Innovation and Entrepreneurship - Essay Example

Innovation and entrepreneurship Name: Course: Tutor: Date: Innovation and entrepreneurship What it takes to make a business grow To expand or grow a business is the objective of every businessman or entrepreneur. There are many factors that should be considered for the business to achieve the 34% growth rate annually (Bragg & Bragg, 2005, p. 121). The business should be able to sustain wealth creation by increasing it sales and market growth. Simulated business Capsim and Michael Porters strategies critical are critical for business expansion and growth (Timmons & Spinelli, 2003, p. 63). Management Managing a business entails exemplary leadership in the operations and resource allocation in the business. Good leadership from the leaders or managers will communicate and build a vision, minimize risks, and creating direction towards achieving the goals and objectives of the business such as attaining 34% growth annually and expanding its operations. Good management is critical especially if the business want to achieve its vision and objectives (Bessant & Tidd, 2007, p. 54). Leaders with management skills will ensure there is sustainable wealth creation and quality products in the market. From the experience I have for being an entrepreneur, proper management and showing direction in the management and running of the business is essential. Management is about proper planning, coordinating, organizing, controlling, and leadership. This will help in strategic change that is expected in the business for it to attain the 34% growth rate annually (Immelt, 2006, p. 3). In addition, management is catalysts to the culture change that will help the business improve its performance in the market. Being able to change comfortably and rapidly in a competitive market is critical for the business growth and success. Furthermore, management will help the managers or leaders in the business to plan and think strategically on how to achieve the 34% growth rate in the market annually (Bragg & Bragg, 2005, p. 123). However, if the management does not work on ensuring mismanagement of resources is reduced, then it may not achieve its goals and objectives. This means the management will decide the success or failure of the company. The management has the ability and capability of ensuring the business succeeds at all costs irrespective of the challenges that may hinder its operations. The top management should formulate strategies that are realistic. This is paramount because it will ensure easy implementation by employees, who help in running the business Von (Stamm, 2003, p. 77). Transformational ideas are generated by the leaders of the business because they will supervise and control all the operations of the business. ABC Company did not achieve its business target of growing the business by 34% in 2004 because of poor management from the top managers or leaders. To achieve 34% over eight years will require cooperation and commitment from the all the employees assisting in running the business (Bessant & Tidd, 2007, p. 55). Human resources Human resources in a business will determine the success or the destiny of the business. If employees or the human resources are motivated, they will strive at achieving the set goals and objectives of the company especially the 345 annual growth rates. Human resources or employees who are innovative and creative will help the company achieve its goals and objectives. Human resources are the assets of the business; hence, they should be motivated at all times especially in paying them well and training them on how to achieve the set goals and objectives of the business (Timmons & Spinelli, 2003, p. 64). From the experience in entrepreneurship, businesses that attain the double digit growth rate depend on its employees. This means that they choose the right people with the required skills, knowledge, competences, and experience in running the business. Having wrong people in the business field will contribute to the failure of the business (Bragg & Bragg, 2005, p. 124). Employees should be continuously trained and motivated for the impact to be felt in the business as it tries to achieve the 34% growth rate. Skilling and development of the human resources is vital in the running of the business especially in the competitive market. High performance achievement will improve the image and reputation of the company; hence, increased customers and new markets (Davila, et al. 2006, p. 88). Coordination, communication, and continual vision delivery will be achieved by the employees of the company because they will be focusing on achieving 34% annual growth rate. This means that the employees or the human resources should be involved in decision making and strategy formulation by the top management. For this to be achieved, the human resources of the business should be consulted on various issues before implementation process starts. Creating a positive attitude on improving productivity and creativity will help the business achieve its set goals and objectives (Timmons & Spinelli, 2003, p. 