E-ship Management Final (comprehensive highlights)

corporate venturing

** relates to adding new business to the corporation - Dow chemicals 1. internal corporate venturing (like starting new, wholly owned) 2. cooperative corporate venturing (cooperation with other companies, joint venture) 3. external corporate venturing (buy existing, acquisitions)

strategic entrepreneurship (5)

** transformation of orgs through large-scale innovations adopted in pursuit of competitive advantage, may result in new businesses for cop 1. strategic renewal (firms strategy) 2. sustained regeneration (product offering) 3. domain redefinition (served markets) 4. organizational rejuvenation (structure) 5. business model reconstruction

entrepreneurial stress def

the extent to which entres work demands/expectations exceed abilities to perform as venture initiators - willing to tolerate physical effects of stress to achieve goals - simultaneous demands --> can lead to role overload and stress - lacking depth of resources, must bear costs of mistakes while playing many roles

principles of innovation (10)

1. be action oriented (active) 2. make the product, process, service simple/understandable 3. make the product, process, service customer-based 4. start small (build/develop, planned growth) 5. aim high (niche) 6. try/test/revise (workout flaws) 7. learn from failures 8. follow milestone schedule 9. reward heroic activity/respect 10. work, work, work

managerial problems (2)

1. concept of a team approach (hiring based on nepo/relationship instead of merit) 2. human resource problems: owner needs to relate to employees; no trust, firing

pathways to new ventures (3, recommendation)

1. create a new venture 2. acquire an existing venture 3. obtain a franchise ** recommended to by existing, less risk

*environmental factors affecting pricing decision (10)

1. degree of competitive pressure: monopolies = no competition/prices set, perfect competition = prices set) 2. seasonal or cyclical changes in demand: some goods more available in certain seasons so price lowers, prices higher in off season 3. cost of distribution: higher distribution costs = higher prices for product/serve 4. products life-cycle stage: prices differ based on stages (intro prices can be high, growth stage reduce, maturity stage discounts/privileges for loyal mems/ membership offers, decline stage reduce production costs) 5. availability of sufficient supply 6. changes in production costs 7. prevailing economic conditions 8. customer services provided by seller 9. amount of promotion 10. market's buying power

critical steps of corporate entrepreneurial strategy (5)

1. develop the vision 2. encourage innovation 3. structuring for an intrapreneurially climate 4. developing individual managers for corporate entrepreneurship 5. developing venture teams

***ethical rationalizations used to justify questionable conduct (4)

activity... 1. isn't "really illegal or immoral 2. is in the individual's or firm's best interest 3. will never be found out 4. helps the firm, so they'll condone it

TBL (triple bottom line)

framework that measures beyond traditional measures: People, planet, profit (3 P's) 1. economic performance (ROI, job growth, underemployment, personal income) 2. environmental performance (fossil fuels and electricity consumption, hazardous waste management) 3. social performance (unemployment, poverty, life expectancy, education, violent crimes)

social entrepreneurship process

recognize social opportunity that can be translated into an enterprise concept - resources acquired to execute enterprises goals - Grameen Bank: gave ppl loans - microlending

trends (def, 4)

trends: signal shifts in current paradigm (thinking) of the major population, abundant source of e-ideas 1. social trends: a) changes in population size, age structure, composition, employment, education, income; b) changes in perception, mood, meaning (change in assumptions, attitudes, beliefs) ---> (health/fitness growth) 2. technology trends: mobile technology (cell phone), e-commerce, internet advances (ex: artificial intelligence, machine learning) 3. economic trends: higher disposable incomes, dual wage-earner families, performance pressures (ex: unemployment rate) 4. government trends: increased regulations, petroleum prices, terrorism (ex: new push for preserving identity/equity, approaches to engaging older citizens)

important practices for establishing innovation-driven organization (5)

