Growth Orientation and Entrepreneurial Culture

GROWTH
ORIENTATION AND
ENTREPRENEURIAL
CULTURE
ENTREPRENEURIALLY MANAGED FIRM
GROWTH ORIENTATION
there is a great desire to grow the firm and do so at a rapid space.
they prefer growth to be slow and at a steady pace of growth that
is more “manageable” in that it does not “unsettle the firm” by
putting at risk the resources that the firm controls and thus does
not put at risk the jobs and power of top management.
ENTREPRENEURIAL CULTURE
Culture also distinguishes entrepreneurially and traditionally managed

firms.
Entrepreneurially managed firms provide an organizational culture that
encourages employees to generate ideas, experiment, and engage in other
tasks that might produce creative output.
output is highly valued by entrepreneurial management because it is often
the source of opportunities for new entries. Opportunities are the focus of the
entrepreneurially managed firm.
TRADITIONALLY MANAGED FIRM
the traditionally managed firm begins with an assessment of the resources

that it controls and is reflected in its organizational culture.
while a traditionally managed firm is still interested in ideas, it is only
interested in ideas that revolve around currently controlled resources.
the scope of opportunities discovered and generated by a traditionally
managed firm is limited.
THERE ARE MANY FIRMS THAT ARE “PURELY”
ENTREPRENEURIALLY MANAGED OR PURELY
TRADITIONALLY MANAGED; MOST FIRMS FALL
SOMEWHERE IN BETWEEN……
•Table 2.3 presents a scale for determining
how entrepreneurially managed a
particular firm is. The higher the score,
the more entrepreneurially managed the
firm is.
TABLE 2.3 SCALE TO CAPTURE HOW ENTREPRENEURIALLY A FIRM IS MANAGED
STRATEGIC ORIENTATION
As we define our strategies, our major 1 2 3 4 5 6 7 8 9 10 We are not constrained by the resources
concern is how to best utilize the at [or not at] hand.
sources we control.
We limit the opportunities we pursue 1 2 3 4 5 6 7 8 9 10 Our fundamental task is to pursue

on the basis of our current resources. opportunities we perceive as valuable
and then to acquire the resources to
exploit them.
The resources we have significantly 1 2 3 4 5 6 7 8 9 10 Opportunities control our business

influence our business strategies. strategies.
RESOURCE ORIENTATION
Since our objective is to use our 1 2 3 4 5 6 7 8 9 10 Since we do not need resources to

resources, we will usually invest commence the pursuit of an opportunity,
heavily and rapidly. our commitment of resources may be in
stages.
We prefer to totally control and own 1 2 3 4 5 6 7 8 9 10 All we need from resources is the ability
the resources we use. to use them.
We prefer to use only our own 1 2 3 4 5 6 7 8 9 10 We like to employ resources that we

resources in our ventures. borrow or rent.
In exploiting opportunities, access to 1 2 3 4 5 6 7 8 9 10 In exploiting opportunities, having the

money is more important than just idea is more important than just having
having the idea the money.
MANAGEMENT STRUCTURE
We prefer tight control of funds and 1 2 3 4 5 6 7 8 9 10 We prefer loose, informal control. There
operations by means of sophisticated is a dependence on informal relations.
control and information system.
We strongly emphasize getting things 1 2 3 4 5 6 7 8 9 10 We strongly emphasize getting things
done by following formal processes and done even if this means disregarding
procedures. formal procedures.
We strongly emphasize holding to tried 11 2 3 4 5 6 7 8 9 10 We strongly emphasize adapting freely to
and true management principles and changing circumstances without much
industry norms. concern for past practices.
There is a strong insistence on a 1 2 3 4 5 6 7 8 9 10 Managers’ operating styles are allowed to
uniform management style throughout range freely from very formal to very
the firm. informal.
There is a strong emphasis on getting 1 2 3 4 5 6 7 8 9 10 There is a strong tendency to let the
line and staff personnel to adhere requirements of the situation and the
closely to their formal job descriptions. personality of the individual dictate
proper job behavior.
REWARD PHILOSOPHY
Our employees are evaluated and 1 2 3 4 5 6 7 8 9 10 Our employees are evaluated and
compensated based on their compensated based on the value they add
responsibilities. to the firm.
Our employees are usually rewarded by 1 2 3 4 5 6 7 8 9 10 We try to compensate our employees by

promotion and annual raises. devising ways that they can benefit from
the increased value of the firm.
An employee’s standing is based on the 1 2 3 4 5 6 7 8 9 10 An employee’s standing is based on the

amount of responsibility s/he has. value s/he adds.
GROWTH ORIENTATION
Growth is not necessarily our top 1 2 3 4 5 6 7 8 9 10 It is generally known throughout the firm
objective. Long-term survival may be that growth is our top objective.
at least as important.
It is generally known throughout the 1 2 3 4 5 6 7 8 9 10 It is generally known throughout the firm

firm that steady and sure growth is the that our intention is to grow as big and as
best way to expand. fast as possible.
ENTREPRENERIAL CULTURE
It is difficult to find a sufficient 1 2 3 4 5 6 7 8 9 10 We have many more promising ideas than
number of promising ideas to utilize all se have time and resources to pursue.
of our resources.
Changes in society-at-large seldom 1 2 3 4 5 6 7 8 9 10 Changes in the society-at-large often give

lead to commercially promising ideas us ideas for new products and services.
for our firm.
It is difficult for our firm to find ideas 1 2 3 4 5 6 7 8 9 10 We never experience a lack of ideas that
that can be converted into profitable we can convert into profitable
products/services. products/services.
THANK
YOU………….
Prepared by:
Angieliquie Laei A. Mejilla

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GROWTH

Culture also distinguishes entrepreneurially and traditionally managed

the traditionally managed firm begins with an assessment of the resources

We limit the opportunities we pursue 1 2 3 4 5 6 7 8 9 10 Our fundamental task is to pursue

The resources we have significantly 1 2 3 4 5 6 7 8 9 10 Opportunities control our business

Since our objective is to use our 1 2 3 4 5 6 7 8 9 10 Since we do not need resources to

We prefer to use only our own 1 2 3 4 5 6 7 8 9 10 We like to employ resources that we

In exploiting opportunities, access to 1 2 3 4 5 6 7 8 9 10 In exploiting opportunities, having the

Our employees are usually rewarded by 1 2 3 4 5 6 7 8 9 10 We try to compensate our employees by

An employee’s standing is based on the 1 2 3 4 5 6 7 8 9 10 An employee’s standing is based on the

It is generally known throughout the 1 2 3 4 5 6 7 8 9 10 It is generally known throughout the firm

Changes in society-at-large seldom 1 2 3 4 5 6 7 8 9 10 Changes in the society-at-large often give

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