Chapter 7 Flashcards
Intrapreneurs
New venture creators working inside big companies
Entrepreneurship
The pursuit of lucrative opportunities by enterprising individuals
Business Plan
A formal planning step that focuses on the entire venture and describes all the elements involved in starting it
Skunkworks
A project team designated to produce a new, innovative product
Why become an Entrepreneur?
- Because of the challenge, profit potential, enormous satisfaction they hope lie ahead
- Better quality of life than they might have at big companies
- Seek independence
- When they see ideas or progress being blocked at big corporations
- Fear they may not get a promotion
Key Planning Elements:
- Need enough cash to cover start up expenses
The most dangerous risk in intrapreneurship is the risk of _____
Over reliance on a single project
Optimal Span of Control
- Work is clearly defined and unambiguous
- Subordinates are highly trained and have access to info
- Manager is highly capable and supportive
- Jobs are similar and performance measures are comparable
- Subordinates prefer autonomy to close supervisory control
Decision Making Under Decentralization
More decisions are made at lower levels. Ideally at the level of the people who are most directly affected and have the most intimate knowledge about the problem
Functional Organization
Departmentalization around specialized activities such as production, marketing, and human resources
Potential Advantages of Functional Organization
- Economies of scale can be realized
- Monitoring of the environment is more effective
- Performance standards are better maintained
- Greater opportunity for specialized training
- Technical specialist free of administrative work
- Decision making and lines of communication are simple and clear
