Activity

Identify the Effectuation Principle Used

You have already learned about the five principles of effectuation. You have also taken stock of your resources
and identified how certain entrepreneurs had used the Bird-in-Hand principle in their respective venture creation
process.

In this session, you will identify the effectuation principles used by the entrepreneurs named in the table below.

Instructions:

1. Research and identify the effectuation principles used by the entrepreneurs named in the table below.
2. Record your findings in the first three rows of the table below.
Foundational Course in Entrepreneurship

3. Research and find out two more entrepreneurs who have used at least one of the five effectuation
principles in their venture creation journey. Use the last two rows to record your finds.
4. You have 50 minutes for the entire activity.

Entrepreneur Venture/Company Effectuation Principle How did the entrepreneur use

Used the principle?
Tom Fatjo Browning-Ferris
Industries Instead of considering the potential opport-
unity in management,the important informa
Affordable Loss -tion in fatjo's decisions was what the down
-side looked like and wether he could tolerate it.
Should the worst happen.

Bernie Marcus and Home Depot

Arthur Blank
After getting fired,bernie and arthur saw the
Affordable Loss opportunity to make their own company
of home retail.

Konosuke Panasonic
Matsushita After a couple of years working in a electric light
company. Matsushita invent an improved light
Bird-in-Hand socket but was rejected. He used the oppor-
tunity to create his own company creating new
state of the art light sockets.

Kevin Dewhitt AGILYX

Using what he had learned working in a
chemical industry for 20 years,he saw and
Bird-in-Hand opportunity to make money from recyclable
trash.

George Crum Potato Chips

One of his guest said the fries were too thick

Lemonade and not crispy. so he cut the potatoes so thin,
this potato chips were born.

Self-Discovery
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