Management Leading and Collaborating in A Competitive World 12th Edition Bateman Solutions Manual

Management Leading and Collaborating
in a Competitive World 12th Edition

Bateman Solutions Manual
Visit to Download in Full: https://testbankdeal.com/download/management-leading-an
d-collaborating-in-a-competitive-world-12th-edition-bateman-solutions-manual/
Chapter 07 - Entrepreneurship
Entrepreneurship
chapter
7
CHAPTER CONTENTS
Learning Objectives 2
Key Student Questions 3
Class Roadmap 4
Bottom Line 12
Social Enterprise 13
Lecturettes 14
Discussion Questions 17
Experiential Exercises 22
Concluding Case 25
Part II Supporting Case 27
Examples 29
Supplemental Features 31
Chapter Video 31
Manager’s Hot Seat 31
Self-Assessment 31
7-1
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education.
LEARNING OBJECTIVES
1 Describe why people become entrepreneurs and what it takes,

personally.
2 Summarize how to assess opportunities to start new businesses.
3 Identify common causes of success and failure.
4 Discuss common management challenges.
5 Explain how to increase your chances of successes, including

good business planning.
6 Describe how managers of large companies can foster entrepre-

neurship.
7-2
Education.
KEY STUDENT QUESTIONS
The revisions to Chapter 7 address some of the questions students have about entrepreneurship directly.
For example, the three questions most often asked by my students include:
 1. “What does it take to be successful as an entrepreneur?”

2. “Where can I get ideas for an entrepreneurial venture?”
3. “Who can help me to write a business plan?”
Question 3 opens a whole series of nuts and bolts questions about starting a business, including things
like ―Where do I go to get a business license?‖ ―What are the advantages and disadvantages of having a
home-based business?‖ etc. While these kinds of details are beyond the scope of the class, it is useful to
have resources to give to students. Some of the ones that I have used in the past include:
 U.S. Small Business Administration (www.sba.gov) In addition to offering a wealth of in-

formation about starting and running a small business, the SBA also sponsors SCORE - the
Service Core of Retired Executives. (www.score.org) SCORE offers free counseling to small
business owners and budding entrepreneurs, and their help can be invaluable in getting a
business off the ground.
 U.S. Chamber of Commerce (www.uschamber.com) The U.S. Chamber of Commerce also

provides a wealth of information for entrepreneurs. In particular, their toolkits on everything
from office management to sales and marketing to government contracting, can be useful in
helping to get a small company up and running. Local chambers of commerce will often sell
business startup kits that contain all of the forms a small business owner needs to register his
or her business name, obtain a business license, etc.
7-3
Education.
CLASS ROADMAP
Management in Action
How Popchips Became Keith Belling’s Next Big Idea
Keith Belling already had two start-ups under his belt when he and a partner got the idea for
Popchips. Looking for business concepts, they toured an abandoned rice cake factory and decid-
ed they could apply the method to other starchy foods and create tasty low-fat snacks.
Belling and his business partner, Pat Turpin, bought the factory and began selling seasoned pota-
to chips under the Popchips brand. In just three years, the company was earning more than $6
million a year, with sales growth driven by clever publicity campaigns featuring entertainment
and sports celebrities.
Introduction
A. Definitions
1. Entrepreneurship - The pursuit of lucrative opportunities by enterprising individuals.

2. Small Business - A business having fewer than 100 employees, independently owned
and operated, not dominant in its field, and not characterized by many innovative
practices.
3. Entrepreneurial Venture - A new business having growth and high profitability as
primary objectives.
B. The Excitement of Entrepreneurship
C. Some myths about entrepreneurs (Exhibit 7.1)
I. ENTREPRENEURSHIP
II.
LO 1: Describe why people become entrepreneurs, and what it takes, personally
1. Successful entrepreneurs (Exhibit 7.2)
A. Why Become an Entrepreneur?
1. Entrepreneurs start their own firms because of the challenge, the profit potential, and
the enormous satisfaction they hope lies ahead.
2. New immigrants may find existing paths to economic success closed to them.
7-4
Education.
3. The excitement of entrepreneurship - entrepreneurs report the highest levels of pride,

satisfaction, and income.
E.G.
Use Example 7.1 – Why become an entrepreneur?
B. What Does It Take to Succeed? (Exhibit 7.3)
1. Varies by creativity and innovation/general management skills

a. inventor
b. entrepreneur
c. promoter
d. manager, administrator
LO 2: Summarize how to assess opportunities to start new companies
C. What Business Should You Start?
1. The idea – a great product, viable market, and good timing are essential ingredients in
any recipe for success.
2. The opportunity – entrepreneurs spot, create, and exploit opportunities in a variety of
ways.
3. Franchising - when evaluating a franchise, consider market presence, market share,
and profit margins
4. The next frontiers – where do they lie? Healthcare, education, mobile apps, etc.
a. One fascinating opportunity for entrepreneurs is outer space based on the expan-
sion of private sector companies in this industry and increasing demand for satel-
lite launches
b. Changes in the health care sector due to the Affordable Care Act and advances in
technology represent another key opportunity.
5. The Internet
a. Five successful business models:
i. Transaction fee model
ii. Advertising support model
iii. Intermediary model
iv. Affiliate model
v. Subscription model
6. Social Entrepreneurship refers to leveraging resources to address social problems

(Exhibit 7.4)
7. Social Enterprises are organizations that engage in social entrepreneurship using
market-based methods
7-5
Education.
E.G.
Use Example 7.2 – Today’s entrepreneur here
D. What Does It Take, Personally?
1. Commitment and determination – successful entrepreneurs are decisive, tenacious,

disciplined, willing to sacrifice, and able to immerse themselves totally in their enter-
prises.
2. Leadership – self-starters, team builders, superior learners, and teachers.
3. Opportunity obsession – intimate knowledge of customers’ needs, market driven, and
obsessed with value creation and enhancement.
4. Tolerance of risk, ambiguity, and uncertainty – calculated risk takers, risk minimiz-
ers, tolerant of stress, able to resolve problems.
5. Creativity, self-reliance, and ability to adapt – open-minded, restless with the status
quo, able to learn quickly, highly adaptable, creative, skilled at conceptualizing, and
attentive to details.
6. Motivation to excel – clear results orientation, set high but realistic goals, strong drive
to achieve, know your own weaknesses and strengths, and focus on what can be done
rather than on the reasons things can’t be done.
7. Making good choices
a. Entrepreneurial strategy matrix (Exhibit 7.5)
i. Innovation
ii. Risk
LO 3: Identify common causes of success and failure.
E. Success and Failure
1. Risk
a. Be realistic, and anticipate risks ahead
2. The role of the economic environment
a. Business incubators are protected environments for new, small businesses.
b. Business accelerators can also provide additional support.
c. The most amazing region for start-ups is Silicon Valley, in California, however
other regions include Boston, North Carolina, Austin, and Seattle.
E.G.
Use Example 7.3 – Risk here
LO 4: Discuss common management challenges
F. Common Management Challenges

