Social Learning Approach to Organizational Behaviour - Research Paper Example

Studies in Entrepreneurship Topics and areas of Interest Introduction Entrepreneurship is described as the process by which new businesses and organisations are started in the process of fulfilling certain needs identified in the environment. The person involved in this process is referred to as the entrepreneur. The entrepreneur makes an analysis of his environment and realizes certain needs existing. He then comes up with a business model in which he strategizes on how to tackle the particular needs while making income in the process. The business model that the entrepreneur comes up with has to show the way he is to get the human resources to assist in meeting the identified goals and objectives (Stevenson & Jarillo, 1990). He outlines the resources needed in fulfilling the need identified. The entrepreneur is often responsible for the success of the business identified and its failure as well; therefore, he has to plan on how to manage the business amidst all the problems and challenges in the immediate and external environment. The entrepreneur often operates in some kind of an entrepreneurship ecosystem whereby he has to plan and develop tools that he can use to obtain additional funding and other resources needed in the achievement of the identified goals and objectives. For instance, he has to prepare his business plan in order get assistance from the bank and other financial systems. Entrepreneuship has caused the gorwth and development of small business intiatives to become large international ventures (Stevenson, 1997). This has led to great success of these multinational corporations that has been aided by resourceful and able networking among the stakeholders involved and the investors (Stevenson & Jarillo, 1990). During the course, one of the areas that interested me was the development of the social capital. This is because, in long term, it helps in achieving great internationalization in many business activities across countries of the world. This paper summarizes all that I have learnt, showing the areas that have been of great interest to me. About the resource for the research paper Stevenson & Zarillo (1990), have been effective in their research about the different ways in which people can start and manage business activities. According to this research, entrepreneurship is an important activity through which people can identify and exploit their diverse potential in solving various needs in the society and corporate world. In the same way, Stevenson (1997), outlines the six different dimensions on the subject of entrepreneurship. Entrepreneurship in itself is a process that requires careful attention on the important aspects that can guarantee the cusses of the particular initiatives that has been started. O’Reilly & Tushman (2004), have emphasized in their research that the entrepreneur has a big part to play in the success of the business enterprise that he initiates. In this case, exploration of the particular business environment is important for the success of the business enterprise he initiates, thus underlying the need for an effective environmental exploration. George, Chattopadhyay, Sitkin & Barden (2006), in their research have also pointed out that entrepreneurship is a long process that requires people engaging it to be determined to push their enterprises to success. In this case, adaptation to various environments is important in the process of understanding the main requirements for the selected business enterprise. Gibson & Birkinshaw (2004), in their research explain that failure to pay attention to the fundamentals of effective entrepreneurship process. Exploration Businesses are developed with an aim of meeting their set objectives and goals both at present an in the future. In this case, business managers have to ensure that they devise strategies that can help them exploit the opportunities discovered in their environment. By so doing, they need to ensure that they create competitive advantages and market competition, bearing in mind that other people also have similar or related businesses and want the same market share in the environment. The business growth and development process involves various processes and tasks that generally aim at creating and implementing the growth opportunities in the business. However, on one of the most important things to realize is that most often, the business owner or manager must have the bigger picture in his mind (Oviatt & McDougall, 1994).). He has to understand and identify all the different fields that are vital to the success of that business and devise strategies on how to network and link them effectively. Some of the important fields that are essential in the process of business growth and development include commerce, business, marketing and effective strategic management among others. Business development can also be described as the process of establishing the long-term value and effect for the particular business (Sarasvathy, 2001). This involves creating the value for its customers, markets, as well as the relationships with other related business and support systems. It is a an important thing for the particular business managers to identify all the possible alternatives to the strategies devised, this is because, the business environment is highly dynamic and has many factors that the business has to adapt (Dutton & Jackson, 1987). These factors comprise of the external business environment. If the business manager does not want to involve personally in the management of his business, he appoints a person to be in charge of the business, developing and implementation strategies in consultation with other stakeholders. In this regard, the particular business developer is often responsible for the business’ analytical preparation for the probable growth opportunities the business is bound to have (Meyer, 2009). He then communicates this information to the business’ senior management or its board of directors, depending on the leadership structure that is developed (Davis & Luthans, 1980). In addition, ha also has to communicate and pass the information to the support team and other people deemed important in the implementation of these strategies. Becoming ambidextrous The process of turning a small business enterprise into a big and lucrative business is not always easy. Many studies and research reports have indicated that many small businesses start small and fail to manage their growth strategies to grow; most of them often remain in their small state for a very long time (Han & Celly, 2007). Research has indicated that approximately one-tenth of the one percent of companies developed never reach up to $250 million in their yearly revenue (Han, 2006). To a more microscopic analysis, about 0.036 percent of these companies reach $1 billion in their yearly sales, in this understanding, it is evident that most businesses start small and remain in that state for a very long time (Han, 2006). While some companies have found it difficult to maneuver and transition from small to big business, others have managed to beat the odds and development bigger multinationals that continues to influence social and corporate life in the world. One example among the many in the