Question

Many entrepreneurs have the desire to become successful CEOs, but not all will succeed. The period of transition during which a startup grows up and becomes a scalable business is arguably the most critical time in the life of an emerging firm. In his 2018 interview, Airbnb founder Bryan Chesky states that "(after growing your startup, you reach a point where) you realize that everything you do doesn’t matter because your company is too big and you need to run your business fairly differently”. Which ones of the "eight hurdles of transition" (Picken, 2017) Chesky had to face in order to become a successful CEO? Indicate at least 3 hurdles (for example: building financial capability OR developing an appropriate culture) and explain how he was able to overcome them.

Need a couple paragraph response

Answer 1

Answer:

The 3 hurdles Bryan Chesky had to face to become a successful CEO and how he overcame them.

The 3 hurdles are as follows:

1. Building financial capability;

2. Developing an appropriate culture;

3. Managing risks and vulnerabilities.

I. BUILDING FINANCIAL CAPABILITY:

Airbnb as a startup company was facing financial battles in the beginning. Chesky and the team were facing a lot of rejections from the investors to finance their idea. As no big investor was able to rely on a small startup for making profits and giving returns.

Solution: Crowdfunding

To overcome this hurdle, Chesky initiated crowdfunding for Airbnb over the online platform which gave them a supportive response. The Airbnb idea was presented creatively and people liked their idea. The team could raise funds through crowdfunding to finance their idea of this startup.

II. DEVELOPING AN APPROPRIATE CULTURE:

Airbnb emerged as a global platform having offices all over the world. Dealing with different countries and their different business cultures became a challenge for Airbnb as a start-up. To understand the value system and customer’s requirements of the foreign countries and further meeting those challenges to make a worldwide brand became a task for Airbnb.

Solution: Approaching local guides of different countries and city tours.

Airbnb approached the local guides of different countries and performed city tours to understand the business cultures and requirements of different countries. After making this survey they made strategies based on each country to meet the requirements and make a worldwide brand.

III. MANAGING RISKS AND VULNERABILITIES:

Airbnb faced many risks as a startup, for example, Legal compliances of different countries, obtaining licensing and permission. Regulatory hurdles in certain countries renting out the property was illegal or renting period was an issue.

Solution: Adapting different legal systems

They fought legal battles in the courts and frequently adapted to legal systems of different countries by changing their business strategies.

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