Entrepreneurship

Re-engineering Corporate Thinking (Innovation)

• Set explicit goals
• Create a system of feedback
• Emphasize individual responsibilities
• Give reward based on results
• Do not punish failure

Corporate Entrepreneurship Process

• Strategic Renewal
• Innovation
• Corporate Venturing

Steps of corporate entrepreneurial strategy

• Develop vision
• Encourage innovation
• Structuring for an intrapreneurial climate
• Developing managers
• Developing venture teams

Qualities of opportunities

• Attractive
• Timely
• Durable
• Value addition

Ways to identify opportunity

• Observing trends
• Economic
• Social
• Technological
• Political
• Solving problems
• Finding gaps

Recognizing opportunities

• Experience
• Cognitive factors
• Social networks
• Creativity

Generating Creative Ideas

• Preparation
• Incubation
• Insight
• Evaluation
• Elaboration

Importance of business model

• ongoing extension of feasibility analysis
• how all elements fit together
• why network of business participants wiling to work together
• articulates company's core logic

Components of an effective business model

• Core strategy
• Business mission
• Product/market scope
• Differentiation
• Strategic resources
• Core competencies
• Strategic Assets
• Partnership network
• Suppliers
• Partners
• Other key relationships
• Customer interface
• Target customer
• Fulfillment and support
• Pricing structure

Venture Team

• Founders
• Key employees
• BOD
• Management team
• Board of advisers
• Lenders and investors
• Other professionals

Industry Analysis

• Environmental trends
• Economic
• Social
• Technological
• Political
• Regulatory
• Porters Five Competitive Forces Model
• Threat of new entrants
• Rivalry among existing firms
• Threat of substitutes
• Bargaining power of suppliers
• Bargaining power of buyers

Competitor Analysis - Sources of competitive intelligence

• trade shows
• purchase competitor product
• competitors' website
• email alerts
• industry related news
• talk to customers

Internal growth strategies

• new product development
• other product related strategies
• international expansion

Advantage	Disadvantage
Incremental growth	Slow growth
Maximum control	Develop new resources
Preserve org culture	Failure difficult to recoup
Encourage intrapreneurship	Industry capacity
Promote from within

External growth strategies

• mergers and acquisition
• licensing
• franchising
• strategic alliance and JV

Advantage	Disadvantage
Reduce competition	Management incompatible
Access to proprietary products	Clash of culture
Access to new products	Operational problems
Access to new market	Business complexity
Access to established brand	Loss of flexibility
Economies of scale	Antitrust implication
Diversification of risk

Venture capitalist's evaluation process

• Initial screening
• Evaluation of business plan
• Oral presentation
• Final evaluation

Bankers' Anagram

• Character
• Ability
• Management
• Purpose
• Amount
• Repayment
• Insurance