Innovation and Entrepreneurial Strategies - Essay Example

Strategic management By Innovation and Entrepreneurial Strategies Entrepreneurs have seen to lead to innovation in different ways and aspect when trying to meet the business strategies that they have. This makes them key agents of creativity, which has led to new opportunities and growth. In achieving business strategies that entrepreneurs have, they are always associated to creation of new business ventures by introducing new ideas and innovations in their businesses so that they are able to achieve the objectives of their business. The entrepreneurs through risk taking test the innovations and technologies (Jeffs, 2008). Innovation that is associated to entrepreneurship are those involving starting of new businesses, spinning a new company from a business that is already existing or creation of a new business idea on a firm that has already been established. Innovation through entrepreneurship is important in business strategies as through this, there can be creation of new products and services or it can lead to entry into a new market or creation of new product and services, strategies of a business can be achieved. A business will be able to be more competitive through the new goods and services and entry into a new market will ensure more sales of business goods (Jeffs, 2008). In this aspect, it can be stated that entrepreneurship is a process in which there is creation of new opportunities and can include both new ideas and businesses or starting up as well as developing firms that are already exist. In achieving the goals and strategies of a business, there require a skill that is used to manage and organize activities that are associated to innovation and change. In strategic management, entrepreneurial traits have been seen to be strong desire for achievement and self-sufficiency as there is high degree of creativity, willingness by the entrepreneurs to take calculated risks and a sense of self-determination that drive entrepreneurs in a achieving business strategies. Without the role of the entrepreneur recognizing the opportunity and being responsible for the managerial leadership, particularly in the early years of its development, the entrepreneurial venture would be unlikely to succeed. However, the entrepreneurial initiative of the business’s owner-manager, while significant, residues of little worth if the venture does not have an evidently differentiated product or service to give out (Jeffs, 2008). Of equal importance to the entrepreneur is the innovation, which may or may not be found within the same individual. Innovation that is brought about by entrepreneurs secures a point of difference to the business in the market that a business operates. Within a business context, innovation that is brought about through entrepreneurship is linked to creation of changes to products that already existing or business processes that can lead to enhancement of the ability of the organization to offer goods that are of superior value to the consumers. The key elements required for successful innovation have been identified as the possession of a market orientation, a management style with consideration of structure and culture that nurtures creativity, and a planning process that is non-linear. 2 Decision making Factors considered in making decisions in a business In making decisions according to strategies that are put in a business, factors that are considered can be organized into perception issues, environmental issues and organizational issues. Perception issues are those that are concerned with an individual interpretation of the environment in which the business operates (Jeffs, 2008). Perception that an individual has in the environment influences how decisions are made and how problems are solved. Id dealing with decision-making, information is collected according to how individuals think. The object, situation, and the perceiver also affect individual thinking. In perceiving an object, an individual can be influenced by their personal characteristics. The impact of individual perception is brought in terms of background and experience, personal expectations, personal interests and personal values. The situation in one is also influences the ideas that are given by an individual. Time is also a factor in this situation as these impacts the decisions that are made. Several organization issues impact decision that are made in a business. The factors that are linked to organization issues include hierarchy of the organization, policies, procedures, and organizational politics (Jeffs, 2008). Policies and procedures have been developed to solve common problems and to be used as guidance when making decisions. In many organizations, managers use many documented procedures as a guide when resolving issues with staff members and when making decisions. Organizational hierarchy refers to the management structure that is used in an organization. There are different levels in management of organizations, which have different levels of authority in decisions that are made in an organization. The degree of authority that one has in an organization also dictates the degree of authority, which directly affects decisions that are made in an organization. In an example, there is no possibility of a team leader from Customer Care unit making decisions ion the general operation of a business (Jeffs, 2008). The team leader however is able to make decisions on the contribution to achievement of organizational goals. Organizational politics is all about behavior that is displayed by individuals and groups which are thought to have influence on others. Politics in the organization can be used to advance careers, increase rewards, and advance the interest and ideas of individuals. Through politics, there is consideration of the different beliefs, values, and interests that the individuals have. This is much considered in making decisions. Issues with the environment are factors that are considered in making decisions. Environment factors are those external factors that affect an organization (Jeffs, 2008). The factors that affect decisions in an organization are those of the market in which the organization carries out its operations, the economy, government legislation, and reactions by customers on products and services. These factors are considered in making decisions but there are common mistakes that are committed in decision processes in organizations. The individual wants when followed in making decisions leads to poor decisions. Overreliance on information that is received from others is a factor that affects all that is made in an organization. Placing less consideration on information obtained from outside sources. 3 Ethics Part of business ethics overlays with the attitude of business, one of the objectives of which is to determine the important purposes of a company. If the companys main determination is to maximize the returns to its shareholders then it should be seen as unethical for a company to consider the interests and rights of anyone else (Jeffs, 2008). Ethics of finance is also a consideration in strategic management. The discipline shares its boundary with behavioral science, sociology, economics, accounting, and management. Ethics of production deals with the duties of a company to ensure that products and production processes do not cause harm. Some of the more acute dilemmas in this area arise out of the fact that there is usually a degree of danger in any product or production process. Moreover, it is difficult to define a degree of acceptability, or the degree of acceptability may vary because of changing state of defensive technologies or varying social insights of acceptable risk. The computer and the World Wide Web are two of the most significant inventions of the twentieth century. Many ethical issues arise from this technology. It is easy to be able to access to information. This leads to data removal, monitoring of the workplace, and privacy attack. Ethics in human resource is a factor that should be considered in a business for better strategic management. Employees have the right to occasion the cost of living such that as there is an increase in the cost of living, the rewards should be increased and increase in reward with increase in promotion that one is given in an organization. Ethics in human resource has also brought out that promotion in business is not right, as there is opening of few chances to many applicants in the business. Fairness that a business has on trading practices, sales practices and the conditions that are involved in business operations are important in business ethics. Production ethics is concerned mainly with the duties that a company carries out to ensure the company’s products cause no harm. The risks that can be caused by the product should be reduced to ensure satisfaction of consumers without the harm as total removal of the harm is not possible. In management, the production ethics should be considered. International issues are brought out in management of a business. There are issues that have come up in international trade that should be considered to make sure there is ethics in international trade. The issues include search for universal values as a need for international commercial behavior, comparison of traditional ethics in different countries and taking into consideration issues such as globalization. Reference Jeffs, C. (2008). Strategic management. Los Angeles: SAGE. Read More