Date post: | 04-Jun-2018 |
Category: |
Documents |
Upload: | robelle-ann-mica-zara |
View: | 220 times |
Download: | 0 times |
of 36
8/14/2019 Recognizing Entrepreneurial Opportunities.pptx
1/36
Recognizing Entrepreneurial Opportunities
Entrepreneurship
the creation of new value by an existing
organization or new venture that involves theassumption of risk.
8-1
Entrepreneurial Strategy and Competitive Dynamics
8/14/2019 Recognizing Entrepreneurial Opportunities.pptx
2/36
Recognizing Entrepreneurial
Opportunities
New valuecan be created in:
Start-up ventures
Major corporations
Family-owned businesses
Non-profit organizations
Established institutions
8-2
8/14/2019 Recognizing Entrepreneurial Opportunities.pptx
3/36
Entrepreneurial Opportunities
Start-ups
Current or past work experiences
Hobbies that grow into businesses or leadto inventions
Suggestions by friends or family
Chance events Change
8-3
8/14/2019 Recognizing Entrepreneurial Opportunities.pptx
4/36
Entrepreneurial Opportunities
Established firms
Needs of existing customers
Suggestions by suppliers Technological developments that lead to new
advances
Change
8-4
8/14/2019 Recognizing Entrepreneurial Opportunities.pptx
5/36
U.S. Small Companies by Industry
8-5
Exhibit 8.1
8/14/2019 Recognizing Entrepreneurial Opportunities.pptx
6/36
Entrepreneurial Opportunities
Opportunity recognition
the process of discovering and evaluating
changes in the business environment, such
as a new technology, socio-cultural trends, orshifts in consumer demand, that can be
exploited.
8-6
8/14/2019 Recognizing Entrepreneurial Opportunities.pptx
7/36
Opportunity Analysis Framework
8-7
Exhibit 8.3
8/14/2019 Recognizing Entrepreneurial Opportunities.pptx
8/36
QUESTION
The majority of entrepreneurial start-ups are
financed with
A. Bank financing
B. Public financing
C. Venture capital financing
D. Personal savings and the contributions offamily and friends
8-8
8/14/2019 Recognizing Entrepreneurial Opportunities.pptx
9/36
Entrepreneurial Opportunities
Discovery phase
the process of becoming aware of a new
business concept.
May be spontaneous and unexpected
May occur as the result of deliberate search
for new venture projects or creative solutions
to business problems
8-9
8/14/2019 Recognizing Entrepreneurial Opportunities.pptx
10/36
Opportunity Recognition Process
Opportunity evaluation phase
involves analyzing an opportunity to
determine whether it is viable and strong
enough to be developed into a full-fledgednew venture.
Talk to potential target customers
Discuss it with production or logistics managers Conduct feasibility analysis
8-10
8/14/2019 Recognizing Entrepreneurial Opportunities.pptx
11/36
Characteristics of Good Opportunities
Attractive Achievable
DurableValue
creating
8-11
8/14/2019 Recognizing Entrepreneurial Opportunities.pptx
12/36
Sources of Capital for
Start-Up Firms
8-12
Exhibit 8.5
8/14/2019 Recognizing Entrepreneurial Opportunities.pptx
13/36
Entrepreneurial Resources
Human capital
Social capital
Government resources Small Business Administration
Government contracting
State and local governments
8-13
http://www.sba.gov/8/14/2019 Recognizing Entrepreneurial Opportunities.pptx
14/36
Entrepreneurial Leadership
Launching a new venture requires a
special kind of leadership
Courage
Belief in ones convictions
Energy to work hard
8-14
8/14/2019 Recognizing Entrepreneurial Opportunities.pptx
15/36
Entrepreneurial Leadership
Visionmay be entrepreneurs most
important assetAbility to envision realities that do not yet exist
Exercise a kind of transformational leadership
Able to share with others8-15
Three characteristics Vision
Dedication and drive
Commitment toexcellence
8/14/2019 Recognizing Entrepreneurial Opportunities.pptx
16/36
Entrepreneurial Leadership
Dedication and driveare reflected in hard
work
Patience
Stamina
Willingness to work long hours
Internal motivation
Intellectual commitment to the enterprise
Strong enthusiasm for work and life
8-16
8/14/2019 Recognizing Entrepreneurial Opportunities.pptx
17/36
Entrepreneurial Leadership
To achieve excellence, entrepreneurs
must
Know the customer
Provide quality products and services
Pay attention to details
Continuously learn
Surround themselves with good people
8-17
8/14/2019 Recognizing Entrepreneurial Opportunities.pptx
18/36
Example: 10 Management Lessons
Its all about
perseverance
Understand the value of
mentorship and teamwork
Stick to your niche
Stay on top of news that
affects your clients
Communication is key Capitalization is crucial
Communicate
unwavering honesty and
integrity
Stay on top of the curve
Take ownership in your
clients success
Never stop marketing
8-18
http://entrepreneur.com/8/14/2019 Recognizing Entrepreneurial Opportunities.pptx
19/36
Entrepreneurial Strategy
Best strategy for the enterprise will be
determined to some extent by
A viable opportunity, sufficient resources, and
skilled and dedicated entrepreneurialteam
Other conditions in the business environment
8-19
8/14/2019 Recognizing Entrepreneurial Opportunities.pptx
20/36
Entry Strategies
Pioneering new
entry
a firms entry into an
industry with a radicalnew product or highly
innovative service that
changes the way
business is conducted.
