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© 2005 The McGraw-Hill Companies, Inc. All2-1
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2 Chapter The Entrepreneurial and Intrapreneurial Mind 2-2 .

. Inc.Entrepreneurial Process 1) Identify/Evaluate Opportunity 2) Develop Business Plan 3) Determine Resources Required 4) Manage The Enterprise 2-3 McGraw-Hill © 2004 The McGraw-Hill Companies. All rights reserved.

Patents? Where Money To Be Made 2-4 .Opportunity Analysis Market Need? Personal Observation Underlying Social Conditions Market Research Data Assess Competition.

Administrative vs. Entrepreneurial Strategic Orientation Commitment to Opportunity Commitment of Resources Control of Resources Management Structure 2-5 . Entrepreneur Domain.Decision Making Manager vs.

“Intrapreneurship” Instilling Entrepreneurial Spirit Within An Existing Organization To Innovate And Grow. 2-6 .

Try. No Initiative Hierarchy Of Authority Develop Vision. & Plans Suggest. Experiment Flat Organizational StructureNetworking & Teamwork 2-7 . Goals.Organizational Culture Corporate Intrapreneurial Climate/Reward System Favors Conservatism Follow Instructions.

Cultural Norms/Values Corporate Intrapreneurial Fragmented Instruction Whole Vision Controlled Outer-Directed In Control Inner-Directed Alienation “Chores” Responsibility Enthusiasm/Motivation Defined Limits Interference Space/Freedom Trust Distrust Expendable Belief In People Expandable 2-8 .

Intrapreneurial Culture 2-9 .Interest In Intrapreneurship Rising Interest in “Doing Your Own Thing” Corporation  Support To Retain Creative Employees  Fund Startups Hypercompetition Corporate vs.

Intrapreneurial Activities New Business Venturing Innovation Self-Renewal Proactive 2-10 .

Climate for Intrapreneurship • Technology • New Ideas Encouraged • Trial/Error Encouraged • Failure Allowed • No Opportunity Parameters • Resources Available & Accessible • Multidiscipline Teams • Long Time Horizon • Volunteer Program • Appropriate Reward System • Sponsors/Champions Available • Support of Top Management 2-11 .

Intrapreneurial Leaders  Understand Environment  Have Vision/Flexibility  Create Management Options  Encourage Teamwork  Encourage Open Discussion  Build Coalitions  Persist 2-12 .

Establishing Intrapreneurship Commitment of Top Management Identify Ideas/Areas Interested In Supporting Use Technology For Flexibility Managers Share/Train Employees Get Closer to Customers Be More Productive With Less 2-13 .

Evaluating Intrapreneurship Proposals Corporate Fit Initial Investment Experienced Venture Champion Experience With Product/Service Competitive Threat Proprietary Technology Gross Margin Rate Of Return 2-14 .

Barriers To Intrapreneurship Inherent Nature of Large Organizations No Long-Term Commitment Lack Of Autonomy For Decision Making Lack of Intrapreneurial Talent Inappropriate Compensation Methods Constrained Environment 2-15 .