*** allows freedom/encouragement for employees to develop ideas; top managers find it hard to provide this freedom 1. set goals (mutually agreed by employees/management) 2. system of feedback/ pos reinforcement (allows potential innovators to realize that acceptance/rewards exist) 3. emphasize individual responsibility (trust, confidence) 4. reward innovative ideas (encourage risk taking/achieving) 5. DON'T punish failures (failed projects = learning, must feel free, not fearful)

why new ventures fail (3)

*** most are in control of entrepreneur 1. product/market problems 2. financial difficulties 3. managerial problems

*technical requirements for product and services (10)

*** technical feasibility is concerned with several technical requirements for the venture's products and services: 1. Functional design of the product and attractiveness in appearance 2. Flexibility for ready modification 3. Durability of the materials from which the product is made 4. Reliability 5. Product safety 6. Reasonable utility 7. Ease and low cost of maintenance 8. Standardization 9. Ease of processing or manufacture 10. Ease in handling and use

evaluation of the selected venture: factors affecting sale of venture (3)

**due diligence often necessary for full evaluation of the selected venture (helps negotiate price); done by consulting/accounting firms 1. business environment (location, market, industry) 2. profits, sales, and operating ratios (profit potential, financials) 3. assets of the venture (tangible and intangible assets)

entre ethics - 3 (and sources - 2)

- basic rules/parameters for conducting activity in "acceptable manner" - set of principles prescribing behavioral code (whats good/bad, right/wrong) - defines "situational" mortal duty and obligations SOURCES: 1. pressure from inside/outside interests 2. changes in societal values, morals, norms

gazelles

- created with intent of high growth and wealth creation (20% sales each year for 5 years, stating with 100k - leaders in innovation: over 1/2 of innovations, produce 2x products per employee than larger firms, more patents per sales dollar than larger firms

entrepreneurship (ronstadt definition, 3)

- dynamic process of creating incremental wealth - wealth created by ppl who assume major risks in terms of equity, time, &/or career commitment of providing value for product/service - product/service may be new/unique but the entre infuses value to it, securing/allocating necessary skills/resources

entrepreneurial mind-set

- e-mindset: describes common characteristics associated with successful entres, and "dark side" of e-ship - gain more complete perspective when we look psychologically (cognition, social cognition theory, entrepreneurial cognition)

*design-centered e-ship (5)

- entrepreneurs apply design methods in 4 action stages of developing an opportunity opportunity development: 1. ideation (concept) 2. prototyping (proof of concept feasibility) 3. market engagment (proof of concept desirability) 4. business model (proof of concept viability) opportunity fulfillment: 5. startup *** process goes back and forth, knowledge acquisition and possible trial/error for entrepreneur

social entrepreneurship (2)

- exhibits characteristics of non-profits, govs, businesses - social problem-solving, private-sector e-ship focus on innovation, risk-taking, and large scale transformation - address social needs through 1) products/services 2) numbers of disadvantaged ppl they employ 3) use of financial surplus

encouraging innovation

- innovation = key component, specific tool (chaotic or systematic) 1. radical innovation - breakthroughs (social networking, spotify) 2. incremental innovation - systematic evolution of product/service, often after radical (next iphone, frozen yogurt)

developing the vision

- must be clearly articulated - have specific objectives (developed by managers/employees) - shared vision = high achievement (4 characteristics) 1. sense of belonging (purpose) 2. structure (initiative, synthesis) 3. commitment (active) 4. mutual trust and supportive basic attitude

classifying decisions using conceptual framework (legality and ethicality)

- quadrants going clockwise: ethical/legal, unethical/legal (insider trading), unethical/illegal (no insurance and ceo wont cover), ethical/illegal (whistleblowing) - legality provide societal standards, but not definitive answers to ethical questions; use both ethics and legality

psychological factors affecting pricing decision (3)

- quality interpreted by price (higher price = higher quality) - monthly cost results in greater sales than total selling price - more benefits conveyed = less price resistance

uniqueness

- routine to nonroutine (separation of these = amount of uniqueness) - uniqueness = time venture stays nonroutine - special features/concepts that draw ppl in, how it's superior to competition (ppl pay premium) - uniqueness -> price is less important, advantage of differentation

entrepreneurial revolution (4)

