1. MGT492: Managing People & Organizations
Lecture 6:Chapter 3: The Global Environment and Entrepreneurship (contd.)
Instructor: Dr. Aisha Azhar
COMSATS Virtual Campus

2. Last lecture overview The Global Borderless Environment Trading Blocs
Global Trade Agreements, Trade Alliances
Global Sourcing, import/export
Licensing, franchising, contracting

3. Entrepreneurship New Venture Creation Entrepreneur Intrapreneur
The process of starting and operating a new business or new line of business.
Entrepreneur
One who starts a new small business.
Intrapreneur
One who starts a new line of business within a large organization.

4. Entrepreneurship (cont’d)
Small Business Defined
A business that is independently owned and operated, is not dominant in its field, and has annual receipts not in excess of $500,000.
Of the 600 million businesses in the U.S., 99% are small businesses and 80% are family businesses.

5. Contributions of Entrepreneurs
Innovation
Job Creation and Economic Growth
Society
Support of Large Businesses

6. Selecting the New Venture
Factors in Selecting a New Venture
Good growth potential and profit opportunities
Previous work experience
Observing others’ mistakes and successes
Finding an overlooked market segment or niche
Systematic search or hobby
Competitive Advantage
Specifies how the organization offers unique customer value.
First-mover advantage involves offering a unique customer value before competitors do.

7. Selecting the New Venture
Five Most Commonly Used Entrepreneurial Strategies
Create a competitive advantage.
Maintain innovation.
Lower the costs of developing/maintaining one’s venture.
Defend product/service as it is now.
Create a first-mover advantage.

8. The Business Plan
The well prepared business plan answers the following questions:

9. Sections In a Business Plan
Exhibit 3–3a

10. Sections In a Business Plan (cont’d)
Exhibit 3–3b

11. Sections In a Business Plan (cont’d)
Exhibit –3c

12. Practices of Global Companies
Exhibit 3–4

14. Global Diversities
Exhibit 3–5

15. Global Diversity Diversity in Work-Related Values
Geert Hofstede’s Dimensions of National Value Systems
Individualism and Collectivism
High and Low Power Distance
High and Low Uncertainty Avoidance
Quantity and Quality of Life

16. Global Diversity Diversity in Management Functions
Management practices that work well in one country may not work in another country.
Managers must base their actions on the characteristics and work-related values of the country in which they are operating.
The Global Learning Organizations
Successful multinational organizations value sharing knowledge to adapt to their diverse and changing environments.