65). Innovation and creativity Innovation and creativity will help the business achieve its set goals and objectives because the quality of the products will be improved. Most customers in the market are sensitive about the quality of products in the market. If the business does not sell products that meet their standards, the customers may decide to buy from other companies that offer the same products (Meyer, 1998, p. 45). With the new technology, a business should adopt it in order to compete with others in the market. Selling high-quality products to customers in the market will attract many customers; hence, opening up new opportunities that the business can utilize them maximally to achieve its goals and objectives. Adoption of the new technology is crucial to the company because it will help the business achieve its set goals and objectives (Bessant & Tidd, 2007, p. 56). For a change to be realized in the business, innovation and creativity is crucial for its survival and achievement of 34% annual growth rate (Sanidas, 2005, p. 111). Continuous innovation and creativity will help the business sustain and maintain its customers for long in the market; hence, planning and forecasting for the future will be easy to assess. Businesses that have adopted the new technology by training its employees on how to improve the quality of the products have achieved their double digit growth rate in the market (McKaskill, 2006, p. 44). Understanding what the customers want in the market especially on quality is crucial because it will determine whether the business will satisfy the customers or not. In addition, this will determine whether the business can increase its customers and expand to the new markets that the competitors have not ventured into (Bragg & Bragg, 2005, p. 125). Customer focus and market positioning Market positioning and customer focus are essential recipe for business success in the market. Market position is more so crucial because it is the strategy that will help the business outperform its competitors; hence, achieving its set goals and objective. Customers who feel satisfied will always demand the products of the company in large quantities because their needs are catered for (Timmons & Spinelli, 2003, p. 66). Customers will promote the company if they are treated well by the company. This means that the company should price the products depending on what the customers want in terms of the quality and price. This means that the growth rate expected by the business can only be realized through the customers (Sanidas, 2005, p. 113). Focus strategy is the best because it will help the business management determine what the customers want. If customers are to be the main focus of the company, then the 34% growth rate can be attained. This is possible if market research and analysis can be conducted so that what customers want can be implemented (Holliday, 2001, p. 4). However, the business management should not lower the prices of its commodities below a certain limit. It should find out the costs that were incurred then set a margin so that it can gain some profits. Though, the company wants to attract and maintain its customers, it should consider it goals and objectives. Goals and objectives especially the 34% growth rate will be achieved by the end of the planned time or even before. This is crucial to the business management so that customers do not pressurize the company in doing what is not required. Though the company should convince the customers to buy its products, it should not be forced to do what will lead to its failure in the long run (Bessant & Tidd, 2007, p. 59). The 8 year plan can only be achieved if the tasks are subdivided into small units that are achievable. Objectives and strategies formulated can be achieved if they are realistic and achievement within a certain time. Employees who are not performing or do not meet their targets should be motivated or trained (Davila, et al. 2006, p. 89). This will help in achieving the set goals and objectives within the time. If they cannot achieve and are not showing any signs of improvement, then they should be replaced. Business goals and objectives should be compromised because of a few people who are not result oriented (Timmons & Spinelli, 2003, p. 67). The 8 rounds of capsim are critical because they are the measurable factors that can be analyzed and evaluated. The training should be conducted continuously especially on Total Quality Management (TQM) and innovative strategies so that the 8 rounds can be achieved easily (Sanidas, 2005, p. 114). The double digit growth rate can only be achieved if the company’s management maintains its focus and objective on achieving it. The Capstone graphs and financial information obtained are expected to increasing from 9% to 10.3%. This is a continuous process that will help the business grow in the 8 rounds or years that it expects to attain and maintain 34% growth rate. The company’s growth is expected to improve especially from poorer to better in the next 8 rounds or years as shown below (Dodd & Favaro, 2006, p. 11). Positioning