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Activity 1 due date: On or before October 14, 2020 by 11:30PM. It is worth 20% of your final
grade

Answer the questions by clearly articulating your ideas. Excellent answers should be: Clear,
original and thoughtful insight, well-reasoned arguments supported by specific, focused and
relevant to topic, concrete, with appropriate details.

The answer to each question should be minimum 1 page and maximum 3 pages long, double
spaced in a 12-point, Times New Roman or comparable serif font.

Chapter 1

What impact does entrepreneurship have on your local, state (or province), and national
economies? Use data to back up your arguments.

Chapter 2

Isn’t “corporate entrepreneurship” an oxymoron? Do the characteristics of an established
organization, such as its routines and structure, increase efficiency but at the same time kill any

entrepreneurial spirit? Is there any way that a company can have the best of both worlds?

Chapter 3

Come up with three examples of firms that have used imitation as a way of reducing the risk of
entry. What aspects of risk was it meant to reduce? Was it successful? What aspects of the firm

were not generated by imitation, made the firm unique, and were a potential source of
advantage over competitors?

Chapter 4
Choose three different products that you might be interested in purchasing and that are sold on

the Internet. For each product, visit three websites and go through the process as if you were
going to actually purchase the product. Which website was the best? Why? Which was the

worst? Why? If you could create the perfect website, what features would it have?

Chapter 5

We typically focus on firms from well-developed economies entering markets of less developed
economies. Do firms from less developed economies have a chance of success if they enter

developed markets, such as the United States? What competitive advantage could a firm from a
less developed economy rely on in entering developed markets? What would likely be the best

entry mode?

Chapter 6

To what extent should the government be involved in creating and enforcing safety laws and to
what extent should companies (and industries) be responsible for creating their own standards

and self-policing those standards?

ICS 394: ENTREPRENEURSHIP STRATEGY ACTIVITY 1 ASSIGNMENT

ICS 394: ENTREPRENEURSHIP STRATEGY ACTIVITY 1 ASSIGNMENTSection 1
The Entrepreneurial Perspective
Chapter 1
The Entrepreneurial Mind-Set

©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom.  No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.
ICS: 394 Entrepreneurship Strategy
Prof. Edward Papabathini

CHAPTER OBJECTIVES

Concept/process of entrepreneurship.
Structural similarities enable entrepreneurs.
Bricolage as a source of entrepreneurs’ resourcefulness.
Introduce effectuation.
Entrepreneurs cognitively adapt.
Sustainable entrepreneurship

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Prof. Edward Papabathini

©McGraw-Hill Education.

The Nature of Entrepreneurship
Entrepreneurial actions begin at the nexus of a lucrative opportunity and an enterprising individual.
An entrepreneurial opportunity could stem from:
A new market.
A new product for an existing market.
Or, a new product for a new market.

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Prof. Edward Papabathini

©McGraw-Hill Education.

Entrepreneurial Action and Thinking
The McMullen-Shepherd model explains how knowledge and motivation influence two stages of entrepreneurial action.
Stage 1 is the realization an opportunity exists for someone.
Stage 2 is determining whether it is an opportunity for themselves.
Acting on and pursuing the identified opportunity involves entrepreneurial thinking.

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Prof. Edward Papabathini

©McGraw-Hill Education.

How Entrepreneurs Think
Entrepreneurs sometimes make decisions in highly uncertain environments, with high stakes and immense time pressures.
They need to think structurally, engage in bricolage, effectuate, and cognitively adapt.
Forming opportunity beliefs often requires creative mental leaps launched from the entrepreneur’s existing knowledge.
Superficial similarities and structural similarities
The challenge often lies in making creative mental leaps based on structural similarities

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Prof. Edward Papabathini

©McGraw-Hill Education.

Bricolage
Entrepreneurs often lack resources.
They sometimes seek resources from others
Bricolage refers to taking existing resources and experimenting, tinkering, repackaging , and/or reframing them to be used in a way they were not originally designed or conceived.
From this process of “making do,” entrepreneurs can create opportunities.

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Prof. Edward Papabathini

©McGraw-Hill Education.

Effectuation
A causal process
The effectuation process
Most managers need to take an entrepreneurial mind-set.
To develop this mindset, managers must:
attempt to make sense of opportunities,
constantly question their dominant logic, and
revisit what they think true about markets and firms.

