The document discusses the organizational life cycle that new ventures typically go through, including five stages: start-up, expansion, consolidation, revival, and decline. It describes the challenges entrepreneurs face at each stage, such as unpredictable growth and fighting fires at start-up, managing rapid growth during expansion, and making difficult decisions during consolidation to remain profitable. Successful ventures adapt to meet the changing needs at each stage through their leadership and strategic decisions around areas like products, markets, and organization.
The Concept
A stable strategy arises out of a basic perception by the management that the firm should concentrate on using its present resources for developing its competitive strength in particular market areas.
In simple words, stability strategy refers to the company’s policy of continuing the same business and with the same objectives
A firm pursues stability strategy when
1. It continues to serve the public in the same product or service, market, and function sectors as defined in its business definition.
2. Its main strategic decisions focus on incremental improvement of functional performance.
2. Corporate Restructuring is the process of redesigning one or more aspects of a company.
3. The process of reorganizing a company may be implemented due to a number of different factors, such as positioning the company to be more competitive, surviving a currently adverse economic climate, or acting on the self confidence of the corporation to move in an entirely new direction.
Opportunity Identification and Product selection UNIT IIAman Sharma
Notes of Opportunity Identification and Product selection as taught in Course of Business Intelligence and Entrepreneurship in Engineering B.tech , Business BBA and to other courses .
The Concept
A stable strategy arises out of a basic perception by the management that the firm should concentrate on using its present resources for developing its competitive strength in particular market areas.
In simple words, stability strategy refers to the company’s policy of continuing the same business and with the same objectives
A firm pursues stability strategy when
1. It continues to serve the public in the same product or service, market, and function sectors as defined in its business definition.
2. Its main strategic decisions focus on incremental improvement of functional performance.
2. Corporate Restructuring is the process of redesigning one or more aspects of a company.
3. The process of reorganizing a company may be implemented due to a number of different factors, such as positioning the company to be more competitive, surviving a currently adverse economic climate, or acting on the self confidence of the corporation to move in an entirely new direction.
Opportunity Identification and Product selection UNIT IIAman Sharma
Notes of Opportunity Identification and Product selection as taught in Course of Business Intelligence and Entrepreneurship in Engineering B.tech , Business BBA and to other courses .
This presentation covers one of the process of Strategic Management; Strategic Implementation. There are 2 sub divisions; Functional Implementation and Structural Implementation. This section deals with Structural Implementation in detail.
Growth Strategy refers to a strategic plan formulated and implemented for expanding firm’s business. This can be done in various ways described in the presenation
Strategic formulation in Strategic managementYamini Kahaliya
This presentation is on Strategy formulation(of subject strategic management) and it covers following points :-
Define strategy formulation
Need of strategy formulation
Steps of strategy formulation
Problems in strategy formulation
Levels of strategy
What exactly is culture?
Understand culture using metaphors.
Understanding organisational culture.
Why organisational culture matters?
Explain and use techniques to evaluate organisational culture.
Cultural web
Cultural iceberg
Handy’s four culture types
Competing values framework
How is organisational culture created and preserved?
Can organisational culture be changed?
Discuss cases of cultural blunders.
What are the causes of cultural blunders?
How to minimise cultural blunders.
This presentation covers one of the process of Strategic Management; Strategic Implementation. There are 2 sub divisions; Functional Implementation and Structural Implementation. This section deals with Structural Implementation in detail.
Growth Strategy refers to a strategic plan formulated and implemented for expanding firm’s business. This can be done in various ways described in the presenation
Strategic formulation in Strategic managementYamini Kahaliya
This presentation is on Strategy formulation(of subject strategic management) and it covers following points :-
Define strategy formulation
Need of strategy formulation
Steps of strategy formulation
Problems in strategy formulation
Levels of strategy
What exactly is culture?
Understand culture using metaphors.
Understanding organisational culture.
Why organisational culture matters?
Explain and use techniques to evaluate organisational culture.
Cultural web
Cultural iceberg
Handy’s four culture types
Competing values framework
How is organisational culture created and preserved?
Can organisational culture be changed?
Discuss cases of cultural blunders.
What are the causes of cultural blunders?
How to minimise cultural blunders.