7-6
Education.
1. You might not enjoy it

a. If you don’t want to sell, you don’t want to be an entrepreneur
2. Survival is difficult
a. Small businesses feel mistakes more strongly
3. Growth creates new challenges
a. Start-up mentality is often ―high performance, cheap labor‖
b. Growth requires hiring people at higher wages that are less dedicated than the
founders
4. It’s hard to delegate
a. Leadership deteriorates into micromanagement
5. Misuse of funds
a. Failure to use money that is available properly
6. Poor controls
a. Aversion to record keeping
b. People like to spend money, don’t focus on fundamentals like customers and
creating value
7. Mortality
a. Companies outlive entrepreneurs when:
i. the company has gone public
ii. the entrepreneur has planned an orderly succession, usually to a family mem-
ber.
E.G.
Use Example 7.4 – Lessons from failure here
Teaching Tip:
The student discussion question above can be enriched by asking students to compare two businesses - one which
folded, and one which was successful. In looking at the factors of success, be sure the students consider both envi-
ronmental and personal factors. For example, Southwest Airlines is a success, whereas People’s Express failed.
G. Going public
1. Initial stock offerings (IPOs) - sale to the public, for the first time, federally regis-
tered and underwritten shares of stock in the company.
2. Global start-ups
a. It is a new venture that is international from the very beginning.
b. Several questions must be answered to determine whether you should begin with
a domestic or global outlook.
i. Where are the best people?
ii. Where is the financing easiest and most suitable?
iii. Where are the targeted customers?
iv. When global operators learn about your venture, will they go head-to-head
with yours?
7-7
Education.
Management in Action
– Progress Report
Popchips is still a small business in the snack food industry; its $93.7 million in sales represents just 0.1
percent of industry revenues. Before long, big rivals including Frito-Lay and Kellogg’s introduced their
own popped snack foods. Keith Belling, the former CEO, has hired a new CEO, Paul Davis, to help boost
sales and build brand awareness on a national level.
• What do you think are the most significant risks facing Popchips?
The most obvious risk is the strength of the company’s competitors, including industry giants such as
PepsiCo and Mondelez (formerly part of Kraft Foods). These companies have more influence over retail-
ers, as well as more money to spend on product development and marketing. Students may see other risks
as well, including changes in consumer tastes and eating habits and the difficulty of controlling operations
as a company grows.
• Do you think Popchips would be a good candidate for an initial public offering (IPO)? Why or why not?
Answers will vary, but students should address the basic issues surrounding IPOs: An IPO can help Pop-
chips raise more capital, which is important for competing with big players. With more capital, Popchips
can pursue new ideas and opportunities for growth. On the downside, an IPO is expensive and time con-
suming, and management attention once directed toward customers and innovation may have to shift to
investors and the company’s stock price. For Popchips to be a good IPO candidate, it should have strong
growth potential, and the owners should be willing to focus on shareholder value—or cede control to oth-
ers who will do so.
LO 5: Explain how to increase your chances of success, including good business planning.
H. Increasing Your Chances of Success
1. Planning
a. The first step is to do an opportunity analysis, which includes a description of

the product or service, an assessment of the opportunity, an assessment of the en-
trepreneur, specification of activities and resources needed to translate your idea
into a viable business, and your source(s) of capital. (Exhibit 7.6)
b. A business plan is a formal planning step in starting a new business that focuses
on the entire venture and describes all the elements involved in starting it. (Ex-
hibit 7.6)
2. Key planning elements

a. People should be energetic and have skills and expertise directly relevant to the
venture.
b. Opportunity should allow a competitive advantage that can be defended.
c. Identify current competitors and their strengths and weaknesses, predict how
they will respond to the new venture, indicate how the new venture will respond
to the competitors’ responses, identify future potential competitors, and consider
how to collaborate with actual or potential competitors.
d. Context should be favorable, regulatory and contain economic perspectives.
e. Risk must be understood and addressed as fully as possible.
3. Selling the plan
a. The goal is to get investors to agree on and back up the written plan.
7-8
Education.
b. The plan should be marketed in order to obtain the necessary funding for the
business.
4. Nonfinancial Resources
a. Legitimacy
b. Networks to increase social capital
c. Top management teams
d. Advisory boards
e. Partners
E.G.
Use Example 7.5 – Business plans here
Multiple Generations at Work
Fast Growth Startup Realize that Three Generations Are Better Than One
Millennials have ambition when it comes to entrepreneurship, but lack many of the managerial
skills that Boomers have. Despite retirements, Boomers still comprise one-third of the work-
force and represent the largest source of experienced talent in the marketplace. The Kaufmann
Foundation reports one-quarter of all new entrepreneurs in 2012 were 55 to
64-year-olds. There are a few areas in which Boomers can help startups achieve scalability and
success.
II. CORPORATE ENTREPRENEURSHIP

III.
LO 6: Describe how managers of large companies can foster intrapreneurship and an entre-
preneurial orientation.
A. Building support for your idea – capitalize on a market opportunity.

1. The first step involves clearing the investment with your immediate boss or bosses.
You explain the idea and seek approval to look for wider support.
2. Making cheerleaders – people who will support the manager before formal approval
from higher levels.
3. Horse-trading begins – you offer promises of payoffs from the project in return for
support, time, money, and other resources that peers and others contribute.
4. Finally, getting the blessing of relevant higher-level officials.
7-9
Education.
B. Building intrapreneurship
1. Skunkworks are project teams designated to produce a new product.
2. Bootlegging refers to informal efforts by managers and employees to create new
products and new processes.
E.G.
Use Example 7.6 – Intrapreneurship here
C. Management Challenges
1. The most dangerous risk is the risk of over-reliance on a single project.
2. Organizations also court failure when they spread their intrapreneurial efforts over
too many projects.
D. Entrepreneurial orientation
1. Entrepreneurial orientation is the tendency of an organization to engage in activities
designed to identify and capitalize successfully on opportunities to launch new ven-
tures by entering new or established markets with new or existing goods or services.
2. Entrepreneurial orientation is determined by five tendencies:
a. allow independent action
b. innovate
c. take risks
d. be proactive
e. be competitively aggressive.
Management Connection –
Onward
As an already-experienced entrepreneur, Keith Belling knew not to start Popchips alone. He partnered
with Pat Turpin, who contributed experience in investment banking and product management of consum-
er products. Belling’s business network also included Alex Panos, managing director at an investment
firm, and Rohan Oza, formerly chief marketing officer of Vitaminwater. But even with the ideas of all
these people together, Belling knows that running a successful business in a highly competitive market is
far from a sure thing.
• What actions described in this case increase Popchips’ chances of long-term success?
Several actions can help: finding a partner with important and complementary skills; building a network
of valuable business relationships; seeking investments; listening to advice from experts; and feeling and
expressing enthusiasm about the challenges.
• Why do you think the innovation of popped snacks came from an entrepreneur like Keith Belling instead
of from a big snack company?
• How could a large company increase the odds that it will be the source of the next great snack idea?
An entrepreneur lacks the incentive to maintain existing systems and methods. Someone like Belling is
curious to try something new and willing to assume risk. This spirit is not always present in a large com-
pany.
However, a large company can increase the odds of creating the next great snack idea by encouraging
intrapreneurship. It could set up a skunkworks and tolerate or even encourage bootlegging by its employ-
7-10
Education.
ees. Management in an intrapreneurial company need to tolerate failure and avoid relying too much on a
single product idea or pursuing so many ideas that none are adequately funded. Managers in a large com-
pany also can adopt an entrepreneurial orientation, in which they allow independent action, innovate, take
risks, are proactive, and are competitively aggressive.
7-11
Education.
BOTTOM LINE
p. 226: How is entrepreneurship different from inventing a new product?

