Book contents
- Frontmatter
- Contents
- List of figures
- List of tables
- Foreword
- Preface
- List of abbreviations
- 1 Introduction
- 2 Why a consistent emphasis and approach for new business creation is beneficial but difficult to achieve
- I The business environment
- II The management culture
- III The corporate executives
- 7 The bigger-is-better corporate philosophy
- 8 The small-is-beautiful corporate philosophy
- 9 New business creation challenges for corporate executives
- 10 Guidance and coaching by the DGM's boss and support and challenge by the controllers
- IV The division general manager
- V The division and its top management team
- VI Putting it all together
- Notes
- Bibliography
- Index
7 - The bigger-is-better corporate philosophy
Published online by Cambridge University Press: 22 September 2009
- Frontmatter
- Contents
- List of figures
- List of tables
- Foreword
- Preface
- List of abbreviations
- 1 Introduction
- 2 Why a consistent emphasis and approach for new business creation is beneficial but difficult to achieve
- I The business environment
- II The management culture
- III The corporate executives
- 7 The bigger-is-better corporate philosophy
- 8 The small-is-beautiful corporate philosophy
- 9 New business creation challenges for corporate executives
- 10 Guidance and coaching by the DGM's boss and support and challenge by the controllers
- IV The division general manager
- V The division and its top management team
- VI Putting it all together
- Notes
- Bibliography
- Index
Summary
This chapter examines how the bigger-is-better corporate philosophy influences new business creation (Table 7.1).
The attraction of the bigger-is-better corporate philosophy
The bigger-is-better corporate philosophy is focused on a few big opportunities rather than on many smaller ones. For example, Monsanto corporate executives perceived big, attractive opportunities in biotechnology, which they were attempting to pursue with huge investments — totaling several hundred million dollars — in corporate acquisitions, joint ventures, and research and development programs. Alf Hummel, VP of corporate planning at Monsanto, explained the logic of the bigger-is-better corporate philosophy:
Monsanto is not opportunistic or entrepreneurial. We try to establish secure positions over an extended period of time. If we think we cannot do that, we leave it alone. Entrepreneurship requires repetitive creativity. If you can't do that, don't try to be entrepreneurial … 3M is entrepreneurial. It is constantly spinning off small new businesses from a common technological base. You can't translate that into Monsanto, or vice versa. They see their future in lots of smaller opportunities. We see our future in fewer, bigger opportunities, such as the two in Agricultural Products we are living off of right now. It is a difference in basic mindset … Clearing a new chemical today is no different than getting approval for a new drug. So this industry will not have the flow of new products as in the past when it was an unregulated growth industry. Our future lies in biotechnology.
- Type
- Chapter
- Information
- Corporate EntrepreneurshipTop Managers and New Business Creation, pp. 93 - 105Publisher: Cambridge University PressPrint publication year: 2003