strategy of the business in the market can be improved from single digit to double digit growth rate. This is possible if the business' focus is to sustain itself in the market. Getting a steady performance improvement in sales and profitability depends on sales and marketing tactics. This will be a matter of time because positioning in the market will have to improve by 29%, MTBF by 43%, and the prices by 19% (Sanidas, 2005, p. 116). The changes in the rates will eventually lead the company towards attaining its growth rate of 34%. In addition, the double growth can be attained if the strategies set are geared towards achieving the set goals and objectives. This calls for everybody to in the business management to be committed and dedicated; hence, team working and cooperation is enhanced. The graph below can explain what is expected for the growth and expansion of business operations. This means the business should check the price level by 19%, positioning by 29%, and MTBF by 43% (Bragg & Bragg, 2005, p. 126). From the above explanation, customers increase in the market is a sign of business achievement of it goal of attaining 34% increase in the market. The 8 rounds are crucial because the growth should be consistent or improving significantly. There are many elements that should be checked in order to achieve the set goals and objectives (Sanidas, 2005, p. 117). There are five main market segments that the company is focusing on improving its performance especially on the growth rate. The traditional segment rate is 9.2%, low-end rate 11.7%, high-end rate 16.2%, size rate 18.3%, and finally the performance rate, which is the highest, is 19.8%. Growth rate will help the company gain competitive advantage and to lead in the market (Clegg, 1999, p. 79). Simulation used in assessing the growth rate of the business should be computerized in order to achieve the double digit growth rate. The assets and cash flows of the business should be monitored in order to avoid mismanagement of the scarce resources. The business depends on the realistic goals and other measures that will help the business achieve its growth rate target. The income and cash flow statements should be recorded accurately so that it can ease the analysis and comparison of the statements. These results are crucial because it will help in determining whether the business has achieved its set goals and objectives. The financial performance of the company is crucial because this will determine whether the business has attained the growth or not (Timmons & Spinelli, 2003, p. 68). The business management should not allow challenges or obstacles along the way from attaining the 34% growth rate. Therefore, the factors or elements that business should consider including innovation and creativity, customer focus, exceptional leadership or management, and market positioning (Bragg & Bragg, 2005, p. 128). References: Bessant, J. & Tidd, J. 2007. Innovation and Entrepreneurship; Chichester. New York: John Wiley & Sons Ltd. pp. 54-59. Bragg, A. & Bragg, M. 2005. Developing new business ideas – a step-by-step guide to creating new business ideas worth backing. London: Pearson Education Limited. Pp. 121-128. Clegg, B. 1999. Creativity and Innovation for Managers. Melbourne: Butterworth-Heinemann. Pp. 79. Davila, T; Epstein, M. J. & Shelton, R. 2006. Making Innovation Work – How to manage it, measures it, and profit from it. Upper Saddle River: Wharton School Publishing. Pp. 88- 89. Dodd, D. & Favaro, K. 2006. “Managing the Right Tension”, Harvard Business Review. p. 11. Holliday, C. 2001. “Sustainable Growth the Du Pont Way”, Harvard Business Review. P. 4. Holliday, C. 2001. “Sustainable Growth the Du Pont Way”, Harvard Business Review. P. 4. Immelt, J.R. 2006. “Growth As a Process”, Harvard Business Review. P. 3. Kotter, J.P. 2007. “Leading Change”, Harvard Business Review. P. 4. Mankins, M.C. & Steele, R. 2007. “Turning Great Strategy into Great Performance”, Harvard Business Online. P. 6. McKaskill, T. 2006, “Get A Life – An inside view of the lives of entrepreneurs from around the world”, Melbourne: Wilkinson Publishing Pty Ltd. P. 44. McKaskill, T. 2006. Winning Ventures: 14 Principles of High Growth Businesses. Melbourne: Wilkinson Publishing. Pp. 65-67. Meyer, C. 1998. Relentless Growth: How Silicon Valley Innovation Strategies Can Work in Your Business. New York: Free Press. P. 45. Porter, M. 1996. “What is Strategy”, Harvard Business Review. P. 15. Sanidas, E. 2005. Organizational Innovations and Economic Growth – organosis and growth of rims, sectors and countries. Northampton: Edwar Elgar Publishing Limited. Pp. 111-118. Smart, S.B. Megginson, W.L. & Gitman, L. J. 2004. “Corporate Finance”. Melbourne: Thomson, Australia, page 5. Timmons, J & Spinelli, S. 2007. New Venture Creation: Entrepreneurship for the 21st Century. New York: Irwin-McGraw Hill. Pp. 56-59. Timmons, J.A. & Spinelli, S. 2003. “New Venture Creation: Entrepreneurship for the 21st Century”. New York: McGraw Hill/Irwin. P. 63-68. Von Stamm, B. 2003. Managing Innovation, Design & Creativity. New York: Wiley. P. 77. Read More