Strategic Management Lecture 9

Entrepreneurship

The ENTREPRENEUR Defined

Entrepreneurs are those individuals who discover market needs and launch new firms to meet those needs. They are risk takers who provide an impetus for change, innovation, and progress in economic life.

Longenecker et.al., (2003)

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The ENTREPRENEUR Defined

Entrepreneurs use innovation to exploit or create change and opportunity for the purpose of making profit. They do this by Shifting economic resources from an area of lower productivity into an area of higher productivity and greater yield, accepting a high degree of risk and uncertainty in doing so.

Burns (2001)
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Categories of Entrepreneurs

Character/Personality traits (Burch, 1986)

1. A desire to achieve conquer problems and give birth to a successful venture 2. Hard work - Their workload is very hard to mat 3. Nurturing quality 4. Acceptance of responsibility - They are morally, legally and mentally accountable 5. Reward orientation - Want be rewarded handsomely for their efforts

6. Optimism - Anything is possible 7. Orientation to excellence - Pride in something first class 8. Organisation - They are wholly "take charge" people 9. Profit orientation - Profit serves primarily as a gauge of their achievement and performance.
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Business Planning
Analysis Gathering and processing information Action

Communication
Gaining the support of stakeholders Synthesis

Success

Creating the strategy Definition required of projects The role of the business plan and objectives
Source:Wickham (1998)
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Spotting Opportunities
Technological discoveries Demographic changes

Government rules changes

To spot opportunities, be aware of:

Lifestyle and taste changes

Disasters/Calamities

Economic dislocations

Strategic Intent Desired future state or aspiration of the

organisation (J & S, 1999) Indicators; Mission (and associated, strategic actions, employee statements)

J F Kennedy: putting a man on the moon within 10 years Apple Computer: One person one computer BMW: The ultimate driving machine

Microsoft: Owning the desktop Tesco: We intend to become the UKs No. 1 e-commerce business: groceries, books, CDs, videos Komatsu: To encircle Caterpillar

Ford: The worlds leading automotive company (old) The worlds leading consumer company for automotive products and services (new)

Entrepreneurship (Bhide, 1994)

Generate Ideas & Screen Out Losers Skills; finance, influencing, planning, leadership Leverage external change Start-up Hustle capability

Gauge Attractiveness Parsimonious Planning and Analysis Integrate Action and Analysis Problem Solving Research and Selling Smart Arrogance