The Strategic Management Process
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Strategic Entrepreneurship
Entrepreneurship is concerned with:
The discovery of profitable opportunities
The exploitation of profitable opportunities
Entrepreneurship: the process by which individuals,
teams, or organizations identify and pursue
entrepreneurial opportunities without the immediate
constraint of the resources they currently control
Purpose of entrepreneurship:
To create wealth or value
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Strategic Entrepreneurship
Entrepreneurs
Individuals, acting independently or as part of an
organization, who perceive an entrepreneurial opportunity
and then take risks to develop an innovation to exploit it
Entrepreneurial Mind-set
Person who values uncertainty in the marketplace and seeks
to continuously identify opportunities with the potential to
lead to important innovations
Firms that foster entrepreneurship are:
Willing to take risks
Committed to innovation
Proactive in creating opportunities rather than waiting to
respond to opportunities created by others
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Strategic Entrepreneurship
Strategic entrepreneurship: taking entrepreneurial
actions through a strategic perspective
Entrepreneurship dimension: identifying opportunities in the
external environment to exploit through innovations
Strategic dimension: determining the best way to manage the
firm’s innovation efforts
Corporate entrepreneurship: the use or application of
entrepreneurship within an established firm
Critical to the survival and success of established organizations as
well as startup entrepreneurial ventures (or “startups”)
Three ways organizations can innovate
Internally
By cooperating (e.g., strategic alliances)
Through acquisitions
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Strategic Entrepreneurship
Firms engage in three types of innovative activities
Invention
The act of creating or developing a new product or process
Brings something new into being
Technical criteria determine the success of an invention
Innovation
Process of creating a commercial product from an invention
Brings something new into use
Commercial criteria determine the success of an innovation
Imitation
Adoption of an innovation by similar firms
Results of imitation
Product or process standardization
Products made with fewer features
Products offered at lower prices