Forecast For Global Retail Sales Growth - Assignment Example

Entrepreneurship Table of Contents Introduction 3 Aim and Objective 4 Theoretical Background 4 Sample Characteristics and Data Analysis 6 Findings 14Conclusion 16 References 18 Introduction Innovation has been and will always be considered as a key factor of effective human development. Specifically highlighting the areas of Entrepreneurship and business development, it can be stated that innovation has got a huge integration with the continued development and introduction of new business projects irrespective of the sector (Tanvir & Amir, 2013; Tapan, 2001). All of these aspects depend on the idea of entrepreneurship regarding how he / she will establish a connection between his perceived business process and innovation so as to attain his / her desired outcomes Thus from an overall perspective, innovation can be described as an engine that drives the functionality and growth of a business process either small or large. Looking at the present market scenario, it can be stated that business process has turned its innovation and technology level as a competitive factor in terms of proving their efficiency and superiority over other competitors (Kakouris, 2010; Annan, 2013). Rapid development and attainment of technology by Entrepreneurs gradually provide them with one specific factor through which they can express themselves in an effective manner. This specific factor can be termed as ‘uniqueness’. Taking reference from the marketing concepts, it can be stated that uniqueness is actually what that ensures the survival of a business process along with decreases the level of market competition. As a result of all these, the discussion will remain majorly focused towards evaluating the necessity of innovation in terms of supporting the business processes as established by the Entrepreneurs. Furthermore, elaborations regarding these aspects have been provided in the later portions of the discussion. Aim and Objective The aim of this paper will be towards evaluating the role of innovation in supporting the business establishment and business continuation of the Entrepreneurs. In an associated manner, this discussion will also aim towards understanding how innovation can be used as a major tool for business processes that expects a better position within the global market. Theoretical Background Okpara (2007), in context to innovation has elaborated about the necessity of creativity within Entrepreneurship. Creativity as per Okpara (2007) is the root of new business ideas, which has the potential of providing an entrepreneur, the required career development opportunity. The misalignment of this creativity factor can also be found within major causes of large scale business failures. Speaking from the marketing point of view, one can say that customers do appreciate new products and services rather than remaining confined to the stagnated lots. Thus, appropriate implementation of innovation within a business process by an entrepreneur will open multiple options of new product development. Okpara (2007), throughout the journal has also elaborated multiple facts regarding why every entrepreneur in the present market scenario should keep hold of two crucial factors i.e. innovation and creativity (Okpara, 2007). Innovation in the present market scenario supports every entrepreneur in a manner of analyzing and safeguarding oneself from all the possible business threats and losses that a competitive market might throw upon their business (Okpara, 2007). Regardless of these aspects, Ahlstrom (2010) has projected the implementation of innovation within entrepreneurial business processes as a way of serving a nation both from the perspective of economic development and social welfare. In accordance to Ahlstrom (2010), an innovative business process helps in maintaining a continued pace of the marketing procedure and thus helps in contributing financial support to the economy. In an additional manner, it would also provide its involvement within the social development programs for attaining a better stance and reputation in the global market. Thus in an eventual manner, it will ensure its functional continuity and development both in the domestic as well as international market (Ahlstrom, 2010). Apart from the above aspects, Tu and Yang (2013), in their article has also mentioned innovation as a credential aspect from business development by entrepreneurs. In accordance to Tu and Yang (2013), innovation along with creativity can help entrepreneurs in terms of formulating appropriate strategies through which they can monitor and mitigate the level of domestic and international competition within the market space in which they are operating. Moreover, due to its wide applicability, innovation can be used within varies areas such as resource attainment and allocation, inventory management, production, service provision, supply chain management, logistics and multiple more (Tu and Yang, 2013). As per Tu and Yang (2013), an entrepreneurial business process with the effective combination of all these innovation aspects will eventually bring about high level of diversification within its functionality. Isom & Jarczyk (2009) appears to have elaborated integration of innovation and entrepreneurial business development in a much detailed manner. Isom & Jarczyk (2009) have specifically discussed about those crucial factors that drives the necessity of implementing new innovation techniques so as to achieve the perceived business goals. An instance, in this context can be provided in relation with an electronic manufacturing company. Taking reference of the increasing competition of electronic products in the international markets, it has become a mandate for such companies to bring about continuous level of development within their product lines. Justification to this aspect can be provided depending on the fact that without continuous product development, they will not even have the opportunity of retaining their current stance within the market (Isom & Jarczyk, 2009). All these projections have elaborated the necessities and benefits of implementing innovation within entrepreneurial business processes. However, multiple contradictory sides of implementing innovation within businesses also exist. Bloodgood (2013), have projected much regarding the negative sides of implementing innovation within business processes. As per Bloodgood (2013), the intensity of this negative impact can specifically be seen within the small scale entrepreneurial business processes. Regardless of the fact that it might help in cost cutting, a potential chance also exists regarding the loss of employment opportunities for the work force. In accordance to the large scale business processes, the issue might be in a manner where the employee project resistance in terms of adapting new technological change. Certain associated cost concerns might also emerge in case of entrepreneurs of small business processes (Bloodgood, 2013). Sample Characteristics and Data Analysis Credential statistical data related to economic and business growth will reveal the contribution and benefits of innovation within entrepreneurial business. Source (Lok Sabha Secretariat, 2013) The provided table briefly elaborates about the constant growth within different industrial areas over the past few years. The growth percentage has been specifically provided in terms of ‘GDP at factor cost’. On closer observation of the provided table, it can be understood that business associated with social media and personal services have projected appreciable amount of growth. A precondition regarding the cause of this growth can be made depending upon the integration of technology within every aspect of business process (Faltin, 2001). One prime aspect of this growth is the flexibility within the types of advertisement and public relationship that can be attained through effective use of the ecommerce services. In addition, all these new innovation has provided new entrepreneurs the option of carrying out their business round the globe in a 24/7 manner. It also provided them with appropriate market exposure through which they can subsequently structure new product development ideas, in accordance with the customer demands (Lok Sabha Secretariat, 2013; Kraus & Kauranen, 2009; Ketchen, 2007). However, excessive implementation of innovation with business processes might hamper its other associated aspects. One instance in this context can be described as a reduction in the decreasing level of employee share within every single business process. Although, certain small business processes might perceive this factor as beneficial due to the decreasing amount of their expenditure (Schneider & Spieth, 2013). Source (Shane, 2013) This graph projects the decrease in the count of effective labour force as a result of innovation implementation. The count appears to be high during the period of 1997 when majority of