CEN1
Monopoly: situation where a single company has exclusive control over the supply of a particular
product or service in a market. Monopolies can occur when there are significant barriers to entry for
other companies, such as high costs or legal regulations, preventing competitors from entering the
market. A monopolistic company can charge high prices and limit supply
- Example: Standard Oil Company, established by John D. Rockefeller. Standard Oil gained control
over the oil industry by acquiring rival companies and creating a network of pipelines and
refineries that enables them to control the supply and distribution of oil.
- Monopolies are generally considered undesirable in a market-based economy as they can lead
to market inefficiencies and consumer harm.
Henry Ford: invented the moving assembly line 1913
Assembly line: manufacturing process that involves dividing the production of a product into separate
tasks or stations, each performed by different workers or machines along a conveyer belt.
- System allows for rapid and efficient production of goods
- Each worker or machine specializing in a specific task
- Where: in all production facilities
- Wide variety of goods: cars to pharmaceuticals
- How it effects our life:
o Lower costs and increased affordability
o Increased efficiency and productivity
o Job creation and economic growth
o Improved quality and safety
Karl Benz: invented the car
Bertha Benz: first driver of the car
Technology-driven innovation: involves using technology to develop new and improved products,
services, or processes that need customer needs in novel ways. Examples:
- Smartphones
- Electric cars
- 3D printing
- AI
AI innovation and new product development:
- Many companies are using AI technology to develop new products and services, to improve
existing products and services, and to identify new market opportunities.
- By leveraging AI technologies, companies can gain insights into customer behavior, market
trends, and consumer preferences, which can inform their innovation and entrepreneurship
efforts.
- Use of AI in business model innovation: companies are exploring new business models that
leverage these technologies. For example, some companies are using AI to develop predictive
analytics and personalized recommendations, while others are using AI to automate routine
tasks and improve operational efficiency
- Creation new opportunities for growth and success.
, Disruptive innovation: a type of innovation that creates a new market or industry by providing a
product or service that is simpler, more convenient, or more affordable than existing alternatives.
- Usually start at the low end of the market and gradually improve in performance until they
eventually overtake the established players.
- Eventually used by (almost) everyone
- Involves a different business model than the established platers.
- Examples: internet, dvds, computer
Corporate entrepreneurship: the process of creating and developing new businesses or innovative
products, services, or processes within an existing organization. It involves taking entrepreneurial
approach to innovation and growth and encourages employees to think and act like entrepreneurs.
- Goal: create new sources of revenue and growth for the organization and stay ahead of the
competition by developing innovative solutions to customer needs.
Warren buffet: Widely considered one of the most successful investors in history and is the Chairman
and CEO of Berkshire Hathaway, a multinational conglomerate holding company based in Ohama.
- His value investing philosophy: involves seeking out undervalued companies with strong
fundamentals and holding onto them for the long term. This investment strategy has been
highly successful, and he has been consistently ranked among the wealthiest people in the
world.
- His philanthropic efforts: he has pledged to give away the majority of his wealth to charity and
has donated billions of dollars to various causes, including education, poverty alleviation, and
global health initiatives.
- “Oracle of Ohama”
Delegation: the act of assigning tasks, responsibilities, and authority from one person or group to
another person or group. It involves entrusting someone with the power to make decisions, take action,
and be held accountable for results. Delegation is an essential component of effective management and
leadership. By delegating tasks and responsibilities, leaders can free up their time and energy to focus
on high-level strategic planning and decision-making, while empowering their team members on new
challenges and develop their skills. As organizations pursue new business ventures, delegation can help
to distribute decision-making power, promote innovation, and increase the speed of execution.
- Can help to drive innovation, increase agility, and improve overall performance
- Allows for efficient allocation of resources
- Helps to foster a culture of innovation
- Requires clear communication and a strong accountability system
A good business model: where the need for replacement parts is the biggest sales driver.
- Aftermarket parts industry: components that are sold as replacements for original equipment
manufacturer (OEM) parts in vehicles, machinery, and other equipment.
