(M) Chapter 3: Entrepreneurial Mindset in Organizations (Lecture-based) Flashcards
,What comprises/make up an Enterprise, Organization, and Business Company?
- group of people/manpower
- agreed purpose/vision
- utilizing different resources (financial, physical, suppliers, etc.)
- to produce
- sell or provide wither a service or product
Type of Businesses
- Service Business
- Merchandising Business (not merchandise
- Manufacturing business (not manufacture)
A business that provides intangible products, i.e. talent, skills, (expert) knowledge of the service provider.
Service business
Type of Business: Companies that produce food, personal care products, gadgets, automobiles, housekeeping products, etc.
Manufacturing Business
Type of Business: Retailers, supermarkets, groceries | Car Dealers, resellers, distributors
Merchandising Business
A business that buys (at cost) and sells (at a markup) physical products.
Merchandising Business
A business that buys raw materials to manufacture a physical product (finished goods) and sells it.
Manufacturing Business
A supply chain describes the ___ and ___ from its source to the end-users; and involve the processes that transform raw materials into final products and services
flow of goods (or commodities and services
affects different aspects of a business and determines the requirements that will successfully sustain the motion
supply chain
T or F. The specific supply chain will depend on the type of business
TRUE (its an example of flow of commodities)
What comprises the supply chain (any order)
- suppliers
- your business
- distributors
- retailers/sellers
- customers/consumers
Enumerate the Business Ownership Forms
Sole Proprietorship
Partnership
Corporations
T or F. Limited liability is under partnership.
F (corporation)
A business owned by an individual who also manages its operations.
Sole Proprietorship
T or F. Partnership is a business owned by two or more individuals who share both liabilities for and the management of the company.
T
In this business, the true or original owners of the company share ownership of the entire enterprise with various stockholders and may or may not be involved in the management of the company.
Corporations
Management is the art and science of performing __ and ___
effectively and efficiently
Factors to Consider in Management
- Planning
- Organizing
- Leading
- Controlling
Fundamental of Management: Creating the vision, defining the mission, setting goals
Planning
Fundamental of Management: Developing the specific actions or action plans to meet defined goals
Organizing
Fundamental of Management:
> Determining needed resources
- Creating the functional structure of the firm
- Creating teams, departments, business units
- Designing the most effective processes and procedures.
- Designing the most effective specific work functions.
Leading
Fundamental of Management:
> Motivating the people of the organisation to work towards the vision, mission and specific departmental goals of the company.
- Monitoring activities and personnel.
- Auditing whether processes, activities and personnel are performing according to set standards.
- Correcting mistakes…
Controlling
Level of Management
Upper, Middle and Lower Level
Core Functional Areas of Management
- Human Resources Management
- Marketing Management
- Financial Management
- Operations Management
The effective synthesis of all functional areas that sustains the stability and growth of an enterprise.
Strategic Management
This management is responsible for:
➢ Recruitment
➢ Hiring and keeping the best talent
o Ex. Manpower
➢ Credentials management
o inventory of required and available skills and knowledge
➢ Compensation, benefits and rewards ➢ Performance measurement
➢ Rewards & Promotions
➢ Career development
➢ Providing needed training
➢ Continuous education and development
HR Management
This management is responsible for:
➢ Capital Sourcing and Funding
➢ Revenue and Profit Generation
➢ Managing Operating Costs
➢ Investments, IPOs, Leveraging (i.e. loans)
➢ Employee compensation and benefits
➢ Financial Statements
o Assets
o Cash
o Liabilities
o ROE – return on equity
o ROI – return on investment
Financial Management
This management is responsible for:
➢ Production
➢ Specific work activities and tasks for every position
➢ Working hours
➢ Organizational Structure
Operations Management
T or F. The aim of production is to minimize production at maximize costs
F (reverse)
Processes and procedures that produce outputs which bring revenue to the company
production
rank and file to different levels of management
positions
portion of a population (local or
global) that buys a firm’s products and/or services
market
This management is responsible for:
➢ Finding and attracting customers
➢ Market Penetration - Market Development - Market Share & Domination
➢ Customer Relations Management
➢ Sales Management and Strategies
➢ Advertising and Promotions
➢ Public Relations
Marketing Management
T or F. The top management are:
- Manager
- Supervisor
- Coordinator
- Team Leader
F (Lower level)
T or F. The top management are:
- Board of Trustees or Directors
- President, General Manager
- CEO, COO, CFO, EVP, SVP, VP
- Managing, Executive Director
T
T or F. The lower level management are:
* VP,AVP
* Assoc. Director
* Sr. Manager
F (middle)
T or F. Top management comprises of SBU.
F (middle)
T or F. Intraprenurship is an nfusion of entrepreneurial thinking into large bureaucratic structures (i.e., corporations, organizations).
T (AKA corporate innovation/entrepreneurship)
___is achieved by tapping and supporting the innovative talents of an organization’s own workers and managers.
Infusion
___ is profoundly changing compelling large established enterprises to reexamine their purpose.
global economy
____come from people. ___ is the capability of many.
That ___ is utilized when people give commitment to the missions and life of the enterprise and are given the ___ to do something about their capabilities.
A. Innovation
B. Knowledge
C. Ideas
D. Power
E. Capability
C, A, E, D
In contrast to previous decades, changes and innovations, and improvements are now very common in the marketplace. Thus, corporations must either ____ or become ___.
