CFA 201: The Entrepreneurial Mindset in Communications and Fine Arts Professor Edward Lee Lamoureux, Ph.D. Bradley University College of Communications and Fine Arts CLASS SIX

Entrepreneurial Process Part 1

The Environment Changes EVERYTHING Ideation Creativity Problem/Need Opportunity Solution Innovation Execution Results Entrepreneurial Enterprise The Environment Changes EVERYTHING Although we will examine the entire Entrepreneurial process through the next two sessions, the course focuses on (only) the early phases.

Framework of Frameworks For Entrepreneurship Dr. Michael Morris, OK. St. Univ.

Organization Contexts Entrepreneurial Enterprise #1 Organization Contexts Opportunities #2 & 3 The Entrepreneur #4 & 5 The Concepts Resources Find (2) Evaluate (3) Types of Ventures (11) Life cycles/stages (12) Types of Entrepreneurs (4) Type(s) of investments they make (5) Types and strategies (9) Prioritizing sources (10) Types of Innovation (6) Competitive Entry Wedge (7) Economic models (8)

We examined the totality that Morris lists as #1, the Entrepreneurial Enterprise, in our last class.

#1 Solution Innovation The Environment Changes EVERYTHING Ideation Creativity Problem/Need Opportunity Solution Innovation Execution Results The Environment Changes EVERYTHING #1 Entrepreneurial Enterprise

We will examine #2: Find Opportunities and #3: Analyze Opportunities in detail in classes 10 & 11 respectively.

Organization Contexts PHASE 4 Find (2) Evaluate (3) Opportunities #2 & 3 Types of Ventures (11) Types of Entrepreneurs (4) Entrepreneurial Enterprise #1 Organization Contexts The Entrepreneur #4 & 5 Life cycles/stages (12) Type(s) of investments they make (5) The Concepts Resources Types of Innovation (6) Prioritizing sources (10) Competitive Entry Wedge (7) Types and strategies (9) Economic models (8)

#4: Types of Entrepreneurs Personal Achievers Strong commitment; internal locus of control; but needs feedback too. Super-sales-people Empathic with others; Strong social skills & relationship building Expert Idea Generators Desire to innovate; works well with high tech; intelligence as competitive advantage Corporate Managers Take charge/compete/stand out; Wants power and corporate prestige; OK with authority-based relations.

Organization Contexts PHASE 5 Find (2) Evaluate (3) Opportunities #2 & 3 Types of Ventures (11) Types of Entrepreneurs (4) Entrepreneurial Enterprise #1 Organization Contexts The Entrepreneur #4 & 5 Life cycles/stages (12) Type(s) of investments they make (5) The Concepts Resources Types of Innovation (6) Prioritizing sources (10) Competitive Entry Wedge (7) Types and strategies (9) Economic models (8)

#5: Entrepreneur’s Investment Models Income Model Initial Investment +/- deficient income + income Growth Model Initial Investment No Income +/- deficient income +/- deficient income + more investment Major Capital Gain Speculative Model Initial Investment No Income Marginal Income Capital Gain

Organization Contexts PHASE 6 Find (2) Evaluate (3) Opportunities #2 & 3 Types of Ventures (11) Types of Entrepreneurs (4) Entrepreneurial Enterprise #1 Organization Contexts The Entrepreneur #4 & 5 Life cycles/stages (12) Type(s) of investments they make (5) The Concepts Resources Types of Innovation (6) Prioritizing sources (10) Competitive Entry Wedge (7) Types and strategies (9) Economic models (8)

#6: Innovation Types Products/Services New to the world New to the market New product or service line that at least one competitor is offering Addition to existing product or service line Product/service improvement/revision (including new feature, or option, or change) New application of existing product or service Significant cost reduction of an existing product or service

#6: Innovation Types Processes New administrative system or procedure New production method New marketing or sales approach New customer support system New distribution channel or method New logistical approach New financing method New pricing approach New purchasing approach New organizational form or structure

Organization Contexts PHASE 7 Find (2) Evaluate (3) Opportunities #2 & 3 Types of Ventures (11) Types of Entrepreneurs (4) Entrepreneurial Enterprise #1 Organization Contexts The Entrepreneur #4 & 5 Life cycles/stages (12) Type(s) of investments they make (5) The Concepts Resources Types of Innovation (6) Prioritizing sources (10) Competitive Entry Wedge (7) Types and strategies (9) Economic models (8)

#7 Competitive Entry Wedges Exploiting Partial Momentum Geographic Transfer such as franchising; X exists, but not here Supply Shortages Knapp String Shop & Band Instruments in Galesburg rents out band instruments, short term, that are only available long term in Peoria. Tapping Un-utilized Resources ArcLight theatre (local rural theatre group), started a business based o their ability to use school district facilities when empty.

#7 Competitive Entry Wedges Customer Sponsorship Customer Contract For example, if the school district hired the people at ArcLight to teach all of their theatre classes Becoming a Second Source If a local music store started renting band instruments short term.

#7 Competitive Entry Wedges Parent Company Sponsorship Joint Ventures Licensing Market relinquishment Selloff Division

#7 Competitive Entry Wedges Governmental Sponsorship Favored Purchasing (minorities/gender-based contracting/set asides) Rule Changes

Next time Paper 1 (Your creative cycle) is due today Read, Morris, et al. “Toward Integration . . . Frameworks” (.pdf file on Sakai), .pdf pages 4-12, article pages 38-46, especially .pdf pages 4-8, article pages 38-42.  In class 7: Entrepreneurial Process Part 2

CFA 201: The Entrepreneurial Mindset in Communications and Fine Arts Professor Edward Lee Lamoureux, Ph.D. Bradley University College of Communications and Fine Arts CLASS SIX