WEEK 2 Flashcards
It is a way of thinking and
decision-making that is based on the idea
that entrepreneurs create their future by
taking action and making things happen.
It is a way of thinking that is focused on creating opportunities and solving problems by using the resources that are available to you, rather than making predictions and trying to plan for the future.
Effectuation
It is an idea with a sense of purpose – a desire to improve the state of the world and the lives of individuals by enabling the creation of firms, products, markets, services, and ideas.
Effectuation
5 Principles of Effectuation
Bird In Hand Principle
Affordable Loss Principle
Crazy Quilt Principle
Lemonade Principle
Pilot-in-the-plane Principle
Start with what you currently have. Who are you, what can you do, whom do you know, what other means and capabilities do you have access to right now?
Bird in Hand Principle
In much of the business world, the manager in charge of launching a new product analyses the market and chooses segments with the highest expected value. It is a natural reflex that is the result of years of training around a single mantra: maximize returns by selecting the optimal strategy for your target. Expert entrepreneurs turn this logic on its head—they think in terms of affordable loss rather than expected returns.
Affordable Loss Principle
They decide what they are willing to lose rather than what they expect to make.
Affordable Loss Principle
It is the focus on building partnerships rather than beating competitors.
Crazy Quilt Principle
It is the ability to turn the unexpected into the profitable. Expert entrepreneurs learn not only to work with surprises but also to take advantage of them. In most contingency plans, surprises are bad—the worst-case scenarios.
Lemonade Principle
Control the controllable. Psychological research suggests that an enormous range of human behaviours relate to control striving in some way and are intrinsically linked to healthy human functioning, Focus on activities that are within your control and therefore have a better chance of bringing desired results. An effectual worldview is rooted in the belief that the future is made.
Pilot-in-the-plane Principle
Effectuation isn’t a static, one-time exercise. It is a logic and process that can be used as the firm develops in the “0-60mph” (early startup) phase of growth. Expert entrepreneurs follow the process to gain early customers and committed partners who then create new means and new goals as resources and viewpoints are added to the mix.
Effectual Cycle
The entrepreneur’s means provide the starting point. The action begins in earnest when the entrepreneur begins interacting with people
Sometimes the starting point of that interaction is an idea, a provisional goal the entrepreneur uses to initiate the interaction.
Sometimes the interaction is specifically initiated in the terms of “what can we do?” as the entrepreneur determines possibilities together with the person she interacts with.
Effectual Cycle
-Filipino Chinese business tycoon and entrepreneur
-Most famous for founding the SM Malls, the Philippines’ largest and leading group of malls
-He is also dubbed as the “Father of Philippine Retailing” due to owning the largest group of malls in the country
Henry Sy Sr.
14 Life Principles Of Henry Sy Sr.
- Strive to be a leader in your chosen field.
- Be a person of Integrity
- Have a long term vision and strategy.
- Focusing means concentrating and prioritizing.
- Have great passion to achieve.
- Work hard
- Be patient and persevere
- Recognize opportunity
- Be optimistic
- Be confident
- Be disciplined
- Build your organization
- Make it your mission to provide employment
- Social responsibility is important
It is adopted by all United Nations Member States in 2015, provides a shared blueprint for peace and prosperity for people and the planet, now and into the future.
The 2030 Agenda for Sustainable Development
At its heart are the ________________ , which are an urgent call for action by all countries - developed and developing - in a global partnership. They recognize that ending poverty and other deprivations must go hand-in-hand with strategies that improve health and education, reduce inequality, and spur economic growth – all while tackling climate change and working to preserve our oceans and forests.
17 Sustainable Development Goals (SDGs)