the entrepreneurial business processes whether small or large relied upon massive workforce but eventually with the implementation of technology, the dependency on the human labour forces drastically came and the manufacturing of quality goods and services went up subsequently. Multiple small entrepreneurs who wish to establish a new business will now subsequently look forward towards this initiative, taking consideration of multiple beneficial aspects such as Lower infrastructure establishment investment Dependency on lower amount of workforce One time investment and prolonged period of profit attainment Effective resource utilization and attainment capabilities Faster production of goods Proper inventory management Thus at one hand, innovation integration within small entrepreneurial business might have certain consequences, but on a broader aspect it might contribute to the overall development of a nation’s economy as a result of financial profitability attained from the new and existing entrepreneurial business. Sample Business Model and Its Integration with Innovation Taking into consideration a newly established retail business model for elaborating these aspects, model has been provided below to help in explaining all the factors that will be required for carrying out this business process. The present scenario and functionality of retail business has evolved in alignment with the increasing level of market competition and increasing level of customer preferences. Thus in order to establish a new business process an entrepreneur will have to abide by all the factors mentioned in the above model. Correspondingly, with the help of innovation implementation, attainment of these factors and resources will become much easier and cost effective. For instance, implementation of Radio-frequency identification (RFID) technology within logistics and supply chain management will gradually help in maintaining appropriate record of the goods stocks and thus minimise the percentage of resource wastage by significant levels (Hasan & Harris, 2009). Source (Statista, n.d.) This projected graph elaborated regarding the estimation within growth of sales in the retail sector between the periods of 2008 to 2016. Comparing this with the below provided graph, depicts the total business turnover of workforce and non-workforce business within the markets of UK. (2013 Statistical Data Projecting the Number of Business Processes within the UK Along With the Total Number of Associated Workforce) Source (Department of Business Innovation & Skills, 2007) From both the table, it can be clearly understood that the total number of automated business processes have subsequently increased in the UK markets. Moreover, the turnover attained from these sorts of innovation implemented business processes is also quite appreciable (An Oracle Publication, 2011; Hunt & Arnett, 2006). Here a linkage can be found between the increasing number of unmanned business processes and the continued development of the global retail sector. From a generalist perspective, it can be stated that any entrepreneur with a sound financial support and creative business idea can establish his/ her business process and even turn a global aspects through the effective utilisation of innovation (Islam & et. al., 2011; Urhuogo & Williams, 2011). (Percentage Rate of Innovation Implementation within the Industrial Sector of Slovakia between the Period of 2003 and 2006) Source (Lesakova, 2009). From the statistical table provided above, a detailed understanding can be attained regarding the increase in technology implementation within the industrial sector of Slovakia between the period of 2003 and 2006. Clearly it can be seen that the percentage count of successful innovation has subsequently increased with time. It also answers to the drastic rate of ‘small and medium sized enterprise’ development within Slovakia. In an eventual manner, it can also be seen that the count within the number of ‘enterprises without innovation implementation has also minimised and thus have contributed to the economic development of Slovakia (Hana, 2013; Kaplan, 2012; Lesakova, 2009). All the above discussed statistical data and elaborated facts helps in providing a transparent idea regarding the level of attained growth within varied industrial sector as a result of technology implementation. In an eventual manner, it also projects the type of business benefits, entrepreneurs might attain through which they can lead