Intrapreneurship and Benchmarking

All you need to know regarding intrapreneurship and benchmarking as part of AQA's A Level Business Unit 9 - Strategic Methods :)

  • Created by: GeorgeB16
  • Created on: 03-02-17 16:43


Where large businesses enable employees and managers to demonstrate entrepreneurial behaviour in their work to the benefit of their employer.

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Key Features of Intrapreneurship

  • Entrepreneurial activity by employees and managers
  • Most of the rewards go to the company
  • Risk taken by the company
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Ways to Encourage Intrapreneurship

  • Structured time away from work to allow employees and managers to develop business ideas.
  • Build cross functional teams to lead innovation projects.
  • Secondment of staff to smaller businesses or startups.
  • Staff competitions and innovation days such as hackathons.
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Why Large Businesses Are Not Entrepreneurial

  • Complacency and arrogance
  • Bureaucracy
  • Reward systems do not provide incentive to improve
  • Short-termism
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Needs For Successful Intrapreneurship

  • Senior management support such as mentoring
  • Clear communication which encourages and celebrates new ideas
  • A culture of innovation and creativity
  • Rewards systems such as offering financial and other incentives for innovation
  • Resources to support ideas
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Examples of Intrapreneurship

  • Gmail was developed by employees at Google who were allowed time off from work to focus on personal projects.
  • The PlayStation was developed by a Sony employee who spent hours fiddling with his daughter's Nintendo to make it more powerful and user friendly.
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The objective of benchmarking is to understand and evaluate the current position of a business or organisation in relation to best practice and to identify areas and means of performance improvement.

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Key Steps In Benchmarking

  • 1: Understand in detail existing business processes.
  • 2: Analyse the business processes of others.
  • 3: Compare own business performance with others.
  • 4: Implement steps necessary to close performance gaps.
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Types of Benchmarking

Strategic: Examines the long-term strategies and general approches that have enabled high performers to succeed.

Performance or Competitive: Consider position in relation to performance charcteristics of key products and services.

Process: Comparing against best practice organisations that perform similar work or deliver similar processes.

Functional: Comparing with partners drawn from different business sectors to find ways of improving work processes.

Internal: Benchmarking businesses or operations within the organisation, such as business units in different countries.

External: Analysing outside organisations simply known as "best in the class".

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