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Superstar Electronics (SE) is a diversified consumer electronics company. Its product line includes television, Blue-ray players, household appliances (e.g., washer, drier, fridge, etc.), smartphones, and so on. Because the consumer electronics industry evolves fast, it has created a Corporate Venturing Group (CVG) that overlooks internal new product development efforts that are related to SE's existing products (but not necessarily newer versions of existing products) and a corporate venture capital (CVC) arm that invests in external startups that might help SE's businesses in the future. The Vice President in charge of these endeavors is a long-time company man who has never worked outside SE and asked for your advice in structuring these two groups. Specifically, a) Based on what you have learned from the ART case and in-class lecture, what will be the challenges in fostering corporate entrepreneurship at SE? b) Discuss aspects of the cultural differences and incentive systems that you may need to insert into these units (in comparison to existing business units of SE). Also compare and contrast similarities and differences between CVG and CVC groups. What roles do they play in fostering entrepreneurship at SE? (Hint: Think about centralization vs. decentralization and how this will match with related vs. unrelated product innovation)
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