- vastly growing, making critical contributions to the economy - symbol of business tenacity and achievement - pioneers of today's business successes - 2 perspectives on e-ship: statistical perspective (#'s emphasizing impacts on economy) and academic perspective (trends in research/education)

10 myths of entrepreneurship

1. doers not thinkers (tenacity toward action but they are also thinkers, emphasis today on business plan - thinking and prep) 2. born, not made (e-ship has models, processes, case studies allowing traits to be acquired) 3. entres are always inventors (incremental, fast foods; somehow infuse value) 4. academic and social misfits (bc bill gates/steve jobs, usually educated/now viewed as professionals) 5. must fit the profile (many traits, venture and entre interaction shapes diff profiles) 6. all they need is money (yes - need to survive and they sometimes fail w/o financing - but poor management/planning) 7. all they need is luck (right time/place is advantage; prep, determination, innovativeness -- appears as luck) 8. unstructured and chaotic (heavilty involved, organized, systematic to maintain priorities) 9. most initiatives fail (many entres fail before success but high failure rate is misleading; dont fail at such alarming rate, often fail before success) 10. extreme risk takers (

pricing in the social media age (5)

1. freemium model (free basic service, charge for premium w/ more features) 2. affiliate model (makes money by driving traffic, leads, or sales to another, affiliated company's website) 3. subscription model (users pay a fee - monthly/yearly - to access product or service) 4. virtual goods model (upgrades, points, games) 5. advertising model (ads sold against traffic of the site)

gazelle myths (4)

1. goal of all entres (high stress, some arent suited) 2. receive VC (only 2% receive) 3. were never mice (mice: created for income over high growth, many companies become later in life) 4. high-tech (also in low-tech sectors) 5. gazelles are global (no role in distinction)

factors affecting deal negotiations (4)

1. information (company performance, nature of competition, market condition; lack of info = disadvantaged buyer, need from outside/many sources) 2. pressure (mult partners, money) 3. alternatives (no alts = faster) 4. time (buyer or seller could have an advantage; more time is better for u)

financial difficulties (3)

1. initial undercapitalization (failure in 1/3 companies) 2. assuming debt too early (Debt service problems) 3. venture capital relationship problems (diff goals/motivations that cause failure)

tangible and intangible assets (4)

1. inventory (age, quality, salability, condition) 2. furniture, equipment, fixtures (value, condition, lease/owned) 3. accounts receivable (outstanding debts, customer credit standings) 4. trademarks, patents, copyrights (value, competitive advantage) and goodwill (reputation)

advantages of acquiring an ongoing venture

1. less fear about successful future operation (alr proved to attract customers/control costs) 2. reduced time and effort (inventory, equipment, facilities) 3. good price (bargain if selling quickly; retirement, illness, raise money, pursue other opp)

sources of entre stress (4)

1. loneliness (isolated; don't participate in social activities unless theres a business benefit) 2. immersion in business (long hours, little time for others) 3. people problems (frustration, disappointment/aggravation with others) 4. need to achieve (achievement brings satisfaction, but never satisfied)

*how franchising works

1. make a financial investment in the operation 2. obtain/maintain standardized inventory and/or equipment package usually purchased form franchisor 3. maintain a specified quality of performance 4. follow a franchise fee as well as a percentage of the gross revenues 5. engage in a continuing business relationship

need for corporate entrepreneurship (2)

1. must be ready/willing to accept innovations (otherwise will become obsolete) 2. modern corps need in-house e-ship (or will stagnate, decline)

***dealing with stress (6)

1. networking (other business owners, therapeutic to hear triumphs/errors of others) 2. getting away from it all (holiday, allows self-renewal) 3. communicating with employees (can readily assess concerns, they will be more productive) 4. finding satisfaction outside company (find passion about life to gain other perspectives) 5. delegating (allows for time/coping, hard bc they are involved) 6. exercising rigorously (stress relieving)

pitfalls to avoid in the venture planning (5)

