Entrepreneurial Skills of Mark Zuckerberg - Case Study Example

Student’s Name: Instructor’s Name: Course Code and Name: Date Assignment is due: Case study Table of contents………………………………………………………………………………..2 Introduction……………………………………………………………………………………..3 Entrepreneurial skills…………………………………………………………………………….3 Facebook and its founder, Mark Zuckerberg……………………………………………………4 Conclusion………………………………………………………………………………………17 List of references………………………………………………………………………………..18 Introduction Entrepreneurs have a significant role which they play on economies of the world. They make sure there is creation of new value in many ways. They know how well to combine economic factors, in order to come up with a business idea, which is able to give them, returns and profits. Entrepreneurs accept risk, and provide market efficiency through their methods of doing business (Burns 2005, p. 477). They are involved in maximization of returns of the investors, who is the sponsor of the business idea. Entrepreneurs are also involved market information processing. If entrepreneurs bring all these positive qualities to the organization, the organization is bound to register very positive growth towards the set strategic goals (Carter & Jones-Evans 2006, p.87-9). The presence entrepreneurs in the organization are very important, and each entrepreneur should strive at doing his best in the organization. The management has to support people, who have entrepreneur skills since they are source of creativity, and innovation within the organization. Entrepreneurial skills The personality of a person determines his chances of being an entrepreneur. The personality of an entrepreneur develops as a result of internal, psychological, and external social factors interaction. Entrepreneurs’ Social development is attributed to social, acquired and innate parameters (Wickham 2006, p.23-7). Acquired skills come as result of training, mentoring, and learning. These are the skills which are acquired by someone going for training in school, college, or university. Entrepreneurs can develop their skills while pursuing their education, or training in college or other institutions of higher learning. It is important for someone to go to school since, through interaction, he is able to jog his thinking, and develop entrepreneurial skills. Innate factors are inborn (Beaver 2002, p.119). Creativity, motivation, and intelligence can be acquired from genes and inheritance. These skills are hard to teach or inspire into someone, unless he has them. Social factors are acquired through family life experiences, parental occupation and social-economic groups. Whatever one goes through when he is growing up, will shape his destiny as far as entrepreneurial thinking is concerned. Parents have a role to play in the development of child entrepreneurial skills (Deakins & Freel 2009, p. 78-9). Whatever they do for their living, may make the child to be interested in pursuing entrepreneurial skills. Entrepreneurs can be tentatively be classified into, the industry maker, small business owner, cantillon entrepreneur, and administrator entrepreneur. Cantillon entrepreneur brings materials, people and money together, in order to create a new organization. The small business owner is in charge of a small business, which is limited in size according to his wish. They are kind of people, who have control over their lives and look for secure income (Timmons 2000, p.12-9). The role of entrepreneurs in organizations is very important since, they are the driving force behind any creativity and innovation that takes place. Innovation and creativity is behind the development of new products which cater for changing customers’ tastes and preferences. If company does not innovate, it cannot grow or realize productivity that is meaningful. In this paper the role of entrepreneurs will be examined using a case study of Facebook and its founder Mark Zuckerberg. Facebook and its founder, Mark Zuckerberg In many organization entrepreneurs are a source of ideas that result in the development of new products. Facebook is a website of social networking service which was started in 2004, February. It is privately owned and operated by Facebook, Inc. By July this year, active users on Facebook were about eight hundred million people. Users visiting the Facebook site for the first time have to register. They create a personal profile and add other users, who are on the site as friends, and are able to exchange information. Automatic notifications are relayed to other users, when one updates his profile or post any updates on his wall. Common characteristics groups such as schools, colleges and universities can be joined by users, who have same characteristics. Friends can be characterized as close friends, acquaintances, or just belonging to the same group with common characteristics. The name Facebook has been derived from the common term that is used in some universities administrations in the US to keep records of students by having a photo and student’s information. The site allows users who identifies themselves to be thirteen years and above, to join Facebook. The founding of Facebook is clouded by many controversies that have not been cleared until now. Despite this, Facebook is a great idea that was developed