Corporate Entrepreneurship Essays

Corporate Entrepreneurship Essays Corporate Entrepreneurship Essay Corporate Entrepreneurship Essay Corporate entrepreneurship is also commonly known as corporate venturing or  Intrapreneurship. It is coined by legendary management thinker and management guru   Peter. F. Drucker. It is the act of initiating new ventures or creating value with an already established  organization  or social entity. It is basically a process of creating new business within established firms to improve organizational profitability and enhance a firm’s competitive position or the strategic renewal of existing business. â€Å" Innovation â€Å"is at the very core of corporate entrepreneurship.So corporate entrepreneurship is done to enhance an organization`s competitive edge through innovative ideas which creates a unique place for itself in the industry or creates a new industry by itself. It can also be called a process by which organizations try to change its existing image. Corporate entrepreneurship activities can be internal or external. Internal activities are the process or acti vities which are developed within a organization. These type of activities are done in order to test a market, technology, production methods or effectiveness of employees. These activities may cover at various levels of the firm.Internal entrepreneurship can be applied on the following stages like: administrative, opportunistic, imitative, technical or organizational. External entrepreneurship is the process of combining resources which are located at different areas in the environment by individual entrepreneurs with his own unique resources to create a new combination of resources, which is independent of all others. External activities are in the form of mergers, joint ventures, corporate venture, venture nurturing, venture spin-off and others. Corporate entrepreneurship can be applies to any business size at any point of a organization`s life cycle.Today there is a growing desire by business houses to apply corporate entrepreneurship in order to enhance the innovative abilities of their employees and to increase corporate success by creating of new corporate ventures. However, the creation of corporate activity is difficult since it involves radically changing internal organisational behaviour patterns. Both entrepreneurship and corporate entrepreneurship are a viable means of creating business growth and stimulating the economy. Large companies implementing  entrepreneurial   culture can receive many benefits to help them tap into innovation and be competitive in this global market.If the company is encouraged to take risks, the employees are allowed to be creative and innovative, it becomes easier to generate new products for the market. It becomes clear from the findings and research that there is a strong link between large organizations using corporate entrepreneurship and their growth and increased profitability because it encourages a culture that promotes pro-activeness. Another plus point of  corporate entrepreneurship  is that it brings knowledge as everyone in the organization works towards the same goal.This creates valuable knowledge and understanding between all members. Thus the organization develops a continuous knowledge base of information that results in increased and better informed innovative behavior in decision making and risk taking. Some examples of corporate entrepreneurs are: Philips Philips faced a situation where it`s standard set of distribution , promotion and sales policies apllied uniformly to all product lines was ineffective in coping with the large volume chains that dominated the retail.Philips reorganized the structure of its consumer electronics marketing division based on an analysis of changes in its product line and a growing concentration in its distribution channels. To cope with these problems, Philips abolished its uniform structure and organized the marketing department into three groups: an advanced-system, group for technologically sophisticated, high-margin products such as c ompact disk players; a mainstay group for high-volume mature products and in mass merchandizing group for older, declining products (such as portable cassette players).Meanwhile, increasing concentration in the distribution channels and a growing need for distinct marketing approaches for different products became manifest throughout Europe. The new model for the marketing organization developed by the British subsidiary was clearly appropriate for other subsidiaries. Despite initial resistance, the innovation was soon transferred to most other international organizations. Proctor and Gamble For  Proctor and Gamble, the innovation meant something new. When applied to a product, â€Å"new† meant different things.One of the best examples of product innovation was the way in which Proctor amp; Gamble developed a global liquid detergent. Despite the success or liquid laundry detergents in the United States, all attempts to create a heavy-duty liquid detergent category in Europe had failed due to different washing practices and the superior performance of European powder detergents. which contained enzymes, bleach, and phosphates at levels not permitted in the United States. But Pamp;G’s European scientists were convinced that the liquid detergent’s performance could be enhanced to match local powdery.After several years of work, they developed a bleach substitute as well as a  means to give enzymes stability in liquid form. Meanwhile, researchers in the United States were working on a new liquid better able to deal with the high clay soil content in dirty clothes in the United States. Each product incorporated the best developments created in response to European, US, and Japanese market needs. Relatively speaking, however, a product already introduced in one market may be an innovation elsewhere because it is new and different for the targeted market. .