Midterm Flashcards
(38 cards)
entrepreneurial mindset
involves the ability to rapidly sense, act, and mobilize, even under uncertain conditions
new entry
offering a new product to an established or new market, offering an established product to a new market, or creating a new organization
entrepreneurial strategy
represents the set of decisions, actions & reactions that first generate, then exploit over time, a new entry
building blocks of a firm’s performance
resource bundles
for a resource bundle to be useful, the resources must be
valuable, rare, & inimitable
what is the basis for an entrepreneurial resource?
knowledge
determination by an entrepreneur that they have sufficient information to exploit or not exploit depends on
stock of information (accumulated & prior knowledge) and level of comfort with making decisions without perfect knowledge
advantages of being a first mover
cost advantage, less competition, can secure important channels, better positioned to satisfy customers, gain expertise
disadvantages of being a first mover
environmental instability, customer uncertainty, short lead time
narrow-scope risk reduction strategy
offers a small product range to a small number of customer groups in order to satisfy a particular need
broad-scope risk reduction strategy
offering a range of products across different market segments to test market uncertainty
imitation risk reduction strategies
franchising & “me too” strategies
liabilities of newness
costs of learning, conflict about undefined responsibilities/roles, informal communication channels not established yet
individuals have stronger intentions to act when taking action is perceived to be
feasible & desirable
strength of ties between entrepreneur and supporting individual depends on
frequency, level, and reciprocity of the relationship
fostering environment for corporate entrepreneurship characteristics
appropriate rewards and top management support, explicit goals, appropriate organizational values
corporate entrepreneurship endeavors consist of 4 elements:
new business venturing, innovativeness, self-renewal, proactiveness
most salient manifestation of corporate entrepreneurship
formations of new ventures
proactiveness is particularly reflected in whose activities?
top management
the typical corporate culture has a climate and reward system that favor
conservative decision making
goals of an entrepreneurial culture
develop visions and goals, be rewarded, suggest and experiment, to create and take responsibility
opportunity parameters
barriers to new product creation & development
important aspects surrounding global entrepreneurship
culture, politics, economy, distribution channels, change, communication
operating risk
risk of interference with operations