world include McFarland Keith, who is an entrepreneur, as well as the former CEO of Inc. 500. Keith notes in the whole world, many books and journals have been written about how to start and succeeded in running small businesses and growing them to become excellent global businesses. Keith notes that in as much as many books have been written about small business management and growth, entrepreneurs are supposed to learn from many of those business persons that have become successful in their own businesses. Learning from people that have succeeded is important because they can become mentors, helping the emerging entrepreneurs in the business strategic planning and strategy formulation. However, most of the businesses that have been started and excellent have some common characteristics in terms of how they create and monitor their growth and development. Social Capital As Keith puts it, one of the ways to grow and move from one point, say A to B, is putting up a most reliable and effective growth plan. This plan must the one that delivers the most desirable results from the least amounts of risks, efforts and costs. Growth strategies in business can be compared to a ladder, such that the rungs at the lowest levels presents few risks, however, they may happen to be less quick-growth influencers. The most important thing, especially for business that are just beginning is to put much emphasis on the strategies found in these lower rungs with respect to the business ladder. Thereafter, they can move up the ladder according to how they identify and exploit opportunities as they present in the business environment. As the entrepreneur continues to develop and implement his growth strategy he has to focus on the strategies in the lower rungs first. This is because, these strategies are essential for the success of the business in the future. A business that is firmly established is that which has managed to succeed in the hurdles found at the initial stages of its business growth. It is important to note that as the business manages the strategies, the level of difficulty and risk increases. In the same way, the expected returns from those risks also increase; businesses that have high risks in the management often have high returns. Most of them enjoy economies of scale and are lucrative. Some of the particular aspects of effective strategy formulation and implementation are discussed below Research in international ventures One of the simplest and less risky strategies for any business involves selling the goods and services it has created to its customers. In this case, a business’ focus is to sell more goods and make more returns. The business’ main objective in this strategy involves looking for ways to sell pack of beverages to clients, then selling two, five until the business can manage to distribute and sell a dozens of packs to customers in far off places. It is important to note that one of the ways of increasing and growing the business is using the already available customers. When the current customers are satisfies and contented with the business products and services, they often make referrals to others. In this case, the business can effectively a big market share, prompting the need for more strategies in order to sustain the market share and increase its competitiveness and market position. The next stage or rung on the business’ growth ladder is devising a formula in which it can sell many of its current products and services to new markets. This has to include traveling to the next town or city and offer the same services and products. One of the most essential approaches towards developing the market is conducting a market research. A business needs to have a market research and development team that can analyse and determine the profitability of certain markets before the business can launch its products And services in the new identified marke. It is important to note that the strategies that have been used effectively and with much success in one place may not really be effective in another market. For this reason, the business does not have to roll out its products and services in the new market without first having to determine the growth and business prospects in the new market. Market development, therefore, becomes an important strategy that business owners have to take with great care because it can also bring loses when not effectively done. Diversity In this strategy, the business focuses on the different ways in which it can offer its products to its clients. It is important to understand aspects of consumer behavior before choosing on the alternative channels that can be used in this strategy. Currently, many businesses are turning to the online platform as an important channel through which it can offer its products and services. When choosing the nest alternative channel, businesses have to consider the influence of information and technology, as well as how they can leverage on the developments in these elements to increase their competitiveness (Han, 2007). The current wave of globalisation has resulted in a great demand for internet and related services. Many people can now look for information on the internet about different kinds of businesses and the services they can get from the comfort of their homes. In the same way, some businesses have followed suit by creating websites, blogs and other online platforms where they can market and provide information about their business and the products and services they have. Alternative channels can be important cost saving strategies especially for business that are just emerging. For instance, the internet offers opportunities where businesses can market their goods freely, while avoiding the conventional methods that are often expensive and inefficient especially when the target market is spread in a large area. The fact that the internet technology is worldwide means that businesses that use this alternative in the products and service marketing can reach many people easily. Another important aspect of using the internet as an alternative channel is that it makes it easy for the business to interact with its clients directly, thereby, helping to clarify some of their concerns about the business goods and services and other important issues influencing their purchase behavior and patterns (Han & Celly, 2008). This is different from other conventional ways of marketing where the business relies on certain means that do not allow to have personal appeal with the business. Product Development This is an important and classic business growth strategy that involves producing new products and services to fulfill the needs of the customers. In the same way, the strategy enables the business to fulfill the needs and preference of new customers who may have decided to try out the new products and services from the business. If businesses would have a chance to make a choice, they would prefer to sell their products and service to the already existing clients, this is because, they will incur little or no risks in the process. Selling to new clients means that the business should try as much as possible not to disappoint the clients in order to make them make some referrals to other clients. It is important at this stage for the business owners to realize that