Answer to the question no: 1

Internal Environment
Each business organization has an internal environment, which includes all the elements within
the organization's boundaries. Strictly speaking they are part of the organization itself. The major
components of the internal environment are:
a. Employees
b. Shareholders and Board of Directors
c. Culture

External Environment
According to James Stoner, External environment can be defined as all elements outside an
organization that are relevant to its operation. External environment refers to everything outside
the company which includes:
Technological, Economic, Competitive, Labor, Resource, Customer, Legal, Regulatory, Global,
Customer, Social, Supplier

Answer to the question no: 2

The most common key words found in the definition of entrepreneurship:

Starting / Founding / Creating
New Business / New Venture
Innovation / New Products / New Market
Pursuit of Opportunity
Risk-taking / Risk Management / uncertainty Profit-seeking / Personal Benefit
 Answer to the question no: 3

Greiner’s 5 stages of a company’s evolution

1.Creativity – During start up and Early growth
2.Direction – Growth through Direction
3.Delegation – Growth through Delegation
4.Coordination – Growth through Coordination
5.Collaboration – Growth through Collaboration

Answer to the question no: 4

Steps in the Entrepreneurial Process – 6 Steps in Entrepreneurial Process

1. Deciding to Become an Entrepreneur:

It refers to the first step of the entrepreneurial process in which an individual decides to start
his/her own enterprise.
2. Identifying and Evaluating the Opportunity:
It refers to the second stage of the entrepreneurial process. In this process, the entrepreneur
recognizes potential opportunities. Sometimes, the set mechanisms, such as entrepreneurship
development training programs and government policies to promote entrepreneurs, help potential
entrepreneurs in identifying the opportunities.
3. Developing a Business Plan:
This step involves developing a successful business plan to exploit the identified opportunity.
Developing a business plan involves setting goals, standards, methods, and techniques of
achieving those set goals. A well drafted business plan serves as a road map to the entrepreneur
to guide and monitor his/her activities towards the set goals.
4. Determining the Required Resources:
It involves determining the resources required to meet the identified opportunity. In this step, the
entrepreneur assesses the available resources and the resources that are essential to convert the
identified opportunity into a reality. The entrepreneur needs to be careful while determining the
amount and quality of resources required as insufficient or inappropriate resources can hamper
the success of the opportunity. Next, he/she needs to acquire the resources required in a timely
manner, while focusing on right quality and quantity.
5. Converting the Idea to an Enterprise:
It refers to the most important step of the entrepreneurial process in which the entrepreneur
develops his/her own enterprise to execute the identified opportunity. In this step, the
entrepreneur brings the set business plan into practice. He/she arranges the resources that are
identified in the previous step. Moreover, he/she takes into consideration all internal and external
environmental forces, while developing the enterprise.
6. Managing and Growing the Enterprise:
It refers to the final stage of the entrepreneurial process. Once the resources are acquired, the
entrepreneur uses them efficiently to carry out the business plan successfully. He/she also strives
to identify and examine operational problems, and solve them.

Answer to the question no: 7

Innovativeness as it Applies to Products and Services

 Cost Reductions for Existing Products/Services
 Re-positioning of Existing Products/Services
 New Applications for Existing Products/Services
 Product Improvements/Revisions
 Additions to Product/Service Lines
 New Product/Service Lines in a Company
 New to the Market Products/Services
 New to the World Products/Services
 Answer to the question no: 8

Modes of Corporate Venturing

Internal corporate venturing – new businesses created and owned by the corporation
Cooperative corporate venturing – new businesses are created and owned by the corporation
together with one or more external development partners
External corporate venturing – new businesses are created by parties outside the corporation
and subsequently invested in or acquired by the corporation

