Two Types of Entrepreneurial Goals

• To develop a business that meets the

financial needs of themselves and their
families (goal: maintenance of on-going
operations).
• To learn whether success can be
duplicated by business expansion
(goal: sustained business growth).

Hospitality Operations: Careers in the World’s Greatest Industry, 1/e 2005 Pearson Education, Inc.
J. D. Ninemeier and Joe Perdue Upper Saddle River, NJ 07458 OH- 33.1
 All About Intrapreneurs
• They have entrepreneurial talent but do
not want to start their own business.
• They work best in organizations that
give them responsibility for a defined
part of the business.
• Example: a general manager of one unit
in a multi-unit restaurant chain who
participates in a profit-sharing plan.

Hospitality Operations: Careers in the World’s Greatest Industry, 1/e 2005 Pearson Education, Inc. OH- 33.2
J. D. Ninemeier and Joe Perdue Upper Saddle River, NJ 07458
 A Recipe for the Entrepreneurial Process

Hospitality Operations: Careers in the World’s Greatest Industry, 1/e 2005 Pearson Education, Inc. OH- 33.3
J. D. Ninemeier and Joe Perdue Upper Saddle River, NJ 07458
 Business Plans Must Consider
Numerous Factors
• Characteristics and size of the potential market
• A market plan
• Production and service requirements
• How the new organization will be organized
• Financial (start-up and working capital)
requirements
• Mission, goals, and objectives for the new
business
• Background information about the origin of the
new business

Hospitality Operations: Careers in the World’s Greatest Industry, 1/e 2005 Pearson Education, Inc. OH- 33.4
J. D. Ninemeier and Joe Perdue Upper Saddle River, NJ 07458
 Still More Factors to Consider in
Business Plans
• Detailed listing of products and services to be
provided
• Background and qualifications of the proposed
management team
• Marketing strategy
• Design and development plans
• Operating plans
• Schedule of completion dates for major aspects of
the business plan
• Applicable risks, problems, and challenges that need
to be addressed and alternatives for addressing
them

Hospitality Operations: Careers in the World’s Greatest Industry, 1/e 2005 Pearson Education, Inc. OH- 33.5
J. D. Ninemeier and Joe Perdue Upper Saddle River, NJ 07458
 Entrepreneurial Risks

• Financial Risks
• Career Risks
• Personal Risks
• Psychological Risks

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J. D. Ninemeier and Joe Perdue Upper Saddle River, NJ 07458
 Entrepreneurial Rewards
• The possibility of financial success that
yields wealth not otherwise possible
• Personal and professional satisfaction
that comes from a sense of
achievement
• Community status
• Independence gained from being one’s
own boss
• Control over one’s life
Hospitality Operations: Careers in the World’s Greatest Industry, 1/e 2005 Pearson Education, Inc. OH- 33.7
J. D. Ninemeier and Joe Perdue Upper Saddle River, NJ 07458
 Reasons for New Business Failure

Hospitality Operations: Careers in the World’s Greatest Industry, 1/e 2005 Pearson Education, Inc. OH- 33.8
J. D. Ninemeier and Joe Perdue Upper Saddle River, NJ 07458
 Traits of Intrapreneurial Hospitality
Organizations
• They have a realistic vision that is widely
understood by and shared with their staff
members.
• They have recruited staff members with
entrepreneurial talents and abilities.
• They emphasize teamwork.
• They reward success and do not punish
persons for creative efforts to improve the
organization.

Hospitality Operations: Careers in the World’s Greatest Industry, 1/e 2005 Pearson Education, Inc. OH- 33.9
J. D. Ninemeier and Joe Perdue Upper Saddle River, NJ 07458
 What Do Intrapreneurs Do?
They:
• Dream or think about ideas that could improve the operation
• Obtain ideas from others
• Take ownership in ideas
• Know when they need to obtain approval
• Experiment with new ideas
• Look for short-term successes
• Understand the environment
• Encourage open discussion with their team members
• Build a coalition of support
• Recognize the importance of persistence
• Recognize the importance of the team
• Keep their boss informed

Hospitality Operations: Careers in the World’s Greatest Industry, 1/e 2005 Pearson Education, Inc.
J. D. Ninemeier and Joe Perdue Upper Saddle River, NJ 07458 OH- 33.10
 Putting It All Together: An Evolution in Management Style

Hospitality Operations: Careers in the World’s Greatest Industry, 1/e 2005 Pearson Education, Inc.
J. D. Ninemeier and Joe Perdue Upper Saddle River, NJ 07458 OH- 33.11