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