entr test 2

Entrepreneurial Strategy

-Developing an entrepreneurial vision -Increasing the perception of opportunity -Institutionalizing change -Instilling the desire to be innovative -Investing in people's ideas -Sharing risks and rewards with employees -Recognizing the critical importance of failure

people

-Fear of failure -"Turf" protection

Leveraging Resources:

-Stretching resources much further than others have done in the past -Getting uses out of resources that others are unable to realize -Using other people's/firm's resources to accomplish the entrepreneur's own purpose -Complementing one resource with another to create higher combined value -Using certain resources to obtain other resources

Structures

-Too many hierarchical levels -Top-down management -Lack of accountability

This new landscape can be described in terms of four powerful forces:

-change -complexity -chaos -contradictions

Management may be able to fix the structure and remove bureaucratic rules and procedures, but there are challenges involved in getting employees to:

-embrace entrepreneurship -change the way they do things -collaborate on projects involving untested ideas -give up resources to support entrepreneurial initiatives

(lecture 8) The contemporary business environment can be characterized in terms of

-increasing risk -decreased ability to forecast -fluid firm and industry boundaries -a managerial mindset stuck in traditional principles -new structural forms that not only allow for change but also help create it.

competitive advantage

"an enduring value differential between the products or services of one organization and those of its competitors in the minds of customers"

Strategic Direction

-Absence of innovation goals -No formal strategy for entrepreneurship

Strategic Positioning

-Concerned with how the firm wants to be perceived in the marketplace -It is a process of perceiving new positions that attract customers from established ones or draw new customers into the market -Effective strategic positioning is critical for competitive advantage

The following 5 factors contribute to building strategic leadership:

1.A unique set of dynamic core competencies 2.Creative approaches to human capital 3.Effective incorporation of new and emerging technologies 4.Strategic alliances and a global market presence 5.Company structures that are flattened and cultures that stress learning and accountability for innovatio

Strategic Leverage

Leveraging refers to doing more with less Corporate entrepreneurs and entrepreneurial companies are brilliant leveragers of resources Being entrepreneurial is more a function of resourcefulness than resources

Strategic Flexibility and Adaptation

Strategic flexibility involves a willingness to rethink continuously and make adjustments to the firm's strategies, action plans, and resource allocations and to the company structure, culture, and managerial systems

Strategy

Strategy is a statement regarding where the company wants to go, and how it plans to get there. Strategy creates a sense of unity, or consistency of action, throughout an organization

organizational constraints

Systems Structure Strategic direction Policies and procedures People Culture

The distinction between top-level and middle-level managers:

Top-level managers are senior managers, and often determine strategic actions Middle-level managers most often implement the strategic entrepreneurial activities designed by top-level management

Entrepreneurial imperatives

are those aspects of leadership that are inherently entrepreneurial: Nourish an Entrepreneurial Capability -Protect Disruptive Innovations -Make Opportunities Make Sense -Question the Dominant Logic -Revisit the "Deceptively Simple Questions" -Link Entrepreneurship and Business Strategy

Lack of people development skills

autocracy rules

Immoral Management Model

based on the premise that economic opportunities are to be exploited whenever and however possible

Lack of rewards for innovation

beyond tokenism

chaos

chaos is confusion; the principal managerial implication of chaos theory is that small changes or shocks to the system can have a major impac

On a theoretical level

company-wide entrepreneurship may not included in, or accommodated by, most of the theories, models, or frameworks that have been developed to guide managerial practice

strategy for entrepreneurship

concerns the need to develop a strategy for the entrepreneurial activities of the firm

Lack of time

crisis management

contradictions

dealing with paradox; managers should embrace contradiction by replacing or with and

Michael porter

draws a critical distinction between strategy and operational effectiveness.

One means of creating a ____________ dominant logic is to make entrepreneurship the basis upon which the organization is conceptualized and resources are allocated.

dynamic

Lack of urgency

fear as good and bad

strategy

is about performing different activities than competitors perform or about performing similar activities in different ways

Operational effectiveness

is concerned with activities that enable the firm to perform similar activities better than the competitors

Entrepreneurial strategy

is concerned with applying creativity and entrepreneurial thinking to the development of a core strategy for the firm

Innovation

is the key to developing and successfully exploiting competitive advantages -The challenge is to develop innovation as a core competence of the firm. Moreover, the firm's strategy for entrepreneurship serves to stimulate such innovation

Lack of political savvy

learning to work the system

On a practical level

managers typically find themselves in uncharted territory when it comes to entrepreneurship They lack guidelines on how to direct or redirect resources towards entrepreneurial strategies.

