ENTR 101

What is the concept of entrepreneurial motivation and how has it been depicted?

- entrepreneur's quest for and willingness to sustain the new - venture creation. The importance of satisfaction corresponding to an entrepreneur's willingness. - When the entrepreneur's expected outcomes are met or exceeded the entrepreneurial behavior is reinforced

Process Approaches to Entrepreneurship

Integrative, Dynamic States, Framework of Frameworks

Cognitive Adaptability

The ability to be dynamic, flexible, and self-regulating in one's cognitions given dynamic and uncertain task environments.

Radical Innovation

The launching of inaugural breakthroughs. These innovations take experimentation and determined vision, which are not necessarily managed but must be recognized and nurtured. (Netflix)

Ethics must be based more on a process than on static code. T or F

True

Micro View Schools of Thought

entrepreneurial trait, venture opportunity, strategic formulation

Exam #2 ( Ch 4 -

flashcards 66 -

Explain the concept of entrepreneurial persistence and how is it being examined?

- an entrepreneur's choice to continue with an entrepreneurial opportunity regardless of counter-influences or other enticing alternatives. - research found that the decision to persist was influenced by personal characteristics as well as feedback from the environment relative to certain thresholds of adversity. Their findings demonstrate that the decision policies of entrepreneurs regarding persistence differed based on their level of experience with adversity and individual values held.

Corporate Venturing

- the adding of new businesses to the corporation via equity investments This can be accomplished through 3 implementations: 1. Internal Corporate Venturing 2. Cooperative Corporate Venturing 3. External Corporate Venturing

Strategic Entrepreneurship

- the exhibition of large-scale or otherwise highly consequential innovations that are adopted in the firm's pursuit of competitive advantage, may or may not result in new businesses for the corporation. - Innovation can be in any of 5 areas: the firm's strategy, product offerings, served markets, internal organization, or business model. 1. Strategic Renewal 2. Sustained Regeneration 3. Domain Redefinition 4. Organizational Rejuvenation 5. Business Model Reconstruction

What are some of the innovative principles identified by James Brian Quinn that companies need to establish?

1. Atmosphere and Vision: Innovative companies have clear-cut vision of - and the recognized support for - an innovative atmosphere. 2. Orientation to the Market: Innovative companies tie their visions to the realities of the marketplace. 3. Small, Flat Organizations: Most innovative companies keep the total organization flat and project teams small. 4. Multiple Approaches: Innovative managers encourage several projects to proceed in parallel development. 5. Interactive Learning: Within an innovative environment, interactive learning and investigation of ideas cut across traditional functional lines in the organization. 6. Skunk Works: Every highly innovative enterprise uses groups that function outside traditional lines of authority. This eliminates bureaucracy, permits rapid turnaround, and instills a high level of group identity and loyalty.

Characteristics Associated with Type A Personalities

Chronic and severe sense of time urgency, Constant involvement in multiple projects subject to deadlines, Neglect of all aspects of life except work, a tendency to take on excessive responsibilities, Explosiveness of speech and a tendency to speak faster than most people.

What are 2 reasons that such a strong desire to develop corporate entrepreneurs has risen in recent years.

Corporate Venturing and Strategic Entrepreneurship

Nonrole

Direct Effect - Against the Firm ex: - Expense Account Cheating - Embezzlement - Stealing Supplies

Role Failure

Direct Effect - Against the Firm ex: - Superficial Performance Appraisal - Not Confronting Expense Account Cheating - Palming Off Poor Performer With Inflated Praise

Macro View Schools of Thought

Environmental, Financial/Capital, Displacement

3 Parts of Ethical Responsibility

Ethical Consciousness Ethical Process and Structure Institutionalization

Entrepreneurship is a mindset that cannot be taught. T or F

False, it can be taught

What are Gazelles in Terms of Business?

Gazelle - a business establishment with at least 20% sales growth every year (for 5 yrs),starting with a base of at least $100,000

Unique People = Great Chef Strategies

Great chef strategies - skills or special talents of one or more individuals around whom the venture is built

Role Distortion

Direct Effect - For the Firm (rationalize that the long-run interests of the company are foremost) ex: - Bribery - Price Fixing - Manipulating Suppliers

Role Assertion

Direct Effect - For the Firm (rationalize that the long-run interests of the company are foremost) ex: - Investing in Unethically governed countries - Using nuclear technology for energy generation - Not Withdrawing Product Line in Face of Initial Allegations if Inadequate Safety

What are four causes of stress among entrepreneurs?

