Presentation on theme: "Part V – Growth and Development of Entrepreneurial Ventures"— Presentation transcript:
1 Part V – Growth and Development of Entrepreneurial Ventures Chapter 15 – Strategic Planning for Emerging VenturesChapter 16 – Managing Entrepreneurial GrowthChapter 17 – Global Opportunities for EntrepreneursCopyright (c) 2004 by South-Western, a division of Thomson Learning. All rights reserved.
6 Building the Adaptive Firm Share the Entrepreneur’s VisionIncrease the Perception of OpportunityInstitutionalize Change as the Venture’s GoalInstill the Desire to Be InnovativeA reward systemAn environment that allows for failureFlexible operationsThe development of venture teams
7 The Transition from an Entrepreneurial Style to a Managerial Approach Balancing the Focus (Entrepreneur and Manager)
9 The Entrepreneurial Culture Versus the Administrative Culture Entrepreneurial Focus CharacteristicsAdministrative Focus CharacteristicsStrategic OrientationDriven by perception of opportunityDriven by controlled resourcesCommitment to Seize OpportunitiesRevolutionary, with short durationEvolutionary, with long durationMany stages, with minimal exposure at each stageA single stage, with complete commitment out of decisionCommitment of Resources
10 The Entrepreneurial Culture Versus the Administrative Culture Entrepreneurial Focus CharacteristicsAdministrative Focus CharacteristicsOwnership or employment of required resourcesControl of ResourcesEpisodic use or rent of required resourcesManagement StructureFlat, with multiple informal networksHierarchy
12 Key Factors During the Growth Stage ControlResponsibilityTolerance of failureChange
13 Managing Paradox and Contradiction Bureaucratization versus DecentralizationEnvironment versus StrategyStrategic 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 team needed for tomorrow is hired and developed today.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.Hierarchy is minimized.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:Get the factsCreate a growth task forcePlan for growthStaff for growthMaintain a growth cultureUse an advisory board
17 Effective Delegation Effective delegation: Assigning specific duties Granting authority to carry out these dutiesCreating 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 Determining the firm’s purpose or vision.Exploiting and maintaining the core competencies.Developing human capital.Sustaining an effective organizational culture.Emphasizing ethical practices.Establishing balanced organizational controls.