The Reasons Why Networking Is such an Integral Aspect in the Entrepreneurship - Assignment Example

Networking is a pivotal theme in the entrepreneurship literature. Illustrating your answer with examples from academic researchers, and using company examples, explain how and why networks are important. Networking is ultimately one of the terms that is thrown around with a level of carelessness within the business world. At almost every juncture and during almost any business conversation, networking, and the tacit importance thereof, is referenced. However, there is oftentimes little discussion for why networking is important in the means through which increased levels of networking can benefit the individual entity/individual/entrepreneur to engage in better business practices and a more lucrative trade. In such a way, the following analysis will seek to engage the reader with some of the reasons for why networking is such an integral aspect and should be appreciated to a more definitive level and degree. Firstly, the most obvious reason for why networking is ultimately important has to do with the overall level of connections that an individual can build within the business community. These connections have a clear linkage to the way in which consumers and producers can be linked. One does not need to delve too deeply into existing literature to find the way in which value chain management and the relationship between producers and suppliers must be delineated in order to come to an appreciation for the fact that these connections are an invaluable compote of seeking to further the business profitability and continued survival of a given entrepreneur/business entity. Ultimately, the goal of these connections, brought about might networking, is to create a series of friendships and at least acquaintance with stakeholders within a variety of different fields. It must not be understood that networking is done solely as a means of benefiting the bottom line. Oftentimes, networking has the tangential benefit of allowing the individual entrepreneur to come to a more full and well nuanced knowledge of existing best practices within a given field. Through such a knowledge of best practices, the entrepreneur can then apply these best practices, changing them as he/she feels fit, to more appropriately embodied the goals and visions of their respective business entity. Within such a way, the entrepreneur becomes less insular and can rely upon the best practices of different individuals in different fields as a means of benefiting their own business. All too often, producers and entrepreneurs are caught in the unenlightened frame of mind that they are in a game against the world. Within such an unenlightened standpoint, the entrepreneur does not wish to accept the best practices for business approach that many other individuals that they might network with have utilized to a great level of success. However, a brief and cursory analysis of the existing business environment notices that many of the most successful and multinational firms have sought to engage best practices in other tangentially related businesses as a means of benefiting their own bottom line and approach to the consumer. Moreover, one can see an example of the importance that networking can have with respect to the way in which network theory, a sociological construct, delineates the way in which this can and should occur within the realm of both business and interpersonal interaction. As such, network theory denotes that the greater the level of connections that can be made the greater the empathy and synergy that can be developed within each of these relationships/networks. As such, using the case of a large multinational firm such as Apple, one can readily denote the fact that network theory is definitively in use and applied across the board with regard to the way in which business interactions and needs fulfillment takes place. Finally, seeking to forge these networks can result in lasting friendships and network relationships which encourage business to grow beyond the market constraints. For instance, if a given supplier has formed a long relationship with the given consumer, seeking to foster this relationship further will be a primary concern over merely delivering the lowest unit cost and/or seeking to enjoy a higher level of immediate profitability. The rationale for this is obviously due to the fact that a long-term relationship, achieved through networking, can eventually provide a much greater level of return on investment as compared to the short-lived relationship that many firms within the market are interested in engaging. If the literature has proven anything, it is proven the fact that those firms which are able to engage in lasting and meaningful networking opportunities are most able to survive within the tempestuous world of business entrepreneurship. 2. Describe the entrepreneurial process from developing a business idea through to business launch. Illustrate your answer using an example of a business idea that you know and/or examples of other entrepreneurial startup companies. Although a daunting process, the fact of the matter is that the entrepreneurial launch and development is not as magical and/or mythical as one might initially assumed. Rather, it generally follows a rather clearly defined process. Accordingly, the following analysis will seek to provide the author with the way in which the entrepreneurial process usually occurs along with an example and discussion of the way in which a known firm within the current era, Crocs, has sought to leverage this entrepreneurial process as a means of developing a business idea and eventually taking into the market, benefiting from it, and seeking to grow the existing product line and offerings. Accordingly, the entrepreneurial process can be defined as follows, idea generation, opportunity evaluation, planning, company formation/launch, and growth. It should not be understood by the delineation of the entrepreneurial process that each and every entrepreneurial engagement that takes place will experience each and every stage of this process. Rather, the large majority of entrepreneurial processes are derailed somewhere in between the planning and the company formation/launch stage. Still more go astray between the company launch and the growth; unable to engage with the consumer and/or unable to bring their ultimate product to market. However, this failure notwithstanding, seeking to understand the entrepreneurial process is effective means of delineating how they would be entrepreneur can engage with the market and experience a broad degree of success. Firstly, with regards to the idea generation, each and every new venture and entrepreneurial outgrowth must begin with an idea. This idea then leads the would be entrepreneur to something that is known as an “opportunity evaluation”. Within this particular stage, the individual views the marketing considers the way in which investment can best be directed with regards to providing the idea generation which is been referenced in the step above towards the ultimate planning and company launch of such an idea. Within the planning stage, the entrepreneur analyzes the means through which an individual/company would need to set up the idea, promoted, advertising, and engage with the market as a means of creating a business plan and allowing for a level of profitability to be drawn from the idea generation. Further, the company launch/formation is obviously the stage in which the entrepreneur, and/or his/her team due to the process of actually setting up the firm/Corporation which will represent the end good to the consumer. It each of these stages has been successful, then it is incumbent upon the entrepreneur/business manager to seek to grow the firm and offer new products as a means of expanding the product offering and integrating with a higher level of consumers. The ultimate reason for this final stages due to the fact that without growth any and all entrepreneurs are doomed to eventual failure as a static firm denotes one that is continually losing market share. Although it may seem somewhat silly to engage the low-end shoe manufacturer “Crocs” in such an analysis, it is a valuable means of discussing the way in which a simple idea can be planned, executed, and grow within the market. Whereas Crocs initially started as a product that no one really knew they needed, the firm was effectively able to position the brand and seek to engage the target demographic as a means of effecting initial runaway growth. Moreover, as the sale of Crocs began to cool and the profitability of the line began to drop, the firm actively sought out growth strategies as a means of ensuring that a static level of sales was not realized. This was effectively employed and now Crocs line represents a robust sector within the branded shoe and clothing market. Rather than representing a best practice with regards to the way in which entrepreneurship can be engaged, Crocs instead represents a success story for how the entrepreneur should seek to continue to hone and define the approach to his/her consumer as the market shifts. One academic analyst noted that Crocs would not have been able to realize the degree of diversification of sales had it not been able to actively pursue the entrepreneurial process and seek to diversify as it grew (Droege & Dong, 2009). Wrongly assuming that the product will continue to sell itself once the consumers within the target demographic have been advertised to has been the result of many a premature death and failure for an entrepreneur. A more actionable and reasonable approach to the changes that continue to exist within the market is to provide the consumer with the good or service he/she demands; utilizing the revenues from this product provision to plan for a robust level of research and development within the future. As this research and development is able to seek out new alternatives within the given line’s specialty, the entrepreneur can then seek to move the firm towards growth by producing these products and providing the consumer with those products/services that are a reasonable outgrowth of the shifting demands that the market will doubtless represent. However, with that being said, it must also be noted that the entrepreneur should not stray too far form the specialty that initially allowed him/her to integrate with the consumer in the first place. Bibliography Droege, S, & Dong, L 2009, 'THE EVOLUTION OF CROCS, INC.: WILL CROCS FACE EXTINCTION?', Journal Of The International Academy For Case Studies, 15, 3, pp. 9-18, Business Source Complete, EBSCOhost, viewed 12 October 2013. Read More