Top Banner

Click here to load reader

Ch3 entrepreneurial spiderman[1]

Jul 15, 2015

ReportDownload

Education

  • Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

    CHAPTER 3

    Entrepreneurial

    Spiderman

    PART 1

    THE ENTREPRENEURIAL

    DNA

  • Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

    What entrepreneurs do (decision

    making)

    Entrepreneurs grasp opportunity by innovating

    Doing things differently modifying existing products or services, finding new marketing

    strategies such as new routes to market - not

    necessarily invention

    Finding a market need that is not yet met

    Bringing together the resources needed to meet that need.quickly

  • Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

    Strategy development

    Many entrepreneurs develop strategy instinctively and intuitively-gut feel

    The adaptive organization makes its decisions in incremental and serial step

    For some firms, strategy development may be systematic and deliberate but for many

    entrepreneurial firms, it is likely to be

    emergent, incremental and adaptive.

  • Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

    The strategy formulation cycle

    CRISIS

    CONSOLIDATION

    GROWTH

    Deliberate

    strategy

    formulation

    Emergent

    strategy

    formulation

  • Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

    How entrepreneurs do it

    Entrepreneurs manage through uncertainty by:

    Developing informal relationships and networks with customers, staff and suppliers

    Create a network more than one (multiple) networks

  • Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

    Relationship and Networks

    Core of entrepreneurial approach to doing business is the development of relationship.

    Relationship build into an invaluable network of contact and goodwill.

    Trust and respect

    Product or service they might ask about reliability or after sales service.

    Credibility and capabilities

    Education and track record are important

  • Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

    Michael Dell

    Dell is very much a

    relationship

    orientated company

  • Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

    The entrepreneurial spiders web

    Entrepreneur

  • Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

    Entrepreneurial Spiders Web

    Entrepreneur create relationship and networks between management and staff.

    Entrepreneur must seat in the middle of the web to listen any reporting and issues from

    all sides.

    Tend to be informal; one of direct supervision.

    Motivating and effective in an uncertain environment.

  • Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

    The entrepreneurial spiders web grows

    Entrepreneur

  • Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

    How entrepreneurs do it

    Entrepreneurs manage through uncertainty by:

    Developing informal relationships and networks with customers, staff and suppliers

    Continuously strategising, developing strategic options underpinned by a strong

    vision

  • Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

    The strategy formulation cycle

    CRISIS

    CONSOLIDATION

    GROWTH

  • Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

    How entrepreneurs do it

    Entrepreneurs manage through uncertainty by:

    Developing informal relationships and networks with customers, staff and suppliers

    Continuously strategising, developing strategic options underpinned by a strong

    vision

    Mitigating risk through information and knowledge

  • Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

    Michael Dell

    There are countless successful

    companies that were started with

    little more than passion and a good

    idea. There are also many that have

    failed, for the very same reason.

    The difference is that the thriving

    companies gathered the knowledge

    that gave them the substantial

    edge over their competition.

  • Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

    Size

    Large

    Small

    Young

    AgeMature

    STAGE 1 STAGE 2 STAGE 3 STAGE 4 STAGE 5

    Crisis of:

    1: Leadership

    1: Creativity

    Evolution stages

    Revolution

    stages

    Greiners Five Stage Growth Model

    Growth

    through:

  • Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

    Size

    Large

    Small

    Young

    AgeMature

    STAGE 1 STAGE 2 STAGE 3 STAGE 4 STAGE 5

    Crisis of:

    1: Leadership

    2: Autonomy

    1: Creativity

    2: Direction Growth

    through:

    Evolution stages

    Revolution

    stages

    Greiners Five Stage Growth Model

  • Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

    STAGE 2 STAGE 3 STAGE 4 STAGE 5

    1: Creativity

    Size

    Large

    Small

    Young

    AgeMature

    STAGE 1

    Crisis of:

    1: Leadership

    2: Autonomy

    3: Control

    2: Direction

    3: Delegation

    Growth

    through:

    Evolution stages

    Revolution

    stages

    Greiners Five Stage Growth Model

  • Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

    Crisis of:

    Growth

    through:

    Size

    Large

    Small

    Young

    AgeMature

    STAGE 1 STAGE 2 STAGE 3 STAGE 4 STAGE 5

    1: Leadership

    2: Autonomy

    3: Control

    4: Red Tape

    1: Creativity

    2: Direction

    3: Delegation

    4: Co-ordination

    Evolution stages

    Revolution

    stages

    Greiners Five Stage Growth Model

  • Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

    Growth

    through:

    Size

    Large

    Small

    Young

    AgeMature

    STAGE 1 STAGE 2 STAGE 3 STAGE 4 STAGE 5

    Crisis of:

    1: Leadership

    2: Autonomy

    3: Control

    4: Red Tape

    5: ?

    1: Creativity

    2: Direction

    3: Delegation

    4: Co-ordination

    5:

    Collaboration

    Evolution stages

    Revolution

    stages

    Greiners Five Stage Growth Model

  • Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

    Implications for culture

    Creative,

    innovative

    Opportunistic

    Achievement

    Can-do

    Work is fun

    Sharing information

    and knowledge

    Change is normal

    Celebrate

    success

    Measured

    risk taking

    Belonging,

    ownership

    Continual

    learning

    Self-confident

    but realistic

    Close relationships

    with suppliers

    Close relationships

    with customers

    Close relationships

    with staff

  • Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

    Implications for

    organisational structure

    Structure must encourage:

    Opportunity spotting, creativity & innovation

    Sharing information, knowledge and learning

    Sense of belonging and ownership

    Delegation and decentralisation

    Development of relationships inside and

    outside the organisation

  • Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

    Implications for management

    Need for:

    Strong vision, Good communication, Good timing

    Light touch and delegation

    Positive attitude that encourages self-confidence and self-

    efficacy

    Continuous strategising at all levels

    Incremental adaptive approach to decision-making

    Openness that encourages knowledge exchange

    Avoidance of short-termism ex cost reduction via retrenchment

    vs training

  • Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

    Wrap Up

    Growth through creativity

    Crisis of leadership

    Growth through direction

    Crisis of autonomy

    Growth through delegation

    Crisis of control

    Growth through co-ordination

    Crisis of red tape