Week 1 - Corporate Entrepreneurship.pptx

Corporate Entrepreneurship.pptx

1. Corporate Entrepreneurship MGT512

2. Module aims and objectives Equip learners with required skills to develop new ideas Create viable new businesses while harnessing competitive advantage This module focuses on highlighting 1. The importance of corporate strategy 2. Innovation through the development of an internal culture of innovation, processes for reviewing ideas and for developing business concepts,

3. Learning outcomes Develop sound understanding corporate entrepreneurship and its similarities and difference with start-up entrepreneurship. Understand the challenges and opportunities corporate entrepreneurship Understand the challenges the factors affecting the corporate entrepreneurship Be able to create conducive environment for corporate entrepreneurship

4. Assessments: Summative assessment 1 : 50 % Summative assessment 2 : 50 %

5. What is entrepreneurship? An entrepreneur, as defined by Robert E. Nelson (2020), is  a person who is able to look at environment, identify opportunities to improve the environment, marshal resources and implement action to maximize those opportunities . Peter F. Drucker states that an entrepreneur is the one a person who organizes and manages a business undertaking, assuming the risk for the sake of profit . He further states that innovation is the specific tool of entrepreneur, the means by which he exploits change as an opportunity for a different business or services.

6. Characteristics of an entrepreneur Risk taker Self motivated Master of interpersonal relations- good relationship with clients, investors and employees Must be a strong competitor –prepared for every challenge to achieve success Strategic thinking- thinking of long-term success and vision Flexible to change Strong work ethics to work in corporates- abide under rules and regulations

7. Behavioural attributes of an Entrepreneur I nitiative taking Organizing and reorganizing of social and economic mechanisms to turn resources and situations to practical account Acceptance of risk or failure

8. Independent Vs Corporate Entrepreneurship Independent entrepreneurship is the process whereby an individual or group of individuals acting independently, create a new organization. Corporate entrepreneurship is the process whereby an individual or a group of individuals, in association with an existing organisation, create a new organization or instigate renewal or innovation within that organization.

9. INTRODUCTION Most established companies find it hard to maintain the initial entrepreneurial spirit that helped them to make it through during the start- up stage. They need further entrepreneurial activities; To grow To attain competitive advantage To keep up talent employees etc.

10. Corporate entrepreneurship, which is often referred to as intrapreneurship or corporate venturing, is the process by which individuals inside organizations pursue opportunities independent of the resources they currently control; this involves doing new things and departing from the customary to pursue opportunities. What is corporate entrepreneurship?

11. Corporate entrepreneurship C orporate entrepreneurship encompasses two major phenomena: new venture creation within existing organizations and the transformation of organizations through strategic renewal. S trategic renewal involves formal or informal activities aimed at creating new businesses or processes in established companies at the corporate, division (business), functional, or project levels. The ultimate aim of the renewal is to improve a company’s competitive position and financial performance.  Renewal is achieved through the redefinition of an organization’s mission through the creative redeployment of resources, leading to new combinations of products and technologies. Corporate entrepreneurship in terms of renewal emphasizes strategy reformulation, reorganization, and organizational change.

12. Different Views of Corporate Entrepreneurship New business creation by individual entrepreneurs, view corporate entrepreneurship as a concept that is limited to new venture creation within existing organisations (Burgelman, 1984) The struggle of large firms to renew themselves by carrying out new combinations of resources that alter the relationships between them and their environments (Baumol, 1986; Burgelman, 1983). The process of creating new business within established firms to improve organisational profitability and enhance a firm’s competitive position or the strategic renewal of existing business (Zahara 1991)

13. Why the Need for Corporate Entrepreneur? (5Mins)

14. Why the Need for Corporate Entrepreneur? Rapid growth in the number of new and sophisticated competitors Sense of distrust in the traditional methods of corporate management An exodus of some of the best and brightest people from corporations to become small business entrepreneurs International competition Downsizing of major corporations An overall desire to improve efficiency and productivity

15. NEED FOR CHANGE The challenge facing organizations today is recognizing the creativity and innovative capability of its internal members and allowing these individuals to have the power to utilize their potential. Changing customer’s demand Competition Change in economy

16. Private Entrepreneur versus Corporate Entrepreneur

17. Ingredients for a successful corporate entrepreneurship Decentralisation Risk taking Formal processes Open communication

18. Private Entrepreneur V/S Corporate Entrepreneur

19. ENTREPRENEUR V/S MANAGER

20. INTERNAL FACTORS INFLUENCING CORPORATE ENTREPRENEURSHIP?

21. INTERNAL FACTORS INFLUENCING CORPORATE ENTREPRENEURSHIP Compensation and Incentive System Organization Culture Top Management Support Organizational Structure Resource Availability Organization Policies Risk Taking and Failure Tolerance

22. The Entrepreneurial Process The entrepreneurial process has four (4) distinct phases: (1) Identification and evaluation of the opportunity (2) Development of the business plan (3) Determination and evaluation of resource requirements, (4) Implementation and management of the resulting enterprise.

23. BARRIERS TO CORPORATE ENTREPRENEURSHIP Resistance to change The Inherent nature of large organizations Lack of Entrepreneurial talent Inappropriate compensation methods

24. Entrepreneurial Process: Corporate Context

25. Are you ready to think entrepreneurially?

26. Summary The terms  entrepreneur  and  entrepreneurship  have various meanings to different people and can be viewed in different contexts such as private sector entrepreneurship and corporate entrepreneurship. In spite of the differences, there are some commonalities such as risk taking, creativity, independence, and rewards.

27. Suggested Book Main Resource: Robert D. Hisrich and Claudine Kearney, 2012. Corporate Entrepreneurship. ISBN # 978-0-07176316-5 McGraw Hill. Additional resources: Gifford Pinchot and Ron Perlman, 1999. ( pbak ) Intrapreneuring in Action, Berrett-Koehler Publishers, ISBN # 10-1-57675-061-2. https://www.youtube.com/watch?v=anfUjwpYnfQ