284C - Managing Entrepreneurial Organizations

Faculty: Flamholtz, E.

This course deals with the issues and problems involved in developing and managing entrepreneurial organizations. It focuses primarily upon the issues involved in “scale up” of entrepreneurial organizations after a new venture has been successful. In this context an entrepreneurial organization is one where the founder (s) is (are) still involved. It focuses upon the following issues: Why are some entrepreneurial organizations (such as Microsoft, Nike, Compaq Computers, Southwest Airlines and Starbucks) successful over the long term, while others experience difficulty and even fail (i.e., Apple Computer, LA Gear, People Express, and Osborne Computers)? What are the predictable stages of organizational growth? What are the factors that make an organization effective at each stage of growth? In addition, the course focuses upon the key managerial tools required to successfully manage entrepreneurial organizations: strategic planning, organizational design, management development, control systems, leadership and culture management. It also deals with the transitions which individuals must make as organizations grow in order to successfully grow with the enterprise. The overarching theme or issue is: How to make the transition from an early stage entrepreneurship to an “entrepreneurially-oriented professionally managed organization.” It is during and after this transition that MBAs can bring significant value to entrepreneurial organizations.

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