their business processes towards success (Fairholm, 2009; Caudle, 2008). Findings By taking consideration of the above discussed data and statistical reports, multiple findings can be attained that will benefit an entrepreneur and his business process in the long run. These identified findings have been provided under in a summarised manner. Innovation Implementation Helps In Providing Better Business Perspective: Observing the intensity of product and service development along with increasing customer expectations, it can be stated that innovation will help entrepreneurs with creative ideas towards attaining a specific market stance (Cooper, 2014; Susman & et. al., 2006; Shang & Seddon, 2002). Creative is what that makes a small or medium sized entrepreneurial business unique and famous in the global market, provided that the entrepreneurs are capable of creating a specific amount of market demand for their products and services. In addition to that, the increasing levels of flexibility within technological dimensions have made the creative marketing procedure much more comprehensive and easy (Rehman & Ibrahim, 2011; Amit & Zott, 2010; Mishra & Mishra, 2009). Innovation Provided Effective Marketing and Promotional Activities An entrepreneurial business process without effective marketing and product promotional strategies is useless. From a generalised perspective, it can be stated that every business process irrespective of its size completely relies on its customers (Ruane & Casey, 2010; Fam & et. al., 2008). Thus it is a mandate factor for such entrepreneurial business process to inform their target customer segments regarding the types of products the business process is capable of offering and how it will be superior from the competitive subsidiaries in the market. In this aspect, effective promotion through every sort of innovation oriented media (Social websites, televisions, internet and email promotion) play an effective role in attaining these objectives (Nufer, 2013; Shankar & et. al., 2011; Slotegraaf & Pauwels, 2008). Innovation Provided Effective Resource Management and Market Information Having a sound knowledge of the market happenings can be termed as one of the key responsibilities of an entrepreneur. Moreover, developing an effective resource attainment network is also beneficial for the existence of an entrepreneurial business in the market space. Understanding all these necessities, it can be stated that innovation can help turning these tedious works easy (Inderscience Enterprises Ltd., 2014; Kumar, 2012; Tan & Nasurdin, 2011). For instance, with the help of innovation in information management, a new entrepreneur can attain appreciable information about the type, size and count of competitors in the market space against the business, which he /she might want to start. Entrepreneurs might also use this information as track records so as to bypass all the associated market risks that might emerge during the starting or continuation of their business process (Kapoor, 2011; Mishra & Akman, 2010). Innovation Increases the Flexibility of Business Functioning A description regarding the factors associated with a business process has already been provided in the above instance. As a result, the integration of innovation within such factors helps in minimising the time requirement factor (Gunday & et. al., 2009; Schraeder & Becton, 2003). In an associated manner, innovation also helps in increasing the level of quality and accuracy associated with every form of business process and thus increasing the competitiveness and performance of a business process either in the local or global market (Cognizant, 2014; Seth & Sethi, 2011; Teece, 2010; Knight & Cavusgil, 2010). Conclusion The above provided data clearly specifics about the types of benefits, an entrepreneur might attain as a result of innovation, implementing within his / her business process. An understanding can be attained regarding those aspects that can be improvised through the appropriate implementation of innovation. Multiple instances and statistical data have been elaborated regarding the growth within the global retail sector as a result of innovation implementation. Marketing and the business models provided above also helps in illustrating how technology can be used within different aspects of a business process so as to make all the tedious processes easy. Moreover, taking into concern the above discussed aspects, the scope of conducting future research in