Introduction of Entrepreneurial Management And Its Impact On Organizational Performance Assignment
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The term “Entrepreneurial Management or (EM)” is quite common in today's usage in the field of management. The notion of entrepreneurship is an embarking concept that is taken up empowering business lovers all over the world and providing them with immense growth within the market arena. In this study, focus will be given to effectively exploring the concepts associated with "EM", together with its principles.
Discussion on Entrepreneurial management
In order to maintain a solid management structure use of innovation within workplace and planning structure is important. Through entrepreneurial management, leaders of an organisation can set goals and vision for the company. Entrepreneurship management is not only helpful to create new business ideas but also plays a crucial role in innovating existing operation according to the market needs. Because of that it can have a positive impact on the communal development. Through promotion of research and development an organisation can improve their product quality and services that in turn helps in improving the standards of living. “Entrepreneurial management” refers to a structure that determines the practice of innovative ideas associated with entrepreneurship. This is majorly a framework or a backbone that strengthens the entire management structure within an organization (Gupta and Dutta, 2018). For example, Jeff Bezos, founder of Amazon, a retail company known to be one of the best entrepreneurs in today’s world, has provided much to his business. This is because the business took its start by initially selling books with a number of limited audiences. According to Jeff Bezos, the start may be small and insignificant but, it needs to be consistent in order to make it big and huge. Through understanding the market trends and requirements and making innovation in the service offerings, entrepreneurs can meet consumers ever changing needs. Most of the time it is evidenced that several organizations struggle in maintaining a proper structure of their management boards and their workings (Lumpkin and Dess, 1996). These problems can be overcome through effective application of innovation and entrepreneurship ideas within business organizations that in turn increase the notion of efficiency and level of performance in the workplace.
Another instance is Mark Zuckerberg, who is the founder of Facebook and is considered one of the best entrepreneurs in this world. With the incorporation of technology, he has built a massive advancement by introducing Facebook to the world. In today’s world, this social media is considered to be the most used social media platform. Steve Jobs, was the chairperson and a cofounder of four big technology companies and has contributed significant development to these companies. With proper understanding of the market through extensive research entrepreneurs can develop proper structure of the operation that can help company to achive success its goals (Gabrielsson et al. 2020). In addition to these, it is noted that one needs to generate a plan associated with management of an entrepreneur before establishing its management. "Swan Vesta – The matchbox millionaire" seems to provide one of the best examples catering to the implementation of "Entrepreneurial management”.
- Principles of entrepreneurial management
In conducting “EM”, one needs to cater to certain principles that majorly aim at providing entrepreneurs the notion of control. The principles involved, statement of mission and as well values, goals concerning specific outcomes, strategy of growth, strategy involved in financing, choice of people within the organization and lastly, the strategy of successive growth of the organization (Montiel-Campos, 2018). .
Statement of values and mission
In order to achieve goals in a business, company needs to sets some values as well as objectives within the workplace (Satalkina and Steiner, 2020). Some common values that are explored by entrepreneurs in conducting their businesses sum up to a few aspects, such as innovation, diversification within the system, approach to sustainability, courageousness, notion of passion and curiosity.
Goals are quite essential as it supports a company to follow the direction of success by maintaining short and significant steps. However, these will as results help in fulfilling the set forth targets. For new businesses, objectives and mission should be set up after through market evaluation that can ultimately helps in company’s growth in future. (Lumpkin and Dess, 1996). Thus, before setting up a goal it is essential to have a piece of intensive knowledge about the market arena, as with proper knowledge company will be able to create its unique and effective strategies.
Strategy of growth
“Growth strategy” is essential and is interlinked with the fulfilment of the set forth goals and objectives associated with the company. Several strategies can be implemented but the entrepreneur needs to acknowledge what kind of strategies will initiate growth of the organization (Thompson-Whiteside et al. 2018).
