MGMT 3000 Test #2 - February 5, 2008 Internship and Jobs at...

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February 5, 2008 Internship and Jobs at Target Chapter 5 Slides/Lecture The Nature of Entrepreneurship o Person assumes the risk of the venture Actively involved in managing (though not professional managers) o Small business not large enough… The Role of Entrepreneurship in Society o At one time, Starbucks and Cisco were small “no-name” companies o Most new small businesses fail within the first few years If they survive, it is typically because the entrepreneur works for little or no income 1. Starbucks CEO did this for the first two years o 98% of businesses has less than 100 employees, and are considered small o Chick-fil-A franchises example o Lot of innovation comes from small businesses Cisco, Starbucks, Apple o Many big companies depend on small companies Small companies provide important services to the larger firms 1. Private investigator, consulting, etc. The Importance of Small Business in the United States o NO NUMBERS ON TESTS! (Figure 5.1) o Majority of US Workers work for firms that have less than 100 employees The Role of Entrepreneurship in Society (cont’d) o Import/Export companies many times are small firms o Job Creation Cisco went from 30 employees to 3000 employees in early 1990s; then over the period of about six years went to 30,000 employees Representative Jobs Created and Lost by Big Business (Figure 5.2) o Job Cuts made all at once in large numbers Sometime jobs are lost gradually, but announcement made included all jobs intended to cut Intended to make public see they are cutting costs and make the firm more profitable o Job Gains are made gradually o In technology, ups and downs of jobs are much more turbulent The Role of Entrepreneurship in Society o Innovation Small firms seen as innovators, but also come from large firms 1. Large firms have a lot of human capital (critical mass), this can give large firms an advantage 2. Large firms have an advantage in resources 3. So, really major innovations come both small and large firms, it’s not just one or the other The Role of Entrepreneurship in Society o Importance to Large Business
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Strategy for Entrepreneurial Organizations o Three Strategic Challenges (similar to Portfolio Management) Choose industry in which to compete 1. Want firm to have growth potential for the future Distinctive competencies 1. Do something unique to give competitive advantage Write business plan 1. Ebay advertised primarily on radio when they were small 2. Jeff Schol (Ebay founder) will refer to their business plan 3. No investors will invest in your firm unless you have a business plan Choosing an Industry o A lot of small businesses are Service, Construction, and Retail o Not many small wholesalers o Clear advantage to large firms in manufacturing, wholesalers, and finance Emphasizing Distinctive Competencies o Exploiting opportunities quickly First-mover advantage is not
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This note was uploaded on 03/19/2008 for the course MGMT 3000 taught by Professor Roberthirschfeld during the Spring '08 term at University of Georgia Athens.

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MGMT 3000 Test #2 - February 5, 2008 Internship and Jobs at...

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