What actions and orientations does Koch Industries take to establish an entrepreneurial culture?One of the most entrepreneurially successful large companies is Koch (pronounced “coke”) Industries. Do not try to find the price of a share of this firm’s stock though—Koch is a private company. In fact, Koch is the largest privately held firm in the United States, as measured by sales volume. Koch achieved this status in 2005 after it acquired Georgia Pacific. One of the reasons the firm remains private is that those leading the company strongly believe that it is far easier to be entrepreneurial when not facing pressures from Wall Street analysts and investors. Interestingly, during the negotiations for his firm to be acquired, Georgia Pacific CEO Pete Correll specifically noted that “not having to be on the defensive” with respect to Wall Street when acquisition or restructuring activities take place was an important factor in his firm’s decision to be acquired by Koch.

Koch’s success comes from acquiring businesses with growth potential, even if those businesses compete in industries that are often perceived as old-line, mature-product, and commodity-like, such as paper products. At Georgia Pacific, CEO Correll tried to shift to an entrepreneurial model with more value-added products and by eliminating products that were poor performers. As part of Koch Industries, this transition within the former parts of Georgia Pacific is expected to accelerate. A reason for this is that entrepreneurship has been integrated throughout Koch’s operations. Koch’s Market Based Management philosophy includes Principled Entrepreneurship.

Activities associated with Principled Entrepreneurship are suggested by the following statement:“Our values also include a discovery mentality, which is reflected in our employees’ initiative and desire to learn. The result is ‘principled entrepreneurship’—

doing well by doing good.”

To further consider how entrepreneurship is embedded throughout Koch Industries, visit the firm’s Web site. First, study Koch’s Guiding Principles as presented at http://www.kochind.com/about/

guiding_principles.asp. Second, study Koch’s ideas regarding Business Development as presented at http://www.kochind.com/

industry/bus_development.asp. Look also at Koch’s Philosophy and Principles, the firm’s Living Values, the Koch Vision and Mission statements, and the firm’s Keys to Success. Continue to browse the site and Google links for more insights on the Koch orientation toward corporate entrepreneurship