Loneliness, Immersion in Business, People Problems, Need to Achieve

What are 5 specific entrepreneurial climate factors that organizations need to address on structuring their environment?

Management Support, Autonomy/Work Discretion, Rewards/Reinforcement, Time Availability, Organizational Boundaries

Unique Markets = Mountain vs Mountain Gap Strategies

Mountain vs Mountain gap strategies - identifying major market segments as well as interstice ( in-between) markets that arise from larger markets

Ways to deal with stress

Networking, Getting Away From It All, Communicating With Employees, Finding Satisfaction Outside of the Company, Delegating, Exercising Rigorously

What are the four distinct roles managers can take in rationalizing morally questionable acts?

Nonrole, Role Failure, Role Distortion, Role Assertion

What are the factors associated with the entrepreneurial ego?

Overbearing Need for Control and Power Sense of Distrust Overriding desire for Success Unrealistic Optimism

3 Specific Types of Displacement

Political, Cultural, Economic

Bootlegging

Secretly working on new ideas on company time as well as on personal time.

Intracapital

Special capital set aside for the corporate entrepreneur to use whenever investment money is needed for further research ideas.

Entrepreneurial Cognition

The knowledge structures that people use to make assessments, judgments, or decisions involving opportunity evaluation, venture creation, and growth.

Grief Recovery

The traditional process of recovering from grief involves focusing on the particular loss to construct an account that explains why the loss occurred.

Unique Resources = Water Well Strategies

Water well strategies - the ability to gather or harness special resources (land, labor, capital, and raw materials) over the long term

Career Risk

Whether an entrepreneur will be able to find a job or go back to an old job if his or her venture fails.

Skunk Works

a nickname given to small groups that work on their ideas outside of normal organizational time and structure

Code of Conduct

a statement of ethical practices or guidelines to which an enterprise adheres

Autonomy

allowing employees to shape their work environment

I-teams

composed of two or more people who formally create and share ownership of a new organization

What are the roles of middle-managers in corporate entrepreneurship?

endorse, refine and shepherd entrepreneurial opportunities, and identify, acquire, and deploy resources needed to pursue those opportunities

Financial Risk

entrepreneurs may put a significant portion of their savings or other resources at stake.

Micro View of Entrepreneurship

examines the factors that are specific to entrepreneurship and are part of the internal locus of control

What are the four specific areas of risk that entrepreneurs face?

financial risk, career risk, family and social risk, psychic risk

Exam #1 (Ch 1 - 3 )

flashcards 1 - 65

What are the roles of first-level managers in corporate entrepreneurship?

have experimental roles that correspond to the competence definition sub process, adjusting roles that correspond to the competence modification sub process, and conforming roles tat correspond to the competence deployment sub process.

What are the roles of Senior-level managers in corporate entrepreneurship?

have ratifying, recognizing and directing roles that in turn are associated with particular managerial actions.

What is the "dark side" of entrepreneurship?

it is the challenges such as risk, stress, and inflated ego that can be destructive to an entrepreneur.

Macro View of Entrepreneurship

presents a broad array of factors that relate to success or failure in contemporary entrepreneurial ventures, external locus of control

Family and Social Risk

starting a new venture uses much of the entrepreneur's energy and time. entrepreneurs with families expose them to the risks of an incomplete family experience and the possibility of permanent emotional scars. friends may also vanish slowly

Corridor Principle

states that with every venture launched, new and unintended opportunities arise

Psychic Risk

the great psychological impact on and the well-being of the entrepreneur who creates a new venture (GREATEST RISK)

Incremental Innovation

the systematic evolution of a product or service into newer or larger markets (Coca-cola)

What are the elements involved in sustaining corporate entrepreneurship?

top management, autonomy, rewards, resources, and flexible organizational boundaries

Entrepreneurs are not gamblers they are ________

Calculated Risk Takers (do everything to get the odds in their favor and often avoid taking unnecessary risks)

Characteristics Associated with the Entrepreneurial Mind-Set

1. Determination and Perseverance 2. Drive to Achieve 3. Opportunity Orientation 4. Persistent Problem Solving 5. Seeking Feedback 6. Internal Locus of Control 7. Tolerance for Ambiguity 8. Calculated Risk Taking 9. High Energy Level 10. Creativity and Innovativeness 11. Vision

What are the 5 key elements on which managers should concentrate to develop a corporate entrepreneurial strategy?