A. Create
B. Form
C. Innovate
D. Extinct
E. Obsolete
C & E
What are the following developments that led to lose the brightest people to independent entrepreneurship? (4)
- Status
- Image
- Venture capital
- Large industry
appealing to both young and seasoned employees.
status and image
This has grown into a large industry, along with healthy capital funding markets, enabling more new entrepreneurs to launch their ideas.
Venture Capital
T or F. Fostering corporate innovation philosophy within an Organization creates a workforce that helps the enterprise maintain its competitive posture.
T
Fostering corporate innovation philosophy within an Organization leads to the development of _____that will help the organization to expand and grow.
A. new products and services
B. a competitive posture
C. climate conducive to high achievers
A
Fostering corporate innovation philosophy within an Organization promotes a __ which helps the enterprise motivate and keep its best people.
A. new products and services
B. a competitive posture
C. climate conducive to high achievers
C
____ will lead to chaos, loss of cultural glue, fatigue, and organizational breakdown.
Too much change
T or F. Organizations that are systematic may survive in the short term but will collapse in the long term.
F (chaotic, not systematic)
At one end of the innovation continuum is___, or the absence of innovation; at the other end is___.
A. change
B. stability
C. chaos
D. innovation
E. destruction
B & C
5 Critical Steps of a Corporate Entrepreneurship Strategy
- Developing the Vision
- Encouraging Innovation
- Structuring for an Entrepreneurial Climate
- Preparing Managers for Corporate Innovation
- Developing Innovation Teams
a critical element for a strategy that seeks high achievement
shared vision
the vision must
be articulated by ___ to all
employees.
top management
T or F. The Mission requires identification of specific objectives for corporate entrepreneuring strategies and of the programs needed to achieve those objectives
F (vision)
Identify which managers and employees define specific objectives consistent with the articulated vision:
o Operational Goals by __
o Strategic Goals by __
o Tactical Goals by ___
- First Level
Management - Top Management
- Middle Management
the specific tool of the entrepreneur
innovation
Corporations must understand and develop THIS as the key element in their strategy; described as chaotic and unplanned by some; Others insist it as a systematic discipline
innovation
This type of innovation disrupts the market industry by launching of inaugural breakthroughs; AKA Chaotic innovation
Radical Innovation
T or F. Incremental innovation has a high degree of risk, lot of trial and error, and takes longer to develop.
F (radical)
This type of innovation has the systematic evolution of a product or
service into newer or larger markets.
incremental innovation
Identify which type of innovation:
- Social networking
- Frozen yogurt
- Online dating
- Microwave Popcorn
- Popcorn
- Green technologies
- Radical
- Incremental
- Radical
- Incremental
- Radical
- Radical
T or F. Incremental innovation is rewarded with freedom and capital for new projects and interests
F (radical)
rad or incre
Encourage technical education and exposure to customers
incre
rad or incre
Remove budgetary and deadline constraints when possible
radical
rad or incre
Encourage technical education and exposure to customers
rad
rad or incre
Stimulate through competitive pressures
incre
rad or incre
Set clear financial rewards for meeting goals and deadlines
incre
Five important practices for establishing innovation-driven organizations
- Set explicit innovation goals
- Create a system feedback and positive reinforcement
- Emphasize individual responsibility.
- Provide rewards for innovative ideas
- Do not punish
T or F. Real learning takes place when failed projects
are examined closely for what can be learned by individuals
T
___ should be mutually agreed on by the
employees and the management.
goals
Rules for Innovation Environment
Encourage ___.
Use ____ whenever possible.
Tolerate _____, and use it as a learning experience.
____ in getting an idea to market.
____ innovation for innovation’s sake.
A. informal meetings
B. Persist
C. Reward
D. action
E. failure
D, A, E, B, C
Rules for Innovation Environment
Plan the physical layout of the enterprise to encourage ____.
Expect ____ of ideas – secretly working on ideas on company time as well as on personal time.
Put people on ___ for future-oriented projects.
Identify and replace rigid procedures and bureaucratic ___.
Reward and promote ______.
A. clever bootlegging
B. small teams
C. innovative personnel
D. red tape
E. informal communication
E, A, B, D, C
T or F. Example programs that support innovation and venture development are:
Use internal “venture capital” and special project budgets (“intracapital”). Allow discretionary time for projects.
T
Structuring the Work Environment (5)
- Management support
- Autonomy & Work Discretion
- Rewards & Reinforcement
- Time Availability
- Organizational Boundaries
Corporate Innovation Training Program includes? (6)
- The Entrepreneurial Experience
- Innovative Thinking
- Idea Acceleration Process
- Barriers and facilitators to innovative thinking
- Sustaining Innovation Teams
- The Innovation Action Plan
participants are introduced to the entrepreneurial revolution that has taken place throughout the world over the last three decades
entrepreneurial exp.
Managers generate a set of specific ideas on which they would like to work; like joining a seminar
Idea Acceleration Process
Critical Characteristics of iTeams
ComprehendE!
- They are self-directing, self-managing
and high performing. - They focus is on design issues (i.e.
structure and process) for innovative
activities. - Composed of two or more people, led by an Innovation Champion or Corporate Entrepreneur.
- They learn about and help each other perform better. The collective capacity of the team helps the company grow. Collective Entrepreneurship
- The team is like a small business operating within a larger business, with its own budget
- The team is separate from other parts of the firm in the sense that it does not engage in procedures that may stifle innovative activities.
- If the innovation proves successful, it is integrated into the larger organization.
