?

• According to Szirmak, “You can have an outline of a strategy, but what actually happens is driven by the market.” What does he mean by that? How may this statement apply to Auto-Ref?

• In small groups, fill in the chart below, and brainstorm ideas that would help Auto-Ref become a success.