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Prof. Edward Papabathini

©McGraw-Hill Education.

Cognitive Adaptability
To be good at effectuation, you must have cognitive adaptability.
The extent entrepreneurs are dynamic, flexible, self-regulating, and engaged in sensing and acting on changes in their environments.
Reflected in an entrepreneur’s abiliSection 1
The Entrepreneurial Perspective
Chapter 2
Corporate Entrepreneurship

©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom.  No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.
Prof. Edward Papabathini
ICS: 394 Entrepreneurship Strategy

LEARNING OBJECTIVES
Causes of interest in corporate entrepreneurship
 
“Entrepreneurial” mode of managing firms and distinguish it from the traditional mode
 
Management adopts entrepreneurial or traditional behaviors
 
Established firms can develop an entrepreneurial culture
 
Dual process model for maximizing learning from failure experiences

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Prof. Edward Papabathini

©McGraw-Hill Education.

Interest in Corporate Entrepreneurship

There is an interest in entrepreneurship within organizations.

Developing corporate entrepreneurship, helps overcome resistance to flexibility, growth, and diversification.
Entrepreneurial endeavors consist of four key elements:
New business venturing.
Organizational innovativeness.
Self-renewal.
Proactiveness.

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Prof. Edward Papabathini

©McGraw-Hill Education.

Strategic Orientation and Commitment to Opportunity
Both entrepreneurship and strategy have important implications for the performance of the firm.

Strategic orientation

Entrepreneurial management

An entrepreneurial orientation toward opportunity

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Prof. Edward Papabathini

©McGraw-Hill Education.

Commitment of Resources and Control of Resources
An entrepreneurial orientation toward the commitment of resources minimizes resources needed to pursue an opportunity.

Entrepreneurially managed firms are less concerned about ownership of resources than about access to others’ resources.

In contrast, traditionally managed firms focus on the ownership and accumulation of resources.

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Prof. Edward Papabathini

©McGraw-Hill Education.

Management Structure and Reward Philosophy

An entrepreneurial orientation toward management structure is organic
A traditionally managed firm’s structure is suited for internal efficiencies
Entrepreneurially managed firms focus on pursuing opportunity
Traditionally managed firms reward based on responsibilities.

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Prof. Edward Papabathini

©McGraw-Hill Education.

Growth Orientation and Entrepreneurial Culture
A firm with an entrepreneurial orientation toward growth has a strong desire to expand the firm, rapidly.

Culture distinguishes entrepreneurially and traditionally managed firms.

Most firms fall somewhere between traditionally managed and entrepreneurially managed.

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Prof. Edward Papabathini

©McGraw-Hill Education.

Characteristics of an Entrepreneurial Environment
Organization operates on frontiers of technology.
New ideas are encouraged.
Trial and error is encouraged.
Failures are allowed.
No opportunity parameters.
Resources are available and accessible.
Multidiscipline teamwork approach.
Long time horizon.
VolSection 2
From Idea to the Opportunity
Chapter 4
Creativity and the Business Idea

©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom.  No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.
Prof. Edward Papabathini
ICS: 394 Entrepreneurship Strategy

LEARNING OBJECTIVES
Identify various sources of ideas for new ventures.

Methods available for generating new venture ideas.

Creativity and creative problem solving techniques.

Importance of innovation.

Develop an opportunity assessment plan.

Product planning and development process.

Aspects of e-commerce.

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Prof. Edward Papabathini

Trends
Trends provide opportunities for starting a new venture
Seven trends providing opportunity:
Wearable trend.
Green trend.
The payments industry.
Maker trend.
Mobile trend.
Health trend.
The Internet of Things – “smart” devices.

Prof. Edward Papabathini

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Prof. Edward Papabathini

©McGraw-Hill Education.

Sources of New Ideas
Some of the most fruitful sources of ideas include:
Consumers.
Existing products or services.
Distribution channels.
The Federal Government.
Research and development.

4-‹#›
Prof. Edward Papabathini

©McGraw-Hill Education.

Methods of Generating Ideas
A focus group
Brainstorming allows greater creativity in a group exercise.
No criticism allowed.
Freewheeling in encouraged.
Quantity of ideas is desired.
Combinations and improvements of ideas is encouraged.
Brainwriting
Problem inventory analysis

4-‹#›
Prof. Edward Papabathini

©McGraw-Hill Education.

