Summary: Corporate Entrepreneurship

Read the summary and the most important questions on Corporate entrepreneurship

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• What are two definitions of corporate entrepreneurship?

  Kruatko: entrepreneurial behavior inside established mid-sized and large organizations
  
  Zahra: corporate entrepreneurship refers to formal and informal activities aimed at creating new business in established companies through product and process innovations and market developments

• What is total early-stage entrepreneurail activity (TEA)?

  People who are involved in setting up a business and owner-managers of new businesses

• Why is corporate entrepreneurship (almost) a mission impossible for established organizations?

  They have many resources and acces but also
  

  • short term vision
  • not flexible
  • do not give opportunites to employees --> too much risk 
    

• What are the main simmiliarities between individual and corporate entrepreneurship?

  • opportunity recognitions and defintion
  • ability to balance vision with mangerial skills
  • risk and risk management strategies

• What are the most important diferences between independent entrepreneurship and corporate entrepreneurship?

  • risk for independent is high, corporate low
  • independent has ownership, corporate not
  • financial rewards for independent is a lot higher
  • independent has more independence
  • independent has more flexibilty
  • independent has less access to resources

  
  
  Very important = organizational politics!!

• What is a big factor in corporate entrepreneurship?

  Organizational politics
  • People in organizations differ in terms of their needs, objectives, values and capabilities
  • Plays a big role in the success or failure of any entrepreneurial initiative within a company 
  
  Organizational politics is one of the main reasons why corporate entrepreneurs leave the company • Unequal distribution of available opportunities within the organization

• What is the difference between the external- and the internal environment

  • External: everything outside the customer, e.g. customar, technological, economic environments
    
  • internal: the structures, systems, processes, and culture that make up the climate within which people do the work of a company

• What important lessons can be learnt from the increased challenge from the fast paced changes

  Resources become specialized and less predictable --> so companies make short term commitments. they rely more on resourcing, leasing and leveraring of resources. 
  the pace of technological change with fragmentations of markets forces companies to develop quickly
  
  

  • turbulence in the external environment is causing transformation in the internal operations of companies
  • there are no simple formulas for succes in the new competitive environment
  • upside to external enviornments that turn more complex, dynamic and hostile: turbulence also means opportunity.   
    

• What is the aim of a company?

  Sustainable competitive advantage
  
  Sustainable:
  

  • constant reduction of costs
  • improvement of quality

  
  Competitive advantage
  

  • requires companies and managers within them to continually reinvent themselves

  
  Advantages derives from 5 key capabilities
  

  1. adaptability: ability to adjust   
     
  2. flexibility: ability to evolve
  3. speed: ability to act on opportunities
  4. aggressiveness: proactive approach
  5. innovativeness: priority of development and launch

  
  
  --> comes down to entrepreneurship

• What is the difference between management and entrepreneurship

  • management is the process of setting objectives and coordinating resources in order to obtain those objectives

  
  -  managers are charged with efficient and effective utalization fo the resources under their control, while the entrepreneur is preoccupied not with what is, but wtih what can be. 
  - Balance shoudl be achieved between disciplined management and entrepreneurship.
  

  • disciplined management requires focus, attention to mangement principles and vlaues and accountability
  • entrepreneurship requires vision, willingnes to take risk, and a focus on creating the future.
  • achieving the balance suggests that managers must become entrepreneurs.