The invention is just an idea or a prototype until someone—an entrepreneur—sets up a venture with the
resources and processes to produce and sell the new product.
p. 229: What are some environmentally friendly start-ups you’ve heard about? Do you think they have
great profit potential?
Students’ responses may vary widely here and may depend on their knowledge and awareness of corpo-
rate social responsibility trends. Some examples might include organic farming, environmentally friendly
home cleaning products, such as Molly’s Suds laundry soaps, or other companies designed to reduce the
carbon footprint of current business models.
p. 241: What might be a sign that a small company is growing too fast?
The text provides an example in which the small company lacks the personnel to finish more work up to
standards and on time. Students may not have covered all the relevant topics to answer this question fully,
but with imagination, they may be able to think of other possibilities, such as a shortage of production
space, limited access to capital for acquiring inventory, limits of the entrepreneur’s management skills,
increase in product defects or customer complaints, lack of controls for ensuring quality or making im-
portant decisions, and flat or declining profits even as sales are growing.
p. 242: An entrepreneur who loves selling delegates bookkeeping to an accountant. What is the danger to
the business?
The danger is that the entrepreneur will assume the accountant is keeping track of money coming in and
going out, so the entrepreneur doesn’t need to think about it. At best, the entrepreneur will then lose sight
of what is making the company profitable and might make poor decisions as a result. Worse, if something
causes the company’s financial performance to suffer, the entrepreneur won’t know or understand what is
happening. Worst, the accountant could abuse that trust, and the entrepreneur wouldn’t find out until the
business was seriously damaged or ruined.
p. 249: What skills would you need in order to get people on board with a new idea?
In general, the innovator needs interpersonal and communication skills, discussed in Chapter 1. These
would especially include the ability to forge positive relationships aimed at mutual goals, as well as the
ability to communicate persuasively in writing and orally. Teamwork skills, too, would be relevant. Stu-
dents will learn more about these skills in Part Four; this question is a chance to build their interest in
what lies ahead.
7-12
Education.
SOCIAL ENTERPRISE
Empowering Latina Entrepreneurs
1. What factors are motivating Galan to help Latinas become successful entrepre-
neurs?
Galan’s childhood idol has taught her that successful entrepreneurship by a

woman is most definitely possible. Making Latinas more financially successful is
important as this population is set to drastically grow to 13 percent of the US
population by 2050. A more financially savvy Latina community will have a posi-
tive impact on Latina families and communities. This ties in perfectly with social
entrepreneurship.
2. Why do you think Coca-Cola, a consumer products company, is collaborating

with Galan to empower women entrepreneurs?
Coca-Cola’s sales are based off of consumer consumption of its products. When
you look at the fact that the US domestic market is turning towards a 13 percent
Latina population, it is important for Coca-Cola to insure the success of its con-
sumer base. This is how a social entrepreneurship venture can turn into a profit-
able venture for a large company like Coca-Cola.
7-13
Education.
LECTURETTE
LECTURETTE 7.1: The Entrepreneur
ENTREPRENEURSHIP DEFINED
1. The concept of corporate entrepreneurship is one of the hottest topics in today’s management lit-
erature. Because the task of entrepreneurship is so complex, a simple definition of it is difficult to
articulate.
2. Originally, entrepreneurship was defined in such economic terms as the buying, selling, and
bringing together of the factors of production.
3. One does not have to sell or buy or bring together the factors of production to be an entrepreneur.
More recently, entrepreneurship has been associated with the creation of new business enterpris-
es.
4. The modern definition holds entrepreneurship to be a mental propensity to identify opportunities
and threats that lie in the future and to take action now to exploit those opportunities and defend
against the threats.
5. The entrepreneur is innovatively future-oriented toward market opportunities and willing to take
chances to exploit those market opportunities.
6. Thus, the modern manager perceives entrepreneurship to be both a property and a process associ-
ated with innovative enterprises.
ENTREPRENEURSHIP AS AN ATTRIBUTE
1. Entrepreneurship can be viewed, as a trait or attribute possessed by the entrepreneur.

2. Some of the psychological properties that tend to be shared by entrepreneurs are as follows:
 Entrepreneurs have a future-oriented attitude, a way of examining events and cause-and-
effect relationships in the business environment in order to identify opportunities that can be
exploited.
 Entrepreneurs have an others-oriented focus on the needs of others in order to identify need-
satisfying opportunities to be exploited.
 Entrepreneurs have a change-oriented focus and understand that success lies in change.
 Entrepreneurs have an action-oriented focus, realizing that recognizing opportunity is not
enough; action must be taken now to exploit opportunities.
 Entrepreneurs have a risk-taking propensity that allows them to take appropriate action to ex-
ploit opportunities, even when risk is involved. There is always an element of risk in busi-
ness, and the greatest opportunities often demand the greatest risk taking.
 Entrepreneurs have a high tolerance for ambiguity. Taking innovative, risky action in the
marketplace requires making decisions with less-than-clear information. In order to make
such risky decisions; the entrepreneur needs to cultivate a high tolerance for ambiguity.
 Entrepreneurs have a propensity toward Type A behavior – they must work fast, think fast,
demand high quality work, and expect the same from others.
 Entrepreneurs have an internal locus of control believing that it is their own behavior – and
not luck or fate – that controls their lives.
 Entrepreneurs have high need-achievement.
3. Some of the surveyed characteristics of entrepreneurs are as follows:
 Entrepreneurs tend to be mavericks and dreamers.
 Entrepreneurs tend to be uncompromising, insisting on doing things their way.
7-14
Education.
 Entrepreneurs are more apt to be expelled from college, to be fired often, and to jump from
job to job.
 Entrepreneurs have worked and have been self-supporting since childhood and tend to work
very long hours.
 Entrepreneurs tend not to be joiners or team players.
ENTREPRENEURSHIP AS A PROCESS
1. Entrepreneurship may be seen as a process of change in three basic stages.

