Notebooks Case Study
Technology today is not what it used to be a few years ago. People did not have mobile
phones that would help them communicate on the move as they do now; it was not possible
to transact banking services on your phone neither was the world connected in such a way
that an individual could send a message to the other side of the world. Describing these
advances to someone who lived in the 50s on the above possibilities would be providing an
opportunity to label you mad. This has all been attributed to the dynamic nature of
technology which has seen innovators improve on existing products and services. Companies
have been forced to take on the new trend of innovation to be an integral part of the
organization in an effort to make their services or products relevant to the market. This case
study therefore focuses on various giant companies; the steps and applications they have
taken with regards to innovation.
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Chapter 1
1. How the new entrepreneurial imperative has affected Microsoft
The new entrepreneurial imperative places importance on entrepreneurship which
contributes to the creation of sustainable and innovative products and services. This has
mainly resulted to the realization of the need to embrace innovativeness achieved from
entrepreneurship in a bid to achieve organizational success. Microsoft has not been left
behind with regards to this concept.
As a result, Microsoft has strategically placed itself in the market with regards to innovation.
This has led to the company hiring various employees such as psychologists, computer
scientists and mathematicians in order to support innovation through the search for new
ideas that can be incorporated in Microsoft products and services.
1. Applying the organizational life cycle on Microsoft today
Every existing organization is at a specific stage in their life cycle such as birth, growth,
maturity, decline or death. With regards to Microsoft, I would place Microsoft at the Maturity
stage. The company registered tremendous growth in the early years of its establishment
but has somehow remained stagnant at the same position it was before. Although it stills
pulls back impressive sales levels, they cannot be compared to its initial levels.
1. Specific actions indicating that Microsoft is trying to exhibit corporate
entrepreneurship
Microsoft has introduced a new platform, a program called BizSpark that has seen Microsoft
buying startups which are not more than 2 years and with revenue levels of less than $
1,000,000. In this case, these startups are provided access to Microsoft tools, technologies
and services free of charge. Therefore, these companies become part of Microsoft and with
the available resources provided they can create products or services that can complement
the range of Microsoft product and service range.
Microsoft has also invested heavily on Research and Development seeing it placing emphasis
on creating the next generation breakthrough technologies such as the Natural Language
Processes (NPL).
Chapter 2
1. Entrepreneurial processes evident in these four companies
Firstly, it is evident that the four companies identified a certain market need and were able
to come up with suitable ideas that would fill the market gap. Therefore, in the idea
generation, an entrepreneurial process is clearly evident.
Secondly, all companies re-evaluated the opportunity that they identified. In this case, they
sought to establish whether the idea generated was a viable business opportunity.
Thirdly, all companies strategically planned for the proposed products or service. This
involved investing in different aspects, for example, space, workforce and the like.
Lastly, upon the successful launch of their products or services, the said companies have
continued enjoying rapid growth even in unfavorable economic times.
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1. Applying the ‘rules for fostering an innovative environment’ (Table 2-3) to any of
these companies?
This is as explained below:
Rule #1- Unreasonable expectation.
Wal-Mart was able to abide by this rule in a bid to create breakthrough products and
services. In this case, Wal-Mart was able to identify the need for American households to
upgrade their homes amidst a struggling economy. This based on the perspectives of others
is impractical. Therefore, without listening to critics, Wal-Mart went ahead to start a very
successful complete household line.
Rule #2- Elastic business definitions
Walgreen did not define themselves by what they do (which is offer a range of healthcare
services) but rather what they know (with quality being their core competency). This has
enabled them establish a loyal customer base that is not price sensitive but rather focus on
the quality of service offered.
1. Form of entrepreneurship manifested in these companies (Table 2-4)
The Champions and the mainstream for entrepreneurship have been adopted in the four
companies. This is because all companies recognize that it takes the entire team to build a
successful company. For instance, Walgreen, upon the development of new brands, the
effort of the sales team determine the success of the new brands. This is because if these
products, regardless of how good they are do not reach the intended market, they are of no
use to the consumer hence the brand will not be successful.