Business transformation - Building the company to SellBrowne & Mohan
Small companies though faster and nimbler than larger companies and MNCs, do experience headwinds, hit a growth plateau and face uncertainties. Small companies are faster because of the founder mentality, which is a sense of mission and a passion for front line customers. They have a deep understanding of what their customers want. This is what makes them successful. However, smaller companies tend to be very dependent on a few customers. They find it difficult to sustain their effort in the long run. The owners of these companies usually depend on preferential access to clients, capital and talent to achieve initial success. Replicating this pattern in the long run is difficult. To be sustainable in the long term needs an ability to scale. At this stage, founders are faced with two options – grow and transform the company so that it can be sustainable. Or, they often think of exiting the business due to challenges in succession, lack of ability to invest etc. Even if they need to sell the business, there still is a runway to grow and transform the business for sale. Though the two options involve undergoing a transformation of sorts, the agenda and goals will be a different in each.
It is clear that companies, whether old economy or start-ups, need to work on a few areas before they sell out. All of these companies seem to be adding value somewhere which is what makes them attractive to buyers. Start ups in Israel take 4 years to sell out and on an average make 7 times their Return on Investment. In France they take 7 years to sell out and the ROI is less than 4. German companies too an average of 4 years to sell out, and their return was 2.5 times their initial investment. For most start ups, it is new technology which others think will be the next big thing. But there are lot of investors like Warren Buffet and large corporations, which make strategic investments to park their cash safely, especially given the uncertainty in the global economy. For them, old economy companies that can deliver regular dividends and has a self sustaining business will always remain attractive. Hence the question is what companies need to do to transform themselves to sell. Asian paints for example bought out the brand and entire front end sales of Ess Ess bathroom products, because of the capability Ess Ess had developed in this area. French company Lactalis acquired Tirumala Milk products for its niche products and infrastructure that it built over the years. Be it chemicals, pharma or engineering, M&A of small companies have been happening for various reasons like the people and skills possessed, functional competencies, benefits of integration to the buyer, regulatory clearances available or strong presence in the value chain.
Critically review the attached ASDA case entitled “Cracking the Code of ChangeLouishill102
Critically review the attached ASDA case entitled “Cracking the Code of Change” and
individually, analyze, discuss, and present it. Analyse the case according to the concepts introduced in the material attached (Theories and Strategies of Change)
13 lessons for sme business transformationBrowne & Mohan
Browne & Mohan has had the privilege to work with Small and medium companies that pursued business transformation to improve their market relevance and financial sustainability. In this paper, we share 13 lessons gained from successful SME business transformation.
A company is in Prime when form and function are in balance. The what and the how are in balance. Prior to Prime, function is more important than form. In other words, what we do is more important than how we do it. After Prime, how we do it is more important than what we do. That is why, after Prime, how you do something and whom you know is more important than what you do. In Prime, the what and how are in balance. In Prime, the company is both flexible and in control. Prior to Prime, the company is flexible, but not very much in control of itself. After Prime, control is very high, and the company loses flexibility. In Prime, flexibility and control are together.
However, in a company in Prime, the management is not as flexible as before Prime, because there is professional management: The tendency to depend on any single indispensable individual does not exist as it does in younger companies. On the other hand, in Prime, the organization has a strategic outlook without losing attention to detail. Furthermore, the organization does not look only at detail without losing its strategic outlook, so the company in Prime has controlled flexibility, and it doesn’t depend on any single individual.
The terms "businessman" and "entrepreneur" are frequently used synonymously in the business world. They stand for two distinct roles, though, and each calls for a different set of abilities, perspectives, and strategies. We will examine the differences between a businessman and an entrepreneur in this extensive blog post, illuminating their particular traits, goals, and contributions to the business world. By the end, you'll have a better understanding of the various roles and how important each one is to the development of the business world.
Businessman vs Entrepreneur
Defining the Roles
Let's first define the roles of a businessman and an entrepreneur to lay the groundwork for comparison.
Businessman:
A person managing and running a well-established business is referred to as a businessman. Their main concerns are efficiently managing already-established businesses, ensuring smooth operations, and maximizing profits. Businessmen are frequently thought of as reliable, effective, and risk-averse. To continue to be profitable and experience steady growth, they employ tried-and-true systems and tactics. Businessmen typically excel in disciplines like financial management, operational optimization, and strategic planning.
Entrepreneur:
On the other hand, an entrepreneur is a person who spots new opportunities and develops creative solutions to take advantage of them. They have an innovative mindset and want to challenge established business models and bring about change. The passion, the vision, and the desire to have a big impact are what propel entrepreneurs. They welcome calculated risks and are at ease with uncertainty. Entrepreneurs possess qualities like creativity, adaptability, and resilience that are essential for overcoming the difficulties of launching and growing new businesses.
