Ch 2 p- 1

THE ENTREPRENEURIAL
AND INTRAPRENEURIAL
MIND
THE ENTREPRENEURIAL PROCESS
The process of starting a new venture is

embodied in the entrepreneurial process,
which involves more than just problem

solving in a typical management
position. An entrepreneur must find,
evaluate, and develop an opportunity
by overcoming the forces that resist
the creation of something new.
ASPECTS OF
ENTREPRENEURIAL PROCESS
The process has four phase:
1) Identification and evaluation of the

opportunity.
2) Development of the business plan,
3) Determination of the required

resources, and
4) Management of the resulting

enterprise.
IDENTIFY AND EVALUATE THE
OPPORTUNITY
Opportunity Identification and evaluation is a
very difficult task. Most good business
opportunities do not suddenly appear, but rather
results from an entrepreneur’s alertness to
possibilities or, in some cases, the establishment
of mechanism that identify potential opportunities.
Customer is best mechanisms to Identify the

Opportunity.
STEPS TO IDENTIFY AND
EVALUATE THE OPPORTUNITY
• Opportunity assessment
• Creation and length of opportunity
• Real and perceived value of opportunity
• Risk and returns of opportunity
• Opportunity versus personal skills and goals
• Competitive environment
DEVELOP A BUSINESS PLAN
A good business plan must be developed in order

to exploit the defined opportunity. this is very
time-consuming phase of the entrepreneurial
process.
A good business plan is essential to developing

the opportunity and determining the resources
required, obtaining those resources, and
successfully managing the resulting venture.
STEPS TO DEVELOP BUSINESS
PLAN
• Title page 1. Description of
• Table of contents Business

2. Description of
• Executive Summary Industry
3. Technology Plan
• Major Section
4. Marketing Plan
• Appendixes 5. Financial Plan
6. Production Plan
7. Organization Plan
8. Operational Plan
9. Summary
DETERMINATION OF THE
REQUIRED RESOURCES
• The resources needed for addressing the
opportunity must also be determined.
• This process starts with an appraisal of the
entrepreneur’s present resources.
• Any resources that are critical need to be
differentiated from those that are just helpful.
• Care must be taken not to underestimate the
amount and variety of resources needed. The
downside risks associated with insufficient or
inappropriate resources should also be assessed.
STEPS TO DETERMINE
RESOURCES REQUIRED
• Determine resources needed.
• Determine existing resources.
• Identify resource gaps and available

suppliers.
• Develop access to needed resources.
MANAGE THE ENTERPRISE
After resources are acquired, the entrepreneur

must use them to implement the business plan.
The operational problems of the growing

enterprise must also be examined.
This involves implementing a management style

and structure, as well as determining the key
variables for success. A control system must be
established, so that any problem areas can be
quickly identified and resolved.
STEPS TO MANAGE THE
ENTERPRISE
• Develop management style.
• Understand key variables for success.
• Identify problems and potential problems.
• Implement control systems.
• Develop growth strategy.

MANAGERIAL VS.
ENTREPRENEURIAL DECISION
MAKING
Five different dimensions between entrepreneurial
decision making and managerial styles:
• Strategic orientation
• Commitment to opportunity
• Commitment of resources
• Control of resources
• Management structure
Managerial styles are called the administrative domain.

Administrative domain is the way manager make
decisions.
MANAGERIAL VS.
MAKING
• Strategic Orientation:- Entrepreneur's Strategic
Orientation depends on his or her perception of the
Opportunity.
• Manager(Administrative orientation) is operant as
it is the case with large multinational
organizations.
• Commitment to opportunity: Entrepreneur domain
pressured by the need for action, short Decision
Window, a willingness to assume risk and short
time span in terms of opportunity commitment.
• Administrative Domain is not only slow to act on an
opportunity, but once action is taken, the
commitment is usually for a long time span.
MANAGERIAL VS.
MAKING
• Commitment of Resources: An entrepreneur
is used to having resources committed at
periodic intervals that are often based on
certain task and objective being reached. In
Administrative domain , the commitment of
the resources is for total amount needed.
• Administratively oriented individuals respond
to the source of the reward offered and
receive personal rewards by effectively
administering the resources under their
control.
MANAGERIAL VS.
•MAKING
Control of Resources: Manager is rewarded by effective
resource administration, there is often a drive to own or
accumulate as many resources as possible.
• The pressure of power, status, and financial rewards
cause the administrator to avoid rental or other periodic
use of resources.
• Opposite of this is true in case of Entrepreneur.
• Management Structure: In Administrative Domain