a satisfied client is likely to tell ten people about the business’ goods and services. On the other hand, a dissatisfied client can tell up to one hundred people about the business and the way it is inefficient in providing goods and services to customers. Therefore, it is important that the business tries as much as possible not to disappoint its new clients. One of the ways of doing this is seeking some feedback from the clients and finding out from them about their views in terms of product and services delivery and sale. This way, the business can pass information that it is committed to improving its future processes of product development and marketing. Strategic management If a business exhausts all the opportunities on its intensive growth strategy path, the business owners can also focus on the growth strategies that are integrative or also called acquisitions. The disadvantage with this option is that in many cases acquisitions don not achieve their goals as wet out in the acquisition. Many people that decide to acquire business as opposed to starting their own is that they often do not have the main goals and objectives that the original founders had. Sometimes, this often presents a conflict of interest as the new owners many not effectively merge their business prospects with those that had been originally started. Various incidences exist where business merges have collapsed and failed to deliver their expected goals and objectives effectively, a good example is the AOL-Time Warner, which failed to pick up after the owners agreed to make the merger. In implementing the integrative growth strategy, business owners and managers have three alternative that they can chose from Opportunities and Threats It is important for businesses to understand that the business environment is very dynamic, having different factors that can influence the growth or failure of the business. In this case, they have to be prepared to do a comprehensive environmental scanning to identify the strategies it can use in exploiting opportunities in the environment (OReilly & Tushman, 2004). The external business environment often has factors that can be opportunities depending on how the business positions itself to exploit them. On the other hand, failure to develop proper strategies to exploit the opportunities can expose the business to unprecedented risks that can affect the growth and development of the business. Emerging entrepreneurs need to know that the business environment offers various opportunities for growth (Gibson & Birkinshaw, 2004); they do not have to fear to compete and launch into the entrepreneurship journey because of the fear to compete with other established businesses. Entrepreneurship has often been regarded as the best strategy that countries have used to increase their economic growth and development. This is by helping people to engage in various kinds of economic activities (George, 2006). This is done though self-employment or working in the already established businesses. Additionally, entrepreneurship makes it possible for people to expose some of the tools that they do not use, and turning them into meaningful products and services that can be recycled again. While some fear to try out, many have tried and followed the journey of other successful businesspersons to become successful, in this case, chances for growth and success are plenty. Areas that Interest me Horizontal This strategy involves buying a business that is in the same industry; in most case, this business is often the competitor. Businesses that pursue the horizontal approach to integrative growth aim at reducing the competitors in the market. Alternatively, they also aim at increasing their bargaining power by creating monopolies and economic of scale. The advantage with this kind of growth is that business acquire business that deal in the same line of product development and marketing, preventing the hassle that would have been felt if they had preferred to set the business from the start. The business has to ensure that they set up a good merger that may involve dissolving their individual entities and creating new business or simply creating franchises. Backward In this approach, a business may decide to purchase one of its suppliers with the purpose of creating and controlling its supply chain. In this case, the business is in a better position to create new products and services in a faster and effective way. Additionally, the products and services created are cheap and affordable, something that increase customer confidence and loyalty. Forward In other case, business acquisitions may involve buying businesses that are in the same line of productions. For instance, a business that deals in the manufacture of garments can choose to buy other companies that deal in the same product line. The new businesses that are bought are those that exist in the same line of distribution. One of the advantages with this strategy is that it aims at increasing the company’s ability to exploit and create a large market share. This happens by reducing the abilities of the rival businesses to command a large share of the market. Generally, a business that can offer products and services to its customers in the most convenient way often ends up commanding a large market share, thus becoming successful in its business functions. Conclusion In all institutions and the society at lane, entrepreneurship is an important subject that does not have to be left to chance. The subject is supposed to be taught in all tertiary institutions in order to expose learners to changes and trends that are happening in today’s business world. in this course, I have learnt different ways in which people can use in order to identity and exploit the simplest of all opportunities in the process of creating lasting and successful ventures. It is important to note that in most cases, many business startups require social capital in order to establish and actualize them into reality. One of the latest developments to fund such startups in today’s world is through cloud funding. However, entrepreneurs have wide opportunities they can exploit to get the help they require in order to have successful business ventures. References Davis, T. R. V., & Luthans, F. (1980). A social learning approach to organizational behaviour. Academy of Management Review, 5(2): 281-285. Dutton, J. E., & Jackson, S. E. (1987). Categorizing strategic issues: Links to organizational action. Academy of Management Review, 12(1): 76-77. George, E., et al. (2006). Cognitive underpinnings of institutional persistence and change: A framing perspective. Academy of Management Review, 31(2): 347-365. Gibson, C. B & Birkinshaw, J. (2004). The Antecedents, consequences and medicating role of organizational ambidexterity. Academy of Management Journal, 47(2): 209-226. Han, M. (2006). Developing Social Capital to Achieve Superior Internationalization: A Conceptual Model. Journal of International Entrepreneurship, 4(2-3): 99-112 Han, M. (2007). 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The six dimensions of entrepreneurship. London: Financial Times/Pitman Publishing. Stevenson, H. H. & Jarillo, J. C. (1990). A Paradigm of Entrepreneurship: Entrepreneurial Management. Strategic Management Journal, 11(1):17-17. Read More