Answer to the question no: 9

Steve Jobs said once that his model for business was The Beatles: “They were four guys who
kept each other’s kind of negative tendencies in check. They balanced each other, and the total
was greater than the sum of the parts” (60 Minutes, CBS, 2003). This is also the idea behind
Corporate Venturing, great things happen when different companies collaborate, in this case
established corporations and startups/entrepreneurs.
At the roots of this collaboration is the broad concept of “Open Innovation”, coined by author
Chesbrough. He described it in the first place as “a paradigm that assumes that firms can and
should use external ideas as well as internal ideas, and internal and external paths to market, as
they look to advance their technology,” (Chesbrough, 2003).
Years later, he redefined it as “the use of purposive inflows and outflows of knowledge to
accelerate internal innovation, and expand the markets for external use of innovation,
respectively” (Chesbrough, 2006).
Between the first and the second definition passed only three years, a sign of the speed of the
changes in this field.
Certainly, we live in extraordinary times for entrepreneurship and corporate venturing, which are
on the upsurge globally. Startups have seen opportunities arise and the entrepreneurial ecosystem
has flourished in different countries.
At the same time, some corporations have learnt to build bridges with startups through Corporate
Venturing as a route to become more innovative and overcome their challenges in achieving
profitable growth. They did not want to let their inner inertia define them and came to the
conclusion that collaborating with startups could be a good idea.
So what is Corporate Venturing exactly? We can say it is a part of a firm’s global innovation
strategy consisting on a formula in which the corporation collaborates with startups through a
wide range of tools and models that can give both sides incredible possibilities and results.

Answer to the question no: 10

10 Dilemmas of Innovation
 Not all entrepreneurs are innovators, and not all innovators are entrepreneurs, but
successful entrepreneurship tends to involve continued innovation (in products, services
and processes/methods).
 Innovation is about the unknown. Management is about control. How do you control the
unknown?
 Innovation is often about breaking the rules. People who break rules don’t last long in
organizations.
 Successful innovation tends to occur when there are constraints, routines and deadlines.
There is a need for both freedom and discipline, and the issue is one of balance.
 Failure is likely if the firm does not innovate. But the more the firm innovates, the more
it fails.
 Innovation requires supporting infrastructure to be successful, and the existing
infrastructure is often inadequate. However, these infrastructure needs may not become
apparent until after the innovation is developed.
 While innovation is more technically complex and costly today, many breakthrough
innovations do not come from large companies or corporate R&D labs with sizeable
budgets, but from individual inventors and entrepreneurs.
 People who design innovations typically seek to perfect their new product or service,
making it the best possible. But the marketplace often wants it to be “good enough,” not
 perfect. The additional time and money necessary to make the innovation “best possible”
drive up prices beyond what the customer will pay, and result in missed opportunity.
 Technology-driven innovation often leads to dramatic new products that prove to be
“better mousetraps” nobody wants. Customer-driven innovation often leads to minor
modifications to existing products or “me-too” products meeting a competitive brick
wall.
 While typically associated with genius or brilliance, innovation is more often a function
of persistence.

CASE STUDY
Answer to the question no: 1

Starbucks uses a product differentiation strategy to set itself apart from others by offering a
unique experience of high-end specialty coffees and beverages, friendly and knowledgeable
servers, and customer-friendly coffee shops.

It uses its information systems and Wi-Fi networks to enable it to offer new services to
customers like the Smartphone apps that allow customers to pay with their phones. The card is
coupled with the Starbucks Card system which allows regular customers to pay with a pre-paid
and rechargeable card. Customers like paying with the app saying that it's much faster.

The company has made a concerted effort to become more efficient, reduce waste, and use the
time saved to provide better customer service. It improved the way baristas make and serve
coffee. The company can make more drinks with the same number of workers or with fewer
workers. Baristas can also use the extra time to interact with customers.