1. Developing the Vision 2. Encouraging Innovation 3. Structuring for an Entrepreneurial Climate 4. Preparing Individual Managers for Corporate Innovation 5. Developing Venture Teams

10 Myths Associated with Entrepreneurship:

1. Entrepreneurs are doers, not thinkers 2. Entrepreneurs are born, not made 3. Entrepreneurs are always inventors 4. Entrepreneurs are academic and social misfits 5. Entrepreneurs must fit the profile 6. All entrepreneurs need is money 7. All entrepreneurs need is luck 8. Entrepreneurship is unstructured and chaotic 9. Most entrepreneurial initiatives fail 10. Entrepreneurs are extreme risk-takers

What are some of the obstacles that must be overcome to establish a corporate entrepreneurial environment?

1. Innovative solutions blocked, funds misspent: *Traditional Management Practices - Enforce standard procedures to avoid mistakes *Recommended Action - make ground rules specific to each situation 2. Competitive lead lost, low market penetration: *Traditional Management Practices - Manage resources for efficiency and ROI *Recommended Action - Focus effort on critical issues 3. Facts ignored that should replace assumptions: *Traditional Management Practices - Control against plan *Recommended Action - Change plan to reflect new learnings 4. Nonviable goals locked in, high failure costs: *Traditional Management Practices - Plan for the long-term *Recommended Action - Envision a goal, then set interim milestones, reassess after each 5. Entrepreneur failure and/or venture failure: * Traditional Management Practices - Manage functionally * Recommended Action - Support entrepreneur with managerial and multidiscipline skills 6. Missed Opportunities: * Traditional Management Practices - Avoid moves that risk the base business * Recommended Action - Take small steps, build out from strengths 7. Venturing dumped when base business is threatened: * Traditional Management Practices - Protect the base business at all costs * Recommended Action - Make venturing mainstream, take affordable risks 8. Wrong decision about competition and markets: * Traditional Management Practices - Judge new steps from prior experience * Recommended Action - Use learning strategies, test assumptions 9. Low Motivation and Inefficient Operations: * Traditional Management Practices - Compensate uniformly * Recommended Action - Balance risk and reward, employ special compensation 10. Loss of Innovators * Traditional Management Practices - Promote compatible individuals * Recommended Action - Accommodate "boat-rockers" and "doers"

What are useful rules for innovation?

1. Keep divisions small 2. Motivate the champions 3. Stay close to the customer 4. Share the wealth 5. Tolerate failure 6. Don't kill a project

What are some steps that corporations can take to reengineer corporate thinking and encourage an innovative environment?

1. early identification of potential innovators 2. top-management sponsorships of innovative projects 3. creation of innovation goals in strategic activities 4. promotion of entrepreneurial thinking through experimentation 5. development of collaboration between innovators and the organization at large

3 phenomena that must occur to cause a sustainable enterprise

1. emergence of the opportunity 2. emergence of the venture 3. emergence of the entrepreneur

3 primary objectives of an entrepreneur are

1. innovation 2. profitability 3. growth

What are 3 advantages of developing a corporate entrepreneurial philosophy?

1. this atmosphere leads to development of new products and services, which lead to growth and expansion 2. creates a workforce that can help the enterprise maintain its competitive advantage 3. promotes a climate conductive to high achievers and helps the enterprise motivate and keep its best people

Corporate Entrepreneurship Assessment Instrument (CEAI)

5 identified factors listed below

Corporate Entrepreneurship (also referred to as corporate innovation or intrapreneurship)

A new "corporate revolution" taking place due to the infusion of entrepreneurial thinking into bureaucratic structures.

Unique Products = Better Widget Strategies

Better widget strategies - innovations that encompass new or existing markets