Part 1
N 6 E:
When we think of entrepreneurship, we often think of small, start-up firms. Describe how a large corporation in an established industry can be "entrepreneurial" and discuss how Peng's entrepreneurial strategies apply in this situation.
Remember to use in-text citations and list APA style references to support your response.
Part2:
Reply to the below discussions of the students
each discussion around 50 words
Discussion 1 Student May:
Entrepreneurship in large corporation
The global economy is creating profound and rapid changes for organizations and industries all over the world. The answer to today's fast-changing and competitive environments is adaptability, flexibility, risk taking, proactivity, competitive aggressiveness and innovativeness - in one word: entrepreneurship (Morris and Kuratko, 2002). However, entrepreneurship does not necessarily mean only independent activity, it involves also entrepreneurial activities conducted in larger organizations ( Stevenson and Jarillo, 1990). The challenge for today‘s organizations is to achieve competitive advantage that must be further recreated through the initiation and implementation of new ideas.
According to Peng there are five Entrepreneurial Strategies which are :
1. Growth : the growth of an entrepreneurial firm can be viewed as an attempt to more fully utilize currently underutilized resources.
2. innovation :An innovation strategy is a specialized form of differentiation strategy
3. network : Intentionally construct and tap into relationships, connections and ties that individuals and organizations have developed
4. financing/governance:International differences in extent to which entrepreneurs draw on resources of family/friends versus outsiders. Outside investors usually demand collateral or some other assurance
5. harvest/exit: Entrepreneurs must think about their exit plan early in the business cycle and aim at maximizing the gains from their labor.
It is very important to know that these strategies are not mutually exclusive and that they are often pursued in combination by entrepreneurial firms (Peng,2014)
Discussion 2 Student Mon:
Entrepreneurship can be defined as the capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit. The most obvious example of entrepreneurship is the starting of new businesses. Entrepreneurship combined with land, labor, natural resources and capital can produce profit. Entrepreneurial spirit is characterized by innovation and risk-taking, and is an essential part of a nation's ability to succeed in an ever changing and increasingly competitive global marketplace.
Entrepreneurship is especially crucial for large companies, enabling these organizations - that are traditionally averse to risk-taking - to innovate, driving leaders and teams toward an increased level of corporate enterprising. In addition to the obvious benefits obtained through innovation, entrepreneurship also provides the organizational benefit of setting the stage for leadership continuity.
Entrepreneurship can also be considered a means of organizational renewal. For in addition to its focus on innovation, there also exists an equal drive toward venturing. These two work in unison as the company undertakes innovations across the entire organizational spectrum, from product and process to technology and administration. In addition, venturing is a primary component in the process, pushing larger companies to enhance their overall competitiveness in the marketplace by taking bigger risks. Examples of these risks, as seen in a large-scale organization, may include: redefinition of the business concept, reorganization, and the introduction of system-wide changes for innovation.
According to Peng, there are five entrepreneurial strategies should be applied in these situations. They are the following:
1- growth: the excitement of growing a new company is oftentimes what attracts entrepreneurs in the first place.
2- innovation: a specialized form of differentiation strategy.
3- network: intentionally construct and tap into relationships, connections, and ties that individuals and organizations have developed.
4- Financing/governance: Outside investors usually demand collateral or some other assurance.
5- Harvest and Exit: "Selling out" does not necessarily mean failure.