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ChapterChapter22

The Entrepreneurial and The Entrepreneurial and Intrapreneurial MindIntrapreneurial Mind

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Entrepreneurial ProcessEntrepreneurial Process

1)1) Identify/Evaluate OpportunityIdentify/Evaluate Opportunity

2)2) Develop Business PlanDevelop Business Plan

3)3) Determine Resources RequiredDetermine Resources Required

4)4) Manage The EnterpriseManage The Enterprise

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

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Opportunity AnalysisOpportunity Analysis

Market Need?Market Need?

Personal ObservationPersonal Observation

Underlying Social ConditionsUnderlying Social Conditions

Market Research DataMarket Research Data

Assess Competition- Patents?Assess Competition- Patents?

Where Money To Be MadeWhere Money To Be Made

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Decision MakingDecision MakingManager vs. EntrepreneurManager vs. Entrepreneur

Domain- Administrative vs. Domain- Administrative vs. EntrepreneurialEntrepreneurial

Strategic OrientationStrategic OrientationCommitment to OpportunityCommitment to OpportunityCommitment of ResourcesCommitment of ResourcesControl of ResourcesControl of ResourcesManagement StructureManagement Structure

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““Intrapreneurship”Intrapreneurship”

Instilling Instilling Entrepreneurial Entrepreneurial Spirit Within An Spirit Within An

Existing Existing Organization To Organization To

Innovate And Grow.Innovate And Grow.

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Organizational CultureOrganizational Culture

CorporateCorporateClimate/Reward Climate/Reward

System Favors System Favors ConservatismConservatism

Follow Follow Instructions, No Instructions, No InitiativeInitiative

Hierarchy Of Hierarchy Of AuthorityAuthority

IntrapreneurialIntrapreneurialDevelop Vision, Develop Vision,

Goals, & PlansGoals, & PlansSuggest, Try, Suggest, Try,

ExperimentExperimentFlat Organizational Flat Organizational

Structure- Structure- Networking & Networking & TeamworkTeamwork

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Cultural Norms/ValuesCultural Norms/Values

CorporateCorporate IntrapreneurialIntrapreneurialFragmentedFragmented WholeWholeInstructionInstruction VisionVisionControlledControlled In ControlIn Control

Outer-DirectedOuter-Directed Inner-DirectedInner-DirectedAlienationAlienation ResponsibilityResponsibility““Chores”Chores” Enthusiasm/MotivationEnthusiasm/Motivation

Defined LimitsDefined Limits Space/FreedomSpace/FreedomInterferenceInterference TrustTrust

DistrustDistrust Belief In PeopleBelief In PeopleExpendableExpendable ExpandableExpandable

Limiting PeopleLimiting People Growing PeopleGrowing People

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Interest In IntrapreneurshipInterest In Intrapreneurship

Rising Interest in “Doing Your Rising Interest in “Doing Your Own Thing”Own Thing”

CorporationCorporation Support To Retain Creative Support To Retain Creative

EmployeesEmployees Fund StartupsFund Startups

HypercompetitionHypercompetitionCorporate vs. Intrapreneurial Corporate vs. Intrapreneurial CultureCulture

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Intrapreneurial ActivitiesIntrapreneurial Activities

New Business VenturingNew Business Venturing

InnovationInnovation

Self-RenewalSelf-Renewal

ProactiveProactive

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Climate for IntrapreneurshipClimate for Intrapreneurship

• TechnologyTechnology• New Ideas New Ideas

EncouragedEncouraged• Trial/Error Trial/Error

EncouragedEncouraged• Failure AllowedFailure Allowed• No Opportunity No Opportunity

ParametersParameters• Resources Available Resources Available

& Accessible& Accessible

• Multidiscipline TeamsMultidiscipline Teams• Long Time HorizonLong Time Horizon• Volunteer ProgramVolunteer Program• Appropriate Reward Appropriate Reward

SystemSystem

• Sponsors/Champions Sponsors/Champions

AvailableAvailable• Support of Top Support of Top

ManagementManagement

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Intrapreneurial LeadersIntrapreneurial LeadersUnderstand EnvironmentUnderstand Environment

Have Vision/FlexibilityHave Vision/Flexibility

Create Management OptionsCreate Management Options

Encourage TeamworkEncourage Teamwork

Encourage Open DiscussionEncourage Open Discussion

Build CoalitionsBuild Coalitions

PersistPersist

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Establishing IntrapreneurshipEstablishing Intrapreneurship

Commitment of Top ManagementCommitment of Top ManagementIdentify Ideas/Areas Interested In Identify Ideas/Areas Interested In SupportingSupporting

Use Technology For FlexibilityUse Technology For FlexibilityManagers Share/Train EmployeesManagers Share/Train EmployeesGet Closer to CustomersGet Closer to CustomersBe More Productive With LessBe More Productive With Less

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EvaluatingEvaluating Intrapreneurship ProposalsIntrapreneurship Proposals

Corporate FitCorporate FitInitial Initial InvestmentInvestment

Experienced Experienced Venture Venture ChampionChampion

Experience With Experience With Product/ServiceProduct/Service

Competitive Competitive

ThreatThreat

Proprietary Proprietary

TechnologyTechnology

Gross MarginGross Margin

Rate Of ReturnRate Of Return

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Barriers ToBarriers To Intrapreneurship Intrapreneurship

Inherent Nature of Large Inherent Nature of Large OrganizationsOrganizations

No Long-Term CommitmentNo Long-Term CommitmentLack Of Autonomy For Decision Lack Of Autonomy For Decision MakingMaking

Lack of Intrapreneurial TalentLack of Intrapreneurial TalentInappropriate Compensation MethodsInappropriate Compensation MethodsConstrained EnvironmentConstrained Environment