Social Entrepreneurism Questions - Coursework Example

Social Entrepreneurism Questions Exercise 2 Globalization and rapid technological modifications have generated a business environment in which inter organizational cooperation is required for success. To be competitive, for example, a firm that assembles and markers handheld electronic devices may have business relationships with 100 companies in 20 countries, simply because those organizations produce the best product and provide the best services at the best prices (Hoskin et al, 2008). Although many relationships of this nature are contractual, some of them will be cooperative. A cooperative strategy is a strategy in which firms work together to achieve a shared objective. Cooperative strategies have become an integral part of the competitive landscape and are quite significant to many organizations. Numerous scholars have stated that partnerships are central to their firm’s success. According to Hoskin et al (2008), most firms lack the full set of resources and capabilities required to reach their objectives, which indicates that partnering with others will increase the probability of reaching them. Cooperative strategy allows partners to create value that they could not have developed by acting independently. From a stakeholder perspective, social organizations coordinate an entire network of cooperative relationships, both inside and outside the firm. The fundamental assumption is that organizations are inclined to form partnerships with stakeholders to attain common objectives. Cooperative strategies are powerful tools for aligning stakeholder interests and can also help an organization reduce environmental uncertainty. For instance, much of an organization’s success in the automobile industry depends on the strength of its suppliers. Just like the organization depends on the organization, the suppliers too depend on the organization (Hoskin et al, 2008). Their fortunes are closely related and, therefore, a lot of the uncertainty they face relies on the strategic and tactical actions each takes. Mutual dependence suggests that manufacturers and their suppliers should form strong partnerships in order to reduce uncertainty and enhance joint value creation. The effects of the greater use of cooperative strategies, certainly in the form of strategic alliances, are noticeable. In large organizations, for instance, alliances attribute to more than 25 percent of revenue. Many senior-level executives believe that alliances are a prime vehicle for firm growth. Increasingly, cooperative strategies are formed by firms who also compete against one another, a situation regarded as co-opetition (Dees et al, 2002). For instance, fierce rivals Microsoft and Apple are using a shared set of tools and libraries for developing certain types of software. This is always aimed at increasing their competitive advantage. Similarly, competitive strategy is a strategy where a company seeks to increase its competitive advantage. Exercise 3 Effective entrepreneurial leadership is essential for shaping a group of people in the constituencies into a force that acts as a sustainable business advantage. A notable characteristic of social entrepreneurs is their aptitude to take on many responsibilities. As leaders, they should care about how their vision is adopted and are personally invested in the outcome. In most occasions, social entrepreneurs are frequently engrossed in all facets of the society and organization that they may hamper decision making and create log jams (Elkington & Hartigan, 2008). To avert this detrimental situation, the entrepreneur must recognize that he cannot carry out the different responsibilities by him or herself and preemptively arrange to let go. In this regard, the social entrepreneur should assess his weaknesses and strengths. Therefore, he or she should consider his weaknesses and strengths before hiring people to assist him or her. In this regard, the social entrepreneur has the duty of considering the people that he or she needs around him or her (Dees et al, 2002). Board members play an imperative role at this point. The social entrepreneur should inspire conversations with the board members about generating talented and strong management teams (Dees et al, 2002). To make sure that this occurs, entrepreneurs should fill their board with dogmatic members who can bring dexterity, networks and experience. As leaders, social entrepreneurs should use the start-up stage as a chance to generate trust with board members and make sure that they are invested in the vision and long sustainability of the organization. This trust allows entrepreneurs to pay attention to advice that can repeatedly difficult to hear. Strong boards assist the social entrepreneurs develop contented with the rebellious voices, defied ideas and evolving roles. Social entrepreneurs are ultimate realists and visionaries and worry about the practical adoption of their vision above everything else. Therefore, a social entrepreneur should direct the staff members or any other volunteer on how the organization can attain its vision and mission as set by the social entrepreneur. In addition, he or she has the responsibility of motivating the staff members, board members, donors and volunteers in making a positive change to the society (Elkington & Hartigan, 2008). Exercise 4 Financial profitability in an entrepreneurial venture is measured using traditional business measures, which include high profit margins. However, social entrepreneurial ventures measure their profitability and attainment of goals not only through financial profitability but also through their positive impacts in the society. A social entrepreneur employs