by a fast thinking entrepreneur who very innovative. In organizations entrepreneurs are credited with embracing change, and bringing it into organizations. During organizational change, which will frequently happen in organizations, entrepreneurs are used to mobilize other people into embracing the change that has been introduced into the organization (Rae 1999, 65-7). During organizational change it is very important for individuals, who have entrepreneurial mind to be in the organization. Entrepreneurs are dynamic and they do not remain glued to the old order of doing things. Entrepreneurs are at the forefront of spearheading the change and urging other members of the organization to embrace change. The input of entrepreneurs during organizational change transition cannot be ignored. Entrepreneurs inspire other members of the organization to change. Mark Zuckerberg has demonstrated that, through various means he used to bring Facebook to where it is now. The personal differences he had with colleagues and friends did not deter him from pursuing his dream. In organization, entrepreneurs play the role of being agents of change. Through them the message of change reaches everyone within the organization (Deakins & Freel 2009, p. 278-9). Entrepreneurs’ playing the role of new product development is an important function in the organization, since growth is ensured. In order to survive, an organization should be able to develop new products, and be innovative at the same time. It is only through innovation that new designs and new products can be realized. Mark Zuckerberg and fellow students and roommates Dustin Moskovitz, Chris Hughes, and Eduardo Saverin founded Facebook. The membership to the web was initially restricted to students of Harvard University, but it was later on expanded to Ivy League universities, Stanford University, and other students in colleges in Boston area. The site gained popularity and expanded its membership to other universities, and high school students. It is eventually allowed to anyone with thirteen years and above joining it. It is reported that the age limit of the site has been violated since, there close to seven point five million children under the age of thirteen on Facebook. In 2009 Facebook was ranked as the most accessed social networking site, by active users allover the world per month. Compete.com Zuckerberg was a social entrepreneur, who was motivated, with the desire to address a social or economic issue in the society. He was emotional attached to social networking. Entrepreneurs in organization play an important role of inspiring other workers or members of the organization. In this case, it will be observed that Mark Zuckerberg made the other students and roommate to warm up to the idea of having a social site in the college. They wanted to have a means through which people could relate and exchange ideas. Mark Zuckerberg was raised in a hilltop house in New York at Dobbs Ferry. The housetop was linked to his father’s basement dental office; his father was commonly referred top as “painless Dr. Z” by his patients. Edward Zuckerberg got many presents from his clients; his websites reads, “We cater for cowards”. Karen, Mark’s mother, is a trained psychiatrist who abandoned her career to look after the children, and work as an office manager in her husband’s office. Edward Zuckerberg learnt digital radiography early in life, and Mark Zuckerberg was introduced to computer programming known as Atari BASIC. As explained earlier, that occupation of the parents shapes the destiny of the child, as far entrepreneurial skills are concerned. Innate skills, which are inborn, can be enhanced by the environment in which an entrepreneur will be or is brought up (Kirby 2003, p.33). Mark Zuckerberg was exposed to computers by his father at an early age, and was able to learn has to decode certain information. This knowledge made him succeed in hacking the student directory at Harvard University and access their personal information. This information was used to create the first version of Facebook, which was closed by the school administration. Mark Zuckerberg was reprimanded for violating private policy. Early exposure to computers, and the knowledge he received from his father, enabled Mark Zuckerberg to come up with the bright idea of Facebook. On one afternoon in the year 1996, Edward Zuckerberg wanted an easy way of declaring the arrival of a patient, as opposed to the yelling of receptionist, “Patient here”. Mark Zuckerberg came up with program software, which permitted computers in the office and in the house to send messages to one another. This is a good role of entrepreneurs in organization. Entrepreneurs volunteer to work on tasks that are difficult. Entrepreneurs take a positive role of being initiators. Mark Zuckerberg demonstrates this role of entrepreneurs in organizations. Organizations depend on entrepreneurs to be initiators of projects. In organizations, entrepreneurs also are problem solvers. They provide solutions to problems that are being encountered in the organization (Grant 1998, p.459-11). Most of the problems will be solved promptly as long as there are entrepreneurs in the organization. They try as much as possible to unlock a deadlock to any issue that requires