Chapter 3
1. Describing the dimensions of entrepreneurship as they apply to P&G
Strategic orientation- P&G emphasizes on brand expansion. This has resulted to the
widening of perspectives of employees as they are not bound by the vision statement of the
organization.
Commitment to opportunity- P&G is keen on capitalizing on every opportunity that presents
itself. For instance, they do not dwell on perfecting their products for a long time lest they
lose the available opportunity.
Commitment to resources- The organization has encouraged cross-division exchange of
ideas amongst employees. This has ensured it capitalizes on employee knowledge and ideas
by applying them to their products.
Control of resources- P&G has spread its control to involve the external market. This is
because it focuses on increasing one-on-one consumer research in a bid to identify less
evident consumer needs.
Management structure- Upon the realization of the extent to which designers can play in a
bid to improve consumer experience, P&G established a design department with the head
reporting directly to the CEO.
1. How to view entrepreneurial intensity at P&G?
P&G focuses on producing products that connect with consumer needs. Therefore, the
organization focuses on producing innovative products, whose needs are not as obvious.
This shows that the organization invests on innovation activities as well as Research and
Development. This therefore shows the organization has a high entrepreneurial intensity.
1. Plot P&G on the entrepreneurial grid (Fig 3-5) and explain your position.
High
P&G
Frequency
Of entrepreneurship
entrepreneurship
High
Degree
of
P&G nature of entrepreneurship is revolutionary. This is because innovation which is an
integral part of entrepreneurship is part and parcel of the organization particularly in
Research and Development department. As a result, P&G has produced innovative products
that have revolutionized the market.
Chapter 4
1. Specific motives that these companies have for pursuing corporate innovative
activities
The pursuance of corporate activities is in order to expand business operations by
undertaking activities that will increase sales revenues as well as provide better customer
service to their clients. For instance, Norivitis, a pharmaceutical company was a merger
between the companies, Ciba-Geigy and Sandoz, whose aim was to strategically position
itself in the market, strengthen its market position in order for the firm to be in a better
position that would create innovative products for its consumers and patients worldwide.
1. Applying entrepreneurship to each of these companies?
With regards to Facebook, the company sold its stock to a Russian investment firm, Digital
Sky Technologies in a bid to raise funds.
Amazon- The company identified an online business opportunity that has enabled it establish
itself as a successful online e-commerce company.
Apple- It continues creating innovative products that appeal to customers such as iPod, iPad
and the like.
Google- The search engine giant is using its online platform to promote businesses online for
a fee through the Adwords and also through the Adsense program hence increase the
company’s revenue levels.
Novartis- The merger between Ciba-Geigy and Sandoz was crucial in the strengthening of
business operations and also strengthen its market position.
Wal-Mart- the company established affiliate company Sam’s Clubs in order to diversify the
range of services offered.
Nike- the company has specialized on its product ranges as well as identified key markets
hence this provides a focus in order to achieve high revenue levels.
Disney- the Company has since diversified into other media aspects such as film production,
television and travel while maintaining its family- based approach
1. Describe the business model for each of these innovative companies
The different innovative company models are as described below:
Bricks and Clicks model- This model comprises of companies that have physical stores in
specified locations as well as online presence where customers can purchase products or
services online. Companies that have adopted this model include: Apple, Nike, Wal-Mart and
Disney.
Collective business model- This involves the collaboration of different companies in a bid to
strengthen their operations. For example, Novartis.
Cutting out the middleman model- This aims at connecting with the consumer directly as
opposed to going through the middleman, for example, the Amazon Company
Freemium business model- This refers to businesses whose services are free of charge but
charge a price for their premium packages. Examples include Facebook and Google.