Creative Problem Solving
Creative problem solving is important.
Brainstorming
Reverse brainstorming
The Gordon method
The checklist method
Free association
Forced relationships
The collective notebook method
Attribute listing
The big-dream approach
Parameter analysis

4-‹#›
Prof. Edward Papabathini

©McGraw-Hill Education.

Innovation
Innovation is key to economic development
Innovation is typed based on the uniqueness of the idea.
Breakthrough innovations
Technological innovations
Ordinary innovations

4-‹#›
Prof. Edward Papabathini

©McGraw-Hill Education.

Product Uniqueness
Entrepreneurs define a new product or uniqueness of a product.
Uniqueness may be in the consumer concept.
The change may be in the product itself.
The product may be repackaged.
The product may have only minor improvements.
The product may simply be similar to a competitor’s product.

4-‹#›
Prof. Edward Papabathini

©McGraw-Hill Education.

New Product Classification
New products may be classified from the viewpoint of the consumer of the firm.
Consumers may look at how much behavioral change or new learning is required.
Continuous innovations
Dynamically continuous innovations
Discontinuous innovations
Firms may view newness by differences in the technology used or the market served.
Changes in technology
Changes in markets
Complexity increases

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Section 2
From Idea to Opportunity
Chapter 6
Protecting the Idea and Other
Legal Issues for the Entrepreneur

©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom.  No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.
Prof. Edward Papabathini
ICS: 394 Entrepreneurship Strategy

LEARNING OBJECTIVES
Intellectual property assets

Patents

Trademark

Copyright

Trade secrets

Licensing

New legislation that affects board of directors and internal auditing processes for public companies.

Contracts, insurance, and product safety and liability.

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Prof. Edward Papabathini

Intellectual Property
Intellectual property
All business is regulated by law.
Be aware of regulations affecting new ventures.
Different stages of company growth require different legal advice.
Evaluate needs carefully before hiring a lawyer.

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Prof. Edward Papabathini

©McGraw-Hill Education.

Choosing a Lawyer
The entrepreneur does not have the experience to handle the possible risks associated with difficult laws and regulations.
The lawyer may work on a retainer or for a one-time fee.
Legal advice is necessary to ensure appropriate decisions are made at each step of establishing a new venture.

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Prof. Edward Papabathini

©McGraw-Hill Education.

Patents
A patent is a contract between the government and an inventor.
The patent gives the owners a negative right.
Types of patents include:
Utility patents
Design patents
Plant patents
Patents are issued by the Patent and Trademark Office (PTO).
This is a first-to-file system that rewards firms that file quickly.

6-‹#›
Prof. Edward Papabathini

©McGraw-Hill Education.

International Patents
Concerns over international imitations and knock-offs
The USPTO established the Office of International Patent Cooperation
Joint efforts between the USPTO and the European Patent Office
The Global Dossier allows a patent application

6-‹#›
Prof. Edward Papabathini

©McGraw-Hill Education.

Patent Application Process
First, file a provisional patent application

The patent application is divided into sections.
The Introduction Section
Description of Invention Section
The Claims Section
Applications should contain a declaration signed by the inventor.
When application is sent, invention becomes “patent pending.”

6-‹#›
Prof. Edward Papabathini

©McGraw-Hill Education.

Patent Infringement
The entrepreneur cannot infringe on someone else’s patent.
Yet, many inventions are improvements on existing products.
Copying and improving a product may be legal and a good strategy.
If copying is impossible, licensing may be an option.
Use the Internet and USPTO website to check on existing patents.
If in doubt, hire a patent attorney.

6-‹#›
Prof. Edward Papabathini

©McGraw-Hill Education.

Business Method Patents
With the Internet has emerged business method patents.
Amazon owns such a patent on its singleSection 1
The Entrepreneurial Perspective
Chapter 3
Generating and Exploiting New Entries

©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom.  No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.
Prof. Edward Papabathini
ICS: 394 Entrepreneurship Strategy

LEARNING OBJECTIVES
Essential act of entrepreneurship involves new entry.
 
Entrepreneurial strategy can first generate, and then exploit over time, a new entry.
 
Resources are involved in the generation of opportunities.
 
Assess the attractiveness of a new entry opportunity.
 