Read more
Objectives and Mindsets
Understanding the distinct objectives and mindsets of businessmen and entrepreneurs is essential for differentiating between the two roles.
Businessman Objectives and Mindset:
Stability and Profitability: In order to achieve stability, profitability, and long-term sustainability, businessmen concentrate on preserving and expanding their current enterprises.
Operational Efficiency: They place a high priority on streamlining workflows, cutting costs, and optimizing operational processes in order to increase profitability.
Risk Reduction: Businessmen are typically risk averse, attempting to reduce uncertainties and uphold a stable business environment.
Incremental Improvements: They concentrate on making small adjustments to the current organizational structure in an effort to improve productivity, consistency, and customer satisfaction.
Entrepreneur Objectives and Mindset:
Entrepreneurs are motivated by the desire to innovate, disrupt industries, and develop ground-breaking solutions to problems or unmet needs.
Growth and Expansion: They want to quickly scale their businesses while expanding their clientele and pursuing
St -rregy for the critical first 90 days of leadershipMi,ae.docxdessiechisomjj4
St -rregy for the critical first 90 days of leadership
Mi,\ael Watkins
Strate gt & Leaders hip ; 2004; 32, l ; ABVINFORM Global
p g . l 5
Adapted with permission of Harvard
Business School Press. The First 9A
Days: Critical Success Strategies for
New Leaders at AII Levels, by Michael
Watkins. O 2003 Michael Watkins.
All rights reserved.
he actions you take during your first three months in a new job will largely determine
whether you succeed or fail in the long term. Estimates of the direct and indirect costs to
: a company of a failed executive-level hire range as high as $2.7 millron[1]. But the goal of
every new leader should be transition acceleration not just failure prevention.
Think about the implications of more effective transition management not just for you but also
for your organization. ln a survey of company presidents and CEOs, I asked for their best
estimate of the number of people whose pedormance was significantly compromised by the
arrival of a new mtd-level manager. The average of their responses was 12,4 people[2]. ln effect,
all the people in the "impact network" of the transitioning manager are in transition too.
Every minute you save by being systematic about accelerating your transition is a minute you
gain to build the business. This article offers a proven blueprint for addressing the linked
challenges of personal transition and organizationaltransformation that confront leaders in their
first few months in a new job.
From observing new leaders and experimenting with methods of accelerating transitions, I have
developed a number of conclusions about the challenges of transitions and what it takes to
successfully meet them. These can be summarized in five propositions:
(1) The root causes of transition failure always lie in a pernicious interaction between
the situation, with its opportunities and pitfalls, and the individual, with his or her
strengths and vulnerabilities. Failure is never just about the flaws of the new leader.
Transition failures happen when new leaders either misunderstand the essential demands of
the situation or lack the skill and flexibility to adapt to them,
(2) There are systematic methods that leaders can employ to both lessen the likelihood
of failure and reach the breakeven point faster Consider, for example, making a
transition from functional vice president to general manager, Every leader who makes this
leap encounters similar challenges, such as the need to let go of reliance on functional
expertise.
(3) The overriding goal in a transition is to build momentum by creating vinuous cycles
that build credibility and by avoiding getting caught in vicious cycles that damage
credibility. The new leader, to be successful, will have to mobilize the energy of many
VOL. 32 NO. 1 2004, pp. 15-20, Emerald Group Publishing Limited, ISSN 1087-8572
Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.
P A G E 1 5
P A G E 1 6
others i.
‘Let me tell you about the importance of Entrepreneurialism, and how vital it is to your success’ says Stephen Taylor, casually sipping on what just might be the world’s largest cup of coffee
The benefits of entrepreneurship extend beyond the businesses they establish. Entrepreneurs improve the lives of individuals and communities, as well as the overall economy. Entrepreneurs have been instrumental in spurring social change and improving the way people live and work. They help raise the standard of living for everyone by creating jobs and making products safer, less expensive, and more functional.
For organisations, executive mentoring eases the shift from comprehending the new reality to actively pursuing its realisation. Company executives may need assistance from a business mentor in Melbourne since they might occasionally become so wrapped up in their own logic that they overlook its shortcomings.
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
Affordable Stationery Printing Services in Jaipur | Navpack n PrintNavpack & Print
Looking for professional printing services in Jaipur? Navpack n Print offers high-quality and affordable stationery printing for all your business needs. Stand out with custom stationery designs and fast turnaround times. Contact us today for a quote!