 Recognition of some change in the marketplace. The change may be in buyer behavior, buyer
need, buyer ability to pay, a technological breakthrough, or some major event, such as war,
oil embargo, material shortage, etc. For this stage, the entrepreneur must be alert to a change
that he or she can convert into an opportunity.
 Perception of the ―idea‖ of how this change can be successfully exploited – by a product
change, a unique service, a bitter package, a bitter delivery, etc.
 Action – the need to get out of the planning and R&D stages and into the marketplace before
someone else beats you to it or before the opportunity goes away.1
LECTURETTE 1.2: Intrapreneurship in Small Business
CONCEPT OF INTRAPRENEURSHIP
1. It is difficult to agree on a generally accepted definition of entrepreneurship.

2. New definitions of the concept have emerged, introducing new aspects such as risk taking and the
creation of independent units.
3. Entrepreneurship necessarily ends when the venture creation stage is complete.
4. Entrepreneurship as a source of innovation is not the exclusive province of new venture creation.
5. What essentially distinguishes intrapreneurship from entrepreneurship in most works, if not all, is
first and foremost the context in which the entrepreneurial act takes place. Entrepreneurs innovate
for themselves, while intrapreneurs innovate on behalf of an existing organization.
6. Despite the lack of a clearly accepted definition of the term, an analysis of the literature on intra-
preneurship reveals two main trends in the research.
7. The first of these trends is concerned principally with the individuals who implement innovations
in the firms that employ them.
8. The second main trend identified in the intrapreneurship literature is concerned with the intrapre-
neurial process, the factors leading to its emergence, and the conditions required.
MOTIVATORS AND FACTORS GOVERNING EMERGENCE
1. Simplicity of organizational structures.

2. Easy/difficult to identify intrapreneurs.
3. Ability of owner-manager to trust employees and delegate.
4. The right of employees to make mistakes
MOTIVATORS IDENTIFIED DIVIDED INTO FOUR MAJOR CATEGORIES

1
Adapted from T. Begley and D. Boyd, “Psychological Characteristics Associated with Performance in Entrepreneurial Firms and
Smaller Businesses,” Journal of Business Venturing, 2, 1987, 79-93: E. Graham, “The Entrepreneurial Mystique,” The Wall Street
Journal, May 30, 1985, 1, 4, 6-7; J Higgins, The Management Challenge (New York; Macmillian Publishing Company, 1991), 732-
th
736; J. Stoner and R. Freeman, Management, 5 ed. (Englewood Cliffs, NJ: Prentice Hall, 1992), 164-170; A. Welsh and J. White,
“Converging Characteristics of Entrepreneurs,” in K. Vesper, ed., Frontiers of Entrepreneurship Research (Wellesley, MA: Babson
Center for Entrepreneurial Studies, 1981(, 504-515.
7-15
Education.
1. Motivators related to the demands and constraints of the external environment (especially the
competition).
2. Motivators related to the perception of an individual as an intrapreneur and that individual’s
availability.
3. Motivators related to the firm’s growth objectives.
4. Motivators related to the management or production problems encountered in the internal envi-
ronment.
SIX POSTULATES SUPPORTING THE NEED TO RECONCILE THE CONCEPTS OF

INTRAPRENEURSHIP AND SMALL BUSINESS
1. Intrapreneurial characteristics are not the exclusive property of employees of large firms.
2. Intrapreneurs can be first-class allies for owner-managers of growing small businesses.
3. The fact that intrapreneurs are absent from the small business literature does not mean that they
have no fight to be there.
4. The loss of an intrapreneur will have more serious consequences for small firms than for large
firms.
5. Small firms are potential incubators for intrapreneurs.
6. Small business provides a favorable environment for innovation.2
2
Carrier, Camille, “Entrepreneurship; Small Business, Entrepreneurship: Theory & Practice, Fall 1996, Vol. 21, Issue 1, p 5, 16
7-16
Education.
DISCUSSION QUESTIONS
1. On a scale of 1 to 10, what is your level of personal interest in becoming an independent

entrepreneur? Why did you rate yourself as you did?
Each student should be instructed to rate his or her level of interest in becoming an independ-
ent entrepreneur on either a ―high-medium-low‖ scale or on a ―1 to 10‖ scale. Then, they
should each list one or two reasons for their rating.
2. How would you assess your capability of becoming a successful entrepreneur? What are
your strengths and weaknesses? How could you increase your capability?
Refer the students to the section entitled, ―What Does it Take, Personally?‖ and have them
rate themselves on each of the six characteristics. (―High-medium-low‖ scale should be suf-
ficient although it could be done on a numerical basis.)
1) Commitment and determination
2) Leadership
3) Opportunity obsession
4) Tolerance of risk, ambiguity, and uncertainty
5) Creativity, self-reliance, and ability to adapt
6) Motivation to excel
Have the students make a list of their strengths and weaknesses and rank them in order of
importance relative to starting a business. Then, ask students to identify how they might lev-
erage their top two strengths to achieve greater success. Finally, ask students to identify the
training that would improve their two biggest weaknesses.
3. Most entrepreneurs learn the most important skills they need after age 21. How does this affect
your outlook and plans?
Most entrepreneurs learn and develop their skills after age 21 in the area of taking on additional re-
sponsibility, sense of achievement, risk taking, and want feedback. To be able to launch a small busi-
ness, one must understand the requirements of a business plan and the construction thereof. One must
understand the essential components of a business plan and develop financial relationships. A busi-
ness plan is developed by understanding marketing, finance, and production. This requires experi-
ence, and must be learned through skill enhancement of what it takes to become a successful entre-
preneur. This level of knowledge typically comes after the age of 21.
4. Identify and discuss new ventures that fit each of the four cells in the entrepreneurial strategy
matrix.
High innovation/Low risk – new products, without competition, that are backed by large firms with
an abundance of loss-absorbing capital or new products that are relatively inexpensive to make, such
as Lego blocks.
High innovation/High risk – new products produced at great expense, such as automobiles and drugs.
7-17
Education.
Low innovation/High risk – ventures in well-established industries, such as restaurants, that require a
large initial outlay.
5. Brainstorm a list of ideas for new business ventures. Where did the ideas come from? Which
ones are most and least viable, and why?
Divide the class into a number of small groups to facilitate the brainstorming process.
The text suggests that opportunities arise from technological discoveries, demographic changes, life-
style and taste changes, etc., and business probably generates many of their ideas in this manner. Stu-
dents without business experience will generally indicate that their ideas arose from a personal inter-
est (collecting baseball memorabilia) or a problem they have experienced with a product (not being
able to find their keys) or a service (not being able to pick up groceries).
In order to help the students determine which ideas are the most and least viable, refer them to Table
7.4 and have them rate the ideas against the first two items: the "fit with your skills and experience‖
and the ―fit with the market.
6. Identify some businesses that have recently opened in your area. What are their chances of sur-
vival and why? How would you advise the owners or managers of those businesses to enhance
their success?
Most students will be able to identify one or more retail businesses that have recently opened in the
area. They will recognize that their chances for survival will depend on a number of factors including
the nature of the business, the target market relative to the local population, its location, and its ability
to attract walk-in trade.
By contrast, students may find it more difficult to evaluate the likely success of nonretail businesses
(manufacturing or wholesaling operations) since they normally depend on attracting business from a
far wider geographic market for their success. Location and local business are far less important.
Some of the steps that students might suggest a recently opened (retail) business could take to
enhance the likelihood of success might include advertising in the local press, special promotions and
discounts, direct mailings to potential customers, etc. Signs and billboards might also help as might
advertising on radio or television.
7. Assume you are writing a story about what it’s really like to be an entrepreneur. To whom
would you talk and what questions would you ask?
The ideal person to talk to would be an individual who started a business at about the same age as the
students with very little money and who had experienced a number of ―ups and downs‖ before build-
ing a very successful business.
Among the questions one might ask are:
 What motivated you to start the business?