Entrepreneurship involves making decisions under conditions of uncertainty.
 
Assess the extent of first-mover advantages and weigh them against first-mover disadvantages.
 
Risk is associated with newness

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Prof. Edward Papabathini

©McGraw-Hill Education.

New Entry
New entry is one of the essential acts of entrepreneurship.

Entrepreneurial strategy maximizes benefits of newness and minimizes its costs. Elements include:
The generation of a new entry opportunity.
The exploitation of a new entry opportunity.
A feedback loop.
If the new entry is exploited, performance depends on:
Entry strategy.
Risk reduction strategy.
The way the firm is organized.
Competence of the entrepreneur and management team.

3-‹#›
Prof. Edward Papabathini

©McGraw-Hill Education.

Generation of a New Entry Opportunity
Resources are the building blocks, combined in various ways to achieve superior performance.
Valuable
Rare
Inimitable

3-‹#›
Prof. Edward Papabathini

©McGraw-Hill Education.

Entrepreneurial Resource

The basis for entrepreneurial resource is knowledge built up over time through experience – idiosyncratic, therefore rare.
The entrepreneur’s market knowledge is deeper than knowledge gained through market research.
An entrepreneur’s technological knowledge often leads to new markets rather than meeting unmet market needs.
A resource bundle is the basis for a new entry

3-‹#›
Prof. Edward Papabathini

©McGraw-Hill Education.

Assessing the Attractiveness of a New Entry Opportunity
The following considerations help the entrepreneur determine if the product is valuable, rare, inimitable and worth pursuing.
Information on a new entry.
Window of opportunity may be open or shut.
Comfort in making decisions under uncertainty – must choose between an error of commission or an error of omission.

The assessment of a new entry’s attractiveness

3-‹#›
Prof. Edward Papabathini

©McGraw-Hill Education.

First Mover Entry Strategy
First movers develop a cost advantage
First movers face less competitive rivalry.
First movers can secure important suppliers and channels of distribution.
First movers are better positioned to satisfy customers.

First movers gain expertise through participation.
First movers do not always prosper.
First mover advantages must outweigh the disadvantages and depend on:
Environmental sSection 2
From Idea to Opportunity
Chapter 5
Identifying and Analyzing Domestic and International Opportunities

©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom.  No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.
Prof. Edward Papabathini
ICS: 394 Entrepreneurship Strategy

LEARNING OBJECTIVES
Identify viable domestic or international opportunities.

Opportunity assessment plan.

Problems of entering global markets.

Select the best global markets.

Options for entering a global market.

3-‹#›
Prof. Edward Papabathini

Introduction
In order to expand a venture, the entrepreneur should identify opportunities for domestic and international expansion.
The distinction between foreign and domestic markets is becoming less pronounced.
The pressure to internationalize is being felt in virtually every organization, including entrepreneurships.

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Prof. Edward Papabathini

©McGraw-Hill Education.

3

Opportunity Assessment Plan
The key to a profitable domestic and international venture is to develop an idea that has a large, reachable market.
An opportunity assessment plan differs from a business plan.
Shorter than a business plan.
Focus is on the opportunity, not the venture.
The plan has no pro forma financial statements.
It is the basis of the decision to act on a opportunity or wait.
An opportunity assessment plan has four sections – two major sections and two minor sections.

5-‹#›
Prof. Edward Papabathini

©McGraw-Hill Education.

Opportunity Assessment Plan – Major Sections
The first major section includes the following:
A description of the product.
The market need for the product or service.
Specific aspects of the product or service.
Products currently filling the need, features and prices.
Competitive companies in the industry.
Unique selling propositions of the product.
The second major section includes the following:
The market need filled.
The social condition underlying the market need.
Any available data to describe this market need.
Size, trends, characteristics of the market.
Growth rate of the market.

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©McGraw-Hill Education.

Opportunity Assessment Plan – Minor Sections
A third section answers the following questions:
Why does this opportunity excite you?
How does the product idea fit into your background and experience?
What business skills do you have?
What business skills are needed?
Do you know someone who has these skills?
The final section is a time line focusing on the following:
Identifying each step.
Determining the sequence of activities.
Identifying what is accomplished in each step.
Determining time and money needed at each step.
Determining total time and money needed.
Identifying the source of this needed money.

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©McGraw-Hill Education.

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