Vragen examen intrapreneurship
What is the definition of Intrapreneurship?
Intrapreneurship are formal or informal activities aimed at creating new businesses in
established companies through product and process innovations and market developments.
These activities may take place at the corporate, division (business), functional or project
levels, with the unifying objective of improving a company’s competitive position and
financial performance.
Why is intrapreneurship important?
Firms operate in turbulent external environments
- Technical environment
- Customer environment (different generations have different requirements)
- Competitive environment ( new competitors with new business models)
- Legal and regulatory environment (A ban on omnium in products bv ,
companies had to react,)
- Resource environment (Companies such as Shell are not endless, they will
need to look for different products)
-> To survive in the long run, companies must embrace (reactively and proactively)
environmental change to stay competitive in the long run.
+ Intrapreneurship is a key driver of corporate growth
Example: Amazon or nestle, nespresso
The company was founded not that long ago and is now one of the most valuable ones
worldwide. They mainly did this through diversification and intrapreneurship. You need to be
willing to cannibalize your own business to move forward, many companies are not willing to do
this. But if you’re not doing it, another company will definitely do it. Amazon did so by developing
the Kindle.
What is meant when we say that successful companies are “ambidextrous”?
Means that on one side they have to good at
Exploration of new Businesses (long term, your existing business may be disrupted, may
shrink).
Exploitation/refining/improving of existing businesses (This still determine the profitability of
the business today, you have to be good at HR, Logistics, marketing, finance,...)
Ambidextrous firms need managers (exploitation) and entrepreneurs (exploration). You need two
types of individuals in your company. Good managers are often not good
entrepreneurs/intrapreneurs.
,What would be the optimal level of exploration?
The optimal level is 30%, 30% has to go to exploring and 70% to refining what you already
have. But 87% of companies underinvest because they are obsessed with profitability now
and not survivability in the long term.
Tobins Q: it estimates whether a business or market is overvalued or undervalued.
,Explain this graph, where do companies mainly invest in?
Its the horizon for growth matrix. Healthy firms should undertake activities that address the
three growth horizons
1. Short term: exploitation , improving technologies, aim to serve existing markets better
2. Long term: Create new product/technology. Enter a market where you was not active
in
3. Launching technology that are really different then you are familiar with -> first in the
world type shit
Intrapreneurship is about horizon 1 and 2
But in reality there is too much focus on horizon 1 projects. Eg Kodak that was holding too
long to its razorblade model and did not invest enough in digital cameras (because of their
BM-> selling cameratapes etc) Digital didn’t fit in to that
What is an entrepreneurial orientation of firms?
A firm has an entrepreneurial orientation when they undertake a lot of entrepreneurial events
and activities. Activity if its innovative (creating a new product), you take risk. An activity is
entrepreneurial if you are pro-active, if you invest a lot in innovation.
, Does entrepreneurial orientation in a firm has an effect on firm performance?
There is a correlation between entrepreneurial orientation an firm performance. Firms that
adopt a stronger entrepreneurial orientation—marked by proactiveness, innovation and
risk-taking—tend to achieve better overall performance, and this positive association is
statistically robust. The link is especially pronounced in high-tech industries, where the
correlation is almost twice as strong as in non-high-tech sectors, implying that
entrepreneurial behavior is particularly valuable in fast-moving, technology-driven markets.
There you have to renew yourself to stay relevant. While the evidence clearly shows the two
variables rise and fall together, it remains correlational, so the figure does not prove that
entrepreneurial orientation alone causes superior results.
What are two sources of entrepreneurship?
1. Top-down initiatives of visionary CEO’s
The CEO has a good idea how customer requirements will evolve over time, like Steve Jobs,
visionary CEO.
2. Bottom-up initiatives of employees
When it is not planned by executives, but by employees take initiatives, look for support and
funding. For ex, Icare fortis (insurance for dogs) I care for my dog platform
What is meant by bootlegging? And why do people do it?
Bootlegging refers to activities in which motivated individuals secretly engage in
bottomup, non-programmed efforts not officially authorized by management, but which
are for the benefit of the company.
-> Why do people engage in bootlegging?
You can make a better case to your management when you work longer on it. The idea
is better developed and more likely to be accepted. It takes away the pressure. It’s a
credible business idea once they go to their manager.
-> MOST famous example Volkswagen GTI, sport version of golf.