 Where did you get the idea?
 What were the major problems you experienced in starting up the business?
 Which individuals were most helpful in the early stages of the business?
 What, in your opinion, are the keys to success?
7-18
Education.
8. Conduct interviews with entrepreneurs, asking whatever questions most interest you. Share
your findings with the class. How do the interviews differ from one another and what do they
have in common?
Many students may not be personally familiar with any entrepreneurs, and thus the simplest way of
handling this question may be to invite two local entrepreneurs to the class and have the students ask
them questions during the class.
9. Read Exhibit 7.1, some myths about entrepreneurs. Which myths did you believe? Do you still?
Why or why not? Interview entrepreneurs by asking each myth as a true-or-false question.
Then ask students to elaborate on their answers. What did they say? What do you conclude
from their answers?
This exercise could be handled by handing out a sheet listing the nine myths and asking students
whether they agree or disagree with the statements.
One might also ask students whether or not they think myth #1 is, in fact, a myth. Many will argue
that it is a true statement. Anyone can start a business. If one considers the incorporation of a compa-
ny as its starting point, then one can start numerous businesses in a single hour. The problem, as
pointed out, is surviving. The vast majority of new businesses are out of business within a year.
10. With your classmates, form small teams of skunkworks. Your task is to identify an innovation
that you think would benefit your school, college, or university, and to outline an action plan for
bringing your idea to reality.
The term ―skunkworks‖ is used to describe a project team designated to produce a new product within
a specified time frame. This exercise will test the students’ creativity, and it may be useful to have
them walk around the campus as a group looking at areas and activities that might be improved or
problems that might be resolved. Some topics that might be raised (since they cause problems on
most campuses) are registration, advisement, job hunting, etc.
Once the group has identified its new product, it should then specify what steps will be taken, by what
date they will be taken, and who will be responsible for ensuring that the steps are taken by the speci-
fied date.
11. Identify a business that recently folded. What do students perceive were the causes of the fail-
ure? What might have been done differently to prevent a failure?
This exercise can be approached in two ways. The first involves a search of publications (such as
Business Week) and the local presses to identify a company that folded and see what reasons were
stated in the press for its demise. The other way is to identify a retail store that used to be in business,
track down its owner, and interview that individual to determine why it folded.
Students will find that businesses that failed during the first year of operations do so usually for lack
of financial resources and an inability to develop sales volume. Poor management is often stated as a
reason for failure in more mature companies, as is the strength of the competition.
7-19
Education.
12. Does franchising appeal to you? What kind of franchises would have the most and least interest
and why?
Students will differ in their responses to the first question. Often, people who are attracted to
franchises are entrepreneurs who are lower in innovation, but higher in general management and net-
working skills. The degree of structure, the amount of corporate support, and the cost of the franchise
will all play a role in the amount of interest students feel in the process. For example, McDonald’s
requires that people who are interested in opening a franchise have a minimum of over $500,000 in
non-borrowed personal resources before they will be considered for franchise training.
13. The chapter specified some of the changes in the external environment that can provide busi-
ness opportunity (technological discoveries, lifestyle and taste changes, and so on.) Identify
some important recent changes or current trends in the external environment and the business
opportunities they might offer.
As the ―baby boom‖ population ages, caring for the elderly will offer multiple business opportunities
- everything from providing health care to providing assistance with the day-to-day tasks of living.
Opportunities may also arise in assistive technology, which compensates for the reduced hearing, vi-
sion, and mobility that are often associated with old age.
Natural disasters, such as hurricanes and forest fires, provide opportunities for entrepreneurs.
Roofing contractors, for example, are booked ahead by as many as three years in Florida and other lo-
cales after natural disasters such as a major hurricane. In Southern California, sales of fireproof roof-
ing materials shot up in the wake of the Malibu and Laguna Beach fires.
14. Choose an Internet company with which you are familiar and brainstorm ideas for how its ser-
vices or approach to business can be improved. How about starting a new Internet company al-
together - what would be some possibilities?
Student responses to this question will be different, but encourage students to be creative, and keep
the customer in mind when responding. Students may also want to take innovative features from one
website and apply them to another - for example, Amazon.com’s recommendations feature might be
adapted to a clothing company like Dirtbag Clothing, which offers clothes for skateboarders.
(www.dirtbagclothing.com)
15. Find some inspiring examples of social entrepreneurship and describe them to your classmates.
Bill Drayton the founder of Ashoka: Innovators for the Public was one of the first social entrepre-
neurs. Other notable social entrepreneurs include Enterprise Community Partners, Do Something,
Mercy Corps, DataDyne, The Institute for One World Health, and Hopelab.
Create small groups and have each one report on a social entrepreneurship to the class in 1-2 minutes.
Discuss the impact of these organizations. What commonalities do they see between social entrepre-
neurships?
16. Brainstorm some new ideas for social enterprise. What challenges do you foresee and how
would you proceed?
Based on class discussion from the previous question, have students share ideas in small groups for
new social enterprises. Have each group report one or two ideas to the class. Hold a discussion re-
7-20
Education.
garding challenges that each social enterprise might face. How might their challenges be similar to
those faced by for-profit entrepreneurs?
7-21
Education.
EXPERIENTIAL EXERCISES
EXERCISE 7.1 - TAKE AN ENTREPRENEUR TO DINNER
Objectives
1. To get to understand what an entrepreneur does, how she or he got started, and what it took to
succeed.
2. To interview a particular entrepreneur in depth about her or his career and experiences.
3. To acquire a feeling for whether you might find an entrepreneurial career rewarding.
Sample Response
The individual entrepreneur selected in my area is Charles Craft, an owner/operator of a Dairy Queen
franchise. The appointment should have sufficient lead-time to develop interview questions. Approxi-
mately 1 to 2 hours will be sufficient time to interview this entrepreneur. Interview questions should in-
clude: ―How did you come up with this idea?‖ ―Have you completed any marketing research for this
market?‖ ―Do you have a business plan to present to investors?‖ ―How will you launch this business
successfully to get it up and running?‖ ―What are the essential traits that you possess to create a success-
ful entrepreneur?‖ Make sure to record and/or write down the responses to the above mentioned ques-
tions. What you will learn are the successful traits required for an effective entrepreneur. You will also
learn the essential elements of a business plan, whether this is a business that will go or not go successful-
ly at this point in time. The thank-you note should read, ―I would like to thank you for taking the time
and energy in responding to my questions of what it takes to be a successful entrepreneur.‖ Sincere ap-
preciation must be forthcoming to permit the education and learning that is taking place to be successful
and observe the pitfalls of competing in the marketplace.
Teaching Tips:
1. It may be easier to invite an entrepreneur to visit the classroom for the interview than having each
student attempt to identify an entrepreneur. If you take this approach, it may be useful to have the
students prepare their questions in advance. This will allow you to guide the question and answer
session.
2. If students cannot find people to interview before class, have a guest speaker start the class, then
structure your class discussion around how the guest speaker’s comments relate to the material in the
textbook.
3. Ask the students prior to the interview to rate themselves (on a 1 to 10 scale) as to whether or not they
feel they might find an entrepreneurial career rewarding. Ask the question again following the inter-
view to determine if any student’s scores changed dramatically. If it did, in which direction? Ask
why?
7-22
Education.
EXERCISE 7.2 - STARTING A NEW BUSINESS
Objectives
1. To introduce you to the complexities of going into business for yourself.