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
Editable Toolkit to help you reuse our content: 700 Powerpoint slides | 35 Excel sheets | 84 minutes of Video training
This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.com
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
The Tata Group, a titan of Indian industry, is making waves with its advanced talks with Taiwanese chipmakers Powerchip Semiconductor Manufacturing Corporation (PSMC) and UMC Group. The goal? Establishing a cutting-edge semiconductor fabrication unit (fab) in Dholera, Gujarat. This isn’t just any project; it’s a potential game changer for India’s chipmaking aspirations and a boon for investors seeking promising residential projects in dholera sir.
Visit : https://www.avirahi.com/blog/tata-group-dials-taiwan-for-its-chipmaking-ambition-in-gujarats-dholera/
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
2. New ventures pass through
transitional stages that present new
challenges to their founders. These
transitional stages are represented by
an organizational life cycle. When new
ventures established it grow, mature,
and, in many cases, decline. As we
shall see, there are several important
challenges facing entrepreneurs
during different transition stages.
3. The Entrepreneur’s perspective
The life cycle is identified with five stages:
Start-up stage
Expansion stage
Consolidation stage
Revival stage &
Decline stage
These are explained in terms of three variables: growth,
product/market definition, and organization. As the venture
progresses from one stage to the next, condition
change, requiring different decisions for
managing growth, developing products and
markets, and organizing the company.
5. Start-up Stage
During the start-up stage, growth is unpredictable. Sales not
often meet a founder’s expectations, and they can occur
haphazardly. In extreme circumstances, markets will be
disordered with exciting spurts and disappointing sputters.
This disorder can absorb entrepreneurs in daily struggles to
survive. In the worst-case scenario markets may be inactive,
leaving the entrepreneur confused. Inconsistent growth does
not provide a pattern of sales to help guide an entrepreneur’s
decisions. Although products and services are usually
targeted to narrow market niches, confusion persists. During
this initial stage, entrepreneurs modify their products,
change distribution systems, alter services and experiment
with marketing tactics in an attempts to survive; they are
“fighting fires” every day.
6. Expansion Stage
During the expansion stage, rapid growth results in a
pattern of success that is useful for evaluating market
position and new-product potential. The venture is
transformed from a single-line enterprise operating in
a limited market to a multiline company penetrating
new markets. Product and service line are broadened
through innovation and development, and the
organization expands through functional authority.
Decision making may be centralized during early
growth, but departmentalization ensues, leading to a
dispersion of authority. To meet these challenges,
entrepreneurs must enlarge the enterprise and delegate
authority for functional coordination.
7. Start-up Stage
Expansion Stage
Single product or
restricted line of
merchandise and service
Single product or
restricted line of
merchandise and service
Positioned in new
markets and among a
wider group of customers
or clients
Positioned in new
markets and among a
wider group of customers
or clients
Multiple products or
expanded line of
merchandise and services
Multiple products or
expanded line of
merchandise and services
Positioned to complete in
one market or to serve
limited clients
Positioned to complete in
one market or to serve
limited clients
Expansion of Products and Markets
8. Consolidation Stage
As competition intensifies within a
growing industry, businesses are faced
with marginally smaller incremental
shares of markets. The result is a
competitive struggle at a slower rate of
growth during what is often called an
industry shakeout period. Weaker
companies fail, some are sold or merged
with others, and many consolidate to
remain profitable.
9. Contd…..
Consolidation occurs differently for every
organization. Manufactures may trim back
operation, reduce product lines, or retreat
from marginally profitable markets. Service
companies reduce staff, simplify distribution
systems, and withdrew from high risk
markets. In all cases, organizations tend to
shift authority downward as middle-and
higher-level staff are reduced to improve
efficiency. The result is a flatter organization
that is indirectly described as “Leaner and
meaner”.
10. Revival Stage
The revival stage is one of “rekindling” organizational
growth. Rapid growth can be achieved by clever repositioning
of product lines and services through purposeful market
segmentation. Repositioning sets the stage for a strategy of
product or service diversification. In order to achieve rapid
growth, innovation is essential, and because the company
needs to incubate new ideas, greater responsibility is given to
division managers for independent development. In effect,
company executives attempt to receive a spirit of
entrepreneurship in their operational managers by
empowering them with authority for self-direction. As a
result, organizations are restructured through product,
geographic, or customer divisions, and the functional
hierarchy is subordinated to divisional leadership.
