Corporate Entrepreneurship Challenges Quiz and Flashcards

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Questions and Answers

What is one of the challenges in intrapreneurship highlighted in the text?

High incentives for taking risks

Established culture with routines that values stability (correct)

Bias for unproven information

Preference for small production volumes

According to the text, what is one way to tackle resistance to corporate entrepreneurship?

Avoid learning from small samples

Rely solely on financial measures to track progress

Exercise quick judgment on new initiatives

Use prototypes to test business models (correct)

What does the text recommend regarding judgment and decision-making in new-business creation?

Decide to pull the plug at the first sign of failure

Be clear on when to decide to pull the plug (correct)

Make quick judgments based on initial results

Suspend judgment indefinitely

What is the mindset that poses a challenge for intrapreneurship according to the text?

Exploitation mindset: focus on what is familiar and proven successful Signup and view all the answers

What does the text recommend companies to do in order to narrow the range of potential choices for corporate entrepreneurship?

Narrow the playing field using certain criteria Signup and view all the answers

According to the text, how can new ventures benefit from the involvement of 'mature turks'?

By challenging conventional thinking and leveraging existing strengths Signup and view all the answers

What is a common pathology related to holding tension at the top, as per the text?

Top leadership team avoiding tough choices by pushing conflict down Signup and view all the answers

What is a potential consequence of not having clear ownership of innovation at the top level?

Established businesses will starve innovation at lower levels Signup and view all the answers

What does the text recommend regarding the integration of new businesses with the established organization?

Force old and new businesses to share responsibility for critical choices Signup and view all the answers

What is a characteristic of successful top teams, according to the text?

Holding core and innovation units to different standards Signup and view all the answers

What is the primary focus of a business ecosystem?

The complementary nature of different organizations within the ecosystem Signup and view all the answers

How does a business ecosystem differ from a platform?

A platform is autarchy structured, while an ecosystem is hierarchy structured Signup and view all the answers

What is a strength of a business ecosystem, according to the text?

Flexibility in constantly reconfiguring activities and capabilities Signup and view all the answers

What is a weakness of managing a business ecosystem highlighted in the text?

Lack of clear ownership and decision-making authority Signup and view all the answers

What is the main goal of organizations within a business ecosystem?

To co-evolve their capabilities and roles to create additional value Signup and view all the answers

What is a key consideration for the lead firm in creating an ecosystem, according to the text?

Reducing transaction costs Signup and view all the answers

What is the significance of pinpointing the added value in an ecosystem, as mentioned in the text?

Recognition of incremental value from the ecosystem for end customers Signup and view all the answers

What is a characteristic of the optimum ecosystem structure, based on the text?

High malleability and somewhat tighter specifications on contribution and performance Signup and view all the answers

Why is it important for partners to see the prospect of building a profitable business in an ecosystem, as per the text?

To stimulate complimentary partner investments Signup and view all the answers

What is the role of the lead firm in capturing value within an ecosystem, according to the text?

Contribute a component or activity difficult to replace with a substitute offering Signup and view all the answers

Study Notes

Intrapreneurship Challenges

One of the challenges in intrapreneurship is the "comfort zone mindset" which poses a challenge for corporate entrepreneurship.

Overcoming Resistance

One way to tackle resistance to corporate entrepreneurship is to involve 'mature turks' in new ventures.

Judgment and Decision-Making

In new-business creation, judgment and decision-making should be based on experimentation and learning from failure, rather than relying on elaborate business plans.