 To explain the aspects of the entrepreneurial

process
 To explain the differences between the
entrepreneurial and managerial domains
 To explain the organizational environment
conducive for intrapreneurship
 To identify the general characteristics of an
intrapreneur
 To explain the process of establishing
intrapreneurship in an organization
 An American pharmaceuticals magnate(A wealthy and influential person,
esp. in business), philanthropist, and Major League baseball owner
pharmaceutical company
 Bedridden(confined to bed due to illness)for a year at age 11, read many
books.
 Door-to-Door sales(eggs and fish) in early childhood.
 Worked as laundry delivery person during youth and was boy scout.
 Upon graduation full time laundry.
 He was managing 18 to 20 route drivers as route foreman, setting up sales
contest among drivers to catch more customers.
 Sales ability useful in navy, got higher ranks due to his previous experience as
sea scout and extensive reading gave him edge in signalman.
 Kauffman worked as a pharmaceutical salesman until 1950
 In 1950, Formed Marion Laboratories with a $5,000 investment, operating it
initially out of the basement of his home.
 He counted on doctors whom he had built links with for company.
 Marion labs started by marketing injectable products manufactured by other
company.
Ewing Marion Kauffman

 Company expanded by extending its production line by loans.

 Marion labs grew with million dollar of sales and due to work relationships of
company people called associates (partners & stockholders), sharing profits.
 Marion Labs merged with Merril Dow in 1989, later merged with european
Pharmaceutical Company “Hoechst”, Hoechst Marion Roussel became world
leader in pharmaceutical based health care involved in discovery, development and
manufacture and sale of pharmaceutical products.
 In 1999 Company was merged with Aventis Pharma, in 2002 sales reached in
billions of dollars
 Ewing Kauffman’s curiosity about the world, his attention to detail, and his own life
experiences formed the basis for his philanthropy. He established the Ewing Marion
Kauffman Foundation In 1966.
 Ewing Kauffman was the prototypical (original) entrepreneur, who started with few
resources, grew his firm into a multibillion-dollar company over four decades, and
did so in an ethical and compassionate manner. He experienced first hand the
rewards of education and entrepreneurship for himself, his family, his work
associates, and his community. He believed philanthropy(desire to promote welfare
of others) could and should promote entrepreneurship and education as means to
improve lives.
 People in the company were called associates,
not employees- offered a profit sharing plan

 Mr. K, philosophies rewarding those who

produce & allowing decision making through
out the ORG- concepts what is now called
intrapreneurship in a company
 Like Mr. K, many other entrepreneurs and future
entrepreneurs frequently ask themselves

 “Am I really an entrepreneur or an intrapreneur?

 “Do I have what it takes to be a success?
 “Do I have sufficient background & experience to
start & manage new venture?”
 Fact is that more new business ventures fails
than succeed
 To be successful entrepreneurs require more

than just hard work & luck

Hard, honest assessment

One’s own strength &
Of viability of the prospective
weakness
Business
 The process through which new venture is created
by an entrepreneur
Process is more than just problem solving in typical management position, “E”
must find, evaluate and develop an opportunity by overcoming forces that
resist the creation of something new.
Four Distinct Phases:
1. Identification & evaluation of the opportunity
2. Development of the business plan
3. Determination of the required resources
4. Management of the resulting enterprise
• The process by which an entrepreneur comes up with the
opportunity for a new venture
• Difficult task, as good business opportunities don’t appear
suddenly.
• Results from entrepreneurs alertness to possibilities or the
establishment of mechanisms that identify potential
opportunities.
• One entrepreneur constantly looking for a need &
opportunity to create a better product.( Asking at every
cocktail party if anyone is using product that doesn’t fulfill
its purpose)
• Another monitors play habits & toys of her niece- looking
for unique toy product niche
 Consumers & business associates
• best sources of ideas for a new venture
• “if only there was a product that would….”this comment can result in
creation of new business.
•“E” evaluation why business executives complaining about technical writing
& word processing resulted in the creation of new business

 Member of the distribution system

•Close contact with the end user, channel members see product needs
•Entrepreneurs identified business opportunities through discussion with a
retailer, wholesaler & manufacturers representatives
• started bookstores- lack of service & high cost books with only bookstore on
campus

 Technical people ?
 Technical people : Conceptualize business
opportunities when working on other
projects.
 Each opportunity must be screened and evaluated– critical element of
Entrepreneurial process—it allows the entrepreneur to assess whether the
specific product or service has the returns needed for the resources
required
 Evaluation process involves:
 length of opportunity
 Perceived and real value
 Risks and returns
▪ The market size and the length of window of opportunity (time period available for
creating the new venture) is basis for determining risks and rewards.
▪ Risks involve market, technology, competition and amount of capital(basis for return
and rewards).
 fit with the personal skills and goals of the entrepreneur.
▪ “E” must put necessary time and effort for venture to succeed. He must believe in opportunity so
much that he/ she make sacrifices to develop opportunity and manage the enterprise.
 Differential advantage in its competitive environment.
 Opportunity analysis called opportunity assessment plan is a method for
evaluating opportunity. It is not a business plan.
 Compared to BP it should be shorter, focus on opportunity, and provide basis for
deciding whether to act on opportunity or not.

 Opportunity assessment plan includes:

 Description of product
 Assessment of opportunity
 Assessment of entrepreneur and team
 Specification of all activities and resources needed to translate
opportunity into viable business venture
 Source of capital to finance initial venture and its growth.