While establishing new business in the market, development of new financial strategy is highly essential. During the first phase, business can go through many obstacles that can lead to financial losses. Therefore, having proper financial plan can be helpful for the future development. In order to emancipate growth of business organization one needs to focus on strategies for financing (Tan et al. 2020). It is basic to know that in starting up a business, one needs to invest a considerable amount of money and needs to use it in such a strategic manner that will lead to channelization in a proper way providing growth to the business organization (Ng and Kee, 2018). .
Structure of organization
Structure of organization is essential in determining the proper evaluation of “entrepreneurial management” contributing massive success associative of revenue generation. If the structure of organization is not properly constructed, then it may result in deterioration of the entire organization. Furthermore, proper division of a business organization is essential as it contributes quality time and quality work by the employees within the organization. However, this depends on the personality and abilities of an entrepreneur. More to this, an effective entrepreneur is quite capable of providing growth and development within the organization by conducting a proper division. Having proper structure not only provides strength to the company but also results in the notion of sustainability (Soomro and Shah, 2019). This also contributes to positive notions of the aspects of decision making and relates to aid the company at the time of difficulties. Proper structure of company provides, quality time to the organisation and also aids to manage the loopholes found.
Selection of right employees
Lastly, right employees as per the qualification are an essential aspect. This is because, without people no organization can work, therefore, people are the only response being in achieving goals (Poudel et al. 2019). Moreover, their skills and knowledge are vital in determining the rate of growth associated with a company's progress within market arena.
- Elements of Entrepreneurship
There are eight traits that support success in business organizations. First of them is “leadership”. Entrepreneur needs to possess the characteristics of efficient leadership that means one needs to be able to lead the entire organization or the specific departments within the organization (Li et al. 2020). Vision is another key element that determines the farsightedness of an entrepreneur which is followed by motivation and positivity along with the approach towards maintaining proper management of entrepreneurship. .
The next key element is the notion of risk inclination as understanding potential risks in the business can be helpful to mitigate issues that can develop both financial and non financial challenges (Latif et al. 2020). Risk inclination requires a bold decision and a foresightedness that sup[ports one to effectively minimize the notions associated with risks. Not only this risk inclination is only conducted when one does have the knowledge about the proper market and as well known the base of one's company. However, creativity is also important as it supports in taking up steps that tend to be quite lucrative for the progress and growth of the company. Adaptability is another concern that too provides growth of the company.
Evaluation of Entrepreneurial management
There are several notions of evaluation such as, “knowledge gained”, “capabilities” and as well as “goals” (Al-Awlaqi et al. 2021). In order to access entrepreneurship, one needs to access the three primary qualities, such as goals of the entrepreneur, their knowledge and as well as their capabilities. Knowledge is quite essential to the entrepreneur, regarding the industry, market arena, target customers, and technology that are intricately related to the concerned market of the entrepreneur (Hernández-Perlines et al. 2020). Entrepreneurial knowledge is an essential part in developing new business ideas according to the requirements. However, it will also provide ways to modify the workings of a business organization at the time of implementation.
Capabilities of organisations are associated with the different aspects of the products and service development, operational management as well as sales. However keeping tracks of the operations should be one of the greatest and most important aspects for the entrepreneurs. This not only helps higher authorities of a company to maintain a good communication but also aids management team to make future decisions as per external and internal requirements (Soomro and Shah, 2019). Entrepreneurs with winning backgrounds conducted many investments, such as, in the company of StarMedia, and Real Networks. Exceptions to this are also noted, such as, in the company of Microsoft.
Goals for entrepreneurs refer to undercurrent ideas that are driving their actions; sometimes these goals are to eradicate the relevant big issues. The goals relate to financial aspects, personal and career aspects (Abbas et al. 2019). Indirect discussions and minute observations display most about the goals of an entrepreneur. However, beliefs together with objectives determine the win out or major break of entrepreneurs with their stakeholders. Thus, all these effectively determine the entrepreneurial management of an organisation.