11. Decline Stage
Growth declines once again if revival strategies
are short-lived or ineffective. Companies in
decline often are those that have diversified too
widely or created excessively bureaucratic
organizations. Consequently, it is not unusual to
find that a declining venture has lost sight of its
distinct competency in products or services that
initially proved successful. Founding
entrepreneurs-if they are still with their ventures-
will have failed to adapt to leadership challenges
in previous stages and subsequently pushed their
companies to the brink of disaster.
12. Conclusion
Successful ventures will not complete the life
cycle; by definition, they avoid decline. They
will have enjoyed growth through product or
market expansion, consolidated when necessary,
and experienced a revival of growth consistent
with their capabilities and the industry in which
they compete. The last stage implies
perpetuation of innovations through the
intrapreneurial process can described. In each of
these, successful entrepreneurs will have
adapted to new roles in concert with
organizational changes.
13. CHANGING ENTREPRENEURIALCHANGING ENTREPRENEURIAL
ROLESROLESBetween the initial start-up and revival stages,
entrepreneurs experience a metamorphosis. They change
from a persona of the founding entrepreneur to that of an
organizational executive. At the venture’s inception, the
entrepreneur and the new venture are bound as an equity ,
and as the business grows, if follows a biological pattern of
evolution that reflects the founder’s skill and aspirations. As
the company continues to expand, it requires business-
related skills often beyond those of the founder; functional
expertise is needed, marketing and operation skills are
required, and decision-making tasks are beyond the scope of
one person. Consequently, the biological growth cycle is
superseded by an organizational life cycle.
14. Contd….
The entrepreneur who adapts to this
environment, in effect, embraces the
necessary metamorphosis; the
entrepreneur who resist constraints the
organizations to the narrow limitations
of his her personal abilities. How
adaption occurs is unclear, but
research provides insights into the
prevalent role characteristics of
successful leaders at each stage in a
15. Founding the ventureFounding the venture
A composite role has been emphasized for
founding enterprise that encompasses all the
functions of a start-up business. The founder must
wear many hats. From a psychological viewpoint,
the founder’s personal life is not distinguishable
from the venture; entrepreneurs embody the
inspiration, objectives, emotion, and creativity of
their enterprises. They identify with every
problems and decision. Unfortunately, this intense
involvement does not mean entrepreneurs are
effective leaders of managers, and if they are good
in one role, there is no guarantee they are good in
another.
16. There is a difference between leaders and
managers. Leaders involved emotionally in
a venture, think strategically to create
opportunity and resolve conceptual, long-
term problems, and provide the
inspiration necessary for sustained
momentum. Managers, in contrast, have a
“transactional orientation” that permits
them to maintain psychological distance
between their personal lives and business
decisions.
17. Consequently, they tend to focus on operational
tasks and on solving organizational problems.
This distinction does not mean that managers
are not good leaders or vice versa, only that it is
difficult to integrate these roles consistently.
During the start-up stage, leadership probably
outweighs are importance of management
because the new venture is in a disordered state.
Success depends on shaping expectations,
developing creative ideas into marketable
commodities, and adjusting to individual
wonders.
18. Guiding The Venture ThroughGuiding The Venture Through
ExpansionExpansion
Disorder may persist into the early stages of expansion, but
if a company has progressed this far, then a great many
problems have already been resolved. The primary focus of
operations will have shifted away from survival in uncertain
markets to managing growth in well-defined markets. As the
rate of expansion increases, more emphasis is placed on
planning and controlling activities. Therefore, an
entrepreneur begins to experience the metamorphic effect of
transforming behavior from intuitive leadership to clear
management. As emphasized earlier, being oriented either to
a leadership or a management role does not mean one can
ignore the other; they are not mutually exclusive roles.
19. Management responsibilities surface rapidly as a
venture expands. An entrepreneur is seldom
capable of doing all that must be done with respect
to functional management activities. These
activities include marketing, cash-flow
management, inventory control, purchasing, credit
management, and human resource development.
Depending on the type and complexity of the
organization, many other functional activities are
possible, such as research and development,
production control, logistics and distribution, and
management accounting.
20. Entrepreneurs find themselves adapting to
many more management activities during
expansion stage, but in general, entrepreneurs
spend less time on operational activities and
more time on strategic management of
resources during expansion. In addition they
spend more time on coordination and
communication activities with their staff,
delegating incrementally more authority
consistent with the growth ventures.