Amoral Management Model

managers, while not necessarily acting with malicious intent, believe that the rules of business are different from those of the greater society

Lack of good financial proposals

projecting the numbers

Lack of open ownership

protecting turf

dominant logic

refers to the way in which managers conceptualize the business and make critical resource allocation decisions. The dominant logic that is optimal for the firm in today's environment may well be inappropriate for the environment that will exist five years hence. As a dominant logic, entrepreneurship promotes strategic agility, flexibility, creativity, and continuous innovation throughout the firm.

Moral Management Model

respect ethical considerations and hold the organization to the highest moral standards and demonstrate a strong ethical leadership to all stakeholders

Middle-Level Managers

serve as a conduit between those at the top and those at the operating level Their central position in the organization allows them to gather and absorb innovative ideas from inside and outside the firm middle level managers: Endorse Refine Shepherd Identify Acquire Deploy

Lack of a sponsor

someone to watch over you

In essence, strategic management is the formulation of long-range plans for

the effective management of external opportunities and threats while addressing a company's internal strengths and weaknesses

change

the game itself is different!

Lack of energy and shared enthusiasm

the inertia problem -Indifference -Distraction -Competition -Disaffection -Direct threat

Lack of personal renewal

the issue of reinforced denial

Lack of "seed" capital

the problem of early resources

Lack of appropriate timing

the resource-shift dilemma

(lecture 7) The pursuit of entrepreneurship within a company creates new and potentially complex sets of challenges on both ____________ and ____________ levels

theoretical and practical levels.

complexity

there is simply much more to manage than in the past

Lack of legitimacy

untested concept and untested entrepreneur

Strategic Inflection Points

An inflection point occurs when the old strategic picture dissolves and gives way to the new Since the nature of an inflection point is so unpredictable, how can organizations know when the time is right to make changes

overcoming the obstacles

Building social capital Gaining legitimacy Political tactics Resource acquisition

Traditional Management Practices

Enforce standard procedures to avoid mistakes Manage functionality Compensate uniformly

The integration of entrepreneurship with strategy has two aspects:

Entrepreneurial Strategy Strategy for Entrepreneurship

(lecture 6) Leading the way

Entrepreneurial initiatives are driven by individuals but the practice of corporate entrepreneurship is a collective responsibility It is imperative that managers provide leadership for corporate entrepreneurship on all levels: Top-level Middle-level Frontline

First-level managers have three roles within the corporate entrepreneurship realm:

Experimenting roles Adjusting roles Conforming roles

Policies and Procedures

Extensive documentation requirements

Adverse Effects of traditional management practices

Innovative solutions blocked Entrepreneur failure and/or venture failure Low motivation and inefficient operations

ethical dilemmas

Occasionally managers involved in CE activity may act in an unethical manner and take on the personality of a "rogue manager." This happens because of: -"Wilding" -Lack of proper ethics rooted in company culture -Lack of proper ethics rooted in the individual manager -The manager may not clearly grasp their professional responsibilities -Operational factors within the company may cause the manager to deviate from the parameters of the formal organizational structure, such being pulled in two directions

Systems

Oppressive control systems Inflexible budgeting systems

First-level managers and non-managerial personnel operate as both:

Order takers Autonomous actors

strategic management

Requires a continuous search for new sources of competitive advantage. Involves looking beyond immediate crises and day-to-day demands and envisioning the market and the firm's position 3, 5 and 10 years from now. Implies discipline in identifying a path or position and in ensuring that fellow employees stay focused on the target Requires being flexible in the tactical approaches used

The pathways of most new ideas are blocked by:

Resistance to change Making premature and uninformed judgments Neophobia Caution Order Anticipation of the extra trouble Politics

Top-Level managers

Senior level managers are critically important for providing three core responsibilities 1.Compelling vision 2.Well-designed company architecture 3."Right" personnel

Building social capital

Sharing information Creating opportunities for people to demonstrate their skills and competence Building and using influence networks

culture

Values that conflict with entrepreneurial requirements

Entrepreneurial Outcomes

When managers engage in entrepreneurial behavior, a number of unique, interrelated outcomes and consequences occur At the individual-level At the organizational-level

First level managers and non-managerial personnel are in unique positions to recognize entrepreneurial opportunities because they frequently:

Work at positions within the organization where much of the core transformational activity Have boundary-spanning responsibilities or important linkages to key external stakeholders associated with their jobs