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Published by: International Institute for Management Development (IMD)
Originally published in: 2019
Version: 14.10.2019
Revision date: 14-Nov-2019
Length: 20 pages
Data source: Field research

Abstract

The case is designed to prompt considerations of the advantages and disadvantages of accepting external money from institutional investors into the corporate venture capital fund (CVC) for Swisscom. Our protagonist Dominique Megret, the head of the CVC, is placed in a situation which exposes him to c-suite pressures which test his ability and conviction to argue his selected path. The historical analysis showed patterns of initial vs follow-up investments, and the strategic horizon of the investments which essentially set out to support Swisscom's growth intentions. Organic internal options are mentioned as alternatives. As the financial means to continue to invest are limited by Swisscom, the company sets out to find external partners to co-invest - at the time an unusual path towards keeping growth options option. Megret has to convince his board that this is a good option for Swisscom.

Time period

The events covered by this case took place in 2007-2018 (Q1).

Geographical setting

Countries:
Switzerland; United States

Featured company

Swisscom
Employees:
10000+
Turnover:
CHF 12 billion
Industry:
Telecommunications

About

Abstract

The case is designed to prompt considerations of the advantages and disadvantages of accepting external money from institutional investors into the corporate venture capital fund (CVC) for Swisscom. Our protagonist Dominique Megret, the head of the CVC, is placed in a situation which exposes him to c-suite pressures which test his ability and conviction to argue his selected path. The historical analysis showed patterns of initial vs follow-up investments, and the strategic horizon of the investments which essentially set out to support Swisscom's growth intentions. Organic internal options are mentioned as alternatives. As the financial means to continue to invest are limited by Swisscom, the company sets out to find external partners to co-invest - at the time an unusual path towards keeping growth options option. Megret has to convince his board that this is a good option for Swisscom.

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Time period

The events covered by this case took place in 2007-2018 (Q1).

Geographical setting

Countries:
Switzerland; United States

Featured company

Swisscom
Employees:
10000+
Turnover:
CHF 12 billion
Industry:
Telecommunications

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