Page 48 - DMGT310_ENTREPRENEURSHIP_AND_SMALL_BUSINESS_MANAGEMENT

Unit 3: Entrepreneur v/s Intrapreneur

Notes
Jack Welch’s Leadership Style
Analysts felt that Jack Welch’s profound grasp on GE stemmed from knowing the company
and those who worked for it. More than half of his time was devoted to “people issues”.
Most importantly, he had created something unique at a big company – Informality. The
hierarchy that Jack Welch inherited with 29 layers of management was completely changed
during his tenure. Everyone, from secretaries, to chauffeurs to factory workers, called him
‘Jack’. Everyone could expect – at one time or another – to see him. Analysts felt that Jack
Welch gave employees a sense that he knew them. Commenting on the informality at GE,
Jack Welch said, “The story about GE that hasn’t been told is the value of an informal place.
I think it’s a big thought...”
Jack Welch – The Strategist

Analysts felt that Jack Welch was focused and analytical. He restructured GE’s portfolio
from 350 businesses during 1980s down to two-dozen core activities by late 1990s. During
his initial years as CEO, he either expanded internally or made acquisitions to position all
GE’s businesses as either number one or number two in their fields. The planned acquisition
of Honeywell, Inc., which didn’t materialize, was expected to redefine GE for the years to
come...
Jack Welch – The Leadership Guru

After stepping down as the CEO, Jack Welch became an advisor to William Harrison,
CEO, JP Morgan Chase. He also entered into an agreement to become a leadership guru to
several other clients. He was also named the special partner at New York investment firm,
Clayton, Dubilier & Rice. Jack Welch also authored his autobiography, “Jack: Straight
from the Gut’’, which was at the top of the best-sellers list in 2001. Analysts felt that Jack
Welch’s influence did not end at GE. Many executives who had worked under Jack Welch
went on to head more than a dozen U.S. companies.
Questions
1. Make a classification of jack Welch as a intrapreneur or entrepreneur.
2. Comment on intrapreneurship in an organization.

Source: Lall Madhurima (2009), Entrepreneurship and Business Plan, Excel Books Pvt. Ltd.

3.4 Summary

The entrepreneur is an individual (or team) who identifies the opportunity, gathers the
necessary resources, creates and is ultimately responsible for the performance of the
organization. Entrepreneurship is the pursuit of a discontinuous opportunity involving
the creation of an organization (or sub-organization) with the expectation of creation of
value to the participants.

Entrepreneur and entrepreneurship are two sides of the same coin; while entrepreneur is
an individual who creates and establishes a business, entrepreneurship is the process
adapted by entrepreneur to do so.

Entrepreneurs have a high need for achievement. They are hardworking, independent,
innovative and risk-taking individuals. These characteristics of an entrepreneur especially
(high need for achievement and innovative) differentiates him from a normal businessman.
The entrepreneurial process consists of following steps: (a) identify an opportunity
(b) establish vision (c) persuade others (d) gather resources (e) create a new venture/
product/market (f) change/adapt with time.

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