2.  …listening to music was never so cool. And a totally new audio genre was invented.  Apple, the ipod… the audio genre was the podcast…  … there is a new way to sweep a hardwood floor..  Proctor and Gamble, Swiffer Duster ...a 50c commodity became a status symbol beverage.  Starbucks, Coffee of course  …something went wrong with the adhesive…  3M, Post It Notes  …an accident prone wife+ a busy executive….  Johnson and Johnson, Bandaids...  …a cure for dyspepsia + Carbonated water  Coca Cola, Coke

3. Explore + Develop new ways of doing things Vital for future viability Key to long-term success Most innovative companies of 2008  http://www.fastcompany.com/multimedia/slide shows/content/fast50_08.html?page=1 http://www.fastcompany.com/multimedia/slide shows/content/fast50_08.html?page=1

4.  41% of executives think their companies are above average at moving quickly to develop new ideas. (Only 37% CFOs think so though!)  Just 23% companies said innovation was their top priority, compared with 32% in 2006.  The top is most satisfied when it comes to the return on investment in innovation- >50% of all CEOs.  A risk averse culture is the biggest challenge to innovation  New to the world products are the most important  Customer satisfaction is the biggest measure to innovation  Only about 42% executives are not making investments in R&D…  China is the hottest new destination Source: Business Week. http://www.businessweek.com/innovate/di_special/20070503mostinnovat.htm

5. C  Capability  Culture  Cash and Recognition  Customer Orientation  Cut Losses

6.  The process of Strategic thinking and risk-taking behavior that results in the creation of new opportunities for individuals and/or organizations.  Involves deploying resources and people in a unique way to develop a new organization.

7.  An individual who creates an enterprise that becomes a new entry to a market. Takes actions to pursue opportunities and situations others may fail to recognize or may view as problems or threats.  Found businesses that become large-scale enterprises.  Introduce a new product or operational change in an existing organization

8.  Entrepreneurs are born, not made.  It is necessary to have access to money to become an entrepreneur.  An entrepreneur takes a large or irrational risk in starting a business.  Most successful entrepreneurs start with a breakthrough invention.  Entrepreneurs become successful on their first venture

9.  Internal locus of control  High energy level  High need for achievement  Tolerance for ambiguity  Self-confidence  Passion and action-orientation  Self-reliance and desire for independence  Flexibility

10.  Negotiation skills: Ability to obtain resources controlled by other individuals.  Networking skills: Gather information and build alliances.  Leadership skills: Provide a shared vision

12.  Job Creation: most new jobs in the U.S. economy.  Innovation: responsible for introducing new and innovative products and services into market.  Opportunities for Diverse People

14.  Poor financial control  Poor knowledge of the market  Faulty product design  Human resource problems  Poor understanding of the competition  Lack of experience  Lack of expertise  Lack of strategy and strategic leadership  Growing too fast  Insufficient commitment  Ethical failure

15.  Proprietorship – business owned by an individual  Partnership – association of two or more persons acting as co-owners of a business  Corporation – legal entity separate from the individuals who own it

16.  Debt Financing – obtaining a commercial loan setting up a plan to repay the principal and interest  Equity Financing – raising money by selling part ownership of the business to investors Private investors Venture capitalists Public offerings of stock

17.  Cash flow crisis -spending most available cash on expansion & not meeting obligations to creditors.  Employees likely to experience stress- rapid changes and growth.  Accounting and information systems -not adequate for the larger business.  Growing so quickly that control is lost.

18.  Intrapreneurships  Spin-offs  Franchises