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Dr Saif SiddiquiCentre for Management Studies, Jamia Millia Islamia,

New Delhi- 110025

Corporate EntrepreneurshipCorporate Entrepreneurship

&&Family BusinessFamily Business

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utlineutline

!oda" we will dis#uss the following to$i#s% &ntre$reneurshi$ ' definition and $ers$e#ti(es%In(ention and Inno(ation%Cor$orate &ntre$reneurshi$ and its Com$onent%)amil" *usiness and Cor$orate &ntre$reneurshi$%Case Stud" on +a(ells India a famil" usiness.

' !o de#ide that is it a #or$orate entre$reneur or not

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&ntre$reneurshi$ / defined&ntre$reneurshi$ / defined

% &ntre$reneurshi$ is a ' ro#ess

' of #reating (alue ' " ringing together ' a unique #om ination of resour#es

' to e $loit an o$$ortunit"

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&ntre$reneurshi$ /&ntre$reneurshi$ /

a $ro#essa $ro#ess%It is managea le

%Can e *ro en down into $ie#es%Can e a$$lied to an" organi3ation

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&ntre$reneurshi$ / its $ers$e#ti(es&ntre$reneurshi$ / its $ers$e#ti(es

%Creation of wealth

' *" assuming ris

' *" fa#ilitating $rodu#tion in e #hange of $rofits%Creation of enter$rise

%Creation of inno(ation

' 4nique #om ination of resour#es

' hi#h ma e e isting $rodu#t o soleteCont677

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&ntre$reneurshi$ / its $ers$e#ti(es&ntre$reneurshi$ / its $ers$e#ti(es

%Creation of #hange ' In s ills , a$$roa#hes et#

%Creation of em$lo"ment%Creation of growth

' Sales , in#ome , assets et#

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Cor$orate &ntre$reneurshi$ / definedCor$orate &ntre$reneurshi$ / defined

%Cor$orate entre$reneurshi$ is

' )ormal or informal a#ti(ities

' aimed at #reating new usiness ' in esta lished #om$anies

' through $rodu#t , $ro#ess and mar et inno(ation

%ith an o 8e#ti(e of im$ro(ing #om$an"9s $osition andfinan#ials

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In(ention and Inno(ationIn(ention and Inno(ation

%:n in(ention is a new idea that is often turned into a

tangi le out#ome,

' $rodu#t or a s"stem7%:n inno(ation is the #on(ersion of that new idea into

re(enues and $rofits7

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Cor$orate &ntre$reneurshi$Cor$orate &ntre$reneurshi$

;uth and ;ins erg 1

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SimilaritiesSimilarities

*etween Start u$ =s Cor$orate &ntre$reneurshi$

%*oth in(ol(e o$$ortunit" re#ognition

%4nique usiness #on#e$t%Con#e$t (ulnera le in formati(e stages

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Differen#esDifferen#es

&ntre$reneurshi$ Cor$orate &ntre$reneurshi$

&ntre$reneur ta es the ris Com$an" ta es the ris

&ntre$reneur owns the #on#e$t Com$an" owns the #on#e$t

&ntre$reneur owns all or ma8or $art of equit"

wn no or small $art

4nlimited rewards >imited to an e tent

ne misste$, mean failure More room for error )le i le ?ules and regulations

s$eed" >onger a$$ro(al #"#le

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Differen#esDifferen#es

&ntre$reneurshi$ Cor$orate &ntre$reneurshi$

>ittle se#urit" Jo se#urit"

>imited s#o$e , initiall" +igh $otential

Se(ere resour#e limitation :##ess to finan#es and otherfa#ilities

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!"$es of !"$es of Cor$orate &ntre$reneurshi$Cor$orate &ntre$reneurshi$

Cor$orate =enturing%Internal Cor$orate =enturing

' New usiness #reated " the organi3ation itself ' Semi autonomous ma" e.

%Coo$erati(e Cor$orate =enturing ' Colla orations

%& ternal Cor$orate =enturing ' New usiness #reated " others , a#quired "

#om$an"

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!"$es of !"$es of Cor$orate &ntre$reneurshi$Cor$orate &ntre$reneurshi$

Strategi# &ntre$reneurshi$%Strategi# ?enewal

' :do$tion of new strateg"

%Sustained regeneration ' New $rodu#t@ mar et

%Domain redefinition ' >oo ing for unre#ogni3ed mar et

%rgani3ational re8u(enation ' )o#used inno(ation

%*usiness model re#onstru#tion

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hat is a )amil" *usinessAhat is a )amil" *usinessA

%:n" usiness in whi#h a ma8orit" of ownershi$ or

#ontrol lies with in the famil"7

%It range in si3e from small, medium or large

usinesses in terms of em$lo"ees and turno(er

%: firm whose ownershi$ $asses from one generation

of a famil" to another su##ession.

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!wo different #ategories!wo different #ategories

%)irst, usinesses ha(ing onl" the famil" mem ers asits sta eholders7

' :(edis Bild8ian 1 2 ., >aird E Co 1FG0. ;eorge

?uhl E Sons 1FG

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Some findingsSome findings

%Chowdar" 200F. mentions the findings of theuni(ersit" of South MaineHs Institute of )amil" wned*usiness, whi#h are quite re(ealing/

%5 of )ortune 500 #om$anies are famil" #ontrolled7%)amil" usiness a##ounts for 50 of 4S:Hs ;D 7

%!he" generate 0 of the #ountr"Hs em$lo"ment and

%FG of all new 8o #reation7

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>ets do the #ase stud" of Havells India

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Cor$orate &ntre$reneurshi$ in +a(ellsCor$orate &ntre$reneurshi$ in +a(ells

Cor$orate =enturing%Internal Cor$orate =enturing

' Set u$ a $lant for manufa#turing of C)>,Ceiling)ans at Noida et#

%Coo$erati(e Cor$orate =enturing ' &ntered a Joint =enture with &le#trium, 4 et#

%& ternal Cor$orate =enturing

' :#quire S>I S"l(aniaHs lighting usiness ' a#quired F0 sta e in a 1K0- ed su$er s$e#ialt"

hos$ital

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Cor$orate &ntre$reneurshi$ in +a(ellsCor$orate &ntre$reneurshi$ in +a(ells

Strategi# &ntre$reneurshi$%Strategi# ?enewal

' ;one for International Mar et%

Sustained regeneration ' Introdu#ing C)>s and )ans%Domain redefinition / I #an not find an"%rgani3ational re8u(enation

' )o#used inno(ation as energ" sa(ing fans%*usiness model re#onstru#tion

' Di(ersifi#ation into hos$itals

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