ch03Entrepreneursmanagersandemployees.pptVIP

Chapter Three Entrepreneurs, Managers, and Employees Learning Objectives Describe the nature of entrepreneurship and the kinds of entrepreneurial opportunities that can increase the profitability of business commerce, occupations, and organizations. Identify how the process of creative destruction leads to the emergence of new companies, the decline of established companies and raises a society’s standard of living. Appreciate the problems involved in aligning the interests of a manager with those of a company’s owners. Learning Objectives Distinguish the three different levels of managers and understand the different roles they perform to increase efficiency, effectiveness, and profitability. Differentiate between two main approaches employees can take to their jobs and the way their performance affects their long-term career prospects. The Role of the Entrepreneur Entrepreneur a person ready to supply the enterprise – energy, boldness, courage, spirit, expertise – necessary to start and grow a business Forms of Entrepreneurial Opportunities Commercial Opportunities First mover advantage the competitive advantage gained by being first to develop a new product or process Organizational Opportunities Intrapreneurship Entrepreneurial activity that takes place inside an established company Risks of Entrepreneurship Entrepreneurs often overestimate their ability to create new products Entrepreneurs underestimate how difficult it is to reach prospective customers Entrepreneurs may not realize how much ready cash is needed to see a small business through its critical “birth” period Why Be an Entrepreneur? Entrepreneurs are often driven by the challenge of creating valuable new goods and services Many entrepreneurs are intrinsically motivated Types and Motives for Enterprise The Agency Problem Delegate giving up decision-making authority to other people Agency problem the problem that arises because of the separation of the ownership and control of a business Que