ENTREPRENEURIAL MANAGEMENT

MGT 246 Introduction to

Entrepreneurship

Professor Haibo LIU

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Announcements

 T1. team project proposal due 11/01, 8:59 PM T2. due 11/15, start this once your proposal is approved.

 Participation in class and in team project

Announcements

 Next week: New venture simulation (HBS)

 Simulation report 5%

Make sure:

 You are on time! once we start the simulation, you cannot join later!

 You have a good internet connection.

 Maybe restart your laptop before the class and close unnecessary programs

Rent the Runway-1

 Jennifer Hyman. Describe her background and personality.

 Jennifer Fleiss. Describe her background and personality.

 What was Jenn’s inspiration for creating Rent the Runway?

 How did they build their network and important contacts in the design industry?

 What was the first value proposition of RTR?

 How did they improve/pivot their initial business model?

Rent the Runway-2

 How did they improve/pivot their initial business model?

 How did they test their ideas? What did they learn? Compare it to what the IDEO team did at the supermarket.

 How did Jenn deal with uncertainties during the pandemic?

 What have you learned from their experience as entrepreneurs?

What is social innovation?

Bottom of the Pyramid Strategy

Globalization of Innovation

 What is globalization  Early globalization of firms  Innovations in the Emerging Markets

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The “Early” Globalization

 In 1492, a Spanish-based maritime expedition led by Christopher Columbus encountered the Americas, a continent which was previously unknown in Europe

 The Columbian Exchange was the widespread transfer of plants, animals, culture, human populations, technology, and ideas in the 15th and 16th centuries

The “Early” Globalization

What is Globalization?

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What is Globalization?

 “Globalization refers to growing economic interdependence among countries as reflected in increasing cross-border flows of three types of entities: goods and services, capital, and know- how.”

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What are the drivers of globalization?

What Is Driving Globalization?

 Technological advances  reduced communication cost

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What Is Driving Globalization?

 free-market ideology  barriers to trade is declining rapidly

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Born Global

o Skype

o Airbnb

o Uber

o Amazon

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Poll from Socrative

 Go to https://b.socrative.com/login/student/

 Room number: UCRINNOV8

 Name as in roster: First name, Last name. IMPORTANT for participation points!

 Click “finish quiz” after you finish

Bottom of the Pyramid Strategy

Assumptions about the bottom of the pyramid

 The poor has no purchasing power and do not represent a viable market

 The poor are not interested in advanced technology  The poor are hard to reach

Examples of Fugal Innovation

 To meet surging demand from new consumers in emerging economies, innovative firms in those countries were stripping products of their fripperies and cutting their cost drastically.

 Examples:  General Electric designs affordable medical devices in India

and China.

 Renault-Nissan has a center for frugal engineering in India.

20 Source: “Frugal Innovation: How to Do More with Less”, Navi Radjou, and Jaideep Prabhu (Cambridge U)

What is frugal innovation?

 As a process frugal innovation discovers new business models, reconfigures value chains, and redesigns products to serve users who face extreme affordability constraints.

 Does frugal innovation means products of lower quality and reliability?

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More examples

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• The Tata Nano is a city car manufactured by Tata Motors • Approximately $2,000

Frugal Innovation and Social Innovation

 Where are their objectives?

 Who are their target customers?

 Are they mutually exclusive?

 Is one the subset of another?

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The Design Process

Design Thinking Simplified