2_CE_Balancing

Question 1

What is corporate entrepreneurship?

Answer 1

“The process whereby an individual or a group of individuals, within an existing organization, create new organizations or innovation.

Question 2

What is a fundamental challenge in CE?

Answer 2

Managing the conflict between the new and the old

Question 3

What is exploitation? And what are the characteristics of it?

Answer 3

Exploitation: the use and development of things already known
- Seeking advantages
- Incremental changes
- Defend mature markets

Question 4

What is exploration? And what are the characteristics of it?

Answer 4

Exploration: is the pursuit of new knowledge of things that might come to be known
- Seeking opportunities
- Discontinuous/radical changes
- Create new markets

Question 5

What is the difference between the failure trap & competency trap?

Answer 5

The ‘failure trap’ means constantly failing because new ideas don’t work and expectations remain too high

The ‘competency trap’ means missing out on new opportunities because you’re too comfortable with what you’re already good at

Question 6

Exploitation can lead to … & Exploration can lead to …?

Answer 6

Exploitation can lead to the ‘competency trap’
Exploration can lead to the ‘failure trap’

Question 7

What is ambidexterity?

Answer 7

Is the ability to balance both exploitation and exploration at the same time.

-> Optimizing current operations while engaging in discovery

Question 8

What is an ambidextrous firm?

Answer 8

1. High exploration and exploitation score
2. Equal emphasis on both dimensions

Question 9

Give the market life cycle stages and corresponding innovations

Answer 9

1. Early market
   -> Disruptive innovation
2. Bowling Alley (early growth)
   -> Application innovation
   -> Product innovation
3. Tornado (rapid growth)
   -> Process innovation
4. Main street (early maturity)
   -> Experimental innovation
5. Main street (mature)
   -> Marketing innovation
   -> Business model innovation
6. Main street (declining)
   -> Structural innovation

Question 10

Explain what the revenue, expenditure, and cash flow is for the question mark, starts, cash cows, and dogs, in the growth share matrix.

Answer 10

Question mark:
- Revenue: moderate
- Expenditure: high
- Cash flow: negative

Stars:
- Revenue: high
- Expenditure: high
- Cash flow: neutral

Cash cows:
- Revenue: high
- Expenditure: low
- Cash flow: positive

Dogs:
- Revenue: low
- Expenditure: low
- Cash flow: neutral

Question 11

It starts with a question mark, is it better to become a dog or a star? Why?

Answer 11

A star because a dog doesn’t have high market share and high market growth