21. Managing ConsolidationManaging Consolidation
Rapid growth cannot continue indefinitely, and at some
point industries go through “shakeout periods”. Managing
an enterprise in this environment is substantially different
from managing a growing venture. During rapid growth,
management is concerned with gaining new resources,
finding expansion capital, adding employees, and
developing new products or services. When things slow
down, these tasks are reversed. New resources may be
needed but in lesser quantities; capital becomes scare; and
the organization may have to be timed down in size.
Leader and manager roles are no less important during
consolidation than in other stages, but decisions are
seldom pleasant.
22. Managing during consolidation is
not a “gatekeeping” function to
maintain the status quo. To the
contrary, it is a fight for survival.
Perception and inspiration play
lesser roles, and rationalization
becomes a well-known concern as
managers understanding for
marginal improvements.
23. Turning The Venture AroundTurning The Venture Around
Reversing a company’s pattern of poor performance is
called turning it around, and turnaround begins for those
ventures suffering from reduced sales and profits, the
turnaround begins during the consolidation stage. More to
the point, decisions made to achieve to consolidation help
reposition the company so that it can be “turn around.” it is
during the revival stage, however, that turnaround efforts are
realized. This is the time when market segmentation
becomes more keenly focused through customer-oriented
activities. It is also when research and development begin to
pay off in high-yield products and services. And it is the
time when a streamlined organization can recover the
aggressive for competing effectively.
24. PERSPECTIVE ON STRATEGIC MANAGEMENTPERSPECTIVE ON STRATEGIC MANAGEMENT
Making effective strategic decisions is a theme that occurs
throughout the organizational life cycle, and as described
earlier, the nature of these decisions change as a company
evolves. Entrepreneurs are preoccupied with survival during
the start-up period; consequently, their strategies are limited
to making a single product or service successful. With rapid
growth, their strategic emphasis shifts to intense market
development. As growth slows and the industry begins to
shake out, entrepreneurs must adopt competitive strategies
that can require severe retrenchment decisions. As
entrepreneurs struggle to revive their ventures, they must
focus their companies on distinct competencies that, in the
long run, will stimulate growth and profitability.
25. Most strategic alternatives available to small, nonpublic
ventures are concerned with internal changes that can be
made through reallocation of limited resources; few small
ventures can consider acquisition, mergers, or complicated
strategic alliances with other companies. These internal
alternatives emerge from strategic planning to realign a
venture’s markets, refocus its research and development on
high-potential products, or redefine its image. In contrast,
large diversified corporations are more concerned with
leveraging their financial strength to after portfolios.
Smaller firms seldom have financial strength or portfolios
with which to be concerned. Consequently, there is a
fundamental difference in the nature of strategic planning
for small and large businesses; small-business planning is
not large-company planning on a smaller scale.
26. GrowthGrowth
Strategic
Objectives
•Profitability
•Significant market
position
•Income to founder or
investors
•Size for economies of
scale
•Product R & D
•Image
•founder’s personal
aspirations
Strategic
Objectives
•Profitability
•Significant market
position
•Income to founder or
investors
•Size for economies of
scale
•Product R & D
•Image
•founder’s personal
aspirations
Influence rate
of growth and
duration of
effort required
to expand
Influence rate
of growth and
duration of
effort required
to expand
When achieved,
satisfy strategic
objectives or
influence
changes
When achieved,
satisfy strategic
objectives or
influence
changes
Strategies for
achieving growth
•Market diversification
• Product development
and diversification
•Expansion of services
•Other alternatives
Strategies for
achieving growth
•Market diversification
• Product development
and diversification
•Expansion of services
•Other alternatives
Growth
rate
Growth
rate
Objectives and New Venture
27. Diversification
Market
diversification
Market
diversification
• Expand into new customer niches with
existing products
• Open new markets with similar products
and customers in new geographic areas
• Expand overseas by exporting
• Expand into new customer niches with
existing products
• Open new markets with similar products
and customers in new geographic areas
• Expand overseas by exporting
Product
diversification
Product
diversification
• Develop new products through R&D for
existing customers
• License or acquire products or expand
merchandise line for specific market
niches
• Expand services for clients
• Import products for domestic markets
• Develop new products through R&D for
existing customers
• License or acquire products or expand
merchandise line for specific market
niches
• Expand services for clients
• Import products for domestic markets
Combined
diversification
Combined
diversification
New product developed or acquired for new
market niches in local or new geographic
areas
New product developed or acquired for new
market niches in local or new geographic
areas