Summary
Samenvatting Entrepreneurship International Business Administration
- Course
- Institution
Samenvatting Entrepreneurship International Business Administration
[Show more]
Seller
Follow
noortjerozendaal
Reviews received
Content preview
lOMoARcPSD|15781725Entrepreneurship lecture notes + summary “ (Strategyzer) value proposition design”
Lecture 3
Effectuation
• Creating your own future goal with resources you have in the present.
Two different approaches
Causal approach: search & select
• Market: Visionary individuals serving latent (=present) markets
• Logic: Analysis -> Selecting the most lucrative opportunity
• Process: Static – surprises bad!
Causation: Decision-making rooted in prediction
Effectual approach: Create & transform
• Market: Consequence of people doing what they think worthwhile
• Logic: Local possibilities transformed into opportunities
• Process: Dynamic interaction between stakeholders –
surprises good!
Effectuation: Decision-making principles that help entrepreneurs shape &
control their future.
The role of uncertainty
Causation: “If I can predict the future, I can control it”
Effectuation: “If I can control the future, I do not need to predict it”
5 core principles effectuation
1
, lOMoARcPSD|15781725
1. Bird in the hand
Start with what you have, own resources and create goal.
Causal reasoning
• Start with goal, and accumulate resources to tackle the goal
• E.g. Start with recipe of a dish and look for ingredients to make the
dish. Effectuation
• Start with resources, create goals out of those.
• Be open to inputs from others to improve your goal.
• “Surprises” offer you new insights into how to best get to the goal.
• E.g. Start with ingredients and create dish of them.
The means for an entrepreneur
• Who am I?
• What do I know?
• Whom do I know?
Example ‘Where opportunities come from? They are not magical or visionary, but they are
transformed from things that, by large, we already have’
- Transform via deleting/supplementing
- Transform via (de)composing (creating bag out of a seatbelt)
2
, lOMoARcPSD|15781725
- Transform via axaptation (creating Viagra out of failed paracetamol pill)
- Transform via re-weighting (changing where something isn’t good?)
2. Crazy Quilt Principle
Causation:
• Competitive analysis
Effectuation:
• Focus on building partnerships, by interacting with others, you create
more opportunities.
o Find right partners, see what they can offer you and what you can offer them.
3. Affordable loss
Causation
• Expected return.
o Choose opportunity based on potential return (ROI)
Effectuation
• Affordable loss. Choose what you’re willing to invest into a certain idea.
o What are you willing to lose?
o Make decisions on what the entrepreneur can afford to lose.
Maximize upward potentional (causation) -> Minimize downside risk (effectuation)
4. Lemons
Causation
• Avoid surprises
Effectuation
3
, lOMoARcPSD|15781725
• Leverage surprises. Welcome surprises. They give clues on how to improve
your product or target markets.
o “When life gives you lemons, make lemonade” -> Lemonade Principle
5. Pilot in the plane principle
Worldview -> Pilot in the plane principle
Causation
• “If I can predict the future, I can control
it” Effectuation
• “If I can control the future, I do not need to predict it”
o You control the future to the extend this is possible.
-> Important regarding effectuation!
4
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller noortjerozendaal. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $5.53. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
83637 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now