McGraw-Hill/Irwin

2005 The McGraw-Hill Companies, Inc. All2-1

rights reserved.

Chapter

The Entrepreneurial and

Intrapreneurial Mind

2-2

Entrepreneurial Process
1) Identify/Evaluate Opportunity
2) Develop Business Plan
3) Determine Resources Required
4) Manage The Enterprise
2-3
McGraw-Hill

2004 The McGraw-Hill Companies, Inc. All rights reserved.

Opportunity Analysis
Market Need?
Personal Observation
Underlying Social Conditions
Market Research Data
Assess Competition- Patents?
Where Money To Be Made
2-4

Decision Making
Manager vs. Entrepreneur
Domain- Administrative vs.
Entrepreneurial
Strategic Orientation
Commitment to Opportunity
Commitment of Resources
Control of Resources
Management Structure
2-5

Intrapreneurship
Instilling
Entrepreneurial
Spirit Within An
Existing
Organization To
Innovate And Grow.
2-6

Organizational Culture
Corporate

Intrapreneurial

Climate/Reward
System Favors
Conservatism
Follow
Instructions, No
Initiative
Hierarchy Of
Authority

Develop Vision,
Goals, & Plans
Suggest, Try,
Experiment
Flat Organizational
StructureNetworking &
Teamwork
2-7

Cultural Norms/Values
Corporate

Intrapreneurial

Fragmented
Instruction

Whole
Vision

Controlled
Outer-Directed

In Control
Inner-Directed

Alienation
Chores

Responsibility
Enthusiasm/Motivation

Defined Limits
Interference

Space/Freedom
Trust

Distrust
Expendable

Belief In People
Expandable

2-8

Interest In Intrapreneurship
Rising Interest in Doing Your
Own Thing
Corporation
Support To Retain Creative
Employees
Fund Startups

Hypercompetition
Corporate vs. Intrapreneurial
Culture
2-9

Intrapreneurial Activities
New Business Venturing
Innovation
Self-Renewal
Proactive
2-10

Climate for Intrapreneurship

Technology
New Ideas
Encouraged
Trial/Error
Encouraged
Failure Allowed
No Opportunity
Parameters
Resources Available &
Accessible

Multidiscipline Teams
Long Time Horizon
Volunteer Program
Appropriate Reward
System
Sponsors/Champions
Available
Support of Top
Management
2-11

Intrapreneurial Leaders
Understand Environment
Have Vision/Flexibility
Create Management Options
Encourage Teamwork
Encourage Open Discussion
Build Coalitions
Persist
2-12

Establishing Intrapreneurship
Commitment of Top Management
Identify Ideas/Areas Interested In
Supporting
Use Technology For Flexibility
Managers Share/Train Employees
Get Closer to Customers
Be More Productive With Less
2-13

Evaluating
Intrapreneurship Proposals
Corporate Fit
Initial
Investment
Experienced
Venture
Champion
Experience With
Product/Service

Competitive
Threat
Proprietary
Technology
Gross Margin
Rate Of Return
2-14

Barriers To
Intrapreneurship
Inherent Nature of Large
Organizations
No Long-Term Commitment
Lack Of Autonomy For Decision
Making
Lack of Intrapreneurial Talent
Inappropriate Compensation Methods
Constrained Environment
2-15