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McGraw-Hill/Irwin
Strategic Management: Text and Cases, 4e Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved.

Recognizing Entrepreneurial Opportunities
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• Entrepreneurship – new value creation
• New value can be created in many different environments
•
Opportunities
•
Resources

Opportunity Analysis Framework
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Adapted from Exhibit 8.2 Opportunity Analysis Framework
Sources: Based on J. A. Timmons and S. Spinelli, New Venture Creation , 6th ed.
(Burr Ridge, IL: McGraw-Hill/Irwin, 2004); and W. D. Bygrave, “The
Entrepreneurial Process,” in W. D. Bygrave, ed., The Portable MBA in
Entrepreneurship , 2nd ed. (New York:Wiley, 1997).

Entrepreneurial Opportunities
• Opportunities come from many sources
Start-ups
Established firms
• Different Phases
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Entrepreneurial Opportunities
• Opportunities come from many sources
Start-ups
Established firms
•
Different Phases of Opportunity Recognition
Discovery phase
Opportunity evaluation phase
Resource Evaluation phase
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Characteristics of Good Opportunities
Attractive
Good Business
Opportunity
Value creating
Achievable Durable
Before launching opportunity as a business
•
Consider the resources available to undertake it
•
Consider the characteristics of the entrepreneur pursuing it
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Entrepreneurial Resources
Financial resources
Later-stage (not seed) financing
Human capital
Social capital
Government resources
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Entrepreneurial Leadership
• Launching a new venture requires a special kind of leadership
•
Characteristics needed (not exclusive)
Vision
Dedication and drive
Commitment to excellence
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Entrepreneurial Leadership
• Vision may be entrepreneur’s most important asset
• Dedication and drive are reflected in hard work
•
To achieve excellence, venture founders and small business owners must
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Ten Management Lessons from a young entrepreneur
1.
Here are It’s all about perseverance
2.
Understand the value of mentorship and teamwork
3.
Stick to your niche
4.
Stay on top of news that affects your clients
5.
Communication is key
6.
Capitalization is crucial
7.
Communication unwavering honesty and integrity
8.
Stay on top of the curve
9.
Take ownership in your clients’ success
10.
Never stop marketing
Source: Pierce, Sarah. “10 Management Lessons From a Young
Entrepreneur,” www.entrepreneur.com. December 17, 2003.
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Entrepreneurial Strategy
• What determines the best strategy for the enterprise?
•
What are the various tools and techniques to determine strategic choices?
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Entry Strategies
Getting a foothold in the market
•
Pioneering new entry
•
Imitative new entry
• Adaptive new entry
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Generic Strategies
• How new ventures can achieve competitive advantages?
•
What is their
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Model of Competitive Dynamics
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Sources: Adapted from Chen, M-J. 1996. Competitor analysis and interfirm rivalry: Toward a theoretical integration. Academy of Management Review ,
21(1): 100-134; Ketchen, D.J., Snow, C. C., Hoover, V.L. 2004. Research on competitive dynamics: Recent accomplishments and future challenges.
Journal of Management , 30(6): 779-804; and Smith, K.G., Ferrier, W.J., & Grimm, C.M. 2001. King of the hill: Dethroning the industry leader. Academy of
Management Executive , 15(2): 59-70.

Strategic and Tactical
Competitive Actions
Strategic
Actions
Actions
•
Entering new markets
• New product introductions
• Changing production capacity
•
Mergers/Alliances
Tactical
Actions
• Price cutting (or increases)
•
Product/service enhancements
• Increased marketing efforts
• New distribution channels
Exhibit 8.8 – Strategic and Tactical Competitive Actions
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What are you doing?
Why?
How?
Why You?
What is your Magic?
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