Exam 1 review questions
Social enterprise can be classified into distinct categories. List some of the categories.
Community Enterprises: enterprises which serve a particular geographical community or community of interest and have representatives from the community on their board of directors. Social Firms: which aim to integrate people who might otherwise find it difficult in the mainstream job market, such as people with learning disabilities or mental health problems. Co-operatives: organisation owned, controlled, and run for the benefit of their members. Credit Unions: community based financial institutions providing savings and loan facilities for their members. Community Development Finance Institutions: providers of loans and other types of investment primarily for social enterprises and other small businesses. Development Trusts: community enterprises which aim to develop a community, usually through the ownership and management of property. Public sector spin-outs: independent social enterprises set up to deliver services that were previously provided by public sector organisations. Also known as 'externalised' services. Trading arms of charities: set up to undertake trading activity in order to raise money for their charity parent company e.g. charity shops, catalogues, training and consultancy. Fair Trade organisations: committed to ensuring that producers are paid a fair price for what they produce. Other types of social enterprise: businesses with social objectives as central as their economic objectives.
Identify the various methods available to entrepreneurs to go international.
Direct investments Strategic alliances Joint Ventures Franchising ImportingandExporting
Describe the challenging boundaries involved with social enterprise.
Mission leader Emotionally charged Change agent Opinion leader Social value creator Socially alert Manager Visionary Highly accountable
outline a few of the current trends that illustrate the social entrepreneurship movement.
See Challenges as Opportunities Aim High Commit to the Movement Find Comfort in Change
What are the school of thought that use the macro view of entrepreneurship?
The environment school of thought: external factors. the financial/capital school of thought: capital-seeking process. the displacement school of thought: focuses on the negative side of group phenomena, in which someone fills out of place or a literally displays from the group. The three major types of displacement are political displacement, culture displacement, economic displacement.
A number of corporations today are working to reengineer corporate thinking and encourage an innovative environment. What types of steps would you recommend? Offer at least three and explain each.
1. Developing the vision: sharing vision 2. Encouraging innovation - Radical innovation: breakthrough such as social networking -incremental innovation: systematic evolution • don't kill a project • tolerate failure • keep division small • motivate the champions • stay close to the customers 3. Structuring for entrepreneurial climate 4. Preparing individual managers for corporate innovation 5. Developing venture teams.
What are the 10 myths Associated with entrepreneurship? Debunk each
1. Entrepreneurs are doers, not thinkers: they plan their moves carefully. Have business ideas. 2. Entrepreneurs are born, not made: anyone can be one. They have to have discipline. 3. Entrepreneurs are always innovators: Example, Ray Kroc did not invent fast food but his innovative ideas made McDonald's the largest fast food enterprise in the world. 4. Entrepreneurs are academic and social misfits: now days entrepreneurship is now viewed as a professional role model. 5. Entrepreneurs must fit the profile: this was based on achievement-oriented people. An actual profile is hard to compose. 6. All entrepreneurs need is money: it's true that a venture needs capital to survive. Lack of financing is an indicator of other problems: managerial incompetence, lack A financial understanding, porn vestments, poor planning, and the like. 7. All entrepreneurs need is luck: luck happens when preparation meets opportunity is an equally appropriate adage. Luck is actually preparation, determination, desire, knowledge, and innovativeness. 8. Entrepreneurship is Unstructured and chaotic: they have their foot in all aspects and as a result they are typically well organized individuals. They tend to have a system perhaps elaborate, perhaps not that is personally designed to keep things straight and maintain priorities. 9. Most Entrepreneurial Initiatives Fail: in 1993 kirchhoff tracer 814,000 businesses and found 50% were still in business. 28% voluntarily closed down. They also use the CORRIDOR PRINCIPLE, which states that with every venture launch new and unintended opportunities often arise. 10. Entrepreneurs are extreme risk takers: it is an element but they do plan and do preparation to minimize risk.
What are four causes of stress among entrepreneurs? How can an entrepreneur deal with each of them?
1. Loneliness: don't participate in social activities. 2. Immersion in business: although they are successful they can't be absent from the company. 3. People problems: have to depend on many people. 4. Need to achieve achieve: achievement brings satisfaction but keeps failing. Usually means they are trying to do too much. They deal with stress by: Networking Getting away from it all Communicating with employees Finding satisfaction outside the company Delegating Exercising rigorously
Explain the four distinct roles that managers may take an rationalizing morally questionable acts against the firm or on behalf of the firm be complete in your answer.