What is the definition of Intrapreneurship?
Intrapreneurship are formal or informal activities aimed at creating new businesses in
established companies through product and process innovations and market developments.
These activities may take place at the corporate, division (business), functional or project
levels, with the unifying objective of improving a company’s competitive position and
financial performance.
Why is intrapreneurship important?
Firms operate in turbulent external environments
- Technical environment
- Customer environment (different generations have different requirements)
- Competitive environment ( new competitors with new business models)
- Legal and regulatory environment (A ban on omnium in products bv ,
companies had to react,)
- Resource environment (Companies such as Shell are not endless, they will
need to look for different products)
-> To survive in the long run, companies must embrace (reactively and proactively)
environmental change to stay competitive in the long run.
+ Intrapreneurship is a key driver of corporate growth
Example: Amazon or nestle, nespresso
The company was founded not that long ago and is now one of the most valuable ones
worldwide. They mainly did this through diversification and intrapreneurship. You need to be
willing to cannibalize your own business to move forward, many companies are not willing to do
this. But if you’re not doing it, another company will definitely do it. Amazon did so by developing
the Kindle.
What is meant when we say that successful companies are “ambidextrous”?
Means that on one side they have to good at
Exploration of new Businesses (long term, your existing business may be disrupted, may
shrink).
Exploitation/refining/improving of existing businesses (This still determine the profitability of
the business today, you have to be good at HR, Logistics, marketing, finance,...)
Ambidextrous firms need managers (exploitation) and entrepreneurs (exploration). You need two
types of individuals in your company. Good managers are often not good
entrepreneurs/intrapreneurs.
,What would be the optimal level of exploration?
The optimal level is 30%, 30% has to go to exploring and 70% to refining what you already
have. But 87% of companies underinvest because they are obsessed with profitability now
and not survivability in the long term.
Tobins Q: it estimates whether a business or market is overvalued or undervalued.
,Explain this graph, where do companies mainly invest in?
Its the horizon for growth matrix. Healthy firms should undertake activities that address the
three growth horizons
1. Short term: exploitation , improving technologies, aim to serve existing markets better
2. Long term: Create new product/technology. Enter a market where you was not active
in
3. Launching technology that are really different then you are familiar with -> first in the
world type shit
Intrapreneurship is about horizon 1 and 2
But in reality there is too much focus on horizon 1 projects. Eg Kodak that was holding too
long to its razorblade model and did not invest enough in digital cameras (because of their
BM-> selling cameratapes etc) Digital didn’t fit in to that
What is an entrepreneurial orientation of firms?
A firm has an entrepreneurial orientation when they undertake a lot of entrepreneurial events
and activities. Activity if its innovative (creating a new product), you take risk. An activity is
entrepreneurial if you are pro-active, if you invest a lot in innovation.
, Does entrepreneurial orientation in a firm has an effect on firm performance?
There is a correlation between entrepreneurial orientation an firm performance. Firms that
adopt a stronger entrepreneurial orientation—marked by proactiveness, innovation and
risk-taking—tend to achieve better overall performance, and this positive association is
statistically robust. The link is especially pronounced in high-tech industries, where the
correlation is almost twice as strong as in non-high-tech sectors, implying that
entrepreneurial behavior is particularly valuable in fast-moving, technology-driven markets.
There you have to renew yourself to stay relevant. While the evidence clearly shows the two
variables rise and fall together, it remains correlational, so the figure does not prove that
entrepreneurial orientation alone causes superior results.
What are two sources of entrepreneurship?
1. Top-down initiatives of visionary CEO’s
The CEO has a good idea how customer requirements will evolve over time, like Steve Jobs,
visionary CEO.
2. Bottom-up initiatives of employees
When it is not planned by executives, but by employees take initiatives, look for support and
funding. For ex, Icare fortis (insurance for dogs) I care for my dog platform
What is meant by bootlegging? And why do people do it?
Bootlegging refers to activities in which motivated individuals secretly engage in
bottomup, non-programmed efforts not officially authorized by management, but which
are for the benefit of the company.
-> Why do people engage in bootlegging?
You can make a better case to your management when you work longer on it. The idea
is better developed and more likely to be accepted. It takes away the pressure. It’s a
credible business idea once they go to their manager.
-> MOST famous example Volkswagen GTI, sport version of golf.
