EMIND

• Enterprise, organization, business, company: a group of people working together towards an agreed purpose, utilizing different resources to produce and sell or provide a service or product for the local or global population to consume
• Types of businesses:

  • Service Business: provides intangible products like talent, skills, or expert knowledge
  • Merchandising Business: buys and sells physical products
  • Manufacturing Business: buys raw materials to manufacture physical products and sells them
• A supply chain describes the flow of goods and services from source to end-users, involving processes that transform raw materials into final products or services
• Core Functional Areas of Management:

  • Financial Management
  • Marketing Management
  • Operations Management
  • Human Resources Management
  • Strategic Management
• Functions/Processes of Management include creating the vision, defining the mission, setting goals, developing specific actions, determining needed resources, creating the firm's structure, designing effective processes and procedures, motivating people, monitoring activities and personnel, and correcting mistakes
• Management Functional Areas:

  • Human Resources Management: recruitment, hiring, credentials management, compensation, benefits, performance measurement, career development, training, and continuous education
  • Financial Management: capital sourcing, revenue generation, managing costs, investments, financial statements
• Management Functional Areas:

  • Operations Management: production, maximizing production at minimum costs, organizational structure, working hours, specific work activities, departments, and divisions
  • Marketing Management: finding and attracting customers, market penetration, customer relations, sales strategies, advertising, and promotions
• The global economy is changing, compelling large established enterprises to reexamine their purpose
• Entrepreneurship and bureaucracies were once seen as mutually exclusive, but now there is a focus on the presence of entrepreneurial ventures within the enterprise framework
• Innovation is crucial for corporations to avoid becoming obsolete in today's marketplace
• Factors leading to the need for corporate entrepreneurship and innovation include losing talented individuals to independent entrepreneurship, the appeal of being an independent entrepreneur, and the growth of venture capital and capital funding markets
• Advantages of fostering a corporate entrepreneurship philosophy within an organization:

  • Development of new products and services
  • Maintenance of competitive posture
  • Promotion of a climate conducive to high achievers
• Corporate innovation philosophy emphasizes the importance of stability and innovation balance to prevent chaos and organizational breakdown
• Steps of a corporate entrepreneurship strategy:

  1. Developing the vision

  2. Encouraging innovation

  3. Structuring for an entrepreneurial climate

  4. Preparing managers for corporate innovation

  5. Developing innovation teams
• Important practices for establishing innovation-driven organizations:

  • Do not punish failures
  • Set explicit innovation goals
  • Create an effective feedback and positive reinforcement system
  • Emphasize individual responsibility
  • Reward innovative ideas
• Rules for an innovative environment:

  • Encourage action
  • Use informal meetings
  • Tolerate failure as a learning experience
  • Persist in getting ideas to market
  • Reward innovation for innovation's sake
• Reduce unnecessary bureaucracy, encourage communication across departments, use internal "venture capital" and special project budgets, and allow discretionary time for projects to support innovation and venture development
• Management support, autonomy, rewards, time availability, and organizational boundaries are critical for structuring the work environment in corporate entrepreneurship
• Corporate innovation training program modules include the entrepreneurial experience, innovative thinking, idea acceleration process, sustaining innovation teams, and the innovation action plan
• Questions to help an organization re-examine itself:

  • Does the company encourage entrepreneurial thinking?
  • Does the company provide ways for innovators to stay with their ideas?
  • Is the system set up to encourage risk-taking and tolerate mistakes?
  • Are people more concerned with new ideas or defending their turfs?
  • Is it easy to form functionally complete, autonomous teams in the corporate environment?
• Critical characteristics of innovation teams:

  • Self-directing, self-managing, and high-performing
  • Led by an Innovation Champion or Corporate Entrepreneur
  • Focus on design issues for innovative activities
  • Collective capacity helps the company grow
• Innovation teams operate like small businesses within a larger organization, with their own budget and independence from stifling procedures, integrating successful innovations into the larger organization
• A group of people working together towards an agreed purpose utilizing different resources (financial, physical, suppliers, etc.) to produce and then sell or provide either a service or product for the local (or global)populations to consume.
• A supply chain describes the flow of goods (for commodities) and services from its source to the end-users (I.e consumers) and involve the processes that transform raw materials into final products or services
• The supply chain affects the different aspects of a business and determines the requirements (I.e management and resource) that will successfully sustain the flow
• The flow of commodities, I.e the specific supply chain will depend on the type of business.