course outcome 2 Flashcards
A process whereby an individual or a group of individuals, in association with an existing organization, creates a new organization or instigates renewal or innovation within the organization.
corporate entrepreneurship
It allows corporations to tap the innovative talents of their own workers and managers.
Rapid growth in the number of new and sophisticated competitors.
Sense of distrust in the traditional methods of corporate management.
An exodus of some of the best and brightest people from corporations to become small business entrepreneurs.
International competition.
An overall desire to improve efficiency and productivity.
Why has corporate entrepreneurship become so popular?
Encourage action.
Use informal meetings whenever possible.
Tolerate failure and use it as a learning experience.
Persist in getting an idea to market.
Reward innovation for innovation’s sake.
Plan the physical layout of the enterprise to encourage informal communication.
Expect clever bootlegging of ideas—secretly working on new ideas on company time as well as personal time.
Put people on small teams for future-oriented projects.
Encourage personnel to circumvent rigid procedures and bureaucratic red tape.
Reward and promote innovative personnel.
rules for an innovative environment
Factors in large corporations that have exhibited successful innovations:
Atmosphere and vision
Orientation to the market
Interactive learning
Skunk Works
successful innovative companies
The launching of inaugural breakthroughs.
Chaotic and unplanned
radical innovation
The systematic evolution of a product or service into newer or larger markets.
Systematic discipline
incremental innovation
Organizations foster entrepreneurial behavior by:
Encouraging—not mandating—innovative activity
Human resource policies for “selected rotation”
Committing to projects long enough for momentum to occur.
Bet on people, not on analysis.
facilitating corporate entrepreneurial behavior
Entrepreneurship that is a form that exhibits characteristics of non-profits, governments, and businesses.
Combination of private-sector focus on innovation, risk-taking, and large-scale transformation with social problem solving.
social entrepreneurship
environmental entrepreneurship with entrepreneurial actions contributing to preserving the natural environment, including earth, biodiversity, and ecosystems.
ecopreneurship
activities and processes undertaken to discover, define, and exploit opportunities in order to enhance social wealth by creating new ventures or managing existing organizations in an innovative manner.
social entrepreneurship
actions that appear to further some social good, beyond the interests of the firm and that which is required by law and often denotes societal engagements of organizations.
corporate social responsibility
A person or small group of individuals who founds and/or leads an organization or initiative engaged in social entrepreneurship.
Also referred to as “public entrepreneurs,” “civic entrepreneurs,” or “social innovators.”
social entrepreneurs
environment
energy
fair business practices
human resources
community involvement
products
social enterprise obligations
Opportunity-minded and open-minded global thinkers able to see different points of view and weld them into a unified focus.
global entrepreneurs
Organizations, unifications, and trade agreements are some of the vehicles that have developed.
global organizations and agreements
Umbrella organization that overseas and administers WTO trade agreements
Handles trade negotiations or trade disputes
Monitors national trade policies
Provides technical assistance and training for developing countries
world trade organization
Global networks of relationships among ethnic groups that share cultural and social norms
diaspora networks
They speed the flow of information across borders.
They create a bond of trust.
They create connections that help entrepreneurs collaborate within a country and across ethnicities.
advantages of diaspora networks
importing
exporting
international alliances
methods of going international
Buying and shipping foreign-produced goods for domestic consumption.
importing
The shipping of a domestically produced good to a foreign destination for consumption.
exporting
Agreements between companies from two or more countries; not legally binding.
international alliances
Immediate intimate knowledge of the local conditions and government
Use of the resources of the other firms involved in the venture
Initial capital outlay and overall risk are lower
advantages of joint ventures
Fragmented management control of the venture’s operations
Differences of opinion that reflect different nationalities
Unanticipated withdrawal of a participating firm
disadvantages of joint ventures
A business arrangement in which a manufacturer of a product (or a firm with proprietary rights over certain technology or trademarks) grants permission to some other group or individual to manufacture that product in return for specified royalties or other payments.
licensing
Patents
Trademarks
Technical Know-How
types of licensing
Government regulations
Political climate
Infrastructure
Distribution channels
Competition
Market size
Local customers and culture
Market research parameters
unstable governments, disruptions caused by territorial conflicts, wars, regionalism, illegal occupation, and political ideological differences.
political risks
conduct research
prepare a feasibility study
secure adequate financing
file the proper documents
draw up and implement the plan
entering the international marketplace
Changes in tax laws, rapid rises in costs, strikes, sudden increases in raw materials, and cyclical/ dramatic shifts in GNP
economic risks
Antagonism among classes, religious conflict, unequal income distribution, union militancy, civil war, and riots
social risks
fluctuating exchange rates, repatriation of profits and capital, and seasonal cash flows.
financial risks
