Groupthink and the Leadership Continuum - Infinity Capital and I-Drive Read the case study During the dot-com boom of th
Posted: Wed Mar 09, 2022 9:05 am
Groupthink and the Leadership Continuum - Infinity
Capital and I-Drive
Read the case study
During the dot-com boom of the late 1990s, Virginia Turezyn the
managing director of Infinity Capital, a Venture Capital Firm,
recalled how she was sucked in by groupthink. Turezyn was initially
skeptical about the stability of the dot-com boom, but after
hearing about 'tech start-ups' turning into multimillion-dollar
businesses, she didn't want Infinity Capital to miss out on the
opportunity for high returns on their investment and decided to get
into the market.
Turezyn was as surprised as anybody by how quickly she decided
to invest big money into an unproven industry, when she allowed
Infinity Capital to invest $4 million into I-Drive, an electronic
data storage company. However, after the deal was completed,
Infinity Capital became aware that I-Drive was currently giving the
data storage away free, and as a result, the company was not making
any money.
Turezyn recalls attending an I-Drive board meeting where she
asked the young executive team how they intended to start turning a
profit. They dismissed her concerns and said that if they charged
for the data storage, they would lose all their customers. As an
experienced investor and venture capitalist, Turezyn could not
believe how naive she had been and knew that if she did not
intervene and help I- Drive create a strategic plan, they would be
out of business very quickly and Infinity Capital would lose their
$4 million.
Discuss the case and answer all the following questions in
regard to the case study
Question- Identify and explain a groupthink or leadership styles
problem, solution and justification for infinity
capital. Also give explanation of the answer at the
end.
Capital and I-Drive
Read the case study
During the dot-com boom of the late 1990s, Virginia Turezyn the
managing director of Infinity Capital, a Venture Capital Firm,
recalled how she was sucked in by groupthink. Turezyn was initially
skeptical about the stability of the dot-com boom, but after
hearing about 'tech start-ups' turning into multimillion-dollar
businesses, she didn't want Infinity Capital to miss out on the
opportunity for high returns on their investment and decided to get
into the market.
Turezyn was as surprised as anybody by how quickly she decided
to invest big money into an unproven industry, when she allowed
Infinity Capital to invest $4 million into I-Drive, an electronic
data storage company. However, after the deal was completed,
Infinity Capital became aware that I-Drive was currently giving the
data storage away free, and as a result, the company was not making
any money.
Turezyn recalls attending an I-Drive board meeting where she
asked the young executive team how they intended to start turning a
profit. They dismissed her concerns and said that if they charged
for the data storage, they would lose all their customers. As an
experienced investor and venture capitalist, Turezyn could not
believe how naive she had been and knew that if she did not
intervene and help I- Drive create a strategic plan, they would be
out of business very quickly and Infinity Capital would lose their
$4 million.
Discuss the case and answer all the following questions in
regard to the case study
Question- Identify and explain a groupthink or leadership styles
problem, solution and justification for infinity
capital. Also give explanation of the answer at the
end.