Role of Entrepreneurship - Essay Example

? Role of Entrepreneurship Summary Entrepreneurship can be defined as an art; therefore, entrepreneurs can be labeled as artists. Although it may not be the conventional art, entrepreneurship is not an easy aspect of business, based on what the job description entails. Entrepreneurs are in charge of making the decisions that serve to determine the direction that a company will follow. He or she must be willing to take risks, which may make or break a company (Shane, 2003). The way an entrepreneur controls the activities of his company may help to indicate how well he or she has understood the art of entrepreneurship. Innovation is a key factor in entrepreneurship. Innovation involves introducing new ideas and products as a measure of improving or satisfying a market need. The chief instigator of innovation is the entrepreneur, who analyzes the pros and cons of innovation and the likely risks that relate to implementing innovation. The say if it is not broken, do not fix it; however, this concept cannot apply to entrepreneurs based on their pursuit of increased sales and maintaining their pioneer status. Innovation is a factor that is pivotal in the longevity of a company. (Howkins, 2001) Mercedes-Benz: A Leader in Innovation The best example of innovation relates to Mercedes-Benz in the 1980s. The company came out with a new concept of using block headlights instead of the popular circular headlights. They claimed that the concept would be copied by a majority of car companies in the 1990s. It was a bold statement by the car company, who were deemed to be blowing their own horn at the time (Reynolds, 2007). However, true to their prediction, in 1992, several car companies had begun using the block headlights introduced by Mercedes-Benz. This is an illustration of the impact of being a pioneer in innovation. The fact that Mercedes introduce the concept the concept first meant that they were the leading light in car innovation, and to some degree, they still are to this day. Though it was a risk making the bold prediction, there were spot-on proving they have a sharp eye for solid innovation concepts. The primary aim of any entrepreneur is to ensure that their company makes the most sales and net profit (gross profit – company costs = net profit). Wise entrepreneurs push this factor beyond the limits of the company in order to grow as a company. Growth involves factors such as becoming a multinational company, and becoming the global leader in sales of a given product. It is vital for an entrepreneur to push the company to its highest limits, and put it on a level that will make the world take notice. This may not be the best strategy for the consumers; however, the ultimate task for an entrepreneur is to become a monopoly in the company’s respective market. This ensures that the company is the pioneer in the market, and the latter will make purchases from the company anytime they require a product that the company produces. Coca Cola: an Entrepreneurship based on Establishing a Monopoly The best example is Coca-Cola; when it comes to soft drinks, the first word on everyone’s lips is coca-cola. Such is the dominance of the company, that it can be considered the global monopoly of soft drinks. It holds over 70% of the market share for soft drinks on a global scale. As a result, the company is able to generate large volumes of revenue, which can be used for aggressive advertisement (Howkins, 2001). Though it has established itself as a soft drink monopoly, Coca-cola does not rest on this accomplishment. It is constantly seeking new markets to enter, such as the water market. Coca-cola has entered the juice market and is looking into venturing into the tea and coffee markets. This is evident of the company’s ambitions, which are evidence of quality entrepreneurship. Entrepreneurship is important in the revival of companies. Employing the right CEO or chairman is the fine line between success and failure of a company. Experience is the best teacher that serves to educate entrepreneurs on the measures that are essential in providing the company with the right tools to succeed in a market. The ability illustrated by an entrepreneur is vital for a company. He or she must demonstrate the ability of well calculated decision-making, strategy formulation that can enhance the structure and operations of a company, ability to assess the problems of a company and seek ways in which they be removed to ensure effectiveness and efficiency. (Duening, 2009) Steve Jobs: A Visionary in Entrepreneurship The best example of a skilled entrepreneur was the late Steve Jobs. In the 1980s, Steve Jobs run the show at Apple inc., and as a result, the company was able to compete with the major computer companies such as dell and Compaq. The stakeholders made the greatest mistake in the company by firing Steve Jobs. The fact that he had never set foot into college may have prompted them to fire him­; however, there was no doubt about his ability as an entrepreneur. Prior to his sacking, Steve Jobs had developed several concepts that would serve to propel Apple to the next level. However, the stakeholders thought his ideas were ‘out of his depth’, and went on to sack him (Shane, 2003). The 1990s was a time when Apple began to collapse and into the abyss. Dell and Compaq were growing in stature in the computer market, and