2. To provide hands-on experience in making new-business decisions.
Suggested Responses
1. Product
A customer need that will be satisfied is a fresh submarine sandwich shop. Sandwiches will be cus-
tomized, made-to-order, and freshly cut. Our product is unique because of fresh rolls baked on the
premises, freshly cut meat, and the size shape and thickness.
2. Customer
Customer profile will include businesspersons, college students, and a market segment comprised of
youth who would like a good hardy sandwich.
3. Competition
The competition is the Subway franchise and individual, privately owned submarine sandwich shops.
The competition strength is a quality sandwich that advertises and promotes specials from time to
time. A weakness would include that our competitors’ products are excessively priced and we could
use price differential as a primary marketing tool. They can respond by meeting our price or increase
advertising to attract a different marketing segment.
4. Suppliers
Suppliers will be local and should continue to provide reliability, dependability, quality, and price as
the primary marketing tools of purchasing. The business practices are long hours, good location, cash
and carry, etc. The relationship is to partner and attempt to communicate price differential and differ-
ent market segmentation.
5. Location
Location is extremely important and we must locate in a primary business district. Location costs
should average $20-30 per square foot. The legal limitations have advantages and disadvantages for
sole proprietorship, partnership, corporation, and limited liability company. Each must be studied as
to the advantages outweighing the disadvantages.
6. Physical Facilities/Equipment
It is to our advantage to rent at first to get the business off the ground. Possibly negotiating a lease
option to buy. Same consideration should be given to the purchase of equipment to save working
capital.
7. Human Resources
The availability of Human Resources will be competitive. One-three week training period for each
employee will be given.
8. Legal/regulatory Environment
There are licenses required, city ordinances, labor and industry standards all must be met to gain so-
cial acceptance in the community.
9. Cultural/Social Environment
The cultural issues include understanding the customs and practices of the community. It is important
to create a philosophy of management that is conducive and acceptable with the business community
we will live and work.
10. International Environment
International issues will become relevant if there is expansion in a boundaryless U.S.
7-23
Education.
Teaching Tips:
1. This exercise can be assigned before class - have the students discuss their results at this point in the
lecture.
2. Designate a general location for each of the five businesses. For example, the XYZ shopping center
for the submarine shop or the city of ABC for the chimney sweep services.
3. At the end of the exercise, ask each team to evaluate what they feel is the likelihood that the business
will be a success.
7-24
Education.
CONCLUDING CASE
Rolling Out ScrollCo
Case Summary:
The entrepreneur behind ScrollCo is Mandy Toberman, an engineer who grew tired of the routine
work she had been doing on existing products. On her own time, Mandy designed the Scroll, an e-
reader made of flexible materials that can be rolled up for handy storage. Mandy tried interesting her
employer in the Scroll, but meeting resistance, she quit her job and prepared a business plan. Now she
needs management and entrepreneurial skills to translate her product idea into a viable business.
Chapter Topics Related to the Case:
 Discuss the personality characteristics associated with entrepreneurship

 Describe the challenges associated with entrepreneurship that individuals like Mandy Toberman may
face
 Identify and discuss methods to increase the chance of success for entrepreneurs like Mandy
 Evaluate the kinds of business climates that foster or discourage intrapreneurship
Case Discussion Questions:
1. What actions could Acme Electronics take to foster intrapreneurship? What consequences does it suf-
fer from failing to foster it?
Suggested Response:
Acme Electronics could encourage intrapreneurship by setting up a skunkworks and by tolerating or

