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Study Unit 1 – 10 Points (Chapter 1 in TB)
• Name 5 key company capabilities
(Ref: 8 TB) (Appeared in May/June 2012 4.2,) (Also in Ass 1/Q1) (5 Point)
● Adaptability The ability to adjust, on a timely basis, to new technologies, new customer needs,
new regulatory rules, and other changes in conditions without losing focus or causing significant
disruption of core operations and commitments.
● Flexibility the ability to design company strategies, processes, and operational approaches that
can simultaneously meet the diverse and evolving requirements of customers, distributors,
suppliers, financiers, regulators, and other key stakeholders.
● Speed The ability to act quickly on emerging opportunities; to develop new products and services
more rapidly, and to make critical operational decisions without lengthy deliberations.
● Aggressiveness An intense, focused, and proactive approach to eliminating competitors,
delighting customers, and growing employees.
● Innovativeness A continuous priority placed on developing and launching new products, services,
processes, markets, and technologies, and on leading the marketplace.
• Explain Griener’s organisational life cycle stages.
(Ref: 1617 TB) (Appeared in May/June 2012 Q1.3; Oct/Nov 2010 Q1.3; Oct/Nov 2012 Q1.3;)
(Also in Ass 1/Q2)
● Start Up and Early Growth The launching of a venture and the initial penetration of the market.
● Growth through Direction Management puts the necessary systems and structures in place,
and augments the leadership team with the functional area professionals, another period of
sustained growth ensues.
● Growth through Delegation Takes the form of creating semiautonomous product divisions and
strategic business units.
● Growth through Coordination Centralizing operations. Head office staff is developed to
coordinate marketing, human resource management, production, research and development,
information technology, and other operations across the various divisions and operating units.
● Growth the Collaboration Companies simplify structures and procedures, reduce head office
staff, reassign staff experts to consulting teams assisting field operations, create matrix structures,
encourage experimentation, and emphasize innovative projects involving crossfunctional teams.
• Define Entrepreneurship
(Ref: 9 TB, 6 SG) (Appeared in Oct/Nov 2012 Q2.2.1)
● The process of creating value by bringing together a unique combination of resources to exploit an
opportunity
• Give 5/7 perspectives on the nature of Entrepreneurship
(Ref: 10 TB)
● Creation of wealth – involves assuming the risk associated with the facilitation of production in
exchange for profit
● Creation of enterprise – entails founding of a new business venture where none existed before
● Creation of innovation – concerned with unique combination of resources that make existing
methods or products obsolete
, ● Creation of jobs – concerned with employing, managing and developing the factors of production,
including the labour force
● Creation of value – process of creating value for customers by exploiting untapped opportunities
● Creation of growth – defined as a strong and positive orientation toward growth in sales, income,
assets and employment
• Explain why companies lose their Entrepreneurial way (the Organizational lifecycle)
(Ref: 1617 TB) (Appeared in May/June 2012 Q1.3; Oct/Nov 2010 Q1.3; Oct/Nov 2012 Q1.3;)
(Also in Ass 1/Q2)
● Start up and early growth
○ Encompasses the launching of a new venture and the initial penetration of the market.
○ Highly creative
○ Work environment in early stages is exciting, stressful, demanding, and uncertain.
○ Organisation run informally
○ Employees feel they part of something
○ CRISIS: Greater size requires more professionalised management
● Growth through direction
○ Companies fail because they will not formalise so Management put necessary systems
and structures in place, and augments the leadership team with functional area
professionals
○ Another period of sustained success growth ensues.
○ CRISIS: demand for greater autonomy on the part of lower level managers and employees
● Growth through delegation
○ Delegation takes form by creating semiautonomous product divisions and strategic
business units
○ Organisational targets are given to achieve.
○ Senior management focuses on major strategic moves and acquisitions
○ CRISIS: Management lose control over highly diversified field operation, duplication of work
efforts
● Growth through coordination
○ Companies respond to this loss of control by centralising operations.
○ Head office staff is developed to coordinate operations
○ CRISIS: Centralisation over times tends to breed bureaucracy and a crisis of red tape
eventually occurs.