Chapter 6
1. How these ‘personas’ relate to the creative individual in an organization
Creative individuals are keen on ‘going against the grain’ or being different. They will
challenge already accepted ideologies to reveal possibilities that would be beneficial to the
organization and to them. This is similar to the Learning persona. Such individuals strive on
producing products or services that are effective and efficient in terms of resources, time,
equipment and the like. This quality resonates well with the organizing persona which aims
at achieving the same thing.
Based on the information, the creative individual has the material that sees the production of
products or services; he/she ensures that they can be produced while paying attention to its
cost-efficiency, resource requirement, labor requirement and the like to ensure they are well
within their margins. This quality is similar to the building persona.
1. Using table 6.5 to discuss how the entrepreneurial personality fits into these
personas
An entrepreneur has a high tolerance for failure and does not give up on the first instance.
This relates to the learning persona. He/she is resourceful and uses the plans for the
available resource to achieve maximum results. This matches the organizing persona. An
entrepreneur has high levels of determination and perseverance in problem solving. This is a
quality that relates to the building persona who develops different prototypes to find the
best solution. He/she is also creative and innovative. The learning persona is keen on
producing solutions that are innovative for the organization.
1. The personas that may be the most beneficial for an organization from the chapter’s
critical roles in corporate entrepreneurship,
Corporate entrepreneurship’s main focus is on the creation of new products or services.
Therefore, the learning personal would be the most beneficial for such an organization as it
focuses on learning more about the products and services and recommends new models that
could be adopted.
Chapter 7
1. How the concept of creative abrasion may be applied to 3M pillars
Creative abrasion is a method of creating critical thinking by taking people with different
mode of thinking and putting them together into one team. Thus for this concept to work in
this study they require an array of critical thinkers from the concept man who deplores
endless analysis to the vision guy who comes up with innovative theories to be worked on.
They are put into one team and let their different approach to things result into a creative
solution to a problem. For this to be successful there must be a management structure that
will help foster a disciplined organization where the cognitive diverse people must respect
the thinking styles of others.
2. How 3M approach compares to entrepreneurial behavior
They are quite similar but not in all aspects as with the HRM aspects in terms of networking
the HRM concepts set a very rigid platform in that they should be formal while those at 3M
took into consideration that an informal networking setup can be easily integrated into the
formal set up. The 3M set up is set in a way that creative thinking is the main basis of the
job but the HRM job design is result oriented.
3. Relating the role of reward systems from our chapter to the 3M pillars
The 3M pillars create a reward system that is not motivated by money but the respect
acquired from fellow researchers and colleagues. This form of reward does not have to be
instilled by the management but it is from a drive within one’s self to improve so as to seem
significant to the cause creating a creative thinking environment.
Chapter 8
1. Relating the chapter definition of a “corporate entrepreneurial strategy” to the role of
Marissa Mayer must fulfill at Google.
Corporate entrepreneurial strategies are strategies that an organization takes in terms of
new material so as they may stay competitive in an ever evolving market. Marissa Mayer’s
role at Google is to work with an innovative team and come up with sound and relevant
material that are applicable in the present market so as to stay ahead of the competition.
She listens to ideas brought to her and determines whether or not they are in time with the
prevailing conditions of the market.
2. Google approach to ideas being an “entrepreneurial strategy or a strategy for
entrepreneurship” being specific in distinction.
An entrepreneurial strategy is a framework for the management of firms by developing
frameworks that allow entrepreneurs to evaluate and implement key strategic choices while
strategies for entrepreneurship are various ways in which an organization will be will be
carried out in terms of running and management. So when it comes to Google strategy it
takes parts of both as their mode of running expressed by Marissa may be incorporated as
an entrepreneurial strategy with her management of people while one can also use it as a
strategy for entrepreneurship by her management of people while thinking of their business
organization.
