Home / Summaries / Corporate entrepreneurship & innovation / growth-crisis-stage

The entrepreneurial imperative in established organizations - Why companies lose their entrepreneurial way: the organizational life cycle

8 important questions on The entrepreneurial imperative in established organizations - Why companies lose their entrepreneurial way: the organizational life cycle

What are the stages of the organizational life cycle

start up and early growth,
growth through direction,
growth through delegation
growth through coordination
growth through collaboration

Describe the start up and early growth stage?

launching a new venture and innitial penetration of the market. make and sell, informal. crisis occurs because demand of more professional management and more formal structures

Describe the growth through direction stage?

managers put nescessary systems and structures in place. crisis developes for greater autonomy of lower level managers and employees. managers dont want to give up responsibility and control

Describe the growth through delegation stage?

delegation takes the form of creating semi-autonomous product divisions and strategic business units. these operations are given targets to achieve and have room to grow as they see suitable. crisis: management loses control over a highly diversifified field operation.

Describe the growth through coordination stage?

companies react to this loss of control by centralizing operations. head office staff is created. however, centalization over time tends to create bureaucracy, and a crisis of red tape eventually occurs. organizations became too large and complex to be managed through formal programs and rigid systems

Describe the growth throuhg collaboration stage?

it is hard to change a bureacucracy machine into a innovation factory, most companies get stuck here. the very nature of the firm has to be reinvented. companies must simplify structures and procedures, reduce head office staff, create matrix structures and encourage experimentation. it is likely a crisis related to the challenge of achieving sustainable entrepeurship will occur

What is the use for managers of the life cycle?

to be in a position to predict future challenges and thereby to prepare strategies before crisis arises

What is a great lesson of the life cycle

the entrepeneurial thinking is destroyed over time. a organization that was once very innovative tends to become a bureactric one over time

The question on the page originate from the summary of the following study material:

Corporate entrepreneurship & innovation | 9781111526917 | Jeffrey Covin, et al

View summary

A unique study and practice tool
Never study anything twice again
Get the grades you hope for
100% sure, 100% understanding

Remember faster, study better. Scientifically proven.

Topics that are related to The entrepreneurial imperative in established organizations - Why companies lose their entrepreneurial way: the organizational life cycle

The entrepreneurial imperative in established organizations

The entrepreneurial imperative in established organizations - Why companies lose their entrepreneurial way: the organizational life cycle

8 important questions on The entrepreneurial imperative in established organizations - Why companies lose their entrepreneurial way: the organizational life cycle

What are the stages of the organizational life cycle

Describe the start up and early growth stage?

Describe the growth through direction stage?

Describe the growth through delegation stage?

Describe the growth through coordination stage?

Describe the growth throuhg collaboration stage?

What is the use for managers of the life cycle?

What is a great lesson of the life cycle

Topics that are related to The entrepreneurial imperative in established organizations - Why companies lose their entrepreneurial way: the organizational life cycle

The entrepreneurial imperative in established organizations

Summaries related to The entrepreneurial imperative in established organizations

Corporate entrepreneurship & innovation

The Economics of Innovation An Introduction

Business analysis and valuation

Macroeconomics Institutions, Instability, an…

The economy

Artikelen

Indian Economics

Global politics

Essentials of international relations

Behavioral genetics

Management and organisational behaviour

Follow Up Engels idioom 4/5 H