Starbucks uses a product

differentiation strategy to set
itself apart from others by
offering
a unique experience of high-
end specialty coffees and
beverages, friendly and
knowledgeable servers, and
customer-friendly coffee shops.
It uses its information systems
and Wi-Fi networks to enable it
to offer new services to
customers like the smartphone
apps that allow customers to
pay with their phones. The
card is coupled with the
Starbucks Card system which
allows regular customers to
pay
with a pre-paid and
rechargeable card. Customers
like paying with the app saying
that it’s
much faster.
The company has made a
concerted effort to become
more efficient, reduce waste,
and
use the time saved to provide
better customer service. It
improved the way baristas make
and serve coffee. The company
can make more drinks with the
same number of workers
or with fewer workers. Baristas
can also use the extra time to
interact with customers.
It has enhanced it core
competencies and strategic
competitiveness by offering free
Wi-Fi
services to customers. It’s also
used that same network to
improve the way its managers
Starbucks uses a product
differentiation strategy to set
itself apart from others by
offering
a unique experience of high-
end specialty coffees and
beverages, friendly and
knowledgeable servers, and
customer-friendly coffee shops.
It uses its information systems
and Wi-Fi networks to enable it
to offer new services to
customers like the smartphone
apps that allow customers to
pay with their phones. The
card is coupled with the
Starbucks Card system which
allows regular customers to
pay
with a pre-paid and
rechargeable card. Customers
like paying with the app saying
that it’s
much faster.
The company has made a
concerted effort to become
more efficient, reduce waste,
and
use the time saved to provide
better customer service. It
improved the way baristas make
and serve coffee. The company
can make more drinks with the
same number of workers
or with fewer workers. Baristas
can also use the extra time to
interact with customers.
It has enhanced it core
competencies and strategic
competitiveness by offering free
Wi-Fi
services to customers. It’s also
used that same network to
improve the way its managers
Starbucks uses a product
differentiation strategy to set
itself apart from others by
offering
a unique experience of high-
end specialty coffees and
beverages, friendly and
knowledgeable servers, and
customer-friendly coffee shops.
It uses its information systems
and Wi-Fi networks to enable it
to offer new services to
customers like the smartphone
apps that allow customers to
pay with their phones. The
card is coupled with the
Starbucks Card system which
allows regular customers to
pay
with a pre-paid and
rechargeable card. Customers
like paying with the app saying
that it’s
much faster.
The company has made a
concerted effort to become
more efficient, reduce waste,
and
use the time saved to provide
better customer service. It
improved the way baristas make
and serve coffee. The company
can make more drinks with the
same number of workers
or with fewer workers. Baristas
can also use the extra time to
interact with customers.
It has enhanced it core
competencies and strategic
competitiveness by offering free
Wi-Fi
services to customers. It’s also
used that same network to
improve the way its managers
The company has made a
concerted effort to become
more efficient, reduce waste,
and
use the time saved to provide
better customer service. It
improved the way baristas make
and serve coffee.
The company has made a
concerted effort to become
more efficient, reduce waste,
and
use the time saved to provide
better customer service. It
improved the way baristas make
and serve coffee.
It has enhanced it core competencies and strategic competitiveness by offering flee Wi-Fi
services to customers. It's also used that same network to improve the way its managers oversee
their stores.

Answer to the question no: 2

Starbucks business strategy is product differentiation. It offers a unique experience of high-end

specialty coffees and beverages, friendly and knowledgeable servers, and customer-friendly
coffee shops. The company revamped its in-store technology and sought to integrate its business
processes with wireless technology and the mobile digital platform. Its strategy emphasizes the
high quality of its beverages and efficient and helpful customer service.
Technology gives the company the edge by allowing it to offer customers free Wi-Fi service in
all its stores. That keeps customers in the store, hopefully purchasing additional products.

Answer to the question no: 3

Starbucks launched what it calls the "Starbucks Digital Network: -z a portal designed specifically
for mobile devices as opposed to traditional Web browsers. The site is optimized for all major
Smartphone operating systems and responds to the multi-touch capability of devices like the
iPad.
The site functions as a content portal where customers can receive flee Wall Street Journal
access, select free iTunes downloads, and other content. The site is integrated with Foursquare
giving users the ability to check in and receive award points using Starbucks site.
Without the use of technology, Starbucks would have been unable to launch the Starbucks
Digital Network and the use of paying via Starbucks apps on smart phones. Besides that, the
newer in store technology helped baristas reduce the time of making drinks, improve customer
service and speed of service, allow Starbucks to generate higher level of revenue.