Discovering Hospitality and Tourism, 2nd Ed.© 2008 Pearson Education, Inc. Ninemeier and PerdueUpper Saddle River, NJ Two Types of Entrepreneurial Goals To develop a business that meets the financial needs of themselves and their families (goal: maintenance of on-going operations). To learn whether success can be duplicated by business expansion (goal: sustained business growth). O.H. 34.1

Discovering Hospitality and Tourism, 2nd Ed.© 2008 Pearson Education, Inc. Ninemeier and PerdueUpper Saddle River, NJ All About Intrapreneurs They have entrepreneurial talent but do not want to start their own business. They work best in organizations that give them responsibility for a defined part of the business. Example: a general manager of one unit in a multi-unit restaurant chain who participates in a profit-sharing plan. O.H. 34.2

Discovering Hospitality and Tourism, 2nd Ed.© 2008 Pearson Education, Inc. Ninemeier and PerdueUpper Saddle River, NJ A Recipe for the Entrepreneurial Process O.H. 34.3

Discovering Hospitality and Tourism, 2nd Ed.© 2008 Pearson Education, Inc. Ninemeier and PerdueUpper Saddle River, NJ Business Plans Must Consider Numerous Factors Characteristics and size of the potential market A market plan Production and service requirements How the new organization will be organized Financial (start-up and working capital) requirements Mission, goals, and objectives for the new business Background information about the origin of the new business O.H. 34.4

Discovering Hospitality and Tourism, 2nd Ed.© 2008 Pearson Education, Inc. Ninemeier and PerdueUpper Saddle River, NJ Still More Factors to Consider in Business Plans Detailed listing of products and services to be provided Background and qualifications of the proposed management team Marketing strategy Design and development plans Operating plans Schedule of completion dates for major aspects of the business plan Applicable risks, problems, and challenges that need to be addressed and alternatives for addressing them O.H. 34.5

Discovering Hospitality and Tourism, 2nd Ed.© 2008 Pearson Education, Inc. Ninemeier and PerdueUpper Saddle River, NJ Entrepreneurial Risks Financial risks Career risks Personal risks Psychological risks O.H. 34.6

Discovering Hospitality and Tourism, 2nd Ed.© 2008 Pearson Education, Inc. Ninemeier and PerdueUpper Saddle River, NJ Entrepreneurial Rewards The possibility of financial success that yields wealth not otherwise possible Personal and professional satisfaction that comes from a sense of achievement Community status Independence gained from being one’s own boss Control over one’s life O.H. 34.7

Discovering Hospitality and Tourism, 2nd Ed.© 2008 Pearson Education, Inc. Ninemeier and PerdueUpper Saddle River, NJ Reasons for New Business Failure O.H. 34.8

Discovering Hospitality and Tourism, 2nd Ed.© 2008 Pearson Education, Inc. Ninemeier and PerdueUpper Saddle River, NJ Traits of Intrapreneurial Hospitality Organizations They have a realistic vision that is widely understood by and shared with their staff members. They have recruited staff members with entrepreneurial talents and abilities. They emphasize teamwork. They reward success and do not punish persons for creative efforts to improve the organization. O.H. 34.9

Discovering Hospitality and Tourism, 2nd Ed.© 2008 Pearson Education, Inc. Ninemeier and PerdueUpper Saddle River, NJ What Do Intrapreneurs Do? They: Dream or think about ideas that could improve the operation. Obtain ideas from others. Take ownership in ideas. Know when they need to obtain approval. Experiment with new ideas. Look for short-term successes. Understand the environment. Encourage open discussion with their team members. Build a coalition of support. Recognize the importance of persistence. Recognize the importance of the team. Keep their boss informed. O.H

Discovering Hospitality and Tourism, 2nd Ed.© 2008 Pearson Education, Inc. Ninemeier and PerdueUpper Saddle River, NJ Putting It All Together: An Evolution in Management Style O.H