strategic management final final

8/8/2019 STRATEGIC MANAGEMENT final final

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STRATEGIC MANAGEMENT

STRATEGIC ENTREPRENEURSHIP


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Group Members

NAME ROLL NO.

RIDDHI BHAYANI 04

AMOL CHANDORKAR 06

ISHANI DOSHI 15

HETA DUTIA 18

NISHANT SHINDE 54


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Objective

1. Define strategic entrepreneurship and corporate entrepreneurship.

2. Define entrepreneurship and entrepreneurial opportunities and explain their

importance.

3. Define invention, innovation, and imitation and describe the relationship among them.

4. Describe entrepreneurs and the entrepreneurial mind-set.

5. Explain international entrepreneurship and its importance.

6. Describe how firms internally develop innovations.

7. Explain how firms use cooperative strategies to innovate.

8. Describe how firms use acquisitions as a means of innovation.

9. Explain how strategic entrepreneurship helps firms create value.


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Agenda

Strategic Entrepreneurship

Entrepreneurial Opportunities

Innovation

Innovation Process

Importance of Innovation

Entrepreneurs

International Entrepreneurship

Internal Innovation

Internal Corporate Venturing

Implementing Internal Innovations

Innovation through Cooperative Strategies

Innovation through Acquisitions

Creating Value through Strategic Entrepreneurship


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Taking entrepreneurial actions using a strategic perspective.

Entrepreneurship dimension and the Strategic dimension of


Strategic Entrepreneurship actions can be taken by:

Individuals

Corporations


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Conditions in which new products or services can satisfy a

need in the market.

Entrepreneurs or entrepreneurial managers must be able to:

Identify opportunities not perceived by others.

Take actions to exploit the opportunities.

Establish a competitive advantage.


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Innovation

Innovation

exploiting new ideas leading to the creation ofa new product, process or service.

Function of Entrepreneurship


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Innovation Process

The act of creating or developing a

new product or process

Brings something new into being.

Technical criteria are used to determine

the success of an invention.

InventionInvention


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Innovation Process (contd)

The process of creating a commercial

product from an invention.

Brings something new into use.

Commercial criteria are used to

determine the success of an innovation.

InventionInvention

InnovationInnovation


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Innovation Process (contd)

The adoption of an innovation by

similar firms

Usually leads to product or process

standardization.

Products based on imitation often

are offered at lower prices but with

fewer features.

InventionInvention

InnovationInnovation

ImitationImitation


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Importance of Innovation

Often the source of competitive success.

Improved quality

Creation of new markets

Extension of the product range


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Entrepreneurs

EntrepreneursEntrepreneurs areare individuals,individuals, actingacting independentlyindependently oror asas part part ofof anan organization,organization,

whowho seesee anan entrepreneurialentrepreneurial opportunityopportunity andand thenthen taketake aa riskrisk toto developdevelop anan

innovationinnovation throughthrough entrepreneurialentrepreneurial opportunityopportunity..

EntrepreneursEntrepreneurs areare foundfound throughoutthroughout anan organizationorganization fromfrom toptop levellevel managersmanagers toto

thosethose workingworking toto produceproduce aa firmsfirms goodgood andand servicesservices..

EntrepreneursEntrepreneurs tendtend toto demonstratedemonstrate severalseveral characteristiccharacteristic

HighlyHighly motivatedmotivated

WillingWilling toto taketake responsibilityresponsibility forfor theirtheir projects,projects,

SelfSelf confidentconfident

ToTo bebe passionate passionate aboutabout theirtheir workwork

EmotionalEmotional aboutabout valuevalue

GiveGive importanceimportance ofof theirtheir innovationinnovation basedbased ideasideas

AbleAble toto dealdeal withwith uncertaintyuncertainty


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Entrepreneurs

Successful entrepreneurs should have an Entrepreneurial

mind-set.

Values uncertainty in the marketplace and seeks to

continuously identify opportunities.

Entrepreneur mind-set can be a source of competitive

advantage for a firm. Entrepreneur mind-set are fostered and supported when

knowledge is readily available throughout the firm.


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It is a process in which firms creatively discover and exploit

opportunities that are outside their domestic markets in order

to develop a competitive advantage.

Internationalization leads to improved firms performance

Internationalization exposes their firms to various risks:

UnstableUnstable foreignforeign currenciescurrencies

ProblemProblem withwith marketmarket efficiencyefficiency

InsufficientInsufficient infrastructureinfrastructure toto supportsupport businessbusiness

AndAnd limitationlimitation toto marketmarket sizesize


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ThereThere mustmust bebe aa balancebalance inin thethe cultureculture betweenbetween

individualindividual initiativeinitiative andand

thethe spiritspirit ofof cooperationcooperation andand groupgroup ownershipownership ofof innovationinnovation

SuccessfulSuccessful entrepreneurialentrepreneurial firmsfirms

provideprovide appropriateappropriate autonomyautonomy

incentivesincentives forfor individualindividual initiativeinitiative

promotepromote cooperationcooperation andand groupgroup ownershipownership ofof anan innovationinnovation


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Internal Innovation

In established organisation, most innovation come from efforts

in R & D.