1. That the activity is not really illegal or immoral. 2. That it is in the individual's or the corporation's best interest 3. That it will never be found out. 4. That because it helps the company the company will condone it.
Describe the framework of frameworks approach to entrepreneurship.
Allows for the profession to move forward identifying the static and dynamic elements of new theories, technologies, or frameworks could be an important and distinguishing approach to grow the knowledge base of the field.
What is the process approach to entrepreneurship? In your answer, describe the dynamics states approach.
An integrative approach: this model is built around the concepts of input to the entrepreneurial process and outcomes from the entrepreneurial process. Dynamic states approach: A dynamic state is a network of relationships and systems that cover opportunity tension into value for eight ventures customers, generating new resources that maintain the dynamic state. This model is more process oriented do you that incorporates in rave individual, organizational, and environmental elements.
What are some of the innovative principles identified by James Brian Quinn that companies need to establish?
Atmosphere and vision Orientation to the market Small, flat organizations Multiple approaches Skunk works: small group that works on their ideas outside from the normal organizational time and structure.
What is entrepreneurial cognition and how does it impact the mindset of entrepreneurs? How does metacognition Come into play here?
Cognition refers to a mental processes. These processes include attention, remembering, producing and understanding language, solving problems, and making decisions. Metacognition is a entrepreneurial mindset that integrates and combined effects of entrepreneurial motivation and context, toward the development of metacognition strategies applied to information processing within a entrepreneurial environment.
Why are innovation teams emerging as part of a new strategy for many corporations?
Corporate entrepreneurship includes the process of development and implementation of new ideas that would result in success. The ideas must not be copied from other businesses. Each entrepreneur must put in his own ideas and efforts to improve his business.
What are the two reasons that such a strong desire to develop corporate entrepreneurs has arisen in recent years?
Corporate entrepreneurship is a process that can facilitate efforts to innovate and can help firms cope with the competitive realities of the world markets. It makes them dynamic flexible entities prepared to take a vantage of new business opportunities when they arise.
Identify the four key elements on which manager should concentrate to develop a corporate entrepreneurship strategy.
Corporate entrepreneurship strategy has four aspects. These aspects are entrepreneurial activity, strategic context of business, developing skills and resources, and transformation of knowledge into innovation. Firms can create their corporate entrepreneurship strategy according to their own preferences.
When entering the international marketplace, entrepreneurs should follow what five specific steps?
Define the Market. ... Perform Market Analysis. ... Assess Internal Capabilities. ... Prioritize and Select Markets. ... Develop Market Entry Options.
What is ecoprenurship and how does eco vision play a role? Outline some specific recommendations for entrepreneurs to consider that promote environmental awareness.
Ecopreneurship is a new way of doing sustainable business in the ever changing business environment through the adoption of environmentally responsible business practices.
Describe the elements that are involved in sustaining corporate entrepreneurship.
Elements that are involved in sustaining corporate entrepreneurship: To sustain the corporate entrepreneurship segregation of three elements are as follows: First element: The first element is to establish a clear definition of the specified challenges in which everyone is involved with innovative projects. In the addition, the people who are involved with innovative projects must be addressed.
Explain the concept of entrepreneurial persistence and how it is being examined.
Entrepreneurial persistence: is the entrepreneurs choice to continue with an entrepreneurial opportunity regardless of counter influences or other enticing alternatives.
Explain the predominance of new ventures in the economy.
Entreprenuership is definately a growing entity around the world and specficly in America. The numbers speak for themselves, within the past ten years, 600,000 start-ups are being launched per year, within the millinuem US businesses shot up to more than 25 million, a 2% increase every year. One in every 150 adults partake in starting a new business every year and 1 in 12 people are in the process of starting their own firm. These numbers alone more than prove how entreprenuership presses on to have a strong impact with Americans. The benefits of entreprenuership far surpass the assume earnings to its starts and employees, however, entrepreneurship, increases the competition withing existing markets, it creates markets with new products
What are the four specific areas of risk that entrepreneurs face? Describe each.
