Entrepreneurial Thinking in Multinational Organizations Essay

entrepreneurial Thinking in Multinational Organizations - Essay ExampleMany multinationals ar resorted to entrepreneurial thinking to build up tactics for consolidating their positions in the market, making a dent into unexplored markets as easily as maintained a steady growth rate.The term entrepreneur comes from the French word entreprendre which means to undertake. It signifies a person who undertakes or operates a new enterprise or venture, while also taking responsibility for the risks involved in setting-up a new operation. Entrepreneurs are not limited to any one field, nor are they limited to the for-profit world. (Arti Pandey, 2006) outside environment While entrepreneurial organizations seek to identify opportunities in the external environment, traditional organizations look at the external environment for threats to their core business, rather than for new opportunities. (Hornsby, 1993)Strategy - Proactive strategic positioning is espouse by entrepreneurial organizat ions whereas traditional organizations take a more defensive position focusing to encourage their core business. (Hornsby, 2002)Control Systems Control Systems at traditional organizat... s at traditional organizations underlined by expense-based budgets whereas entrepreneurial organizations look at longer-term business planning and forecasting to guide their business. (Guth, 1990) Structure and Communication Traditional organizations are hierarchical, centralized and formal, while entrepreneurial organizations are more decentralized and have informal communication flow.(Dess, 1999)Observations Changes in entrepreneurial culture of Audit Big 4 firmsMarket trends in the financial markets such as Sarbanes-Oxley Act and other variations in the regulatory environment have necessitiatd corporates to modify their strategies to face these changes as well as remain competitive in the market environment. Some of the observations made in the changes in the entrepreneurial culture of the Audi t Big 4 Firms are as detailed below3.1Deloitte In the archean ninties Deloitte was growing at a sedentary 11%/year, when it set itself the remainder of doubling this rate. It realized that achieving this goal from a business-as-usual strategy was impossible, it therefore established a team known as the Strategic short letter phylogeny (SBD) team to look for new revenue-generating opportunities. With little bureaucracy to slow them down, the Strategic Business Development (SBD) team produced a clutch of initiatives a customer relationship management business an ethics and prank hotline, Tip-Offs Anonymous a joint venture with Citadel to establish Deloitte Private Client Advisors and Deloitte Human jacket crown Corp. By creating these businesses to serve emerging and established markets, the unit contributed more than R300m to Deloittes top line within troika years. (Deloitte, 2006)In 2002 the Deloitte Innovation Programme was launched. The Innovation Zone was