Essay

Essay Two

After reading the paper “Palm Computing, Inc”, I agree with Hawkins’ decision that he should found his own company instead of being a division within Tandy Corporation. I am convinced that this would be a wise decision and my reasons why Hawkins desired to position Palm Computing as an independent venture are as following.

First of all, he has the sole ownership rights to the patent, which is a pattern recognition algorithm (PalmPrint). He established his independent company Palm Computing. Its product was to be positioned between personal computers and calendar/ organizer products that were selling on the market. Besides, Hawkins clearly knew that patent had real value because they are an crucial asset in raising venture funds. Because of having the ownership the patent, Hawkins could easily license any company that is going to use his technology. Hence, there would be a huge market waiting for Hawkins to explore.

The second reason is that Hawkins’ decision to create a new venture was influenced by where he lived and worked entrepreneurial environment. Due to his friends and acquaintances who had independent ventures and he got the same conclusion from his discussion with VCs. He was also believed that he would be able to get financial support buoyed his decision to establish his own venture.

Thirdly, The Tandy sponsorship would have been much easier for Hawkins, however, it would be a unsuccessful development for his company. Under that circumstance, it is very difficult to attract people when you are a division of a company. People usually are attracted when you can offer them with stock options. Therefore, Hawkins would have more advantages as a start-up company to raise more funds when the company grows.

Moreover, if the company is a subsidiary of another company, you always have to be compromised and beholden to its needs. As far as I am concerned, if Hawkins wants to have an independent software company, he should not have to a...