Experience versus initiative
o reflects the fact that companies must decide who will lead an innovation project. Senior
managers may have experience and credibility but tend to be more risk averse. Mid-level
employees, who may be the innovators themselves
Innovation requires new knowledge from
The latest technology
The results of experiments
Growth opportunities come through innovation. Innovation = the use of
new knowledge to transform organizational processes or
There are three questions that can be used to assess the effectiveness of the corporations
(1) are the products or services offered by the venture accepted in the marketplace?
o If the venture is considered a market s
Innovation dilemmas, final choices
o Incremental versus preemptive launch
o An incremental launch is less risky, requires fewer resources, serves as a market
o An incremental launch can undermine the projects credibility if it is too tentative
o An i
o Innovativeness = a willingness to introduce novelty through experimentation and creative
processes aimed at developing new products and services as well as new processes.
Innovativeness refers to a firms attitude toward innovation and wil
Evaluating results of the Innovation Process
o How much will the innovation initiative cost?
o How likely is it to actually become commercially viable?
o How much value will it add; what will it be worth if it works?
o What will be learned if it does not
Can enhance existing practices
Make small improvements in products & processes
Can create evolutionary applications of earlier innovations; provide new capabilities
o Another way to view the impact of an innovation is in terms of it
The initial target market for SBB will be legal age college students. A high percentage of
this segment tends to consume alcoholic beverages. The rigorous demands of college life make
the benefits of the product very appealing to them. As e
Marketing and product Objectives
The marketing and product objective for SBB is to capitalize on the health benefits of the
product and focus on developing Brand reputation. Developing the brand name for future
marketing efforts will be accomplished throu
The Marketing Program
SBB will have a marketing program that utilizes the four Ps marketing mix elements of
Product strategy, price strategy, promotion strategy, and place strategy
Our product line currently only has one product. Our most
Organization Structure and Implementation Plan
A marketing program needs a marketing organization to implement it. This section of
the marketing plan may include an organizational chart with both current and projected
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
Limitations of Real Options Analysis
o Real options analysis (ROA) = an investment analysis tool that looks at an investment or
activity as a series of sequential steps, and for each step the investor has the option of:
(a) investing additional funds to g
To remain competitive, established firms must continually seek out opportunities for
growth and develop new methods for strategically renewing their performance.
o How can entrepreneurial activities become an avenue for achieving compe