Financial risk: have to risk savings with a chance of loss. Career risk: The risk of not finding a job or being able to go back to the old one. Family and social risk: New ventures require a lot of energy and time and can cause family and social risk. Psychic risk: The greatest risk to the well-being of the entrepreneur. If they lose everything.
Define GAZELLES and discuss its importance.
Gazelles are leaders in innovation, as shown by the following: Gazelles produce twice as many product innovations per employee as do larger firms. New and smaller firms obtain more Patons per sales dollar then do larger firms.
I'm your own words, what is corporate entrepreneurship?
Is a strategy that can facilitate firms efforts to create innovative and cope effectively with the competitive realities in today's world markets.
Briefly describe the evolution of the term entrepreneurship.
It derives from the French word "entreprendre" an entrepreneur is a person who undertakes to organize, manage, and assume risk of a business. Today that are a innnovator or developer who Recognize it and Caesars opportunities; conference those opportunities into workable/marketable ideas; add value through time, effort, money, or skills; assumes the risk of the competitive market place to implement these ideas; and realizes the reward for these efforts.
Entrepreneurship has a dark side. What is meant by the statement? Be complete in your answer.
It is destructive source can be found within the energetic drive of successful entrepreneurs. The existence of certain negative factors that may envelop entrepreneurs and dominate their behavior.
A small pharmaceutical firm has just received permission from the food and drug administration (FDA) to market its new anti-cholesterol drug. Although the product has been tested for five years management believes that serious side effects may still result from its use, and a warning to this effect is being printed on the label. If the company markets the FDA approved drug, how would you describe its action from an ethical and legal standpoint? Use figure 2.2 to help you.
It's okay if it goes through codification.
How does a joint venture work? What are the advantages of this arrangement? What are the disadvantages?
Joint venture is the most traditional self standing legal entity. A joint venture occurs when two or more firms analyze the benefits of creating a relationship, pool their resources, and create new entity to undertake productive economic activity. A joint venture the supplies the sharing of assets, profits, wrist, and venture ownership with more.
How does a licensing arrangement work? What are the advantages and the disadvantages of such an arrangement?
Licensing is a business arrangement in which the manufacturer of the product grant permission to some other group or individual to manufacture the product in return for specific royalties or other payments.
Identify the five specific entrepreneurial climate factors that organizations need to address in structuring their environment.
Management support Autonomy/work discretion Rewards and reinforcements Time availability Organizational boundaries
What are the three advantages of developing a corporate entrepreneurial philosophy?
Motivation Stability New market
Describe some of the powerful economic forces that are creating global expansion of entrepreneurship.
Opportunity minded and open minded
Describe factors associated with the entrepreneurial ego.
Overbearing need for control. Sense of distrust. Overriding desire for success. Unrealistic optimism.
What are the three specific types of displacement?
Political displacement: caused by factors raining from an entire political regimen that rejects free enterprise to governmental regulations and policies that limit or redirect certain industries. Cultural displacement: deals with social groups precluded from professional fields. Ethnic backgrounds, religion, race, and sex are examples of factors that figure in the minority experience. Economic displacement: concerned with economic variations of recession and depression. Job loss, capital shrinkage, or simply "bad times" can create the foundation for entrepreneurial pursuits, just as it can affect venture development and reduction.
What is the macro view of entrepreneurship?
Presents I brought it right of factors that relate to success or failure to the picture. This rate includes external processes that sometimes beyond the control of the individual entrepreneur, for they are exhibit as a strong external locus of control point of view.
Explain the difference between radical and incremental innovation.
Radical innovations are focused on developing revolutionary new technologies, markets, and business models that change the world. Incremental innovation refers to innovation processes that seek to improve existing systems and products to make them better, cheaper or faster.Nov 14, 2017
Explain the concepts of shared vision and triple bottom line.
Shared value is an approach to creating economic by that also create value for society by addressing it needs and challenges. It connects company success with social progress. Shared value is more than social responsibility assisting ability. It is a transformation of business thinking recognizing societal weaknesses that create internal cost for firms. The triple bottom line is an accounting framework that goes beyond the traditional measures of profit, return on investment, and shareholder value to include environmental and social dimensions. By forcing on comprehensive investment results that is, with respect to what was along with interrelated dimensions of profit, people, and the planet. It measures three dimensions of performance... Economic, environmental, and social.
