Characterize the Development of the Corporate Venture from the Start Up

Table of Contents

I. Introduction 3

II. Basic concepts 3

1. Corporate venture 3

2. Intrapreneur and entrepreneur 4

3. Internal corporate venturing 4

III. The relation between effective management and received benefits of corporate venture in large organization 4

IV. Characterize the development of the corporate venture from the start up 5

V. Evaluate the major obstacles and issues that would challenge and affect the likelihood of establishing a new venture 7

VI. The necessity to separate the corporate venturing efforts from the larger traditional organization 8

VII. The intrapreneurial strategy of corporate venture 9

VIII.Conclusion 10

References 12

I. Introduction

The major transformation under the form of reengineering or restructuring the whole company has not recently been the smartest choice for the majority of enterprises especially large organizations in international business as a result of high risk level. Instead, there now witnesses a safer approach for those organizations based on finding out ways to expand and develop new opportunities from existing businesses. In the fiercely competitive business environment, an increasing number of companies select the method to innovate and achieve successful growth through corporate venturing (Block & MacMillan 2003). The rationale for the recognizably important role of corporate venturing is the benefits it takes back to the company. Nevertheless, those benefits only come into existence if the corporate venture is put under the effective management in order to utilize the resource of the large organization and its own entrepreneurial benefits. “If managed effectively, a corporate venture has the resources of a large organization and the entrepreneurial benefits of a small one” (Tidd, Bessant & Pavitt 2005, p. 425).

The purpose of this report is to study the role of corporate venturing within the context of international business. Therefore, this paper will firstly introduce basic...