3. Factors that are evident in Google’s approach in developing of an entrepreneurial
strategy,
Google has a diverse entrepreneurial strategy where everyone is free to send in an idea and
which is reviewed by management. Instead of putting you down after reviewing the idea,
they give you a chance to go and think of a much improved one. There is also a one-on-one
sessions with Marrissa for one to explain himself. Explaining oneself allows for expansive and
more critical thinking in both masters and PhD holders.
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Chapter 9
1. How signodes structure compares to the general type of structures presented in
table 9-1
The venture structure was mainly based on revenue over a period of time, quality and
innovation and creativity, thus the structure was based across various strategies in both
business and corporate level as it picked strong points of most strategies and embedded
them in their new structure. This may not have been fully successful but at least one of the
team was able to achieve its target thus the strategy was on a complete a complete failure.
2. The essence of the V team concept that it is a component of the structure outlined in
table 9-4.
The V team comprised of individuals selected from various fields of expertise such as design
engineering and marketing but they were required to have three similar integral traits which
were high risk taking ability, creativity, and the ability to deal with ambiguity. With their
diversity in background but same critical thinking the V team was able to work smoothly in
as it was laid across various organizational structures.
3. Comparing Signode’s structure to venture development with organizational design
alternatives presented at the end of the chapter.
The V team took three months to select the first one thus showing even with their diverse
background some must have exhibited leadership qualities as well as expertise in fields in
production in which various production departments. It seemed very similar to the
alternative strategies, thus showing that Signode had formed a particularly sound strategy
which could improve output greatly.
Chapter 10
1. Using table 11-1 to identify specific constraints on corporate entrepreneurship.
Apple have been seen as being a stickler for innovation and forgetting about commercializing
of the product thus their products fail to materialize in terms of revenue generated and thus
has seen their place as the dominant force in smart technology. Apple have also been
judged to be more of dealing with creativity in software improvements and failing to market
their products in terms of pc and Macintosh devices.
2. Other potential limitation on corporate innovation could apple experience and why?
With failing to commercialize their material Apple are facing a decline in revenue which will
be causing them a shortage in fund which they require while they are placing new ideas and
exploring where they must take them. This leads to a decline in creativity as funds are not in
abundances as before.
3. The ethical dilemma of rouge middle managers as it could apply in apple.
Middle managers are the people who lie between upper managers and the staff in the
ground. They make the decision in that influence directly into what the organization will lay
its foundation on. The middle managers at apple are only focused on creating the cool thing
and what will be hip in the market and this has led to their downfall in the global market
they seem to have the mentality that since this is apple the goods will sell themselves and
this in the long run will come to hunt them.
Chapter 11
From this case study Apple has constrained its corporate entrepreneurship through various
traditional practices. The company has enforced a standard procedure in its production
through developing everything in house as opposed to the market trend of outsourcing to
specialized developers. This has led to funds being misspent and also to a hindrance in
experiencing the innovation of other specialists. Apple has also concentrated in managing its
resources for efficiency through spending so much on innovation thus losing the competitive
lead that would have been gained through marketing. It has also moved to avoid moves that
risk its business base of innovation thus missing its opportunity in holding the market share.
The collective effect of all this is uniform compensation particularly to investors through low
profitability leading to their lack of motivation.
Apple could experience potential limitations on corporate innovation such as demoralization
of employees owing to the fact that they are subjected to traditional corporate strategies
that the company is reluctant to let go of. This could then lead to staff shying from floating
their ideas as they may feel the ideas have no place in the rigid corporate environment. The
company thus shuts itself from entrepreneurial opportunities.
The middle management of Apple would also be potential to becoming rouge middle
managers. This could owe to the fact that they would feel restrained to a rigid strategy thus
they lack the opportunity to show their full potential which could lead to advancing their
carrier. Such managers are prone to corporate poaching or even worse they could easily leak
out Apples innovation with the aim of advancing which is difficult with their current
employer.
