1. Corporate Entrepreneurship & Innovation 3rd ed. Michael H
Corporate Entrepreneurship & Innovation 3rd ed. Michael H. Morris Oklahoma State University Donald F. Kuratko Indiana University Jeffrey G. Covin Indiana University
Copyright (c) 2011 by Donald F. Kuratko All rights reserved.

2. “Wealth in the new regime flows directly from innovation, not optimization; that is, wealth is not gained by perfecting the known, but by imperfectly seizing the unknown.” ~Kevin Kelly, “New Rules for the New Economy,” Wired
Copyright (c) 2011 by Donald F. Kuratko All rights reserved.

3. Section I Building Blocks for Corporate Entrepreneurship
Section I introduces basic concepts, tools and frameworks that help explain how entrepreneurial behavior can occur within established organizations.
Chapter One: The New Entrepreneurial Imperative
Chapter Two: The Unique Nature of Corporate Entrepreneurship
Chapter Three: Levels of Entrepreneurship in Organizations: Entrepreneurial Intensity
Chapter Four: The Forms of Corporate Entrepreneurship
Chapter Five: Entrepreneurship in Other Contexts: Non-Profit and Government Organizations
Copyright (c) 2011 by Donald F. Kuratko All rights reserved.

4. Building Blocks for Corporate Entrepreneurship
Section I
Building Blocks for Corporate Entrepreneurship
Copyright (c) 2011 by Donald F. Kuratko All rights reserved.

5. The New Entrepreneurial Imperative
Chapter 1
The New Entrepreneurial Imperative

6. Turbulent Environments and the Embattled Corporation
The changing domain of the external environment
Technological
Economic
Competitive
Labor
Resource
Customer
Legal
Regulatory
Global
Customer
Social
Supplier
“Managers face shortened decision windows and diminishing opportunity streams, meaning they must act quickly or find themselves missing out on opportunities”

7. Turbulent Environments and the Embattled Corporation
Customers
Fragmented markets and rapidly rising customer expectations are forcing firms to customize their products, cultivate longer-term customer relationships and learn new skills in serving global markets
Technology
Firms have to change the ways they operate internally and how they compete externally based on:
-New information management technologies
-New production and service
delivery technologies
-New customer management
technologies
The Embattled Corporation
Competitors
Lead customers to entirely new market spaces
Quickly mimic which makes it harder to differentiate
Attack firms’ most profitable areas of business by specializing in narrow, profitable niches
Legal, Regulatory and Ethical Standards
Firms are increasingly accountable to multiple forcing management to make difficult choices and deliver results while behaving responsibly
Increasingly litigious environment
Increasing regulatory restrictions

8. The New Path to Sustainable Competitive Advantage
Achieving a sustainable competitive advantage derives from five key company capabilities
Adaptability
Flexibility
Speed
Aggressiveness
Innovativeness
Entrepreneurship is the core source of “sustainable competitive advantage”

9. What is Entrepreneurship?
Seven perspectives on the nature of entrepreneurship
Creation of wealth
Creation of enterprise
Creation of innovation
Creation of change
Creation of employment
Creation of value
Creation of growth

10. What is Entrepreneurship?
The most common key words found in the definition of entrepreneurship
Starting / Founding / Creating
New Business / New Venture
Innovation / New Products / New Market
Pursuit of Opportunity
Risk-taking / Risk Management / Uncertainty
Profit-seeking / Personal Benefit

11. What is Entrepreneurship?
An encompassing definition of entrepreneurship
“Entrepreneurship is the process of creating value by bringing together a unique combination of resources to exploit an opportunity.”

12. What is Entrepreneurship?
Entrepreneurship involves a process
Entrepreneurs create value where there was none before
Entrepreneurs put resources together in a unique way
Entrepreneurship is opportunity-driven behavior

13. What is Corporate Entrepreneurship?
“Corporate entrepreneurship is a term used to describe entrepreneurial behavior inside established mid-sized and large organizations.”
Other popular related terms
Organizational entrepreneurship
Intrapreneurship
Corporate venturing

14. Management Versus Entrepreneurship
“Management is the process of setting objectives and coordinating resources, including people, in order to attain them.”

15. Management Versus Entrepreneurship
Managers focus more on the current situation and how to improve efficiency and effectiveness
Entrepreneurs focus less on the current situation and more on what can be

16. Management Versus Entrepreneurship
The Manager
The Entrepreneur
Planner
Strategist
Organizer
Staffer
Motivator
Budgeter
Evaluator
Coordinator
Supervisor
Visionary
Opportunity-seeker
Creator
Innovator
Calculated Risk-taker
Resource Leverager
Change Agent
Active and Adaptive Concept Implementer
The Entrepreneurial Manager

17. Greiner’s 5 stages of a company’s evolution Creativity Direction
Why Companies Lose their Entrepreneurial Way: The Organizational Life Cycle
Greiner’s 5 stages of a company’s evolution
Creativity
Direction
Delegation
Coordination
Collaboration

18. Why Companies Lose their Entrepreneurial Way: The Organizational Life Cycle
The evolutionary process of companies:
Next Stage
Crisis Point
Companies enter a particular growth stage and prosper until reaching a crisis point
Begin Decline
Failure
Acquisition Candidate

19. Start up and early growth Growth through direction
Why Companies Lose their Entrepreneurial Way: The Organizational Life Cycle
Start up and early growth
Growth through direction
Growth through delegation
Growth through coordination
Growth through collaboration

20. Why Companies Lose their Entrepreneurial Way: The Organizational Life Cycle
Stage 1
Creativity
Stage 2
Direction
Stage 3
Autonomy
Stage 4
Coordination
Stage 5
Collaboration
Management Focus
Make &Sell
Efficiency of operations
Expansion of market
Consolidation of organization
Problem solving & innovation
Organization Structure
Informal
Centralized & Functional
Decentralized & geographical
Line-staff & product groups
Matrix of teams
Top Management Style
Individualistic & entrepreneurial
Directive
Delegative
Watchdog
Participative
Control System
Market results
Standards & cost centers
Reports & profit centers
Plans & investment centers
Mutual goal setting
Management Reward System
Ownership
Salary & merit increases
Individual bonus
Profit sharing & stock options
Team bonus
(Source: Adapted from Larry E. Greiner, “Evolution and Revolution as Organizations Grow” Harvard Business Review, July-August, 1972 p. 45)

21. The Entrepreneurial Imperative: A Persistent Sense of Urgency
Managers within an organization tend to become reactive by responding to the changes brought about by the external environment but let entrepreneurial fires within the company dwindle and diminish

22. The Entrepreneurial Imperative: A Persistent Sense of Urgency
Managers must ask themselves the following questions to avoid inevitable diminishing returns and refocus on new directives and entrepreneurial avenues:
How much more cost savings can the company wring out of its current business? Are managers within the firm working harder and harder for smaller and small efficiency gains?
How much more revenue growth can the company squeeze out of its current business? Is the company paying more and more for customer acquisition and market share gains?

23. The Entrepreneurial Imperative: A Persistent Sense of Urgency
How much longer can the company keep propping up its share price through share buybacks, spin-offs, and other forms of financial engineering? Is top management reaching the limits of its ability to push up the share price without actually creating new wealth?
How many more scale economies can the company gain from mergers and acquisitions? Are the costs of integration beginning to overwhelm the savings obtained from slashing shared overhead costs?
How different are the strategies of the four or five largest competitors in the industry from the company’s strategy? Is it getting harder and harder to differentiate the company from its competitors?

24. A Model of Corporate Entrepreneurship
Copyright (c) 2011 by Donald F. Kuratko All rights reserved.