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Corporate Entrepreneurship(Entre 541) Question Paper
Corporate Entrepreneurship(Entre 541)
Course:Business Administration
Institution: Kenya Methodist University question papers
Exam Year:2012
TIME: 3 HOURS
Instructions: Answer Question ONE (Compulsory)in Section A and Any THREE (3) Questions from Section B.
CASE 1
Hongo Company Ltd pursues growth through innovation. Originally innovation was encouraged informally by the founders, but over the years some of the rules have been formalized. The company started by selling inferior quality of pegs by getting close to customers – demonstrating and persuading them as a relationship selling – as a first strategic trust.
The second strategic thrust was a design of products used by the interior body work of car industry. The company did this by seeking out niche market, no matter how small, which would allow it to charge a premium price for its products. The company began to realize that many small niche markets could prove to be more profitable than a few large ones.
By 1990s this changed because of sophistication in some technologies. The returns required were larger needing corresponding larger markets. Luckily the world was increasingly becoming a global market place. So the approach remained the same, but the speed of response and size of niche market, region wide (COMESA) increased. This was the third strategic thrust where the company recognized that it did best when it introduced radically innovative products into a niche market in which it already had a toe.
This experience taught the company the value of research but in particular value maverick innovations. In early 2000s the company developed a policy allowing researchers to spend up to 15% of their time working on their own projects. To get the idea accepted they must get personal backing of a member of the main board. So the fourth strategic thrust of the company was developed – to pursue product development and innovation at every level of in the organization through research.
In 2005, a new product department was developed to explore the viability of new products or technologies unrelated to existing ones. In 2006, a product fabrications laboratory was set up to develop manufacturing processes. The labs were created with a view of being more responsive to the market place and undertaking medium-term research. The researchers regularly moved around the different divisions but were having communication problems. Strategy five had emerged – get different parts of the company to communicate and work together and, most important of all, share knowledge. Achievement in research was rewarded, lesser achievements were also acknowledged. Researchers who consistently achieved "high standards of originality dedication and integrity in the technical field" were invited to join exclusive "society club". Strategy six emerged – encourage achievement through reward.
Today the company is facing many challenges maintaining its reputation for innovation. As it becomes larger, involved in different markets with different products and technologies, at different stages in life cycle, it recognizes that different managerial approaches may be necessary. It is also facing stiffer completion; as a result 15% role – sack time to research new products is under severe pressure.
Required:
Describe the organizational structures and devices Hango company ltd uses to encourage entrepreneurial activity. Why do they work.
(15 Marks)
Why has Hango Company been such a successful innovator for so long.
(10 Marks)
SECTION B
Question Two
Identify a company which you know has been having both incremental and fundamental innovation in its manufacturing section.
How does the company distinguish between incremental and fundamental innovation.
(13 Marks)
Describe, as best as you can, the culture of that organization. What does this depend upon?
(12 Marks)
Question Three
Discuss the common characteristics associated with the entrepreneurial individual in an organization. (25 Marks)
Question Four
Critically discuss the internal business environment factors that influence new business creations. (25 Marks)
Question Five
Drawing from relevant theoretical and conceptual framework, demonstrate your understanding of corporate venturing also known as intrapreneurship and discern its role in Kenyan organization in your locality. (25 Marks)
Question Six
Discuss the challenges and issues relevant to entrepreneurship research and policy development in Kenya. (25 Marks)
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