Effective R & D often leads to firms filing for patents to protect

their innovative work.

Internal

innovation

Incremental

innovation

Radical

innovation


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Incremental and Radical Innovation

Incremental Innovation

Is the usual case for

innovation in organizations. Provides small increments

in current product lines.

Improves existing

knowledge and processes.

Can create value.

Radical Innovation

Is rare because of difficulty

and risk.

Provides significant

technological breakthroughs.

Creates new knowledge andprocesses.

Can create value.


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Internal developed incremental and radical innovations result from

deliberate efforts.These deliberate effort is called Internal

Corporate Venturing.

Which is the sets of activities firms use to develop internal inventions

and specially innovations.

Autonomous strategic behavior and induced strategic behavior

are the two types of internal corporate venturing.

Each venturing type facilitate incremental and radical innovations

Large number of radical innovation spring from Autonomous

strategic behavior

Greatest percentage of incremental innovation come from induced


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Internal Corporate Venturing:

Autonomous Strategic Behavior AutonomousAutonomous strategicstrategic behaviorbehavior isis aa bottombottom--

upup processprocess inin whichwhich productproduct championschampions::

pursue pursue newnew ideas,ideas, oftenoften throughthrough aa politicalpolitical

processprocess

developdevelop andand coordinatecoordinate thethe

commercializationcommercialization ofof aa newnew goodgood oror serviceservice

untiluntil itit achievesachieves successsuccess inin thethe marketplacemarketplace


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Autonomous Strategic Behavior

AA product product championchampion isis anan organizationalorganizational membermember withwith

anan entrepreneurialentrepreneurial visionvision ofof aa newnew goodgood oror serviceservice whowho

seeksseeks toto createcreate supportsupport forfor itsits commercializationcommercialization

AutonomousAutonomous strategicstrategic behaviorbehavior

based on a firms wellsprings of knowledge and

resources that are the sources of the firms innovation

a firms technological capabilities and competencies are

the basis for new products and processes


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Induced Strategic Behavior

InducedInduced strategicstrategic behavior behavior isis aa toptop--downdown processprocess

wherebywhereby::

thethe firmsfirms currentcurrent strategystrategy andand structurestructure fosterfoster

productproduct innovationsinnovations

innovationsinnovations areare associatedassociated closelyclosely withwith thatthat strategystrategy

andand structurestructure


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Implementing Internal Innovations

Having processes and structures in place

convert the innovations resulting from either

autonomous or induced strategic behavior

Effective integration of the various function involved

in innovation process


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Implementing Internal Innovations:

Cross Functional Product Development Teams

CrossCross FunctionalFunctional teamteam facilitatefacilitate effortsefforts toto integrateintegrate

activitiesactivities associatedassociated withwith differentdifferent organizationalorganizational

functionfunction..

EE..gg.. Design,Design, manufacturingmanufacturing andand marketingmarketing..

UsingUsing crosscross functionalfunctional teams,teams, product product developmentdevelopment

stagesstages areare groupedgrouped intointo parallel parallel oror overlappingoverlapping

process process toto allowallow thethe firmfirm toto tailortailor itsits productproduct

developmentdevelopment effortsefforts toto itsits uniqueunique corecore competenciescompetencies

andand needsneeds toto thethe marketmarket..


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Facilitating Integration and Innovation

Shared values and effective leadership are important

for achieving cross- functional integration and

implementing innovation.

Highly effective shared values are framed around the

firms vision and mission.

Strategic leadership is also highly important for

achieving cross functional integration and promoting

innovation.


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Creating Value Through Innovations


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Innovation through Cooperative

Strategies

FirmsFirms maymay needneed toto cooperatecooperate andand integrateintegrate knowledgeknowledge

andand resourcesresources toto successfullysuccessfully commercializecommercialize inventionsinventions

entrepreneurialentrepreneurial newnew ventureventure firmsfirms maymay needneed investmentinvestmentcapitalcapital andand distributiondistribution capabilitiescapabilities

moremore establishedestablished companiescompanies maymay needneed newnew technologicaltechnological

knowledgeknowledge possessedpossessed byby newernewer entrepreneurialentrepreneurial firmsfirms

ToTo innovateinnovate throughthrough aa cooperativecooperative relationship,relationship, firmsfirms

mustmust shareshare theirtheir knowledgeknowledge andand skillsskills


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Innovation through Acquisitions

Acquisitions

rapidly extend the product line

increase the firms revenues

A key risk of acquisitions is that a firm may

substitute the ability to buy innovations for an

ability to produce innovations internally

firm may lose intensity in R&D efforts

firm may lose ability to produce patents


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Creating Value through Strategic

Entrepreneurship

Be effective in identifying opportunities.

Be flexible and willing to take risks.

Have sufficient resources and capabilities to exploit identified

opportunities.

Sustain a competitive advantage while identifying and exploiting

opportunities.

Develop an entrepreneurial mind-set among managers and

employees.

Seek to enter and compete in international markets.


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strategic management final final

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