Centre for Strategy and Performance

A Framework for Developing Manufacturing Strategy in Start-up Companies

Introduction

A major decision for any start-up to make is to when and how to go into manufacturing. Early in their lifecycle, start-ups are often vulnerable and prone to failure. They have yet to build up the strength and resources needed to sustain them through both internal and external challenges. As a result, only a minority of start-ups survive, and any mistakes made on entering manufacturing can significantly affect the survival of the firm. Developing the most appropriate manufacturing strategy is arguably more critical in start-up companies than in established organizations. Yet, there is a lack of collective knowledge about tools used by Operational Managers in start-ups to help them formulate and implement their manufacturing strategy.

Purpose

The purpose of this research is to develop a strategy formulating framework and implementation process to support start-ups in developing and implementing their manufacturing activities. Specifically, the research provides a roadmap of strategic manufacturing decisions for decision makers in start-ups.

This research investigates why and how start-up companies make the decision to go into manufacturing, investigates how they develop and implement their manufacturing strategy, and examines the issues and problems they encounter. It focuses on studying start-ups in emerging industries set up to design, manufacture and market physical products that are assemblies of individual components.

Industrial Collaborators

Using the results from six case companies and the concepts of development tasks and strategic decision areas, we have developed a preliminary conceptual framework for strategy formulation for start-ups. Next, we will validate and refine the framework. We invite manufacturing start-ups to take part in this project. Participating companies will receive a report summarizing the findings of the research and the strategy formulation framework.

If you are interested in knowing more or wish to collaborate in this project, please contact Sirirat Sae Lim at sls33@cam.ac.uk.

Expected Project Completion Date

End of 2009