Lecture 6

Question 1

the process by which individuals pursue opportunities without regard to resources they currently control. Essentially, it is the art of turning an idea into a business which can lead to creative destruction.

Answer 1

entrepreneurship

Question 2

the removal of a previous product/ service due to the superiority of the new product/service

Answer 2

creative destruction

Question 3

conceptualization of entrepreneurship at the firm level. organizations need innovators so having individuals with that entrepreneurial spirit is important

Answer 3

corporate entrepreneurship

Question 4

characteristics of Successful Entrepreneurs

Answer 4

passion for the business
product/customer
tenacity despite failure
execution intelligence

Question 5

Personal Characteristics for

Recognizing Business Opportunities

Answer 5

Prior Experience in the Industry
Cognitive Factors (i.e., Opportunity Recognition)
Social Networks
Creativity

Question 6

not simply an idea) is a favorable set of circumstances that creates a need for a new product, service, or business. It has four essential qualities:

Answer 6

opportunity

Question 7

four essential qualities of an opportunity

Answer 7

Attractive
Durable
Timely (within the realistic “window of opportunity”)
Anchored in a product or service that adds value for the end user

Question 8

• An entrepreneurial alliance between two parties

- Proven (but not failure-proof) business concept

Answer 8

franchising

Question 9

a proposed business should evaluate the ability of its management team. Two of the most important factors to have are passion and an understanding of the potential market.

Answer 9

management prowess

Question 10

pertains to the assessment of whether an entrepreneur has sufficient resources to launch a proposed venture. These should consist of both financial and non-financial resources

Answer 10

resource sufficiency

Question 11

A project team designated to produce a new, innovative product

Answer 11

skunkworks

Question 12

Informal work on projects, other than those officially assigned, of employees’ own choosing and initiative

Answer 12

bootlegging

Question 13

The tendency of an organization to identify and capitalize successfully on opportunities to launch new ventures by entering new or established markets with new or existing goods or services

Answer 13

Entrepreneurial orientation