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MGT602 - Entrepreneurship - Lecture Handout 42

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PREPARING FOR THE NEW VENTURE LAUNCH: EARLY MANAGEMENT
DECISIONS (Continued….)

CREATING AWARENESS OF THE NEW VENTURE

In the early stages, the entrepreneur should focus on developing awareness of the products offered.

Publicity is free advertising provided by a media outlet. Many local media encourage entrepreneurs to participate in their programs. The entrepreneur can increase the opportunity for getting exposure by preparing a news release and sending it to as many media sources as possible. For radio or TV, the entrepreneur should identify programs that may encourage local
entrepreneurs to participate. Free publicity can only introduce the company. Advertising can be focused on specific customers.

Internet Advertising

The Internet is an excellent medium to create awareness and to effectively support early launch strategies. Creating a website is the most important first stage. The website should indicate: Background of the company. Its products, officers, address, telephone and fax numbers. Contact names for potential sales. Direct sales from the website may also be available. Significant advertising is needed to create interest and awareness of the existence of the website. It is important to change the content of the website as necessary. The entrepreneur may also consider using a banner ad, small rectangular ads similar to billboard ads that appear on browser websites.

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MGT602 - Entrepreneurship - Lecture Handout 06

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THE ENTREPRENEURIAL AND INTRAPRENEURIAL MIND (continued…)

LEARNING OBJECTIVES

  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.

CORPORATE VERSUS INTRAPRENEURIAL CULTURE

Smaller, aggressive, entrepreneurial firms are developing more new products and becoming dominant in certain markets. Many companies are attempting to create the same spirit, culture, and rewards of entrepreneurship in their organizations.
The typical corporate culture has a climate and reward system that favors conservative decision making.
Emphasis is on gathering large amounts of data as the basis for a rational decision. Risky decisions are often postponed until hard facts are gathered or a consultant is hired. Often there are so many approvals required that no individual feels personally responsible for the project.

The guiding principles in a traditional corporate culture are:

  1. Follow instructions given
  2. Do not make mistakes
  3. Do not fail
  4. Do not take initiative
  5. Stay within your turf and protect your backside
  6. This restrictive environment is not conducive to creativity, flexibility, and risk taking

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