creativity and innovation. It can be seen that, Mark Zuckerberg provided a ready solution to his father’s challenge of announcing the arrival of patients, by designing a program that removed that problem. Entrepreneurs are problem solvers and challenge over-comers within the organization (Grant 1998, p.459-11). Organizations need them in order to make meaningful progress. Features of Facebook Mashallable.com The program was referred to as ZuckNet, and it was primitive version of AOL Instant Messenger, which was launched the year that followed. The receptionist in Edward office used it to ping him; the children enjoying pinging one another. At the age of eleven years, a software developer called David Newman was hired as a tutor for Mark. The tutor came once in a week, to help Mark in computers. Newman agrees that it was not easy to stay ahead of Mark Zuckerberg. Newman lost track of Mark Zuckerberg. The tutor was later surprised to learn that his former pupil was the face behind Facebook. Mark later joined a college (Mercy College) that was nearby, where he took a graduate computer course, which he attended each Thursday night. When his father took him to attend the class for the first time, the instructor mistook Edward to be the student, who had come with his son to class. The father later informed the instructor that Mark was the student. The acquired skills of an entrepreneur must have been gathered early in the case of Mark Zuckerberg, since he was taken to university to pursue an undergraduate computer course at a tender age. Entrepreneurship forces are responsible for forcing people to think about business as opposed to being employed in an organization where they are monitored throughout. Psychological factors have played an important role at shaping the future of entrepreneurs in their quest to come up with new values in the market. In the world today secure and life long jobs are not available any longer. Even employees in corporations which are large have to operate in a manner that is entrepreneurial (Legge & Hindle 2004, p.313). Entrepreneurship opens more psychological avenue of taking risks. Workers want to be given more room for decision making. Control relationships in many organizations are highly resented. In many circumstances, workers feel that their potential is not being exploited fully since there are no avenues of enhancing creativity and innovation. By fearing to be criticized every time make many people to venture into business. Many workers want to do there things in their original manner without conforming to fixed pattern. Mark Zuckerberg dropped out of Harvard University when Facebook hit the market. He wanted to fully concentrate on the management of Facebook. Mark Zuckerberg founded Facebook while running it as a hobby project at Harvard University. Eduardo Saverin provided the financial support. Within several weeks, the core idea of Facebook had spread to dorm rooms of Harvard University where it was accepted. Facebook was initially referred to as thefacebook. When Mark breached privacy policy by hacking into private information of students, his initial idea-Facemash was shut down by the university administration. Mark Zuckerberg also came up with a social study tool prior to a history final. He started a web site, which had five hundred Augustan images; each was assigned an image, and a section for a comment. He invited his classmate to the site whereby they commenced notes sharing. The semester that followed, saw Zuckerberg writing down codes for another web site in January 2004. He says that he was encouraged by an editorial in the local paper, which featured the Facemash incident. Thefacebook was launched the following month. Barely a week after the social site was launched, three seniors from Harvard, Divya Narendra, Tyler Winklevoss, and Cameron Winklevoss, lodged a complained against Zuckerberg misleading them to believe that he was assisting them to come up with a social network known as HarvardConnection.com. He was accused of utilizing their ideas to build another competing product. A law suit was filed against Zuckerberg, but a settlement was later reached. Source: Compte.com Entrepreneurs have a characteristic of organizing labor in the appropriate form, to be fully utilized in the organization. Zuckerberg used his friends at school as people to develop the social web site idea with. Every one played his part to ensure that the Facebook succeeded in its mandate. The resources which are near are the ones which are used to foster the business idea (Grant 1998, p.459-11). Facebook was promoted by Andrew MaCollum (graphic artist, Dustin Moskovitz (programmer), Eduardo Saverin (business aspects) and Chris Hughes. In the summer of 2004, Facebook was incorporated. An entrepreneur by the name Sean Parker, who had played the role of advising Zuckerberg, became the president of the company. Its base of operation was moved to Palo Alto California, in June 2004. Peter Thiel, PayPal founder, was the first investor. Entrepreneurs attract the necessary resource into the organization. The domain facebook.com was purchased in the year 2005 for an amount of two hundred thousand dollars. A high school version was launched in September 2005. It later expanded its membership to several companies