Challenges in Managing Innovation:
o Innovation dilemmas
o Seeds versus weeds
Seeds are likely to bear fruit
Weeds should be cast aside
Projects may require considerable investment before merit can be
o Experience versus initiative
Who should l
Dispersed approaches to corporate entrepreneurship
o Entrepreneurship is spread throughout the firm
o Ability to change is a core capability
o Stakeholders can bring new ideas or venture opportunities to anyone in the organization
o Has three related aspe
Business incubators hatch new businesses
o Provide funding, physical space, business services, monitoring, networking
New Venture Groups
o The new venture group = a group of individuals, or a division within the corporation, that
identifies, evaluates, an
o Require that employees seeking to advance their career with the organization serve in the
new venture group as part of their career climb. Dont just allow in volunteers who want
to work on interesting projects.
o Once people h
Competitive aggressiveness refers to a firms efforts to outperform its industry rivals, & can be
o Entering markets with drastically lower prices
o Finding successful business models & copying them
o Problems can include
Being overly aggressi
o The first is focused corporate venturing, in which activities are isolated from the firms
existing operations and worked on by independent work units. The second approach is
dispersed, in which all parts of the organization and every
o Three related aspects of dispersed entrepreneurship include entrepreneurial
cultures that have an overarching commitment to corporate entrepreneurship
activities, resource allotments to support entrepreneurial actions, and the us
What Can P&G Do?
P&Gs ability to offer a suffisticated product to a low quality market not only
differentiates them from the competition, but shows consumers that if they buy their
product it will last longer and be more worth while.
How Procter & Gamble Plans to Clean Up
Founded in 1837 by William Procter and James Gamble.
Headquartered in Cincinnati, Ohio.
Fortune 500 Company (#26 in 2011).
Current CEO: Robert A. McDonald (2010).
2011 Sales topped $86,000,000,000.
Dukes V. Walmart
Betty Dukes, a 54 year old Wal-Mart worker in California filed a class action suit
Involved more than 1.6 million women who currently are or have worked for WalMart
Alleged gender discrimination in pay and
Correlates of job satisfaction
The degree to which employees believe the work they do is meaningful,
they are competent, they can exercise autonomy as they perform their
jobs, and their efforts have impact in the work environment
Requirements for team success
Clear and well understood mission and goals
1. Clearly define your teams mission and objectives
2. Work to establish team member commitment to goals and objectives
3. Anticipate and plan for challenges and obstacles
o Firms that want to engage in successful corporate entrepreneurship need to have an
entrepreneurial orientation = the strategy making practices that businesses use in
identifying and launching corporate ventures, that represen