The Social Perspective - PowerPoint Presentation

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The Social Perspective and the Global Environment of Entrepreneurship

© 2014

Cengage

Learning. All rights reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part

.Slide2

© 2014 Cengage Learning. All rights reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

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The Social Entrepreneurship Movement

Social Entrepreneurship

Entrepreneurship applied

to social problem solving

whereas traditional

, private-sector

entrepreneurship focuses

on innovation, risk-taking, and large scale transformation.

The Social

Entrepreneurship Process

Recognition of a perceived social opportunity

Translation of

social

opportunity into an enterprise concept

Identification and acquisition of resources required to execute the enterprise’s goals.Slide3

© 2014 Cengage Learning. All rights reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

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Defining the Social Entrepreneur

Social

Entrepreneurs

Are a

person or small group of individuals who founds and/or leads an organization or initiative engaged in social entrepreneurship.

Also referred to as “public entrepreneurs,” “civic entrepreneurs,” or “social innovators

.

Are creative thinkers

continuously striving for

innovation in technologies, supply

sources, distribution outlets, or methods of production.

Are change agents who create

large-scale change using

pattern-breaking ideas to address

the root causes of social

problems.Slide4

Social Enterprise and SustainabilitySustainable EntrepreneurshipThe preservation of nature, life support, and community in the

pursuit of

perceived opportunities to bring into existence future products, processes, and

services for gain, where gain is broadly construed to include economic and noneconomic gains to individuals

, the economy, and society

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© 2014

Cengage

Learning. All rights reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part

.Slide5

© 2014 Cengage Learning. All rights reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

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Environmental Awareness

Ecovision

A leadership style that encourages open and flexible structures that encompass the employees, the organization, and the environment, with attention to evolving social demands.Slide6

© 2014 Cengage Learning. All rights reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

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Environmental Awareness

Key Steps in an Environmental Strategy

Eliminate the concept of waste.

Restore accountability.

Make prices reflect costs.

Promote diversity.

Make conservation profitable.

Insist on accountability of nations. Slide7

Shared Value and the Triple Bottom LineShared ValueAn approach to creating economic value that

also creates value for society by addressing

its needs

and challenges—company success begets social progress when overcoming societal problems reduces costs for firms, increases productivity, and opens new markets.

Triple Bottom Line (TBL)An accounting framework that combines consideration of traditional economic measures with environmental

and social

dimensions to measure the firm’s performance in achieving its sustainability goals.

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© 2014

Cengage

Learning. All rights reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part

.Slide8

Promoting Sustainable EnterprisesBenefit Corporation

Purpose

:

to create a material positive impact on society and the environment.

Accountability

:

to

have a fiduciary duty to consider the interests of workers, the community

, and

the environment.

Transparency

:

to

report annually to the public on overall social and

environmental performance

with a credible and transparent third-party standard.

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© 2014

Cengage

Learning. All rights reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part

.Slide9

The Global MarketplaceGlobal EntrepreneursAre opportunity-minded and

open-minded global thinkers

able to see different

points of view and weld them into a unified focus.Rise

above nationalistic differences to see the big picture of global competition without abdicating their own nationalities.

Have a

core language plus working knowledge of others.

Confront the learning difficulties of

language barriers head-on, recognizing the barriers such ignorance can

generate.

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© 2014

Cengage

Learning. All rights reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part

.Slide10

Global Organizations and AgreementsWorld Trade Organization (WTO)Is the umbrella organization

that overseas and administers

WTO trade

agreementsHandles trade negotiations or trade disputes

Monitors national trade policies

Provides technical

assistance and training for developing countries

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© 2014

Cengage

Learning. All rights reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part

.Slide11

Venturing AbroadGradual InternationalizationIs a step-by-step progress toward internationalization as risk and commitment increase and entrepreneurs acquire more

knowledge through

experience

.Learning Curve ConceptIncreased sales from exports will

lead to greater efficiencies along the firm’s cost curve, which in turn

will lead to increased

overall profits as the firm expands into overseas markets.

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© 2014

Cengage

Learning. All rights reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part

.Slide12

The Competitive Advantage of NationsResource-rich Countries

Have

extractive

assetsThe OPEC nations and many parts of Africa

Labor-rich CountriesHave vast pools of available labor

Brazil

, India, the Philippines, and select

countries in

South and Central

America

Market-rich Countries

Have large purchasing power

Europe, Brazil

, Mexico, India, China, and the United

States

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© 2014

Cengage

Learning. All rights reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part

.Slide13

International at Inception

Characteristics of “Born Global” Firms

Global

vision from inception

Internationally experienced

management

Strong

international business network;

Preemptive

technology or

marketing

Unique

intangible

asset

Linked product or service

Tight

organizational coordination worldwide.

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© 2014

Cengage

Learning. All rights reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part

.Slide14

Methods of Going InternationalImportingBuying and shipping foreign-produced goods for domestic consumption.

Exporting

The

shipping of a domestically produced good to a foreign destination for consumption.

International AlliancesAgreements between companies from two or

more countries

, and they are not legally binding.

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© 2014

Cengage

Learning. All rights reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part

.Slide15

Joint VenturesAdvantages Immediate intimate

knowledge of the

local conditions

and governmentUse of the resources of the other firms involved in the

ventureInitial capital outlay and

overall

risk

are lower

Disadvantages

Fragmented management control of the venture’s operations

Differences

of opinion

that reflect

different

nationalities

Unanticipated withdrawal of a participating firm

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© 2014

Cengage

Learning. All rights reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part

.Slide16

Direct Foreign InvestmentDirect Foreign Investment Is a domestically controlled foreign production

facility that results from a foreign firm:

Acquiring an interest

in an ongoing foreign operation.Obtaining

a majority interest in a foreign company.Purchasing

part of

the assets

of a foreign concern in order to establish a direct

investment.

Building

a facility in a foreign

country.

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© 2014

Cengage

Learning. All rights reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part

.Slide17

LicensingLicensingA business arrangement in which a

manufacturer of a product (or a firm

with proprietary

rights over certain technology or trademarks) grants permission to some other group or individual to manufacture that product in return for specified royalties or

other payments.Types of LicensingPatents

Trademarks

Technical Know-How

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© 2014

Cengage

Learning. All rights reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part

.Slide18

International Threats and RisksForeign Market Dangers:Ignorance

and

uncertainty

Lack of experienceLack of information

Imposed restrictions (demands and red tape)Political risks:

Unstable governments

Disruptions

caused by territorial

conflicts, illegal occupations, and wars

Regionalism

Political

ideological differences.

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© 2014

Cengage

Learning. All rights reserved. This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part

.