Integration: Management - MGMT300-08

1/26/2016

Management &
Entrepreneurship:
Handling StartUps and New
Ventures

Appendix 2
Copyright
2016
2012Pearson
Pearson Education,
Education, Inc.
Inc.
Copyright
Publishing as Prentice Hall

App2-1

CHAPTER LEARNING OBJECTIVES

An understanding of the three stages of
entrepreneurship
An overall appreciation for the opportunity concept
and an understanding of the primary types of
entrepreneurial opportunities
An understanding of how to identify opportunities
Insights regarding the key components of
opportunity evaluation

Copyright
2016
2012Pearson
Pearson Education,
Education, Inc.
Inc.
Copyright
Publishing as Prentice Hall

App2-2

CHAPTER LEARNING OBJECTIVES

An appreciation for the role of opportunity
exploitation in the entrepreneurship process
Insights regarding the various types of financing
available to entrepreneurs
An appreciation for how existing opportunities use
corporate entrepreneurship
An understanding of and appreciation for the role of
social entrepreneurship in society

Copyright
2016
2012Pearson
Pearson Education,
Education, Inc.
Inc.
Copyright
Publishing as Prentice Hall

App2-3

Integration: Management - MGMT300-08

1/26/2016

FUNDAMENTALS OF
ENTREPRENEURSHIP

ENTREPRENEURSHIP:
Identification Evaluation Exploitation of
Entrepreneurial Opportunities
ENTREPRENEURIAL:
Individual who identifies, evaluates, and
exploits the opportunities
Copyright
2016
2012Pearson
Pearson Education,
Education, Inc.
Inc.
Copyright
Publishing as Prentice Hall

App2-4

Entrepreneurship Process

Copyright
2016
2012Pearson
Pearson Education,
Education, Inc.
Inc.
Copyright
Publishing as Prentice Hall

App2-5

TYPES OF OPPORTUNITIES
Five Types:
Creation of new products and services
Discovery of new geographical markets where new
customers will appreciate new products or services
Creation or discovery of new raw materials or discovering
alternative uses for existing raw materials
Discovery of new methods of production
New methods of organizing
Copyright
2016
2012Pearson
Pearson Education,
Education, Inc.
Inc.
Copyright
Publishing as Prentice Hall

App2-6

Integration: Management - MGMT300-08

1/26/2016

Types of Opportunities

Copyright
2016
2012Pearson
Pearson Education,
Education, Inc.
Inc.
Copyright
Publishing as Prentice Hall

App2-7

OPPORTUNITY IDENTIFICATION
FOUR FACTORS:

Entrepreneurial Alertness
Information Asymmetry
Social Networks
Ability to Establish Means-Ends-Relationships

Copyright
2016
2012Pearson
Pearson Education,
Education, Inc.
Inc.
Copyright
Publishing as Prentice Hall

App2-8

Opportunity Identification

Copyright
2016
2012Pearson
Pearson Education,
Education, Inc.
Inc.
Copyright
Publishing as Prentice Hall

App2-9

Integration: Management - MGMT300-08

1/26/2016

OPPORTUNITY EVALUATION
Entrepreneur must determine if they have a
good idea or viable opportunity to provide the
desired outcomes
Feasibility Analysis
Entrepreneurial Risk

Law of Small Numbers

Illusion of Control
Copyright
2016
2012Pearson
Pearson Education,
Education, Inc.
Inc.
Copyright
Publishing as Prentice Hall

App2-10

OPPORTUNITY EXPLOITATION
Activities and investments committed to gain
returns from new product or service
Should exploit opportunity when:

Customers will value new product or service AND

they provide market demand
Perceive have support of important stakeholders
Perceive management team is capable
Copyright
2016
2012Pearson
Pearson Education,
Education, Inc.
Inc.
Copyright
Publishing as Prentice Hall

App2-11

Opportunity Exploitation

Copyright
2016
2012Pearson
Pearson Education,
Education, Inc.
Inc.
Copyright
Publishing as Prentice Hall

App2-12

Integration: Management - MGMT300-08

1/26/2016

FINANCING EXPLOITATION
Entrepreneur Individual Funds
Sources of External Capital
Angel Investors
Venture Capitalists
Bank Financing

Copyright
2016
2012Pearson
Pearson Education,
Education, Inc.
Inc.
Copyright
Publishing as Prentice Hall

App2-13

CORPORATE ENTREPRENEURSHIP
Using existing corporation to identify,
evaluate, and exploit opportunities

Sustained Regeneration
Organizational Rejuvenation
Strategic Renewal
Domain Definition
Copyright
2016
2012Pearson
Pearson Education,
Education, Inc.
Inc.
Copyright
Publishing as Prentice Hall

App2-14

SOCIAL ENTREPRENEURSHIP
Commercial Entrepreneurship

Individuals or corporations pursue opportunities

for purpose of generating sales and profits

Social Entrepreneurship

Recognition, evaluation, and exploitation of

opportunities that create value as opposed to
personal or shareholder wealth

Copyright
2016
2012Pearson
Pearson Education,
Education, Inc.
Inc.
Copyright
Publishing as Prentice Hall

App2-15

Integration: Management - MGMT300-08

1/26/2016

Commercial & Social

Entrepreneurship Differences
Mission
Availability of Resources
Performance Measurement

Copyright
2016
2012Pearson
Pearson Education,
Education, Inc.
Inc.
Copyright
Publishing as Prentice Hall

App2-16

Success Factors in Social

Entrepreneurship
Networks of Relationships
Capital
Publics Acceptance of New Venture

Copyright
2016
2012Pearson
Pearson Education,
Education, Inc.
Inc.
Copyright
Publishing as Prentice Hall

App2-17