Chapter 2 The Entrepreneurial and Intrapreneurial Mind 2

Chapter 2 The Entrepreneurial and Intrapreneurial Mind 2 -1

Entrepreneurial Process 1) Identify/Evaluate Opportunity 2) Develop Business Plan 3) Determine Resources Required 4) Manage The Enterprise 2 -2

Opportunity Analysis ùMarket Need? ùPersonal Observation ùUnderlying Social Conditions ùMarket Research Data ùAssess Competition- Patents? ùWhere Money To Be Made 2 -3

Decision Making Manager vs. Entrepreneur ùDomain- Administrative vs. Entrepreneurial ùStrategic Orientation ùCommitment to Opportunity ùCommitment of Resources ùControl of Resources ùManagement Structure 2 -4

“Intrapreneurship” Instilling Entrepreneurial Spirit Within An Existing Organization To Innovate And Grow. 2 -5

Organizational Culture Corporate Intrapreneurial üClimate/Reward System Favors Conservatism üFollow Instructions, No Initiative üHierarchy Of Authority üDevelop Vision, Goals, & Plans üSuggest, Try, Experiment üFlat Organizational Structure. Networking & Teamwork 2 -6

Cultural Norms/Values Corporate Intrapreneurial Fragmented Instruction Controlled Outer-Directed Alienation “Chores” Defined Limits Interference Distrust Expendable Limiting People Whole Vision In Control Inner-Directed Responsibility Enthusiasm/Motivation Space/Freedom Trust Belief In People Expandable Growing People 2 -7

Interest In Intrapreneurship ùRising Interest in “Doing Your Own Thing” ùCorporation ù Support To Retain Creative Employees ù Fund Startups ùHypercompetition ùCorporate vs. Intrapreneurial Culture 2 -8

Intrapreneurial Activities ùNew Business Venturing ùInnovation ùSelf-Renewal ùProactive 2 -9

Climate for Intrapreneurship • Technology • New Ideas Encouraged • Trial/Error Encouraged • Failure Allowed • No Opportunity Parameters • Resources Available & Accessible • Multidiscipline Teams • Long Time Horizon • Volunteer Program • Appropriate Reward System • Sponsors/Champions Available • Support of Top Management 2 -10

Intrapreneurial Leaders ù Understand Environment ù Have Vision/Flexibility ù Create Management Options ù Encourage Teamwork ù Encourage Open Discussion ù Build Coalitions ù Persist 2 -11

Establishing Intrapreneurship ùCommitment of Top Management ùIdentify Ideas/Areas Interested In Supporting ùUse Technology For Flexibility ùManagers Share/Train Employees ùGet Closer to Customers ùBe More Productive With Less 2 -12

Evaluating Intrapreneurship Proposals ØCorporate Fit ØInitial Investment ØExperienced Venture Champion ØExperience With Product/Service ØCompetitive Threat ØProprietary Technology ØGross Margin ØRate Of Return 2 -13

Barriers To Intrapreneurship ùInherent Nature of Large Organizations ùNo Long-Term Commitment ùLack Of Autonomy For Decision Making ùLack of Intrapreneurial Talent ùInappropriate Compensation Methods ùConstrained Environment 2 -14