relation to the similar subject matter will be mainly determined by designing a live data feed system. Through this system, each and every entrepreneurial business process will have the facility of attaining real time marketing and competitive data. In addition, innovation within entrepreneurial business process also provides the future research scope of establishing centralised business processes, which will be highly efficient towards carrying out the overall business processes in a much effective manner. Thus from an overall manner, it can be stated that the level of positive impact of innovation on an entrepreneurial business process is much more and thus it should be considered as mandate factor by every new or existing entrepreneur so as to develop their businesses to greater extent. References Ahlstrom, D., 2010. Innovation and Growth: How Business Contributes to Society. Academy of Management Perspectives, pp. 1-14. Annan, S. H. EL., 2013. Innovation, Proactive, And Vision Are Three Integrated Dimensions Between Leadership And Entrepreneurship. European Journal of Business and Social Sciences, Vol. 1, No. 12, pp. 148-163. An Oracle Publication, 2011. Business Innovation: The CIO Perspective. Journal of Management Excellence: Business Transformation, pp. 1-24. Amit, R. & Zott, C., 2010. Business Model Innovation: Creating Value in Times of Change. IESE Business School-University of Navarra, pp. 1-17. Bhattacharyya, S., 2008. Creativity and Innovation for Competitive Excellence in Organisations. IIMK, pp.1-63. Bloodgood, J. M., 2013. Benefits and Drawbacks of Innovation and Imitation. International Journal Of Innovation And Business Strategy, Vol. 2, pp. 15-29. Cognizant, 2014. 2012 Innovation Journal. About Cognizant, pp. 2-150. Caudle, S., 2008. The Balanced Scorecard: A Strategic Tool in Implementing Homeland Security Strategies. The Journal of the Naval Postgraduate School Center for Homeland Defence and Security. [Online] Available at: http://www.hsaj.org/?fullarticle=4.3.2 [Accessed October 19, 2014]. Cooper, R. G., 2014. Perspective: The Stage-Gate Idea-to-Launch Process – Update, What’s New and NexGen Systems. Product development Institute Inc., pp. 1-24. Department of Business Innovation & Skills, 2007. Business Population Estimates for the UK and Regions 2013. Statistical Release, pp. 2-19. Fam, K. S. & et. al., 2008. Innovative Sales Promotion Techniques among Hong Kong Advertisers – A Content Analysis. Innovative Marketing, Vol. 4, Issue. 1, pp. 8-15. Fairholm, M. R., 2009. Leadership and Organisational Strategy. The Innovation Journal: The Public Sector Innovation Journal, Vol.14, No.1, pp. 1-16. Faltin, G., 2001. Creating a Culture of Innovative Entrepreneurship. Journal Of International Business And Economy, Vol. 2, No. 1, pp. 123-140. Gunday, G. & et. al., 2009. Effects of Innovation Types on Firm Performance. Abstract, pp. 1-43. Hana, U., 2013. Competitive Advantage Achievement through Innovation and Knowledge. Journal of Competitiveness, Vol. 5, Issue. 1, pp. 82-96. Hasan, M. & Harris, E., 2009. Entrepreneurship and Innovation in E-Commerce. Journal of Achievements in Materials and Manufacturing Engineering, Vol. 32, Issue. 1, pp. 92-97. Hunt, S. D. & Arnett, D. B., 2006. Does Marketing Success Lead To Market Success? Journal of Business Research, pp. 820–828. Isom, C. J. & Jarczyk, D. R., 2009. Innovation in Small Businesses: Drivers of Change and Value Use. Ceteris, Inc., pp. 1-38. Inderscience Enterprises Ltd., 2014. Forthcoming Articles. International Journal of Innovation and Learning. [Online] Available at: http://www.inderscience.com/info/ingeneral/forthcoming.php?jcode=ijil [Accessed October 19, 2014]. Islam, A. & et. al., 2011. Factors Affecting Business Success of Small & Medium Enterprises (SMEs) in Thailand. Asian Social Science, Vol. 7, No. 5, pp. 180-190. Kapoor, B., 2011. Impact of Globalization on Human Resource Management. Cal State University, Fullerton, USA, pp.1-8. Kraus, S. & Kauranen, I., 2009. Strategic Management and Entrepreneurship: Friends or Foes? Journal of Business Science and Applied Management, Vol., 4, Issue, 1, pp.38-50. Kaplan, S., 2012. Leading Disruptive Innovation. Leaping Into Uncertainty. [Online] Available at: http://iveybusinessjournal.com/topics/innovation/leading-disruptive-innovation#.VEN1IvmSyM0 [Accessed October 19, 2014]. Kumar, R., 2012. Human Resource Information System: An Innovative Strategy for Human Resource Management. Gian Jyoti E-Journal, Vil. 1, Issue, 2, pp. 