Corporate Entrepreneurship Strategies Harvard Case Solution & Analysis

Corporate Entrepreneurship Strategies

After studying different researches from different authors it has been concluded that their suggestions are important for an entrepreneurship to convert innovative ideas into practical achievements and it is not only important for new businesses but also important for an existing corporation such as Metro AG. When dabbling in corporate entrepreneurship, it is important to realize that it radically challenges the traditional methodology of existing companies and instead advises the company to rejuvenate and loosen its corset. C. Lakshmi Nath discusses the idea of corporate entrepreneurship which has gained recognition in bringing success to established companies and improving and sustaining their overall performance. It enables companies to breathe new life in their processes by developing new business and generate new revenue streams. If a company wants to bring more innovation into their workings and to renew their existing forms of operations then corporate entrepreneurship is the step that will allow the change to take place (Nath, 2005).

Large Corporation can easily become stagnant in their approach towards the growth of the business; aversive towards taking any risk instead they tend to try the old methods. These new ventures complement the existing business idea and leverage which the parent company processes. Entrepreneurial activities can help the company to take risks that will sustain its market share, and aid in beating the growing competition in today’s ultra-competitive environment over time. Corporate entrepreneurship although hailed for its many achievements and possible advantages it is not an easy method to undertake or adopt as identified by Nath. To implement this method, the internal operations of the company and the whole internal culture need to be revamped in order for it to be effective.

Furthermore, corporate entrepreneurship is highly susceptible to its surrounding environment, and the results of the same entrepreneurial activity will vary in two different environments (Nath, 2005). A large company can apply corporate entrepreneurship in three basic forms which are as follows: corporate venturing also called entrepreneurship, renewal of existing organizations, and complete transformation. Corporate venturing refers to the creation of a new business within the existing company, which may be a complete offshoot of the business, but not a standalone project that needs continual growth from the parent company.

Next is the renewal of the existing company which is the existing venture; it is kept but yet they are revitalized, and traditional methods of managing them are discarded. The last method and the most radical is the transformation that implies the strategy to undergo changes within and from the bottom to the topmost level. Within this method, marketing, product development, and operations methods are made to reflect the new philosophy of the company(William GUTH, 1989). Who is responsible for the change? Who has the access to the resources? The environment in which corporate entrepreneurship is being implemented; all of these matter in the success of its effectiveness.

There are at least four models that can be implemented within a company that are as follows: the opportunist, the advocate, the enabler, and the producer. Within this essay, we will only concentrate on three and examine them from different angles to analyze their weaknesses and strengths, also to determine their role in fostering corporate entrepreneurship within the company. However, this result comes in different ways as well as it utilizes resources in different ways.

Beginning with the opportunist model which relies on grabbing an opportunity and making it worthwhile against the odds stacked up against it. In fact, all business models are primary centered on this idea of availing the opportunity when it arises (Jay GALBRAITH, 1982). This model works along the lines of it being an open culture within the company and that anyone who sees an opportunity should avail it. However, it is not necessary that there are any formal structures in place to encourage such thinking like setting a budget aside for experimenting or a paid leave to research a new idea. Thus, this model primarily settles around how willing a person is to pursue a certain opportunity that they see.

The limitations of this model arise when a company does not support a completely open and transparent environment or because of the sheer size of some corporations each and every idea cannot be heard and they are lost within the established hierarchy. Due to these reasons, the approach becomes highly undependable.....................

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