Corporate Venturing

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Corporate venturing will be emerged when the large company invests in the small businesses under the firm authority (Batenburg,Birkinshaw and Murray,2002). Normally, the management of corporate venturing separates from the parent company. Corporate venturing implements in the circumstances that there is no alternative solutions in order to compete with the competitors and improve its product and the market. The purpose can be totally different from company’s products or services (Block, Macmillan, 1993). The firm’s objective is to boost the company growth and profit. The classification of corporate venturing can be grouping in many different types but in this essay will focus mainly about 4 common forms which categorized by the type of entrepreneurship and the money that is invested in the financial institution which are direct-internal venturing, direct-external venturing, Indirect-internal venturing and indirect-external venturing (Covin, Miles, 2002). Moreover, in this essay will describe about the obstacles that company might face ,for instance, the company is unable to establish policy from what ventures really need, lack of knowledge or entrepreneurial skills and lack of top manager commitment and having no eagerness to wait until it success and also it will give the solutions for coping with the problems, for example, creating the entrepreneurial environment, building the clear goal or objectives, and monitoring the result against the plan. The corporate venturing forms had been divided into 4 types which are direct-internal venturing, direct-external venturing, Indirect-internal venturing and indirect-external venturing. To begin with, direct-internal venturing is the easy type of corporate venturing. It happens with the idea that company persuades its own employees to contribute the idea to business. The new ventures will be funded by using within company’s resources and monitored by employees(Covin,Miles,2002).3M,unilever can be the good example of this...
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