Contextual Factors for Entrepreneurship - myassignmenthelp.com

Question: Discuss about theContextual Factors for Innovation and Entrepreneurship. Answer: Introduction: Innovation and entrepreneurship is the contextual factor that has great impact on the functioning of the companies. Entrepreneurship is the factor that is related to the activities that are conducted by the organizations (Teece, 2010). It is not necessary that every business have that entrepreneurship quality in them. Innovation is one of the factors that drive entrepreneurship. This is because it is required by the companies these days to be innovative so that they can attract the customers by offering them something new. This essay aims at identifying the contextual factors and their impact on the strategy and decision making practices of the company. The contextual factor that has been discussed in this essay is innovation and entrepreneurship at the business. The scope of the study suggests that the contextual factors affect the companys functioning and understanding this impact can help the company to strategize itself. Contextual Factor: Entrepreneurship refers to the capability of the person to develop mad organize the business processes in order to conduct the business activities along with taking the risk associated with it to earn the profit (Drucker, 2014). It can also relate to exploit the opportunities available in the marketing a fulfilling the needs of the market. The theoretical aspect of the factors suggests that risk taking is the first and foremost quality that should present in the entrepreneur. Economic theory of entrepreneurship relates the risk taking aspect with entrepreneurship. The criticism of this theory deals with non-consideration of other factors such as the environment changes and resource availability (Tidd Bessant, 2015). Thus, this theory has not been accepted. Another theory that is based on resources have been developed which suggests that entrepreneurship is about exploiting the opportunities and using the resources available to conduct the business activities. Innovation is also cons idered as the major contextual factors that affect the functioning of the company. It can be defined as the aspect that brings changes in the existing functions or processes or developing the new ones according to the requirement of the market. As both the entrepreneurship and innovation is related to fulfilling the needs of the market thus both are the important aspect of business. Impact on Strategy and Structure of the Company: As per the business discussed in the above case, it has been identified that it is the company that operates in supermarket industry. Supermarket retail industry is very saturated thus developing new and innovative products and processes is the basic requirement of the company (Franke, Harhoff, Henkel Hussler, 2013). It is not only the new products that required to be developed but the structure of the company needs to be innovated in order to attract the market and compete with the competitors. As far as entrepreneurship and innovation in strategic management is concerned, it has been analysed that there are three types of entrepreneurship in the business that can be implemented by the above discussed company. The first one is about creating something new in the existing business, second is transformation of the organization and third one is the changes in the competition rules for the industry (Galindo Mndez, 2014). As the business is new, it is required by the company to come up with any new products that can attract the customers along with innovative process of customers interaction. This is because it is the process that directly deals with the customers and can be noticed by the customers. It has been analysed that structure of the company and the strategies used by the same gets affected by the entrepreneurship level of the company (York Danes, 2014). If the company has the capability to exploit the resources then it may have different strategies along with contingency planning while the company does not have the capability to take the risk then it may have strategy without contingency plan. As per the above business, it is required by the company to implement the strategies that are without risk because it is the new business venture and if the risks have been taken at the initial stage of the business then it may be possible that business fails to penetrate in the market (Kerr, 2013). Today, businesses are using many innovative technological method s in their processes. Communication is one of the processes in the business that required to be focussed upon so that the business can interact with the clients and with the other staff members. Intranet is one of the strategies that are a new innovation in terms of communication inside the company. As the company operates in supermarket industry, so it also needs to develop the technological tool for the stores so that all the stores can be linked to each other (Bierly, Gallagher Spender, 2014). The tools such as intranet application can be made so that the staff of different stores can share information about the inventory and the goods with each other. Impact on the Decision Making of the Company: Decision making is the function of the company that needs to be conducted with a proper process. This is because the outcome of this function decides the fate of the business in future. All the strategies and the processes conducted in the company depend on the decision that has been made for the company by the management. This is the function that needs to be conducted on daily basis at lower levels (Bessant Tidd, 2007). Small decision regarding any of the issues faced by the company needs to be taken by the mangers in which the top management of the company is not involved. In case of supermarket, store managers are the one who needs to take the decision daily as they have to deal with the stock and the sales at daily basis. The store managers also have to show their entrepreneurship skills at this time because it is not possible to ask to the top management about every issue faced at the store (Oliveira, Rozenfeld, Phaal Probert, 2015). Innovation in the daily processes and func tions of the store such as implementation of the intranet process or the application that is used to record the data of the sales and the inventory helps in making decisions. This is because the data is clearly sorted in front of the managers. He can easily look for the drawbacks and the areas where the issues are generated thus decision making process also become easy (Jerinabi Santhi, 2012). It becomes speedy as well because use of technology in such processes helps in analysing the data with high pace and thus decision can be made easily. This also results in making effective decision as the data is accurate if calculated from this application. Human efforts reduce by using such applications. No staff can do any illegal or unethical practice in the store because all the data is captured with the help of the bar code on the products. This helps in analysing the sales and inventory stock of the products easily. The staffs need to count the products manually but the data is recorde d in the software that helps in identifying the products quantity at the store, this information of the data helps in managing the inventory (Windrum Koch, 2008). The store manger can make the decision over the ordering of the products according to the quality left. Counting the products manually take too much of time and efforts are also very high in this case. As far as the entrepreneurship is considered, it should be there in each and every employees of the company especially the ones who deal with the customers directly. Conclusion: It has been concluded from the report that entrepreneurship and innovation are the basic elements that needs to be considered by the companies in order make the process effective and efficient. Entrepreneurship is the factor that is related to the activities that are conducted by the organizations. It is not necessary that every business have that entrepreneurship quality in them. Innovation is one of the factors that drive entrepreneurship. This is because it is required by the companies these days to be innovative so that they can attract the customers by offering them something new. But these contextual factors have their impact on the strategies that the company make and the process of their decision-making. 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