Corporate Entrepreneurship. Salvatore Sciascia 23/05/2003. Section 1: The concept of Corporate Entrepreneurship. C.E. as action: Entrepreneurship within existing organizations. The field of Entrepreneurship.
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“The scholarly examination of how, by whom, and with what effects opportunities to create future goods and services are discovered, evaluated and exploited.
Consequently the field involves the study of
(Shane and Venkatamaran, 2000)
New for the market
Old for the market
Outside any existing organization
Whithin an existing organization
Independent Entrepreneurship (latu sensu)
Corporate Entrepreneurship (latu sensu)
Special Business Unit
Independent Business Unit
Complete Spin off
New Venture Division
Micro new venture department
Nurturing and Contracting
Degree of Industry Change
Catch up Change
Degree of Internal Change
Pursued quality development
Meaning of profit
Managerial and organizational ‘philosophy’
Role towards main stakeholders
Role in competitive arena
Pursued dimensional growth
consonanceBehind the Business Idea...
1994. Bottega Verde buys a cosmetics plant, hence starting to obtain its products internally.
1960. Modafil is established as traditional wool mill
1965. Modafil starts mail-order of knitting wool
1967. Euronova is established as mail-order company with a catalogue of miscellaneous products
1971-78. Euronova holds a catalogue of cosmetic products: Miss Beauté
1973. Modafil abandons wool production, to focus on mail-order sale of knitting wool
1987. Mondoffice is established, focusing on mail-order sale of office furniture
1989-92. Euronova is sold to the German group Otto Versand. Non-competition agreement excluding cosmetics.
1991. Within Modafil, a catalogue with household linen is started (Ricami Esclusivi)
1992. Bottega Verde is bought from Mr. Morriconi. It is active in mail-order sale of cosmetics, purchased from outside contractors.
1997-99. Mondoffice is sold to a foreign multinational
1st B.I. (1)
1st B.I. (2)
Limited growth and development perspectives, due to a business idea stemming from the mere need to “survive” and have fun
Unspecific required contribution
Flexibility, due to hectic business activity and chaotic organization
2nd B.I. (1)
Diversified, growing firm, making
use of advanced managerial tools.
Responsibility position in growing,
managerially-sophisticated firms (for
Secure job (for employees and local
High debt/equity ratio, but considerable
cash-flows from operations (for banks)
Work activities coherent with
Willingness to work in a partially
informal, unstructured setting
Willingness to learn (both from internal
and external sources, i.e., consultants)
Work experience in mail-order business
(from higher-rank employees)
2nd B.I. (2)
Quality. Stable, average quality level (appropriate to targeted segments)
Role in Competition.
Gradually but aggressively dominating entered competitive arenas
Growth. Primary objective
Time. Long-term, i.e., future generations of successors
Securing a responsibility position in growing, managerially sophisticated firms
‘Diffused tension’ determinants
entrepreneur’s growth orientation
Stagnation of Modafil market after sharp decline
Sell-off of Euronova (1989-92)
‘Direct tension’ determinants
Availability of forty-years mail-order sales experience.
Availability of address files and data-analysis tools and techniques
Reduced growth potential
Strong will to grow
'Cultural' family tendency towards 'natural' products
Previous experience (Miss Beauté)
Non competition agreement
Tension to grow
Direct tension towards a specific business area
Tension to grow in the mail-order sector
Tension to grow in the mail-order sale of
Organizational and Governance Structure
Attitude towards resource/knowledge combinations.
Pursuit of entrepreneurial opportunities, regardless of internal resources currently controlled
Behavioral context/Past experiences
step by step they introduce other bakery products under the same umbrella-brand:
inside the same segment, they enlarge the range products.