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Hisrich - Entrepreneurship-Chap2 - PPT-WITH VOICE OVER-PROFJOMAR
Hisrich - Entrepreneurship-Chap2 - PPT-WITH VOICE OVER-PROFJOMAR
The Entrepreneurial
Perspective
Chapter 2
Corporate Entrepreneurship
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LEARNING OBJECTIVES
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Strategic Orientation and Commitment to Opportunity
Both entrepreneurship and strategy have important implications
for the performance of the firm.
Strategic orientation are those factors that are inputs into the
formulation of the firm’s strategy.
• Entrepreneurial management is driven by opportunity, not resources.
• Resources do not constrain entrepreneurially managed firms.
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Commitment of Resources and Control of Resources
An entrepreneurial orientation toward the commitment of
resources minimizes resources needed to pursue an opportunity.
• Traditionally managed firms commit resources on a large scale.
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Management Structure and Reward Philosophy
An entrepreneurial orientation toward management structure is
organic with few layers and many communication channels.
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Growth Orientation and Entrepreneurial Culture
A firm with an entrepreneurial orientation toward growth has a
strong desire to expand the firm, rapidly.
• Traditionally managed firms prefer growth to be slow and steady.
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Characteristics of an Entrepreneurial Environment
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Leadership Characteristics of Corporate Entrepreneurs
A corporate entrepreneur
understands the environment.
Corporate entrepreneurs
They must be a visionary encourage open discussion.
leader – a person dreaming
great dreams. Openness leads to a strong
coalition of supporters.
They must be flexible and
create management options. A corporate entrepreneur
must be persistent to make a
They encourage teamwork, new venture successful.
using a multi-disciplined
approach.
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Establishing Corporate Entrepreneurship
The first step is to secure top Sixth, learn to be more
management commitment. productive with fewer
resources.
Second, identify areas of
interest and money available. Seventh, establish a strong
support structure.
Third, use technology to make
the company more flexible. Eighth, tie rewards to
performance of the
Fourth, interested managers entrepreneurial unit.
will train employees.
Finally, allow successful units
Fifth, develop ways to get to expand and unsuccessful
closer to customers. ones to be eliminated.
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Problems and Successful Efforts
One study found new ventures started within a corporation
performed worse than those started independently.
• Reasons included the corporation’s lack of long-term commitment, a
lack of freedom to make decisions, and a constrained environment.
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Learning From Failure
Sometimes initiatives fail to achieve their objectives and are
terminated.
• This represents an opportunity to learn and avoid the same mistakes
in the future.
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Practical Implications of the Dual Process
Knowledge that the feelings of loss are normal may reduce
feelings of shame and embarrassment.
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