even encouraging bootlegging such as Mandy’s design of the Scroll on her own time. Acme’s man-
agement should demonstrate some tolerance of failure and avoid relying too much on a single product
idea or pursuing so many ideas that none are adequately funded. Managers also can adopt an entre-
preneurial orientation—allowing independent action, innovating, taking risks, being proactive, and
being competitively aggressive. By failing to foster intrapreneurship, the company is at risk for lag-
ging in innovation, and it may lose its most creative thinkers when they become bored and leave.
Acme even could find itself competing with former employees who leave to pursue their ideas.
2. What information should Mandy include in her business plan?
Suggested Response:
Mandy’s business plan should lead off with an executive summary of the overall business concept
and opportunity, her strategy, competitive advantages, and costs, and the product she has developed.
The sections of the report then flesh out the key areas of her business idea: her industry and company
(including the type of product she developed); the results of market research; the business economics
such as margins, costs, and profit potential; her marketing plan; the product development, including
its status, patents, and so on; the plan for making the product; her management team; the schedule for
start-up; any risks and problems she can identify; and a financial plan.
7-25
Education.
3. Describe three nonfinancial resources likely to be important for the future of ScrollCo. How can
Mandy ensure that her business has those resources?
Suggested Response:
Important nonfinancial resources for a start-up include legitimacy in the minds of the public and net-
works of advice and support. Legitimacy comes from establishing goals and methods consistent with
societal values. Mandy should be sure her company will conform to all applicable laws, meet stand-
ards of good engineering work, and deliver a product that will be valued. She also should build social
capital from a strong network of people who mutually support one another with ideas and expertise.
She should look for people with complementary skills to serve on her top management team and as an
advisory board. Given her strength in engineering, she may want to consider bringing in a partner
whose strength is in business management.
7-26
Education.
PART II SUPPORTING CASE
Will Foxconn Remain Apple’s Top Supplier of iGadgets?
Case Overview
This case examines some of the key issues facing Foxconn, the primary manufactures of Apple’s iPad,
iPhone, and Sony PlayStation, Nintendo Wii, along with Dell and HP computers. –These issues include
problems with working conditions following the suicides of several workers. In the following year, an
explosion at one of Foxconn’s plants was blamed on improper ventilation which allowed metal dust to
accumulate. This ultimately led to the explosion which killed 3 and injured 15 workers. Foxconn
launched an employee hotline, a morale-boosting campaign, and brought in counselors to talk with work-
ers. The company took action to improve ventilation and began giving raises to workers, whose wages
have more than doubled. Currently turnover has fallen and suicides have ended. However, higher costs
have reduced profits and Foxconn’s stock has tumbled forcing the company to look for lower cost loca-
tions for new manufacturing plants. New locations may allow for Foxconn to hire workers at lower wag-
es and could contribute to good morale by allowing workers to live closer to their hometowns and fami-
lies.
Teaching Objectives
 Use a SWOT analysis to identify the appropriate corporate strategy initiatives for an organization
to address situations such as the one that Foxconn has experienced.
 Identify which level of corporate responsibility best defines an organization’s actions.
 Recommend strategies to improve an organization’s image and performance.
Purpose and Relationship to the Part
The purpose of this case is two-fold:

1) to show the serious consequences of ―unethical‖ business decisions and strategies companies can use to
overcome the results of prior bad decisions;
2) to analyze the environmental factors affecting an organization’s performance and determine what strat-
egies might be appropriate to improve that performance. Overall, this case requires that students think
both in terms of ethics and strategy. The case connects three of the four chapters in this part: Planning
and Strategic Management‖, ―Ethics and Corporate Responsibility‖, and ―International Management‖.
Case Discussion Questions
1. What strengths, weaknesses, opportunities, and threats can you identify at Foxconn? How is it
addressing these with its strategy?
Suggested Response
Student responses to this question may vary, but students should consider the following factors in their
analysis:
 Strengths: Cash flow/profitability, Size, Manufacturing experience

 Weaknesses: Reputation for poor working conditions, Lack of concern for employees, Low wag-
es and lack of opportunity for workers to visit their families
7-27
Education.
 Opportunities: Relationships with Turkey, Slovakia, and Brazil

 Threats: China’s government bureaucracy, living conditions, and poor travel options
Based on the SWOT analysis, students might consider having Foxconn emulate other international corpo-
rations known for good employee relations.
2. If Foxconn’s management hired you to offer advice on improving its ethical decision making and
corporate social responsibility, what measures would you suggest? Why?
Suggested Response
Corporate responsibility is defined as the obligations toward employees, the community, and society as-
sumed by business. Foxconn was trying to meet its corporate responsibilities at the time this case was
written. As a follow-up question, have students go to theFoxconn website and look to see what evidence
they can find to indicate that the company is doing better in this regard. Students may also explore the
web to discover new locations for Foxconn’s manufacturing locations.
3. For Foxconn, what management challenges arise from running an exporting business based in
China and serving developed nations such as the United States? What management skills does it
need under these circumstances?
Suggested Response
It can be very challenging for business leaders in less developed countries to understand and implement
the same levels of working conditions, labor relations, and business strategies that are viewed as the
―norm‖ in the United States and other developed nations. Managers would benefit from visiting manufac-
turers in more developed countries and discussing plans for implementing better working conditions and
improving labor relations.
7-28
Education.
EXAMPLES
Example 7.1 – Why become an entrepreneur?: Dave Domm, Cofounder and Executive Vice
President of Raceline Motorworks, in Vernon Hills, Illinois, wanted to start a business that had a
really engaging, interactive environment for boys. They took an already successful product, re-
mote-control cars, and coupled this with a sophisticated race track design in their store to also at-
tract the parents, teenagers and younger siblings. They have had early success in suburban Chi-
cago and have plans for 100 stores in the next five years.3
Example 7.2 – Today’s entrepreneur: Who is today’s entrepreneur? Meet Jefferson Han, the
son of Korean immigrants, who spent his childhood taking apart virtually anything that moved,
while taking violin lessons ―like any good Asian kid.‖4 But Han has done something revolution-
ary - invented a new way of interacting with computers through touch screen technology that has
the potential to eliminate today’s mouse, keyboard, and Windows pointers. Watch Han demon-
strating his new screen on You Tube, and you, like the ―Fast Company‖ reporter who interviewed
him, might say ―He’s going to get rich.‖ Han’s advice to the teenager who wanted to become a
computer engineer, too? ―Study math.‖
Example 7.3 - Risk: In 2004, Richard Branson, a British entrepreneur, introduced an early proto-
type became the fastest amphibious vehicle ever to cross the English Channel. The Aquada, a
three-seater vehicle with wheels that fold up is due to go into production in 2008 and will sell for
around $85,000 according to its maker, Gibbs Technologies. The Aquada will be built in Ameri-
ca (several states are vying to attract the plant). The Aquada certainly has novelty value, but its
success depends on there being enough paying customers who decide that it floats their boat.5
Example 7.4 – Lessons from failure: Kamran Elahian was born in Teheran, immigrated to the
US in 1972 and worked in HP as a design automation software engineer. He co-founded several
companies, including CAE systems, Cirrus Logic Inc and NeoMagic Corp. But it is his one fail-
ure – Momenta Corp – that he chooses to remember most. The license plate of his Ferrari reads
Momenta – a caustic reminder of his fallibility that keeps him grounded to reality. It reminds me
not to be too proud, Mr. Elahian says. I celebrate failure – it can temper your character and pave
the way for great achievement.6
Example 7.5 – Business plans: Students can see real business plans, prepared by MBAs, at
http://www.businessplans.org/businessplans.html . The plans presented on this website are win-
ners of the MOOT CORP® Competition, and they include everything from a plan for developing
innovative beverage equipment to a plan for a company that provides utility companies with elec-
tronic billing and bill payment. Plans are grouped into ―Best of the Best‖, ―Internet Services‖,
―Services‖, and ―Products.‖
Example 7.6 - Intrapreneurship: A good example of intrapreneurship in action is Mobile