Impact of entrepreneurial management on organization
The first one is it boosts economic growth within the organization leading to introduction of modern technologies, services and as well products. It also shows the rate of competition within the market arena, thereby, increasing the level of performance of respective organizations (Wol.iza.org, 2022). Taking the example of Jeff Bezos, who is the founder of Amazon, we can get the idea that due to the EM, a huge economic boost has been noticed. Furthermore, in the company of Microsoft, the impact of such renowned entrepreneurship of Bill Gates is noticed that led to massive development in the business organisations.
Impact of entrepreneurial management
(Source: Wol.iza.org, 2022)
. There lies massive growth in the productivity level of the respective firms. Moreover, structural changes are also noticed that provide acceleration to business organizations (Kiyabo and Isaga, 2020). In the graph below, it is evidenced that the number of private forms has massively increased over the years in UK.
Number of private sector businesses
(Source: Statista.com, 2022)
In conducting the study, notions of entrepreneurial management have been discussed and have proved to be an essential strategy for success of any business. From the study, it is acknowledged that several principles are there that need to be followed to initiate positive growth in newly established business organizations. Moreover, from the records of private businesses that were established within the UK, it is seen that each year the rates followed the graph of elevation and that these prime organizations are running successfully focussing their business.
Explanations of five dimensions of entrepreneurial orientation
In delving into the orientations of entrepreneurs within companies, five dimensions have catered that constitute, "autonomy”, “taking up of risks”, “notion of innovation”, “aggressiveness in competition” and lastly, “nature of proactiveness”. “Entrepreneurial orientation or (EO)” is an important concept in dealing with strategies that are crafted by executives at the time of implementation of new methods (Al-Awlaqi et al. 2021).
The first term is referred to as autonomy, which is notably a crucial aspect as this provides freedom to an individual within the organization to express his or her ideas. Providing autonomy to people within the organization will support determining sharing of innovative ideas as well as approaches. The second is “aggressiveness in competition”, this is to provide healthy competition to the organization with that of others present within market (Hernández-Perlines et al. 2019). However, competitiveness has both positive and negative impacts, therefore, needs to be taken care of.
Taking risks also caters to one of the dimensions that are noticed within the five dimensions of EO, as this relates to engaging in boulder decisions rather than being cautious. For example, the company of Starbucks, in the year 2009, has taken up a bold move, when they introduced instant coffee known as “VIA Ready Brew”. Although the customers have considered the drink as a bland drink, Starbucks has decided to distribute such products following a style of “make-at-home”. This further resulted in elevating the business in the market arena. Oftentimes risk-taking is essential to give the company a boom and it happens when there lies an effective EO within the organization (Sedziniauskiene et al. 2019). Innovation is essential in any field without this it is quite difficult to sustain within market arena. In EM, innovation is required to enhance the business. Proactiveness is quite an essential factor as it provides a pathway for the future. This nature tends to provide support to the events that are about to happen in future
Gibbs Reflective model
This cycle caters to six stages namely, “description”, “analysis”, “conclusion”, “feelings'', “action plan”, and “evaluation” (Sekarwinahyu et al. 2019). In the stage of description, it is noticed that risk-taking is quite a critical factor and without determination, it can lead to failure of the project. This is because many drinkers considered this kind of coffee to be a bland drink, but later it is evident that the notion of risk-taking benefited the Starbucks company. As in today’s market, we associate the name of Starbucks with instant coffee. The feeling is a bit scary and fearsome. It may have been felt that the decision to launch instant coffee will be quite risky in determining the growth of the business. However, it is often stated that chronic risk-takers take up action after proper planning and forecasting thereby reducing uncertainty (Felix et al. 2018). Therefore it is quite essential to have a proper entrepreneur.
Gibbs Reflective model
(Source: Adeani et al. 2022)
In the evaluation stage, it is well understood that one needs to determine that significant strategies are to be applied in order to prevent risks. Furthermore, it is noticed that Starbucks has rightly evaluated their status of taking up such risks, that has prevented them. In the concluding stage, it is noticed that experienced individuals are capable of taking up risks. In the action stage, it can be stated that preconceived experiences are to be applied for desired results.
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