- Driven by the need for replacement parts due to wear and tear, accidents, or upgrades
- Selling auto parts
- Ink for printer
- Aircarft manufacturers: parts
Benchmarking: process of comparing a company’s performance against that of its competitors or
industry best practices. It involves identifying the key performance metrics that are critical to success in
Monopoly: situation where a single company has exclusive control over the supply of a particular
product or service in a market. Monopolies can occur when there are significant barriers to entry for
other companies, such as high costs or legal regulations, preventing competitors from entering the
market. A monopolistic company can charge high prices and limit supply
- Example: Standard Oil Company, established by John D. Rockefeller. Standard Oil gained control
over the oil industry by acquiring rival companies and creating a network of pipelines and
refineries that enables them to control the supply and distribution of oil.
- Monopolies are generally considered undesirable in a market-based economy as they can lead
to market inefficiencies and consumer harm.
Henry Ford: invented the moving assembly line 1913
Assembly line: manufacturing process that involves dividing the production of a product into separate
tasks or stations, each performed by different workers or machines along a conveyer belt.
- System allows for rapid and efficient production of goods
- Each worker or machine specializing in a specific task
- Where: in all production facilities
- Wide variety of goods: cars to pharmaceuticals
- How it effects our life:
o Lower costs and increased affordability
o Increased efficiency and productivity
o Job creation and economic growth
o Improved quality and safety
Karl Benz: invented the car
Bertha Benz: first driver of the car
Technology-driven innovation: involves using technology to develop new and improved products,
services, or processes that need customer needs in novel ways. Examples:
- Smartphones
- Electric cars
- 3D printing
- AI
AI innovation and new product development:
- Many companies are using AI technology to develop new products and services, to improve
existing products and services, and to identify new market opportunities.
- By leveraging AI technologies, companies can gain insights into customer behavior, market
trends, and consumer preferences, which can inform their innovation and entrepreneurship
efforts.
- Use of AI in business model innovation: companies are exploring new business models that
leverage these technologies. For example, some companies are using AI to develop predictive
analytics and personalized recommendations, while others are using AI to automate routine
tasks and improve operational efficiency
- Creation new opportunities for growth and success.
, Disruptive innovation: a type of innovation that creates a new market or industry by providing a
product or service that is simpler, more convenient, or more affordable than existing alternatives.
- Usually start at the low end of the market and gradually improve in performance until they
eventually overtake the established players.
- Eventually used by (almost) everyone
- Involves a different business model than the established platers.
- Examples: internet, dvds, computer
Corporate entrepreneurship: the process of creating and developing new businesses or innovative
products, services, or processes within an existing organization. It involves taking entrepreneurial
approach to innovation and growth and encourages employees to think and act like entrepreneurs.
- Goal: create new sources of revenue and growth for the organization and stay ahead of the
competition by developing innovative solutions to customer needs.
Warren buffet: Widely considered one of the most successful investors in history and is the Chairman
and CEO of Berkshire Hathaway, a multinational conglomerate holding company based in Ohama.
- His value investing philosophy: involves seeking out undervalued companies with strong
fundamentals and holding onto them for the long term. This investment strategy has been
highly successful, and he has been consistently ranked among the wealthiest people in the
world.
- His philanthropic efforts: he has pledged to give away the majority of his wealth to charity and
has donated billions of dollars to various causes, including education, poverty alleviation, and
global health initiatives.
- “Oracle of Ohama”
Delegation: the act of assigning tasks, responsibilities, and authority from one person or group to
another person or group. It involves entrusting someone with the power to make decisions, take action,
and be held accountable for results. Delegation is an essential component of effective management and
leadership. By delegating tasks and responsibilities, leaders can free up their time and energy to focus
on high-level strategic planning and decision-making, while empowering their team members on new
challenges and develop their skills. As organizations pursue new business ventures, delegation can help
to distribute decision-making power, promote innovation, and increase the speed of execution.
- Can help to drive innovation, increase agility, and improve overall performance
- Allows for efficient allocation of resources
- Helps to foster a culture of innovation
- Requires clear communication and a strong accountability system
A good business model: where the need for replacement parts is the biggest sales driver.
- Aftermarket parts industry: components that are sold as replacements for original equipment
manufacturer (OEM) parts in vehicles, machinery, and other equipment.
- Driven by the need for replacement parts due to wear and tear, accidents, or upgrades
- Selling auto parts
- Ink for printer
- Aircarft manufacturers: parts
Benchmarking: process of comparing a company’s performance against that of its competitors or
industry best practices. It involves identifying the key performance metrics that are critical to success in
