Entrepreneurial Mind (Midterms)

• Entrepreneurship


  The art of correcting practices in managing and operating a self-owned, wealth-creating business enterprise
• Entrepreneur


  A person who advocates and correctly practices the concepts and principles of entrepreneurship
• Small business


  Businesses that correctly adopt and practice the principles of entrepreneurship
• Ordinary small business


  Businesses that are not advocates of and do not practice the concepts and principles of entrepreneurship
• Salient features of entrepreneurship

  • Entrepreneurship is an art of correcting practices
  • Entrepreneurship is a wealth-creating venture
  • Entrepreneurship provides valuable goods and services
  • Entrepreneurship entails opening and managing self-owned enterprise
  • Entrepreneurship is a risk-taking venture
• Corporate entrepreneurship


  The entrepreneurial behavior established inside mid-sized and large organizations
• Common business structures


  • Sole proprietorship
  • Partnership
  • Corporation
• Types of corporate entrepreneurship

  • Corporate venturing
  • Intrapreneuring
  • Organizational transformation
  • Industry rule bending
• Models of corporate entrepreneurship

  • Opportunist
  • Enabler
  • Advocate
  • Producer
• New entry


  Offering a new or established product in the established company or new market by creating new organization
• Sources of new entry opportunity

  • Resources as a source of competitive advantage
  • Market knowledge
  • Technical knowledge
• Comfort with making a decision under uncertainty


  The trade-off between more information and the likelihood for the window of opportunity will close that creates dilemma for the entrepreneurs
• Entrepreneurial strategy


  The set of decisions, actions, and reactions that it first generates, exploits it over time, a new entry that it maximizes the benefits of newness while minimizing its cost
• Factors in assessing attractiveness of a new entry opportunity

  • Information and knowledge of a new entry
  • Window of opportunity
  • Comfort deciding under uncertainty
  • Decision to exploit or not exploit the new entry
• Advantages of "being first"

  • First movers develop a cost advantage
  • First movers face less competitive rivalry
  • First movers can secure important channels
  • First movers are better positioned to satisfy customers
  • First movers gain expertise through participation
• Disadvantages of "being first"

  • Demand uncertainty
  • Technological uncertainty
  • Uncertainty of customers
• Trends


  The starting point that lasts a considerable period of time that provides one of the greatest opportunities in creating new ventures
• Trends that will provide opportunities

  • Green trend
  • Clean energy trend
  • Organic orientation trend
  • Economic trend
  • Social trend
  • Health trend
  • Web trend
• Sources of new ideas

  • Consumers
  • Existing products or services
  • Distribution channels
  • Federal government
  • Research and development
• Methods of generating new ideas

  • Focus groups
  • Brainstorming
  • Brain writing
  • Problem inventory analysis (PIA)
• Techniques in creative problem solving

  • Brainstorming
  • Reverse brainstorming
  • Gordon method
  • Checklist method
  • Free associations
  • Forced relationships
  • Collective notebook method
  • Attribute listing
  • Big dream approach
  • Parameter analysis
• Innovation


  The key of economic development of a company, region, or a country
• Types of innovation


  • Breakthrough
  • Technological
  • Ordinary
• Newness in defining a new innovation (product/service)


  • Consumer concept
  • Changes in the package or container
  • Slight changes or modifications in the appearance of a new product
• Types of innovations based on continuity

  • Continuous innovations
  • Dynamically continuous innovations
  • Discontinuous innovations
• Opportunity recognition


  A business opportunity represents a possibility for the entrepreneur to successfully fill a large enough unsatisfied needs
• Stages of product planning and development process

  • Product development stage
  • Test marketing stage
  • Idea stage
  • Concept stage
• Domestic business


  Business transactions that take place inside the geographical boundaries of a country where both sellers and buyers are nationals of the same country
• International business


  Business transactions that take place outside the geographic boundaries of a country and the buyers and sellers are not of the same country
• Factors in international expansion

  • Opening up controlled economies to market oriented enterprise
  • Self-interests of organizations as well as the impact of external event forces
  • Developing countries need training and education as well as infrastructure to support their development and growth in the next century
• Sections of an opportunity assessment plan

  • Developing of the idea and analyzing competitive products or companies
  • Market-its size, trends, characteristics, and growth rate
  • Entrepreneur and management team's skills and experience
  • Developed time line that indicates the steps to successfully launch a new venture
• Differences between domestic and international businesses

  • Area of operation
  • Quality standards
  • Restrictions
  • Nature of customers
• Similarities between domestic and international businesses

  • Market research
  • Marketing mix
  • Customer's satisfaction
  • Innovation
  • Social responsibility
• Four P's of marketing mix

  • Product
  • Price
  • Place
  • Promotion