1-13. Knight, G.A. & Cavusgil, S. T., 2010. Innovation, Organisational Capabilities, and the Born-Global Firm. Journal of International Business Studies, pp. 124-141. Kakouris, A., 2010. Proceedings of the 5th European Conference on Innovation and Entrepreneurship. Academic Publishing Limited, pp. 1-108. Ketchen, D. J., 2007. Strategic Entrepreneurship, Collaborative Innovation, and Wealth Creation. Strategic Entrepreneurship Journal, Vol. 1, pp. 371–385. Lok Sabha Secretariat, 2013. Current Economic Scenario. Parliament Library and Reference, Research, Documentation and Information Service (Larrdis), pp. 1-15. Lesakova, L., 2009. Innovations in Small and Medium Enterprises in Slovakia. Acta Polytechnica Hungarica, Vol. 6, No. 3, pp. 23-34. Mishra, A. & Akman, I., 2010. Information Technology in Human Resource Management: An Empirical Assessment. Public Personnel Management, Vol. 39, No. 3, pp. 243-262. Mishra, A. & Mishra, D., 2009. Customer Relationship Management: Implementation Process Perspective. Acta Polytechnica Hungarica, Vol.6, No.4, pp. 83-99. Nufer, G., 2013. Guerrilla Marketing—Innovative or Parasitic Marketing? Modern Economy, pp. 1-6. Okpara, F. O., 2007. The Value of Creativity and Innovation in Entrepreneurship. Journal of Asia Entrepreneurship and Sustainability, Vol. 3, Issue. 2, pp.1-14. Ruane, M. & Casey, O., 2010. Marketing Promotional Strategies For Ireland’s South West Butchers – An Empirical Study. Abstract, pp. 1-17. Rehman, S. U. & Ibrahim, M. S., 2011. Integrated Marketing Communication and Promotion. Journal of Arts, Science & Commerce, Vol. 2, Issue. 4, pp. 187-191. Shane, S., 2013. Current Entrepreneurship Statistics and Trends. Small Business Trends LLC. [Online] Available at: http://smallbiztrends.com/2013/03/entrepreneurship-statistics-trend.html [Accessed October 19, 2014]. Statista, No Date. Forecast For Global Retail Sales Growth From 2008 to 2016. Prices & Access. [Online] Available at: http://www.statista.com/statistics/232347/forecast-of-global-retail-sales-growth/ [Accessed October 19, 2014]. Schraeder, M. & Becton, J. B., 2003. An Overview of Recent Trends in Incentive Pay Programs. The Coastal Business Journal, Vol. 2, No. 1, pp. 18-27. Seth, M. & Sethi, D., 2011. Human Resource Outsourcing: Analysis Based On Literature Review. International Journal of Innovation, Management and Technology, Vol. 2, No. 2, pp. 127-135. Slotegraaf, R. J. & Pauwels, K., 2008. The Impact of Brand Equity and Innovation on the Long-Term Effectiveness of Promotions. Journal of Marketing Research, Vol. XLV, pp. 293–306. Shankar, V. & et. al., 2011. Innovations in Shopper Marketing: Current Insights and Future Research Issues. Journal of Retailing, pp. S30-S42. Shang, S. & Seddon, P. B., 2002. Assessing And Managing The Benefits Of Enterprise Systems: The Business Manager’s Perspective. Info Systems J, pp. 271–299. Susman, G. & et. al., 2006. Innovation and Change Management in Small and Medium-Sized Manufacturing Companies. Smeal College of Business the Pennsylvania State University, pp. 1-50. Schneider, S. & Spieth, P., 2013. Business Model Innovation: Towards an Integrated Future Research Agenda. International Journal of Innovation Management, Vol. 17, Issue. 1, pp. 1-34. Tu, C. & Yang, S., 2013. The Role of Entrepreneurial Creativity in Entrepreneurial Processes. International Journal of Innovation, Management and Technology, International Journal of Innovation, Management and Technology, Vol. 4, No. 2, pp. 286-289. Tan, C. L. & Nasurdin, A. M., 2011. Human Resource Management Practices and Organisational Innovation: Assessing the Mediating Role of Knowledge Management Effectiveness. Electronic Journal of Knowledge Management, Vol. 9, Issue. 2, pp. 155-167 Teece, D. J., 2010. Business Models, Business Strategy and Innovation. Published by Elsevier Ltd., pp. 172-194. Tanvir, A. & Amir, N., 2013. Integrating Innovation Management and Entrepreneurship for a Healthy and a Wealthy Nation (Pakistan). Interdisciplinary Journal Of Contemporary Research In Business, Vol. 5, No. 7, pp. 235-246. Tapan, S. S., 2001. An Assessment of the Entrepreneurial Roles of the Franchisor and the Franchisee from an Entrepreneurial School of Strategy Formation Perspective. Journal of Research in Marketing & Entrepreneurship, Vol. 3, Issue. 3, pp. 123-138. Urhuogo, I. & Williams, V., 2011. Leading Innovation and Change: Assisting Employees in Lifting Where They Stand. Journal of Business Studies Quarterly, Vol. 2, No. 2, pp. 80-97. Read More