World, a product that was created by David Goldie while working at Carphone Warehouse. Mo-
bile World is a mobile-phone service targeted at people living in Britain who come from other
countries and need to phone friends and relatives overseas. Goldie discussed the idea with a
3
Prospero, Michael. “Fast Talk: Fast Learners.” Fast Company, Issue 114, March, 2007, p 56.
4
Penenberg, Adam. “Can’t Touch This.” Fast Company, Issue 112, February, 2007, p 86.
5
The Economist Technology Quarterly. “A plane that thinks it’s a boat.” Sept. 8, 2007, p 12.
6
Chellam, Raju. “Celebrating failure.” The Business Times Singapore. May 22, 2006, p ITUSAY.
7-29
Education.
small team of colleagues and then worked with them to bring it to market. Goldie, now Chief
Operating Officer of Telecoms at Carphone Warehouse and a champion of intrapreneurship said
Carphone Warehouse is an organization that encourages this sort of thing.7
7
Bridge, Rachel. “Harness the innovators in your midst.” Sunday Times (London). January 29, 2006. Business, pg. 13.
7-30
Education.
SUPPLEMENTAL FEATURES
Please see the following additional materials in Connect.
CHAPTER VIDEO
 Pillow Pets
Pillow Pets finder, Jennifer Telfer comes from a long line of entrepreneurs. She came up with the
concept to combine a plush animal with a pillow. Entrepreneurs such as Telfer often feel the ben-
efits far outweigh the risks. This requires being self-directed, self-nurturing, action oriented, high-
ly energetic, and tolerant of uncertainty. Telfer and her husband have years of experience in mar-
keting, which they attribute to their company’s success.
What was the impetus for Jennifer Telfer to start Pillow Pets?
Telfer observed her son flattening his favorite stuffed animal into a pillow and started the compa-
ny in 2003, which has ultimately led to a multi-million dollar business.
How did she expand the business?
Before starting Pillow Pets, Telfer and her husband participated in trade shows and other venues
to better understand customer demand. Telfer notes that one of her most important ideas was to
put the internet website on the tags of the Pillow Pets. Expanding into different markets allowed
Pillow Pets to hire more people. They began manufacturing in China but now include six differ-
ent markets. Quality and marketing are cornerstones of Pillow Pets’ success. Telfer notes she
made mistakes in trying to grow the business too quickly and relying on the wrong manufacturer
in the past. Pillow Pets’ business plan has changed over time as the company grows. What started
as a toddler market has grown into products for teens and other demographics as well.
MANAGER’S HOT SEAT (MHS)
There are no Manager’s Hot Seat clips for this chapter
SELF-ASSESSMENT
 Assessing Your Flexibility
7-31
Education.

Management Leading and Collaborating in A Competitive World 12th Edition Bateman Solutions Manual

Uploaded by

Document Information

Original Title

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

Management Leading and Collaborating in A Competitive World 12th Edition Bateman Solutions Manual

Uploaded by

Copyright:

Available Formats

Management Leading and Collaborating

in a Competitive World 12th Edition

Key Student Questions 3

Part II Supporting Case 27

Manager’s Hot Seat 31

1 Describe why people become entrepreneurs and what it takes,

3 Identify common causes of success and failure.

4 Discuss common management challenges.

5 Explain how to increase your chances of successes, including

6 Describe how managers of large companies can foster entrepre-

KEY STUDENT QUESTIONS

 1. “What does it take to be successful as an entrepreneur?”

 U.S. Small Business Administration (www.sba.gov) In addition to offering a wealth of in-

 U.S. Chamber of Commerce (www.uschamber.com) The U.S. Chamber of Commerce also

1. Entrepreneurship - The pursuit of lucrative opportunities by enterprising individuals.

B. The Excitement of Entrepreneurship

C. Some myths about entrepreneurs (Exhibit 7.1)

LO 1: Describe why people become entrepreneurs, and what it takes, personally

1. Successful entrepreneurs (Exhibit 7.2)

A. Why Become an Entrepreneur?

3. The excitement of entrepreneurship - entrepreneurs report the highest levels of pride,

B. What Does It Take to Succeed? (Exhibit 7.3)

1. Varies by creativity and innovation/general management skills

LO 2: Summarize how to assess opportunities to start new companies

C. What Business Should You Start?

6. Social Entrepreneurship refers to leveraging resources to address social problems

D. What Does It Take, Personally?

1. Commitment and determination – successful entrepreneurs are decisive, tenacious,

LO 3: Identify common causes of success and failure.

E. Success and Failure

LO 4: Discuss common management challenges

F. Common Management Challenges

1. You might not enjoy it

H. Increasing Your Chances of Success

a. The first step is to do an opportunity analysis, which includes a description of

2. Key planning elements

II. CORPORATE ENTREPRENEURSHIP

A. Building support for your idea – capitalize on a market opportunity.

p. 226: How is entrepreneurship different from inventing a new product?

Empowering Latina Entrepreneurs

Galan’s childhood idol has taught her that successful entrepreneurship by a

2. Why do you think Coca-Cola, a consumer products company, is collaborating

LECTURETTE 7.1: The Entrepreneur

1. Entrepreneurship can be viewed, as a trait or attribute possessed by the entrepreneur.

1. Entrepreneurship may be seen as a process of change in three basic stages.

LECTURETTE 1.2: Intrapreneurship in Small Business

1. It is difficult to agree on a generally accepted definition of entrepreneurship.

MOTIVATORS AND FACTORS GOVERNING EMERGENCE

1. Simplicity of organizational structures.

MOTIVATORS IDENTIFIED DIVIDED INTO FOUR MAJOR CATEGORIES

SIX POSTULATES SUPPORTING THE NEED TO RECONCILE THE CONCEPTS OF

1. On a scale of 1 to 10, what is your level of personal interest in becoming an independent

Among the questions one might ask are:

 What motivated you to start the business?

EXERCISE 7.1 - TAKE AN ENTREPRENEUR TO DINNER

EXERCISE 7.2 - STARTING A NEW BUSINESS

1. To introduce you to the complexities of going into business for yourself.

Rolling Out ScrollCo

Chapter Topics Related to the Case:

 Discuss the personality characteristics associated with entrepreneurship

Case Discussion Questions:

Acme Electronics could encourage intrapreneurship by setting up a skunkworks and by tolerating or

2. What information should Mandy include in her business plan?