8-20
8/14/2019 Recognizing Entrepreneurial Opportunities.pptx
21/36
Entry Strategies
Imitative new entry
a firms entry into an industry with products or
services that capitalize on proven market
successes and that usually has a strongmarketing orientation.
8-21
8/14/2019 Recognizing Entrepreneurial Opportunities.pptx
22/36
Entry Strategies
Adaptive new entry
a firms entry into an industry by offering a
product or service that is somewhat new and
sufficiently different to create value forcustomers by capitalizing on current market
trends.
8-22
8/14/2019 Recognizing Entrepreneurial Opportunities.pptx
23/36
Examples of Adaptive New Entrants
8-23
Exhibit 8.6
8/14/2019 Recognizing Entrepreneurial Opportunities.pptx
24/36
Elements of a Blue Ocean Strategy
Create uncontested market space
Make the competition irrelevant
Create and capture new demand Break the value/cost tradeoff
Pursue differentiation and low cost
simultaneously.
8-24
8/14/2019 Recognizing Entrepreneurial Opportunities.pptx
25/36
Generic Strategies
Overall cost leadership
Simple organizational structures
More quickly upgrade technology and
integrate feedback from the marketplace
Make timely decisions
that affect cost
8-25
8/14/2019 Recognizing Entrepreneurial Opportunities.pptx
26/36
Generic Strategies
Differentiation
Use new technology
Deploy resources in a radical new way
Focus
Niche strategies fit the small business mold
8-26
8/14/2019 Recognizing Entrepreneurial Opportunities.pptx
27/36
Combination Strategies
Entrepreneurial firms are often in a strong
position to offer a combination strategy
Combine best features of low-cost,
differentiation, and focus strategies
Flexibility and quick decision-making ability of
a small firm not laden with layers of
bureaucracy
8-27
8/14/2019 Recognizing Entrepreneurial Opportunities.pptx
28/36
Competitive Dynamics
Competitive dynamics
Intense rivalry, involving actions and
responses, among similar competitors vying
for the same customers in a marketplace.
8-28
8/14/2019 Recognizing Entrepreneurial Opportunities.pptx
29/36
Model of Competitive Dynamics
8-29
Exhibit 8.7
8/14/2019 Recognizing Entrepreneurial Opportunities.pptx
30/36
Why Do Companies Launch New
Competitive Actions?
Improve market position
Capitalize on growing demand
Expand production capacity Provide an innovative new solution
Obtain first mover advantages
8-30
8/14/2019 Recognizing Entrepreneurial Opportunities.pptx
31/36
Threat Analysis
Threat analysis
A firms awareness of its closest competitors
and the kinds of competitive actions they
might be planning. Market commonality
Resource similarity
8-31
8/14/2019 Recognizing Entrepreneurial Opportunities.pptx
32/36
Question
Aircraft makers Boeing and Airbus have a high
degree of __________ because they make very
similar products and have many buyers in
common.
A. Dynamic capabilities
B. Market commonality
C. First mover advantages
D. Equity funding
8-32
8/14/2019 Recognizing Entrepreneurial Opportunities.pptx
33/36
Five Hardball Strategies
Devastate rivals profit sanctuaries
Plagiarize with pride
Deceive the competition
Unleash massive and overwhelming force
Raise competitors costs
8-33
8/14/2019 Recognizing Entrepreneurial Opportunities.pptx
34/36
Types of Competitive Actions
Strategic actions
Major commitments of
distinctive and specific
resources to strategic
initiatives.
Tactical actions
Refinements or
extensions of strategies
usually involving minor
resource commitments.
8-34
8/14/2019 Recognizing Entrepreneurial Opportunities.pptx
35/36
Likelihood of Competitive Reaction
How a competitor is likely to respond will
depend on three factors
Market dependence
Competitors resources
The reputation of the firm that initiates the
action (actors reputation)
8-35
8/14/2019 Recognizing Entrepreneurial Opportunities.pptx
36/36
Choosing Not to React
Forbearance
a firms choice of not
reacting to a rivals
new competitive
action.
Co-opetition
A firms strategy of
both cooperating and
competing with rival
firms.
8 36