BUSS1000 Lecture Notes - Lecture 7: Coopetition, Customer Retention, Value Proposition
28 May 2018
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WEEK 7: ENTREPRENEURSHIP + INTREPRENEURSHIP
• Entrepreneur: those persons who seek to generate value through the creation/expansion of EA, by identifying and
exploiting new products, processes or markets
o Essential act is new entry à new or established markets with new or existing G/S + start up, existing, or
via “internal corporate venturing”
o Entrepreneurs buy at certain prices in the present and sell at uncertain prices in the future à bearer of
uncertainty (Richard Cantillion)
o Forms: entrepreneur is innovator who implements change within markets through carrying out of new
combinations in forms such as: (Schumpeter, 1934)
§ Intro of new good or quality
§ Intro of a new method of production
§ Opening of a new market
§ Conquest of a new source of supply of new materials or parts
§ Carrying out of the new organisation of any industry
o Views:
§ Attempt to predict + act on change w/in markets, bear uncertainty of market dynamics (Knight)
§ Identifying opportunities within economic system (Issawi & Penrose)
§ Pursuit of opportunity beyond tangible resources currently controlled (Stevenson)
o The Entrepreneurial Process:
§
• Reality: opportunities have a natural life cycle
• Firms are continually fighting to innovate and re-invent themselves
• Creative destruction hangs over all stakeholders
• Intrapreneur: an employee within a large company who takes direct responsibility for turning an idea into a
profitable new product, service, business etc. à often instead of leaving to start their own company
• Porter:
o Quest for productivity, quality + speed has spawned a number of management tools + techniques:
§ Total quality management
§ Benchmarking
§ Time-based competition
§ Outsourcing
§ Partnering
§ Reengineering
§ Change management
o Operational effectiveness: necessary but not sufficient
§ Porter sees OE and strategy working in v different ways
§ OE means performing similar activities better than rivals do à productivity
§ Strategic positioning is performing different activities from rivals, or similar activities in different
ways
o Elements of strategy:
§ Defining a company’s position (activities)
§ Making trade-offs (strategic position)
§ Forgoing fit among activities (competitive advantage)
BUSINESS MODEL CANVAS (BMC) - Osterwalder & Pigneur (2010)
• “A concept that allows you to describe and think through the business model of your organisation, your
competitors, or any other enterprise”
• Customer Segments:
o Defines the different groups of people or orgs an enterprise aims to reach and serve
Document Summary
Conquest of a new source of supply of new materials or parts. Carrying out of the new organisation of any industry: views: Attempt to predict + act on change w/in markets, bear uncertainty of market dynamics (knight) Identifying opportunities within economic system (issawi & penrose) Pursuit of opportunity beyond tangible resources currently controlled (stevenson: the entrepreneurial process, reality: opportunities have a natural life cycle. Firms are continually fighting to innovate and re-invent themselves: creative destruction hangs over all stakeholders. Intrapreneur: an employee within a large company who takes direct responsibility for turning an idea into a profitable new product, service, business etc. Often instead of leaving to start their own company: porter, quest for productivity, quality + speed has spawned a number of management tools + techniques: Change management: operational effectiveness: necessary but not sufficient. Porter sees oe and strategy working in v different ways. Oe means performing similar activities better than rivals do productivity.