○ Myrid of procedures and systems will be developed that exceed their utility
○ Procedures take precedence over problem solving
● Growth through collaboration
○ Very nature of the enterprise has to be reinvented by transforming the machine bureaucracy
into an innovation factory
○ Companies must simplify structures and procedures, reduce staff
○ Creation of matrix structures, encourage experimentation in all facets of the business
Study Unit 2 – no Questions
Study Unit 3 – 6 Points (Chapter 3 in TB)
• Name the Dimensions of Entrepreneurship
, ● Innvativeness
● Risk Taking
● Proactiveness
○ 4 innovation types and their risks:
○ Discontinuous innovation: breakthrough innovation addressing a new need eg. Cell phone,
high risk
○ Dynamically continuous innovation: dramatic improvement over existing solution that is not
disruptive eg. Electric tooth brush, moderate risk
○ Continuous innovation: incremental innovation enhances existing products with new
features eg light bulb that burns longer. Companies devote to this type the most, moderate
risk
○ Imitation – copying competitors, high risk
• Describe the degree & Frequency of Entrepreneurship of a company
Degree of Entrepreneurship
The extent to which events are innovative, risky and proactive.
E.g. a firm adopts a radically different (high innovativeness) and unproven (high risk) production technology,
yet lags behind the industry leaders (low Proactiveness)
Entrepreneurial Intensity: combining degree (domains) and frequency of Entrepreneurship
The degree of entrepreneurship refers to the level or extent to which each of the dimensions, innovativeness,
risk taking and proactiveness occurs in the organisation and can be related to technological change. The
frequency of entrepreneurship refers to how many entrepreneurial events take place within a given period of
time and can be related to the intensity of competition. If the degree of entrepreneurship and the frequency
of entrepreneurship are combined, we can measure the intensity of entrepreneurship in the organisation.
Fig3.5 tb 75
● Companies that display a low degree and frequency of entrepreneurship are periodic/ incremental in
entrepreneurial intensity.
● Companies that display a low degree and high frequency of entrepreneurship are
continuous/incremental in entrepreneurial intensity.
● Companies that display a high degree but low frequency of entrepreneurship are
periodic/discontinuous in entrepreneurial intensity.
● Companies that display a high degree and frequency of entrepreneurship are revolutionary in
entrepreneurial intensity.
● Companies that display an average degree and average frequency of entrepreneurship are dynamic
in entrepreneurial intensity.
Study Unit 4 – 6 Points (Chapter 4 in TB)
, ● Name 4 Pure types of Corporate Venture Capital Investments
● Driving investments: (strategic rationale with tight operational links between startups and
existing company)
● Enabling investments: (strategic rationale with loose operational links)
● Emergent investments: (financial rationale and tight operational links)
● Passive investments: ( financial rationale for investments with loose operational links)
• Corporate Entrepreneurship takes different forms, namely Corporate Venturing &
Strategic Entrepreneurship. Discuss the different forms.
(Ref: 86,100 TB) (Appeared in May/June 2012 Q2.2; Oct/Nov 2010 Q4.2; Oct/Nov 2011 Q1; May/June 2010 Q1.1,
May/June 2011 Q1.3)
● Corporate Venturing Includes various methods for creating, adding to, or investing in new
businesses. The different types include:
○ Internal corporate venturing create and own new business
○ Cooperative corporate venturing Create new businesses and own together with external
development partners
○ External corporate venturing new business are created outside the company and
subsequently acquired by the company
● Strategic Entrepreneurship (100 TB/ 32 SG) Corresponds to a broader array of entrepreneurial
initiatives that do not necessarily involve new business being added to the firm.
○ Strategic renewal Seeks to redefine its relationship with its markets or industry
competitors by fundamentally altering how it competes.
○ Sustained regeneration The firm regularly and continuously introduces new products
and services or enters new markets.
○ Domain redefinition The firm proactively creates a new productmarket arena that others
have not recognized or actively sought to exploit.
○ Organizational rejuvenation The firm seeks to sustain or improve its competitive
standing by altering its internal processes, structures, and/or capabilities.
○ Business Model reconstruction The firm applies entrepreneurial thinking to the design or
redesign of its core business models in order to improve operational efficiencies.
• Discuss Open Innovation Revolution (Innovation Model) 4 Reasons
(Ref: 108 TB, 33 SG) (Appeared in Oct/Nov 2012 Q2.2)
● Importing new ideas is a good way to multiply the building blocks of innovation That is by
accessing external inputs to innovation firms can potentially offer more and better innovative
outputs.
● Exporting ideas is a good way to raise cash and keep talent A company’s innovative ideas
can have market value that is exploitable through its sale to outside customers.
● Exporting Ideas gives companies a way to measure an innovation’s real value and to
ascertain whether further investment is warranted Offers to sell internally developed
innovative ideas to external markets can be litmus tests for the true value of an idea.
● Exporting and importing ideas helps companies clarify what they do best Collaborative
efforts, the purchase of innovations or inputs to innovations from others, and others to sell the firms
innovations or inputs to innovations to others can reveal where a firm's real bases for competitive
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