Define a social entrepreneur.
Someone who starts a business for the dual purpose of profit and societial benefit.
What is the micro view entrepreneurship?
The MicroView of entrepreneurship examines the factors that are specific to entrepreneurship in a part of internal locus of control. The potential entrepreneur has the ability or control to direct or adjust the outcome of each major influence in this view.
How do the following organizations impact international entrepreneurship: NAFTA; WTO; and the EU
The WTO is the umbrella organisation responsible for overseeing implementation of all agreement-multilateral (signed by all WTO members) and plurilateral (signed by a group of members for specific issue) that have been negotiated under Uruguay Round or will be negotiated in future. Secondly, it is to provide a forum for further negotiations on matters covered by the agreements as well as on new issue. Thirdly, it is responsible for settlement of disputes among member nations. Fourthly, it is responsible for periodic reviews of Trade Policies of the member nations. The United Nations Foundation Global Entrepreneurs Council (GEC) is a strategic advisory council designed to bring together successful, high-profile, entrepreneurs and thought leaders who are committed to finding innovative solutions to global problems
What are the schools of thought that use the micro view of entrepreneurship?
The entrepreneurial trait school of thought: Identify common traits in successful entrepreneurs The venture opportunity school of thought: It focuses on the opportunity aspect of venture development. The search for an idea sources the development of concepts, and the implementation Adventure opportunities are the important interest areas of the school. (Right idea at the right time). The strategic formulation school of thought: it emphasizes the planning process and successful venture development.
Why do complex decisions often raise ethical considerations for the entrepreneur?
The requirements of law may overlap at times but do not duplicate the moral standards of society. Some laws have no moral content whatsoever, some laws are morally unjust, and some moral standards have no legal basis.
What are diaspora networks and why are they important for global entrepreneurs?
They are relationships among ethnic groups that share culture and social norms. Well they are not new a diaspora have been a part of the world for thousands of years, the new global economy has made them more powerful as vehicles for communication and trust.
Entrepreneurs have a tolerance of ambiguity and calculated risk takers and exude passion. What do these characteristics mean for any potential entrepreneur?
They have the ability to handle setbacks because they calculated the risk and prepared for the The risk and have the passion and the emotional experience to have a mindset to continue
Ethics must be based more on the process than on static code. What does this statement mean? Do you agree? Why or why not?
They have to choose from their own codes of conduct which ever rules are appropriate to the case in hand; the outcome of these choices make them who they are. Yes, they have to go and lean on what made the company in the first place.
What are some of the corporate obstacles that must be overcome to establish a corporate entrepreneurial environment?
Traditional management practices: And for standard procedures to avoid mistakes Plan for the long-term
In the strategic formulation school of thought, what are the four types of strategies involved with unique elements? Give an illustration of each.
Unique markets. Mountain versus mountain gap strategies, which refers to identifying major market segment as well as interstices market that arise from larger markets. Unique people. Great chef strategies, which refers to the skills or special talents of one or more individuals around whom the venture is built. Unique products. Better widget strategies, which refers to the innovations that encompass new or existing markets. Unique resources. Water wells strategies, which refers to the ability to gather or harness special resources (land, labor, capital, raw materials) over long term.
How would you describe sustainable entrepreneurship?
We define sustainability entrepreneurship as the process of recognising, developing and exploiting entrepreneurial opportunities that create economic, ecological, and social value.
What is the concept of entrepreneurial motivation and how has it been depicted?
Willingness to sustain that venture is directly related to entrepreneurs motivation
Is it true that most successful entrepreneurs have failed at some point in their business career? Explain.
Yes most entrepreneurs have experience failure but they use it as a learning experience and to better their mindset. Grief is a negative emotion response to the loss of something important triggering behavioral, psychological, and psychological symptoms.
What are the roles of middle managers in corporate entrepreneurship? Be specific.
middle managers endorse, refined, and shepherd entrepreneurial opportunities, and identify, secure, deploy resources needed to pursue those opportunities.
What are the forms of international alliances?
o Joint ventures and minority equity investments o agency
What are five useful rules for innovation?
• don't kill a project • tolerate failure • keep division small • motivate the champions • stay close to the customers