management structure is formalize and hierarchical in
nature, reflecting the need for clearly defined line of
authority and responsibility.
• Entrepreneur believe in flat organization structure with
informal network throughout.
CAUSES FOR INTEREST IN
INTRAPRENEURIALSHIP
These differences in entrepreneurial and
managerial domains have contributed toward an
increased interest in intrapreneurship. This
interest has intensified due to a variety of events
occurring on social, cultural, and business levels.
On a social level , there is an increasing interest
in “doing your own thing” and doing it on one’s
own terms. Individuals who believe strongly in
their own talents frequently desire to create
something of their own. They want responsibility
and have a strong need for individual expression
and freedom in their work environment.
When this freedom is not there, frustration
can cause that individual to become less
productive or even leave the organization to
achieve self-actualization elsewhere.
The resistance against flexibility, growth,
and diversification can, in part, can be
overcome by developing a spirit of
entrepreneurship within the existing
organization, called intrapreneurship. An
increase in intrapreneurship reflects on an
increase in social, cultural, and business
pressures.
CORPORATE VS. INTRAPRENEURIAL
CULTURE
Corporate Culture
- is the environment of a particular organization.
Shared values and norms:
• Hierarchical in nature
• Established procedures
• Reporting systems
• Line of authority and responsibility
• Instructions
• Control mechanism.
Intrapreneurial culture
- Is the environment of an entrepreneurial-
oriented organization.
Shared values and norms:
• Flat organizational structure with networking
• Team work
• Sponsors
• Mentors abounding
Note: Close-working relationship help to
establish an atmosphere of trust that facilitates
the accomplishment of visions and objectives.
CLIMATE FOR INTRAPRENEURSHIP
• Organization operates on frontiers of technology
• New ideas encouraged
• Trial and error encouraged
• Failures allowed
• No opportunity parameters – barrier to new product
creation and development
• Resources available and accessible
• Multi-discipline teamwork approach
• Long-time horizon
• Volunteer program
• Appropriate reward system
• Sponsors and champions available
• Support of top management
INTRAPRENEURIAL LEADERSHIP
CHARACTERISTICS
• Understand the environment
• Visionary and flexible
• Creates management options
• Encourages teamwork
• Encourages open discussion
• Build a collision of supporters
• Persists
ESTABLISHING INTRAPRENEURSHIP IN
THE ORGANIZATION
1. To secure a commitment to intrapreneurship in
the organization by top, upper, and middle
management levels.
2. Ideas and general areas that top management
are interested in supporting should be
identified, along with the amount of risk money
that is available to develop the concept further.
3. A company need to use technology to make it
more flexible.
4. The organization should have a group of
interested managers who will train employees
as well as share their experiences.
ESTABLISHING INTRAPRENEURSHIP
IN THE ORGANIZATION
5. The organization needs to develop ways to get
closer to its customers.
6. An organization that want to become more
intrapreneurial must learn to be more productive
with fewer resources.
7. The organization needs to establish a strong support
structure for Intrapreneurialship.
8. Support must also involve trying the rewards to the
performance of the intrapreneurial unit.
9. The organization need to implement an evaluation
system that allows successful intrapreneurial unit to
expand and unsuccessful ones eliminated.

Ch 2 p- 1

Uploaded by

Copyright:

Available Formats

Ch 2 p- 1

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Ch 2 p- 1

Uploaded by

Copyright:

Available Formats

THE ENTREPRENEURIAL

The process of starting a new venture is

which involves more than just problem

The process has four phase:

1) Identification and evaluation of the

2) Development of the business plan,

3) Determination of the required

4) Management of the resulting

Customer is best mechanisms to Identify the

• Creation and length of opportunity

• Real and perceived value of opportunity

• Risk and returns of opportunity

• Opportunity versus personal skills and goals

A good business plan must be developed in order

A good business plan is essential to developing

• Table of contents Business

• Determine resources needed.

• Determine existing resources.

• Identify resource gaps and available

After resources are acquired, the entrepreneur

The operational problems of the growing

This involves implementing a management style

• Develop management style.

• Understand key variables for success.

• Identify problems and potential problems.

• Implement control systems.

• Develop growth strategy.

Managerial styles are called the administrative domain.

• Management Structure: In Administrative Domain

You might also like