Timmons’ Model with Diagram.

 Timmons’ model with diagram.                                

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Timmon’s Model        

Central themes of the entrepreneurial process

• It is driven by a lead entrepreneur and an entrepreneurial team
• It is resource parsimonious and creative
• It depends on the fit and balance among these

Sources of Innovative Ideas

• Trends – A paradigm shift in trends with major population
• Unexpected occurrence – unanticipated or unplanned surprise that turns out to be new ways of doing things
• Incongruities – Gap that exists between expectations and realty  
• Process needs- new inventions to solve a problem
• Industry and Market Changes- industry growth and inventions needed to changing customer needs
• Demographic Changes- Changes in demographics such as age, retirees etc needing change to demand of customers due to demographic change
• Perceptual Changes – Perceived changes to lifestyles eg health consciousness
• Knowledge Based Concepts – New methods, new thinking and new knowledge etc that leads to creation or development of something new

Source :Principles of Marketing by Phillip Kotler

Need for innovation of product or service when marketing in the new business environment                                    

                                                                                                                                                              (

1. Competitors developing innovative products and services.
2. Investment in R&D increasing through universities, companies and R & D improved products and government initiatives.
3. Customers expecting better quality and improved products and services.

Factors  required to develop corporate entrepreneurship and what are the reasons for them to be considered                                                                                      

Developing Entrepreneurial Spirit

• Welcome new ideas.
• Leaders of highly innovative organisations emphasis developing whole new business concepts and product platforms, and systematically ‘destroying one’s own’.
• Continual innovation is their sole business. All other business concerns flow from the single overriding purpose.
• Allow divergent thinking

• Managing for divergent thinking means providing plenty of information to stimulate people to ask the right questions.
• It requires good selection and motivation of employees rather than control of people’s actions.
• Genuinely respect for other people’s capabilities and potential.
• . Develop supervisory encouragement

• Leaders of successful, continually innovative organisations create a sense of community across the whole organisation.
• In these organisations, everyone identifies with a common purpose, knows why they are working together, and participates in innovation as the basic way the organisation creates and bring new value to customers.
• Creativity and innovation activities are not delegated to just a few people or functional areas.
• Supervisory encouragement by both top managers and middle managers not only creates a vision for innovation, but sustain it, making people feel as if their work matters to the organisation.
• Reward creativity

• Personal recognition
• Bonus linked to the performance of companies.
• Travel-based motivation
• Promotion  
• Incentive share options
• Communication

•  Promote open communication for sharing     ideas.
• Communication to instill a spirit of entrepreneurship should first target frontline supervisors because they are the opinion leaders in the organisation. They greatly influence the attitudes and behaviours of others.  

Source :  Entrepreneurship Concepts, theory and Practice By Kurotku

Michael Porter’s competitive strategies with suitable examples of organisations implemented them to be successful.                                                                

Competitive Strategies of Michael Porter

• Differentiation = attempt to distinguish products or services from that of competitors
• Cost leadership = aggressively seeks  efficient facilities, pursues cost reductions, and uses tight cost controls to produce products more efficiently than competitors
• Focus = concentrates on a specific regional market or buyer group

Cost Leadership

    Key Criteria

• Relatively standardized products
• Features acceptable to many customers
• Lowest competitive price
• Lowest competitive price
• Building efficient scale facilities -Tight control of production costs and overhead
• Monitoring costs of activities provided by outsiders -Minimizing costs of sales, R&D and service
• Simplification of processes-State of the Art” manufacturing facilities
• Different Value provided by unique features and value characteristics

 Key Criteria

• Command premium price
• High customer service
• Superior quality
• Prestige or exclusivity
• Rapid innovation

Requirements

• Constant effort to differentiate products through:
• Developing new systems and processes
• Maximize Human Resource contributions through low turnover and high motivation
• Shaping perceptions through advertising
• Quality focus
• Capability in R&D

Way by which differentiation can be carried out:

•   Superior Quality or Performance
•  Unusual or Unique Features
•  More Responsive Customer Service
•  Rapid Product Innovation
•  Advanced Technological Features
•  Engineering Design
•  Additional Features
•  A  FOCUS STRATEGY
• -when an organization pursues either cost or differentiation advantage but in a limited(narrow) customer group or segment.
• -concentrates on a specific market niche
• -the target market niche is big enough to be profitable
• FOCUS strategy is attractive when
• -the niche has good growth potential
• -the firm has the capabilities and resources to serve the targeted niche effectively.

Source Exploring Corporate Strategy by Michael Porte

Business Ventures

Advantages & Disadvantages