were the pioneers of the computer world. The stakeholders had to turn to Steve Jobs for inspiration and rescuing a sinking ship. At the turn of the millennium, Steve Jobs resumed to the company he had single-handedly built to prominence, and he picked from where he left-off. His innovations that were a decade overdue were developed. Apple revamped their computer designs and made more compact, which made the market take notice, and Apple was back in business (Duening, 2009). The greatest accomplishment that Steve Jobs did was re-inventing the music player industry by introducing the I-Pod. It can be regarded as the beginning of the dominance of Apple. The I-Pod was a revolution in music player, and its simplicity did not limit the product to a product to a market niche. It led to the major success of Apple. To demonstrate its level of appeal, a survey was conducted in the United States in colleges to demonstrate the appeal of the I-Pod. The survey revealed that the I-Pod is the most popular item in colleges, surpassing beer. Steve Jobs did not stop there; he went on to improve (innovate) the I-Pod by integrating the element of touch screen, creating the I-Pad. It was a tool used to appeal to the techno-fanatics, allowing Apple to venture further into the technology market (Reynolds, 2007). Prior to the I-Pad, Jobs introduced the I-Phone, which served to prompt other mobile companies to created touch-screen phones (pioneer in technology design). This illustrates the nature of an entrepreneur; Steve Jobs did not get into college and get a degree, yet he applied the knowledge he had to put Apple on the global market. Steve Jobs was the perfect example of an artist in entrepreneurship. He was not focused on making Apple a one-dimensional company; he wanted Apple it to resemble an octopus, with its tentacles in several cookie jars. His vision was to create Apple as a diverse company that would be a leader in more than one field, in the technology market. He may not have gotten the opportunity to finish his plan due to health reasons, he paved the way in terms of how entrepreneurship should be applied regardless of an individual’s background. (Howkins, 2001) Entrepreneurship: Decision Making Entrepreneurship is influenced by decision-making. Innovation is pushed by essential and strategic decision-making. It can be deemed that decision-making is the center cog of function or the element that ensures innovation works. Innovation may not be centered on improving a current product, it can involve integrating new products into a company so create diversity in the company. The general aim of such a strategy is based on ensuring that the company can rely on more than one product in order to support the company. (Reynolds, 2007) In this case should a product ‘tank’ or fail in the market, the other product will serve to support the company even when ‘times are hard’. Though the concept may sound as an easy project, integrating the right product into the company may be a challenging task. That is why the factor of decision-making is applicable for entrepreneurs, because can determine whether an entrepreneur will be remembered as a success or a failure. Donald Trump: Using his Trump Card to Success The man that embodies the nature of decision-making is Donald Trump. He may not be the CEO of a major company; however, he is one of the richest men in the world. The aspect that has served to elevate him to that status is the decision making that he has utilized in establishing himself as a real-estate king. His deals have entailed establishing partnerships with hotel franchises in creating buildings that have more than tripled in value over the years. Trump has managed to establish himself by creating building with his trademark Trump name to create an empire. From Trump towers in New York, to Trump Plaza in Atlanta, he has managed to venture into several factors of business (Shane, 2003). In the Atlanta, he has established gambling casinos for entertainment, and he has spread into Nevada, where he owns the Tahj Mahal. Trump attributes his success to the ability to make fruitful deals that have paid dividends for his business ventures. It is a philosophy he learnt from his father (now deceased), a real-estate developer. Therefore, Decision-making has served to establish Donald Trump as a top Entrepreneur. (Duening, 2009) Conclusion The element of an entrepreneur is based on several factors, these factors can be considered the key elements that make or break an entrepreneur. They are vital in creating innovative measures that serve to improve the company, production, company structure and products. Innovation can prove to be the definitive factor that an entrepreneur can revive a failing company. The general nature of innovation is influenced by the ideologies and strategies that are utilized and implemented by an entrepreneur. Therefore, entrepreneur must apply their understanding of aspects of business in order to apply innovation successfully. References Duening, TN, Hisrich, RD., Lechter, MA 2009, Technology Entrepreneurship, Academic Press, California. Howkins, J 2001, The Creative Economy: How People Make Money From Ideas, Penguin, New York. Reynolds, PD, 2007, Entrepreneurship in the United States, Springer, London. Shane, S 2004, A General Theory of Entrepreneurship: the Individual-Opportunity Nexus, Edward Elgar, New York. Read More