Corporate Entrepreneurship Exam 1 (Chapters 1-4)

3 Items to Measure Proactiveness

1. Following v. leading competitors in innovation 2. Favoring tried and true v. innovation 3. Trying to cooperate with competitors v. trying to undo them

Decisions can be made at 3 levels

1. Foundation level 2. Proprietary level 3. Rules level

Pro-activeness

1. Seeking new opportunities 2. Introducing new products and brands 3. Strategically eliminating operations that are in declining stages

3 Categories of Firms

1. Stars 2. Seekers 3. Spectators

Where to Find Entrepreneurship withing a Company

1. Traditional Research and Development 2. Ad Hoc (Urgent/When Necessary) Venture Teams 3. New Venture Divisions or Groups 4. Champions and the Mainstream 5. Acquisitions 6. Outsourcing 7. Hybrid Forms

Exploring the Dimensions of Entrepreneurship

3 Dimensions: innovation, risk-taking, proactiveness

Crowdsourcing

A form of outsourcing without direct contract, boundaries, or financial consideration - No financial awards - Undefined requirements

Corporate Entrepreneurship

A process by which *established* firms adopt a conscious *strategy* to encourage innovation AKA: Organizational entrepreneurship, Intrapreneurship, and Corporate Venturing

Sustainable Competitive Advantage

Adaptability Flexibility Speed Aggressiveness Innovation

Corporate Venturing

Addition of new businesses to the corporation Directly investing corporate funds into external business start-ups

Entrepreneurial Grid

Combining the degree and frequency of entrepreneurship

Greiner's 6 Stages of a Company's Evolution

Creativity Direction Delegation Coordination Collaboration Alliances

Pro-activeness

Entrepreneurial firms acting on, rather than reacting to their environments

Entrepreneurship 8 Perspectives

Global Wealth Enterprise Customer Value Innovation Change Crowd Sourcing Growth

A Firm's Business Model

How an organization creates, delivers, and captures value

Management Versus Entrepreneurship

Managers --> Current Situation; how to improve efficiency Entrepreneur --> What CAN be

The Entrepreneurial Imperative: A persistent sense of urgency

Managers reacted to external environment, but let entrepreneurial fires diminish Focus: cost savings, revenue growth

Risk-Taking

Missing the boat and sinking the boat (in regards to planning time)

Innovativeness

Novel, unique, different

Differences of Corporate Entrepreneurship

Refer to slides

Three Processes for CE to Happen (ON EXAM)

Strategic Management Framework External Trigger (Sustained CE) Strategic Integration

Open Innovation

The firm acquires critical inputs to innovation from outside sources - Financial Awards - Defined Requirements

Entrepreneurship

The process of creating value by bringing together a unique combination of resources and exploit an opportunity

Basic Management Issue: Definition of Management

The process of setting objectives and coordinating resources

What is a New Business?

When a company finds itself dealing with new categories of customers and selling them products or services that are new in the firm

Strategic Entrepreneurship

highly consequential innovations that are adopted to the firm's pursuit of competitive advantage - Strategic Renewal - Sustained Regeneration - Domain Redefinition - Organizational Rejuvenation - Business Model Reconstruction

Innovation Types

- Based on Impact - Based on Business Area

Chapter 1 Recap

- Concept of Entrepreneurship - Corp. Entrepreneurship - Why Entrepreneurship is critical - All companies start w/ entrepreneurial action, but lose this mindset as they grow

Four Types of Innovation

- Discontinuous - Dynamically Continuous - Continuous - Imitation

Types of Risk Taking

- Financial - Technical - Market - Personal - Social

Innovation Challenges

- Globalization - Market Fragmentation - Government Regulations - Social Change

Entrepreneurial Realities: Understanding the Process

- ID opportunity - Define business concept - Assess resource requirements - Acquiring resources - Implementing concept - Harvesting venture

Motives for Corporate Venturing

- Leveraging (to exploit existing competencies in new product or market arenas) - Learning

Three Frontiers of Innovation

- Services - Products - Processes

Strategy vs. Business Model

- Strategy deals with the firm's *competitive initiatives and business approaches* - Business model concerns whether the *revenues and costs* flowing from the strategy demonstrate the firm can be profitable and viable

Chapter 2 Recap

- Unique Nature of CE - CE as a process - Manifestation of CE - CE Frameworks - Paradox of CE