2.entre & intra mind

8/3/2019 2.Entre & Intra Mind

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Chapter 2

The Entrepreneurial andIntrapreneurial Mind


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1) Identify/Evaluate Opportunity

2) Develop Business Plan

3) Determine Resources Required

4) Manage The Enterprise


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Market Need?

Personal Observation

Underlying Social Conditions

Market Research Data Assess Competition- Patents?

Length of the opportunity

Real and perceived value

Risks and returns Its fit with the goals and skills of the entrepreneur

Source of capital to finance the initial venture


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A good business plan must be developed inorder to exploit the opportunity defined.

This plan is essential to developing theopportunity and in determining the resourcesrequired, obtaining those resources, and

successfully managing the venture.


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Content of a Business Plan

Title Page

Table of Contents

Executive Summary

Major Section Description of Business

Description of Industry

Technology Plan

Marketing Plan

Financial Plan Production Plan

Organizational Plan

Operational Plan

Summary

Appendixes (Exhibits)


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Assessing the resources needed starts withan appraisal of the entrepreneurs present

resources. Any resources that are critical need to be

differentiated from those that are justhelpful.

Care must be taken not to underestimate theamount and variety of resources needed.


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The entrepreneur must identify andimplement a

management structure, as well as a

proper control mechanism (MCS)for his enterprise.

He must develop management style

Understand Key Variable for success Identify problems and potential problems Develop growth strategy


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Strategic Orientation

Commitment to Opportunity

Commitment of Resources Control of Resources

Management Structure


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InstillingEntrepreneurialSpirit Within An

Existing

Organization ToInnovate And Grow.


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Interest in intrapreneurship has resulted fromevents occurring on social, cultural, and

business levels. There is an increasing interest among the

people in doing your own thing.

Individuals frequently desire to create somethingof their own.

They want responsibility and want more freedomin their work environment.


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Intrapreneurship is one method forstimulating and capitalizing on those who

think that something can be donedifferently and better, such as Google.

It is important to instill the entrepreneurial

spirit in an organization in order to innovateand grow, thus giving way to creativity andinnovation.


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Intrapreneurial endeavors consist of four keyelements.

1. New business venturingrefers to the creation of newbusiness within an existing organization.

2. Organizational innovativenessrefers to productand service innovation with an emphasis on development andinnovation in technology.

3. Self-renewalreflects the transformation of organizationsthrough the renewal of the key ideas on which they are built.4. Proactivenessincludes initiative and risk taking, as well as

competitive aggressiveness and boldness.


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Corporate Climate/Reward System

Favors Conservatism

Follow Instructions, NoInitiative Hierarchy Of Authority Risky decisions

postponed Multiple approvals

required Envt not conducive to

creativity

Intrapreneurial Develop Vision, Goals, &

Plans

Suggest, Try,Experiment Flat Organizational

Structure- Networking &Teamwork


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Corporate IntrapreneurialFragmented Whole

Instruction Vision

Controlled In ControlOuter-Directed Inner-Directed

Alienation Responsibility

Chores Enthusiasm/Motivation

Defined Limits Space/FreedomInterference Trust

Distrust Belief In PeopleExpendable(Nonessential) Expandable

Limiting People Growing People


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Rising Interest in Doing Your OwnThing

Corporation

Support To Retain Creative Employees Fund Startups

Hypercompetition

Corporate vs. Intrapreneurial Culture


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New Business Venturing

Innovation

Self-Renewal

Proactive


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Technology New Ideas Encouraged Trial/Error Encouraged

Failure Allowed No Opportunity

Parameters Resources Available &

Accessible

Multidiscipline Teams Long Time Horizon Volunteer Program

Appropriate RewardSystem

Sponsors/Champions

Available Support of Top

Management


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Understand Environment

Have Vision/Flexibility

Create Management Options Encourage Teamwork

Encourage Open Discussion

Build Coalitions of Supporters

Persist


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1. Commitment of Top Management2. Identify Ideas/Areas Interested In

Supporting

3. Use Technology For Flexibility4. Managers Share/Train Employees5. Get Closer to Customers

6. Be More Productive With Less Resources7. Establish a Strong Support Structure8. Attach rewards to the performance of the

intrapreneurial unit.


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Corporate FitInitial Investment

ExperiencedVenture ChampionExperience With

Product/Service

Competitive

Threat

Proprietary

Technology

Gross MarginRate Of Return


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Inherent Nature of Large Organizations No Long-Term Commitment Lack Of Autonomy For Decision Making

Lack of Intrapreneurial Talent Inappropriate Compensation Methods Constrained Environment

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