1. no realistic goals (not attainable, time) 2. failure to anticipate roadblocks (not recognizing future probs, flaws, objectivity is important) 3. no commitment or dedication (no interest/research, copies latest social craze) 4. lack of demonstrated experience- business or technical (not in area, industry, unclear if venture will work/be accepted) 5. no market niche - segment (idea proposal without finding customers)

*morally questionable acts (4)

1. nonrole: against firm, embezzlement, stealing 2. role failure: against firm, superficial performance appraisal, not confronting cheating 3. role distortion: for the firm, bribery, price fixing, manipulating suppliers 4. role assertion: for the firm, keeping bad product line, nuclear tech

areas of uniqueness (8)

1. performance 2. convenience 3. newness 4. accessibility 5. customization 6. value for money 7. brand/status 8. design

product/market problems (5)

1. poor timing (too early) 2. product design problems 3. inappropriate distribution strategy (must be geared toward product and customer) 4. unclear business definition (lack stability) 5. overreliance on one customer (lacks diversity)

shift from 4P's to the 4C's

1. product -> cocreated (push product they really want) 2. price -> customizable (ppl can buy tailored products based on buying preferences, not one size fits all) 3. place -> choice (can buy what they want from anywhere, not limited by location) 4. promotion -> communities (ppl buy based on others' opinions, not ads persuasion)

need for e-ship has arose from... 5

1. rapid growth in new/sophisticated competitors (domestic/international) 2. distrust in traditional methods 3. best/brightest ppl leaving as small business entrepreneurs (status symbol, VC is more available - attractive) 4. downsizing of major corps 5. overall desire to improve efficiency/productivity

entrepreneurs (3)

1. recognize opportnities where others see chaos, contradiction, or confusion (explore and exploit opportunities) 2. are aggressive catalysts for change (initiate change) 3. challenge the unknown and strive to create breakthroughs for the future (take risks)

opportunity identification (8)

1. trends 2. unexpected occurrences (9/11, apple comp) 3. incongruities (gap btw expectations/reality --> overnight package delivery) 4. process needs (there's a need/reason to innovate -> low-fat products/sugar-free) 5. industry and market changes (marketplace shifts bc tech, industry growth -- new opps: healthcare industry/home health) 6. demographic changes (pop, age, education, locations) 7. perceptual changes (Exercise/fitness) 8. knowledge-based concepts (tech, pharma)

5 factors critical for (pre)start-up phases of new venture

1. uniqueness 2. investment size at start-up (software = less) 3. expected growth of sales and/or profits as venture moves through start-up phase 4. availability of products during phases 5. availability of customers during phases

9 building blocks of business model (ex: car repair shop)

1. value proposition (low price, high quality car repairs) 2. customer segments (car owners) 3. channels (phone) 4. customer relationships (retention of regular customers with high quality) 5. revenue stream (time and material) 6. key activities (car maintenance, spare part resis) 7. key resources (repair men, customer service) 8. key partners (spare part suppliers) 9. cost structure (spare parts, repair work)

benefits of business plan (5)

1. view venture critically and objectively (time, effort, research) 2. close scrutiny of their assumptions about success of venture (competitive, economic, financial analysis) 3. development of operating strategies/expected results for outside evaluators (since all aspects addressed) 4. benchmarks for comparing forecasts with actual results (quantifies goals/objectives) 5. communication tools for outside financial sources, operational tool for guiding venture toward success

entrepreneur definition (5)

considered an innovator or developer who... 1. recognizes/exploits opportunities 2. converts opportunities into marketable ideas 3. adds value through time, effort, money, or skills 4. assumes risks of competitive marketplace to implement ideas 5. realizes rewards from these efforts

defining corporate e-ship

corporate venturing + strategic entrepreneurship - organization creates new org, instigates renewal/innovation within its org -- continuously shaping through EXPLOITATION

product life cycle

introduction, growth, maturity, decline