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Part V – Growth and Development of Entrepreneurial Ventures Chapter 15 – Strategic Planning for Emerging Ventures Chapter 16 – Managing Entrepreneurial.

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Presentation on theme: "Part V – Growth and Development of Entrepreneurial Ventures Chapter 15 – Strategic Planning for Emerging Ventures Chapter 16 – Managing Entrepreneurial."— Presentation transcript:

1 Part V – Growth and Development of Entrepreneurial Ventures Chapter 15 – Strategic Planning for Emerging Ventures Chapter 16 – Managing Entrepreneurial Growth Chapter 17 – Global Opportunities for Entrepreneurs Copyright (c) 2004 by South-Western, a division of Thomson Learning. All rights reserved.

2 Chapter 16 – Managing Entrepreneurial Growth

3 A Venture’s Typical Life Cycle Venture Development Stages New-Venture Development Start-up Activities Venture Growth Business Stabilization Innovation or Decline Profit, Productivity, Revenues

4 The Entrepreneurial Company in the Twenty- First Century

5 The Entrepreneurial Mindset Future Goals Change Status Quo Perceived Capability Blocked Possible Entrepreneur Satisfied Manager Frustrated Manager Classic Bureaucrat

6 Building the Adaptive Firm Share the Entrepreneur’s VisionShare the Entrepreneur’s Vision Increase the Perception of OpportunityIncrease the Perception of Opportunity Institutionalize Change as the Venture’s GoalInstitutionalize Change as the Venture’s Goal Instill the Desire to Be InnovativeInstill the Desire to Be Innovative –A reward system –An environment that allows for failure –Flexible operations –The development of venture teams

7 The Transition from an Entrepreneurial Style to a Managerial Approach Balancing the Focus (Entrepreneur and Manager)Balancing the Focus (Entrepreneur and Manager)

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9 The Entrepreneurial Culture Versus the Administrative Culture Entrepreneurial Focus Characteristics Administrative Focus Characteristics Strategic Orientation Driven by perception of opportunity Driven by controlled resources Revolutionary, with short duration Evolutionary, with long duration Commitment to Seize Opportunities Commitment of Resources Many stages, with minimal exposure at each stage A single stage, with complete commitment out of decision

10 The Entrepreneurial Culture Versus the Administrative Culture Entrepreneurial Focus Characteristics Administrative Focus Characteristics Control of Resources Episodic use or rent of required resources Ownership or employment of required resources Flat, with multiple informal networks Hierarchy Management Structure

11 Understanding the Growth Stage

12 Key Factors During the Growth Stage ControlControl ResponsibilityResponsibility Tolerance of failureTolerance of failure ChangeChange

13 Managing Paradox and Contradiction Bureaucratization versus DecentralizationBureaucratization versus Decentralization Environment versus StrategyEnvironment versus Strategy Strategic Emphases: Quality versus Cost versus InnovationStrategic Emphases: Quality versus Cost versus Innovation

14 Confronting the Growth Wall Successful growth-oriented firms have exhibited a few consistent themes: The entrepreneur is able to envision and anticipate the firm as a larger entity.The entrepreneur is able to envision and anticipate the firm as a larger entity. The team needed for tomorrow is hired and developed today.The team needed for tomorrow is hired and developed today. The original core vision of the firm is constantly and zealously reinforced.The original core vision of the firm is constantly and zealously reinforced. New “big-company” processes are introduced gradually as supplements to, rather than replacements for, existing approaches.New “big-company” processes are introduced gradually as supplements to, rather than replacements for, existing approaches. Hierarchy is minimized.Hierarchy is minimized. Employees hold a financial stake in the firm.Employees hold a financial stake in the firm.

15 Confronting the Growth Wall A six-step program was recommended as a process for breaking through the inability to handle environmental change or trends: 1.Get the facts 2.Create a growth task force 3.Plan for growth 4.Staff for growth 5.Maintain a growth culture 6.Use an advisory board

16 Growth and Decision Making

17 Effective Delegation Effective delegation: 1.Assigning specific duties 2.Granting authority to carry out these duties 3.Creating the obligation of responsibility

18 Achieving Entrepreneurial Leadership in the New Millennium Entrepreneurial leadership arises when an entrepreneur attempts to manage the fast-paced, growth oriented company.

19 Components of Entrepreneurial Leadership 1.Determining the firm’s purpose or vision. 2.Exploiting and maintaining the core competencies. 3.Developing human capital. 4.Sustaining an effective organizational culture. 5.Emphasizing ethical practices. 6.Establishing balanced organizational controls.


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