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    L8 - Managing Entrepreneurial Growth

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    yus11
    This lecture discusses managing entrepreneurial growth and strategies for businesses experiencing growth. As a business grows, the entrepreneur must give up some decision making authority and adapt to changes in corporate culture. When transitioning, the entrepreneur should communicate regularly, listen to employees, delegate responsibility, provide feedback and training, and emphasize teamwork. The lecture also covers growth strategies, pressures on firm growth, overcoming financial challenges, generic strategies, and managing fast growth through scaling, duplication, and granulation.

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    L8 - Managing Entrepreneurial Growth

    Uploaded by

    yus11
    357 views26 pages
    This lecture discusses managing entrepreneurial growth and strategies for businesses experiencing growth. As a business grows, the entrepreneur must give up some decision making authority and adapt to changes in corporate culture. When transitioning, the entrepreneur should communicate regularly, listen to employees, delegate responsibility, provide feedback and training, and emphasize teamwork. The lecture also covers growth strategies, pressures on firm growth, overcoming financial challenges, generic strategies, and managing fast growth through scaling, duplication, and granulation.

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    This lecture discusses managing entrepreneurial growth and strategies for businesses experiencing growth. As a business grows, the entrepreneur must give up some decision making authority and adapt to changes in corporate culture. When transitioning, the entrepreneur should communicate regularly, listen to employees, delegate responsibility, provide feedback and training, and emphasize teamwork. The lecture also covers growth strategies, pressures on firm growth, overcoming financial challenges, generic strategies, and managing fast growth through scaling, duplication, and granulation.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    357 views26 pages

    L8 - Managing Entrepreneurial Growth

    Uploaded by

    yus11
    This lecture discusses managing entrepreneurial growth and strategies for businesses experiencing growth. As a business grows, the entrepreneur must give up some decision making authority and adapt to changes in corporate culture. When transitioning, the entrepreneur should communicate regularly, listen to employees, delegate responsibility, provide feedback and training, and emphasize teamwork. The lecture also covers growth strategies, pressures on firm growth, overcoming financial challenges, generic strategies, and managing fast growth through scaling, duplication, and granulation.

    Copyright:

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    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 26

    LECTURE 8

    Managing Entrepreneurial Growth

    Entrepreneurship Technology (BPTW 4012) Growth

    Organizational changes during growth


    Entrepreneur must give up some decision making authority Corporate culture changes from small to larger business Such changes are often difficult for the entrepreneur and other founding members to adapt to

    Making the transition as an entrepreneur whos business has grown


    Communicate all matters to key employees Be a good listener Be willing to delegate responsibility Provide feedback regularly and consistently Provide continuous training of key employees Emphasize results to key managers with incentives built in to encourage them to train and delegate within their roles Establish a we spirit not a me spirit in memos and meetings

    New skills for the entrepreneur


    Record keeping and financial control Inventory control Human resources Marketing skills Strategic planning skills Time management skills Negotiation skills

    Growth Strategies

    Existing

    Penetration

    Product Development

    Market
    New

    Market Development

    Diversification

    Existing

    New

    Product

    Strategies
    Penetration-

    Growth By Selling More Of Existing Product To Existing Customers Market Development


    New

    Geographic Market New Demographic Market New Product Use


    Product

    Development- Sell New Products To Existing Customers Diversification- Sell New Product To New Market

    Pressures On Firm Growth


    1. 2. 3. 4.

    Existing Financial Resources Human Resources Management Of Employees Entrepreneurs Time

    Overcoming Financial Resources Pressure

    Manage Cash Flow- Budget vs. Actual Manage Inventory Manage Fixed Assets Manage Costs/Profits- Compare Actual vs. Standard Percentages Taxes Record Keeping

    Generic Strategies
    Cost Leadership

    In conjunction with differentiation Economies or diseconomies of scale Capacity utilization achieved Linkages w/ suppliers & distributors

    Generic Strategies
    Low Cost Producer Advantage

    Many price-sensitive buyers Few ways of achieving differentiation Buyers not sensitive to brand differences

    Large # of buyers w/bargaining power

    Generic Strategies
    Differentiation
    Greater product flexibility
    Greater compatibility Lower costs Improved service Greater convenience More features

    Generic Strategies
    Focus
    Industry segment of sufficient size Good growth potential Not crucial to success of major competitors

    Three strategies for managing fast growth


    Scaling Duplication Granulation

    Scaling doing more of what you are good at

    Focus on concrete product, technology, or customer segment Invest aggressively

    Expand product development around core technologies, expand product lines, increase marketing using existing channels to reach new groups

    Specialize and standardize Hire the right mix Adapt the structures Learn from customers

    Duplication: Repeat the business model in new regions


    Balance standardization and adaptation Hire flexible, independent managers Duplicate key parts of the infrastructure Duplication entrepreneurial knowledge Be aware of the limitations

    Granulation: Growing select business cells


    Focus on specific areas of business Balance the old and the new Balance formal and informal Evaluate and monitor Learn from customers, partners, and competition

    Bear Opportunities
    Leverage your relationships Advertise value propositions Control costs Pursue traditional marketers

    Total Quality Management (TQM)

    Definition :

    Internally from the firms view and it measured in terms of compliance with determined product specifications or standards with minimum defects

    Corporate Entrepreneurship

    As a process to create new ventures within a business corporate Characteristics of a Corporate entrepreneur

    Proactive Innovative Propensity to make moderate and calculated risk Inspiration to do more than current capacity Team work Creative problem solving Listening the feedback Need for achievement

    Innovation
    Spotting and exploiting opportunities quickly Definition

    Is the process of implementing new ideas of turning creative concepts into realities

    2 phase of Innovation:
    Creating an idea Make sure it results in something new

    Sources of Innovation

    Technology

    The types and pattern of activity, equipment and material, knowledge and experience used to perform task Annoying habit of expecting-demanding
    All business need to know what their competitors are doing

    Customers

    Competitors

    Creativity

    Types of competitor

    There 3 types of competitor

    Direct competitors

    Compete against on a day-to day basis Those that similar, but not identical products/services

    Close competitors

    Indirect competitors

    More varied

    What we can learn from competitors?


    Products and services Product line Promotional activities Distribution

    Creativity

    Is the ability to generate novel and useful ideas and solutions to everyday problems and challenges Being creative is seeing thing as everybody else but thinking of something different

    Why is creativity a major source of innovation?

    innovation is usually regarded as the successful exploitation of news ideas, creativity clearly has a major role to play during the early stage of innovation and new products/ service development

    Thank you
    Champions believe in themselves even if no one else does. In order to succeed, we must first believe that we can. They can because they think they can.

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