entrepreneurial principles to generate, manage and organize a venture to make a social impact. According to Yunus (2007), a social entrepreneur is least interested in the financial profits of his organization. This gives the reasons why he or she would choose an earned income strategy. Before an entrepreneur can develop a viable earned income strategy, there are numerous steps that he or she should follow. In the first step, the entrepreneur should carry out an internal organizational assessment. Through this, the entrepreneur can determine whether the organization can withstand the stress, challenges and risks of undertaking such a strategy. This process involves evaluating existing plans and priorities, as well as in depth discussions with staff and board members (Hoskinsson et al, 2008) In the second step, the social entrepreneur should carry out a feasibility analysis of the projects to be carried out. This analysis indicates whether the project will create a positive impact in the society. The entrepreneur should explore the idea further, fleshing it out with some specifics. In addition, the social entrepreneur should also discuss it deeply with the staff and board members and the donors if present. This will provide insights on the viability of the idea and whether the entrepreneur can pursue it (Hoskisson et al, 2008). In the third step, the entrepreneur should carry out a societal analysis. This is aimed at understanding the society better. This will explore the interests of the society in regard to change and how many people will be impacted by the enterprise. In addition, this aims at establishing whether there is an opportunity for the venture to thrive and meet the needs of the people. In the fourth step, the social entrepreneur should carry out financial projections. This will require the involvement of the financial and accounting professionals to establish the revenues and costs to be incurred. In this projection, the entrepreneur will establish the amount of money to be used as capital, finances from donors, and costs of the products or services offered. It is through this projection that the entrepreneur can determine the interaction between revenues and costs. This will prepare him or her with the amount of extra funds that he or she will have to provide to fill the gap between the costs and revenues earned (Hoskisson et al, 2008). This gives the last step where the entrepreneur will determine the difference and seek for any assistance from donors. All these steps are interrelated, and the development of a viable earned income strategy depends on every one of them. Exercise 5 The growth of a social enterprise entirely depends on the skills of the entrepreneur. In order to ensure growth in the numerous stages, a social entrepreneur should possess leadership skills. This means that he or she should have the aptitude to build agreement in the face of disagreement. Effective leadership skills ensure that the behaviors of the people within the organization are geared towards the realization of the organization’s goals and objectives (Dees et al, 2002). As a leader, the entrepreneur envisions the future and believes that he or she can make a difference. With leadership skills, an entrepreneur can gather people into a team, inspire them and create a sustainable business venture. In addition, an entrepreneur should be a salient team player. The entrepreneur should know when to delegate and trust. Being a good entrepreneur requires one to be a follower sometimes. The people involved in service delivery require attention and trust (Elkington & Hartigan, 2008). In this regard, an entrepreneur should focus on some little details that require attention and envision the large picture in them. The entrepreneur should see him or herself as any other employee in the organization in order to gain trust with the rest of the employees in the organization. With this, he or she can also interact with the employees effectively leading to attainment of the organizational objectives. An entrepreneur should also possess effective communication skills. Whenever he or she brings people together in a group, each one of them comes from different fields. Therefore, the entrepreneur should effectively communicate the different roles that each should play and objectives of the organization (Dees et al, 2002). This has to be effectively and repeatedly done in order to ensure clarity to everyone in the organization. This will assist in the development and growth of the venture through the different stages. In some occasions, a leader may be a negative force into the organization. This can occur where he is involved in all aspects of the organization without delegating responsibilities to other team members (Elkington & Hartigan, 2008). This may affect decision making and create log jams. To avoid this detrimental situation, the entrepreneur should recognize that he cannot carry out the different responsibilities by him or herself and preemptively arrange to let go. He or she need to delegate responsibilities to avoid such scenarios. References Hoskisson, R. E., Hitt, M. A., & Ireland, R. D. (2008). Competing for advantage. Princeton, N.J: Recording for the Blind & Dyslexic. Dees, J. G., Emerson, J, & Economy, P. (2002). Strategic tools for social entrepreneurs: Enhancing the performance of your enterprising nonprofit.. New York: John Wiley & Sons, Inc. Elkington, J. & Hartigan, P. (2008) The power of unreasonable people: How social entrepreneurs create markets that change the world. Boston: Harvard Business School Press. Yunus, M. (2007) Creating a world without poverty: Social business and the future of capitalism. New York: PublicAffairs (Perseus Books Group). Read More