like Microsoft and Apple Inc. It was in September 2006 that Facebook was opened to anyone who is above the age of thirteen. In 2007, October, Microsoft purchased one point six percent of Facebook, and thereby parting with a figure close to fifteen billion dollars. Microsoft was entitled to placing international ads on Facebook. By November 2010, the value of Facebook was forty one billion dollars. It was the third largest web company, after Amazon and Google in the United States. Facebook targets to raise over ten billion in its IPO, which is anticipated in the year 2013. Features of Facebook http://mashable.com/2011/02/04/facebook-7th-birthday/ Access to Facebook increased at a steady pace after 2009. By March 2010, more people visited Facebook as compared to Google. In March this year, it was realized that Facebook removes twenty thousands profiles from the site daily due to various reasons of breach of conduct, such as underage use, inappropriate conduct, and spam. This a practice aimed at boosting cyber security. DoubleClick statistic showed that was the most visited web site in the world by June this year. Entrepreneurs in organization mobilize investors to invest in their idea. They conceive the idea and look for financial support to have the idea launched into a product that is tangible. The ownership of Facebook shows different investors who gave their money to be invested in the idea that had been discovered (Stokes & Wilson 2010, p.234-9). Currently ownership of the company standards as follows: Mark Zuckerberg twenty four percent, Digital Sky Technologies ten percent, Accel Partners four percent, Peter Thiel three percent, Meritech Capital Partners and Greylock Partners from one to two percent each, Li Ka-shing zero point seven five percent, Microsoft one point three percent, and Interpublic Group has less than zero point five percent ownership. A small group of former and current employees and other celebrities have a share of less than one percent each. Some of the employees include Owen Van Natta, Chris Hughes, Adam D’Angelo, Jeff Rothschild, and Matt Cohler. Chief Technology officer, Adam D’Angelo resigned in May 2008 due to personal differences with Zuckerberg. With the right lobbying by entrepreneurs, the necessary financial support can be raised and the business idea supported. Microsoft was the first financial investor to show interest in investing in Facebook, other companies followed suit. A good entrepreneur should be able to lobby for financial support to back his idea like Zuckerberg did. Moreover, entrepreneurs in organizations are leaders and followers. They champion bright ideas and make them happen to the benefit of the organization. They do not just sit back and enjoy the comfort of being led (Kirby 2003, p.33). They take the first step towards what should be done to put the organization to the next level. Mark Zuckerberg has demonstrated his leadership skills by spearheading the changes that are initiated on Facebook everyday. He has also stood firm to encourage team work in the company, as the company goes through tough times. An entrepreneur is a source of energy to others within the organizations and the inputs that he makes are very positive. Conclusion Organization cannot do well without having entrepreneurs take a crucial role in their growth. An organization will be categorized as doing well if only it is able to come up with new products that will support its growth and development. Without innovation and creativity, it is impossible to mention new product development within organizations. Entrepreneurs play an important role in new product development. Change is inevitable, and during organizational change and transition, entrepreneurs are needed to make the other workers understand the importance of the change. Entrepreneurs are source of inspiration which champions change acceptance. Where many workers are conservative are not willing to change, entrepreneurs play the role of changing the mind set of this workers by giving the positive side of change. An organization that does not have entrepreneurs will have a problem adjusting in case of any organizational change. The role of entrepreneurs in organizations has been explored by using the case study of Mark Zuckerberg, the founder of Facebook. List of References Burns, P 2005, Entrepreneurship and Small Business, Palgrave, Ontario. Beaver, G 2002, Small Business, Entrepreneurship, and Enterprise Development, Prentice Hall, New Jersey. Carter, S. & Jones-Evans, D 2006, Enterprise and Small Business, Prentice Hall, New Jersey. Deakins, D & Freel, M 2009, Entrepreneurship and Small firms, 5th edn, McGraw Hill, New York. Grant, M 1998, Contemporary Strategic Analysis, Wiley-Blackwell, London. Kirby, D 2003, Entrepreneurship, McGraw Hill, New York. Legge, J & Hindle, K 2004, Entrepreneurship Context, Vision and Planning, Palgrave: Ontario. Rae, D 1999, The Entrepreneurial Spirit, Blackhall, Dublin. Rae, D 2007, Entrepreneurship, Opportunity to Action, MacMillan Palgrave, Ontario. Stokes, D. & Wilson, N 2010, Small Business Management and Entrepreneurship, 6th eds, Cengage Learning EMEA, London. Timmons, J 2000, Venture Creation, Mc Graw-Hill, New York Wickham, P 2006, Strategic Entrepreneurship, 4th Ed, Prentice Hall, New Jersey. Read More