Week #8 Learning Activity - Essay Example

July 3, Week 8: Learning Activity Innovation is not exclusive to large corporations because even small businesses can use it to become locally and/or internationally competitive. Innovation does not apply to technological innovation only too because it can manifest as a form of new practices and strategies in managing people and limited resources and in connecting to and satisfying customers. Small businesses can utilize innovation to gain competitive advantages by being open to changes in HR practices and policies and by finding new ways of connecting to customers and responding to their evolving needs.

Small businesses can use innovation to develop competitive advantages by being open to changes in HR practices and policies and by developing new ways of customer engagement. Whether there is a recession or not, small businesses grapple with the usual problems of limited capital and high demand for dedicated and talented employees. In order to attract or maintain talent, small businesses can offer alternative work arrangements, such as reduced work hours or flexible work schedules (Woods). Such arrangements are appealing to employees with children or who simply want more work-life balance.

These are considered innovations when compared to traditional companies’ fixed office hours and 5-day work schedules. Apart from these HRM changes, small businesses can also use innovations in customer engagement for purposes of attaining social responsibility and brand promotion. Participating in social events, including contests, are good ways of improving brand awareness (Branson; Saylor Foundations 29). Moreover, promoting social awareness through discussing the social benefits of the product in community events is also an innovation that is less expensive than TV and print advertisements (Branson).

These are innovations because they are not limited to traditional marketing promotions and communications. Small businesses have the advantage of introducing simple, but equally effective and efficient, innovations because they directly communicate with consumers more frequently than the decision-making executives of multinational corporations. As a result, small business owners can easily determine what customers want and develop what they can start (or stop doing, if applicable) to satisfy changing consumer needs.

Works CitedBranson, Richard. “Richard Branson on How Small Businesses Can Innovate.” Entrepreneur, 14 Oct. 2013. Web. 2 July 2014. .Saylor Foundation. “Chapter 15: Going Global: Yes or No?” Woods, David. “Small Businesses Introduce Innovative HR Practices in Response to the Recession.” HR Magazine, 24 Sept. 2009. Web. 2 July 2014. .