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MGT602 - Entrepreneurship - Lecture Handout 04

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THE ENTREPRENEURIAL AND INTRAPRENEURIAL MIND

LEARNING OBJECTIV ES

  1. To explain the aspects of the entrepreneurial process.
  2. To explain the differences between entrepreneurial and managerial domains.
  3. To explain the organizational environment conducive for entrepreneurship.
  4. To identify the general characteristics of an Entrepreneur.
  5. To explain the process of establishing entrepreneurship in an organization.

ENTREPR E NEURIAL PROCESS

The entrepreneurial process involves finding, evaluating, and developing an opportunity by overcoming the strong forces that resist the creation of something new.

Phase 1: Identifying and Evaluating the Opportunity

Most good business opportunities result from an entrepreneur being alert to possibilities. Some sources are often fruitful, including consumers and business associates. Channel members of the distribution system-retailers, wholesalers or manufacturer’s reps-are also helpful.
Technically-oriented individuals often identify business opportunities when working on other projects. Each opportunity must be carefully screened and evaluated-this is the most critical element of the entrepreneurial process.

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MGT603 - Strategic Management - Lecture Handout 26

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THE STRATEGIC POSITION AND ACTION EVALUATION (SPACE) MATRIX

These dimensions are explained below:

Internal Strategic Position

External Strategic Position
Financial Strength (FS)
Environmental Stability (ES)
Risk involved in business
Impact of technology Price elasticity of demand
Debt to equity ratio
Working capital condition
Leverage
Political situation
Liquidity
Demand variability
Ease of exit from market
Price range of competing products
Cash flow statement
Rate of inflation
Return on investment
Competitive pressure
Competitive Advantage (CA)
Industry Strength (IS)
Access to the market
Market share
Demand and supply factors Resource utilization Growth potential
Quality of product and services
Profit potential
Product life cycle
Financial stability
Customer loyalty
Technological know-how
Capacity, location and layout
Productivity, capacity utilization
Technological know-how
Capital intensity
Backward and forward integration
Ease of entry into market

After the selection of variables the rating is assigned to each. After the addition of these variables taking the average. For example financial strength is explain below

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