Chapter Eight
Chapter Eight: Entrepreneurial Strategy and Competitive Dynamics1. Explain how the combination of opportunities, resources, and entrepreneurshelps determine the character and strategic direction of an entrepreneurialfirm.2. What is the difference between discovery and evaluation in the process of opportunity recognition? Give an example of each.
The discovery phase refers to the process of becoming aware of a new businessconcept. The discovery of new opportunities is often spontaneous and unexpected.For example, the CEO of Starbucks was in Milan, Italy, when he suddenlyrealized that the coffee-and-conversation café model that was common in Europewould work in the U.S. as well.Opportunity evaluation, which occurs after the opportunity has been identified,involves analyzing an opportunity to determine whether it is viable and strongenough to be developed into a full-fledged new venture. Ideas developed by new-product groups or in brainstorming sessions are tested by various methods,including talking to potential target customers and discussing operationalrequirements with production or logistics managers.
3.
Describe the three characteristics of entrepreneurial leadership: vision,dedication and drive, and commitment to excellence.
Vision:
An entrepren eur’s greatest asset. Entrepreneurs envision realities that do not yet exist. But w/out a vision, most entrepreneurs would never even get theirventure off the ground. With vision, entrepreneurs are able to exercise a kind of transformational leadership that creates something new and, in some way,changes the world.
Dedication and Drive:
Dedication and drive are reflected in hard work. Driveinvolves internal motivation; dedication calls for an intellectual commitment thatkeeps an entrepreneur going even in the face of bad news or poor luck.
Commitment to excellence:
Excellence requires entrepreneurs to commit toknowing the customer, providing quality goods and services, paying attention todetails, and continuously
The discovery phase refers to the process of becoming aware of a new businessconcept. The discovery of new opportunities is often spontaneous and unexpected.For example, the CEO of Starbucks was in Milan, Italy, when he suddenlyrealized that the coffee-and-conversation café model that was common in Europewould work in the U.S. as well.Opportunity evaluation, which occurs after the opportunity has been identified,involves analyzing an opportunity to determine whether it is viable and strongenough to be developed into a full-fledged new venture. Ideas developed by new-product groups or in brainstorming sessions are tested by various methods,including talking to potential target customers and discussing operationalrequirements with production or logistics managers.
3.
Describe the three characteristics of entrepreneurial leadership: vision,dedication and drive, and commitment to excellence.
Vision:
An entrepren eur’s greatest asset. Entrepreneurs envision realities that do not yet exist. But w/out a vision, most entrepreneurs would never even get theirventure off the ground. With vision, entrepreneurs are able to exercise a kind of transformational leadership that creates something new and, in some way,changes the world.
Dedication and Drive:
Dedication and drive are reflected in hard work. Driveinvolves internal motivation; dedication calls for an intellectual commitment thatkeeps an entrepreneur going even in the face of bad news or poor luck.
Commitment to excellence:
Excellence requires entrepreneurs to commit toknowing the customer, providing quality goods and services, paying attention todetails, and continuously