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Chapter 12
Ben Lytle exemplified putting in place a pro-entrepreneurship organizational architecture
through expanding opportunities for managers by crating mini corporations where they
would serve as CEOs. He also gave each corporation a conducive entrepreneurial
environment by eliminating bureaucracy by each mini corporation having a separate board
of governors. He also exemplified a pro-entrepreneurship organizational architecture by
rewarding the CEOs of different mini corporations with owning stock. This would ensure they
felt directly responsible for the results of their innovation.
A key entrepreneurial imperative of top level executives as exhibited in this case is the
nourishment of entrepreneurial capability. This is achieved through the creation of mini
corporations that develop the capacity for their CEOs to become innovative. The creation of
these mini corporations also protects the company from disruptive innovative ideas as they
are ‘cocooned’ in different mini corporations protecting the mother company. Their creation
also questions the logic of the dominant logic of one large corporation that has branches as
opposed to different corporations operating independently. The top management also links
entrepreneurship with strategy when it allows CEOs to be innovators who realize rewards to
their entrepreneurial skills.
Ben Lytle appears to be managing ambidextrously through responding to current
competition by diversifying the companies’ market base by the mini corporations. He also
dealt with the pressure to utilize current resources by using managers’ entrepreneurial skills
in the innovation of the company. This also refined the employee skills by making them
CEOs of different corporations and rewarding their efforts. Most importantly he identified
skills that would be of relevant use to the organization in the next five years by having
current CEOs nurture their employees to future top managers.
Chapter 13
Being that Samsung is highly innovative with its product range, it is highly important that
they asses this innovativeness. They do this through recognition by their peers. This is
achieved through bodies such as the Consumer Electronics association (CEA). In 2010 they
won over 100 awards in the Consumer Electronic show (CES). These awards for their
innovations act as indicators to their success in the industry.
Samsung’s entrepreneurial intensity is characterized by high rate of introduction of new
products compared to their completion. They have diverse advanced new products in
different markets. There is also moderate emphasis on continuous improvement in methods
of production through intense investment in their research and development. The executive
also highly seek solutions through use of unusual, novel solution seeking by dedicating a
quarter of their manpower in Research and Development. The company’s top-level decision
making is characterized by active search for big opportunities through diversifying their
products from office to home appliances. It is also characterized by rapid growth as the
dominant goal shown by high investment in innovation of their products.
However Samsung also ought to use other measurement and assessment tools other than
recognition by their peers. Such methods could be the use of profitability ratios as innovation
might not be directly related to the ratio of returns. Profitability ratios will show directly the
impact of the investment in research and development to the company’s financial status.
They could also use intense market surveys on the consumer’s responsiveness to the new
innovations. This will show a better picture of the viability of products than through the
recognition by their peers.
Chapter 14
Research in Motion (RIM) needs to manage the triggering events for corporate
entrepreneurship affecting their leadership in the industry. They need to carry out market
surveys to determine their customer’s specific requests and act on them timely to avoid the
competition meeting customers’ demands before they do. They also need to identify their
competitors and the threat they pose so as to counter such threats in a viable and timely. A
key factor is also the forecast of these triggering events such as market share, profits and
sales so as to timely detect declines and work on them. The company also needs to pay
attention to specific customer complaints through encouraging feedback. This will increase
loyalty to their products and reduce the completion from substitute products such as the
iPhone. The company through these feedbacks will also know that they need to diversify
their products not only concentrating on enterprise customers but also the emerging work
and play customer captured by devices such as the iPhone.
RIM could build an adaptive organization through paying attention to market research which
will give an insight on the consumer wants which they could then satisfy through the
innovation of viable products to meet such wants. They should also adapt to the market
through partnering with complimentary service and product providers such as wireless
carriers and application developers as their competitor Apple has done. They should also
diversify on their products to target a wider consumer base and not just enterprise
customers so as to remain top on the innovation leader board.
RIM could maintain its innovative leadership by innovating without boundaries as their
website proposes. They should venture beyond the boundaries of one product line by
innovating diverse products to suit a wider customer base. They should also strive to unveil
new innovative