Professional Documents
Culture Documents
Definition
Bird (1995)
Types of Competencies:
a) Initiative
The entrepreneur should be able to take actions that go beyond his job
requirements and to act faster. He is always ahead of others and able to become a
leader in the field of business. He Does things before being asked or compelled by
the situation and acts to extend the business into new areas, products or services.
An entrepreneur always looks for and takes action on opportunities. He Sees and
acts on new business opportunities and Seizes unusual opportunities to obtain
financing, equipment, land, work space or assistance.
c) Persistence
repeated or different actions to overcome an obstacle and Takes action in the face
of a significant obstacle.
d) Information Seeking
An entrepreneur places the highest priority on getting a job completed. They make
a personal sacrifice or take extraordinary effort to complete a job. They accept full
responsibility for problems in completing a job for others and express concern for
satisfying the customer.
g) Efficiency Orientation
h) Systematic Planning
An entrepreneur develops and uses logical, step-by-step plans to reach goals. They
plan by breaking a large task into subtask and develop plans, then anticipate
obstacles and evaluate alternatives. They take a logical and systematic approach to
activities.
i) Problem Solving
Entrepreneurs identify new and potentially unique ideas to achieve his goals. They
generate new ideas or innovative solutions to solve problems and they take
alternative strategies to solve the problems.
j) Self-Confidence
Entrepreneur with this competency will have a strong belief in self and own abilities.
They express confidence in their own ability to complete a task or meet a challenge.
They stick to their own judgment while taking decision.
k) Assertiveness
l) Persuasion
n) Monitoring
Entrepreneurs with this competency normally monitor or surprise all the activities of
the concern to ensure that the work is completed by maintaining good quality.
Reference: http://www.simplynotes.in/mbabba/entrepreneurial-competency/2/
-To prepare sales contract (such a s credit sales or long term sales) that may be
utilized in the contracts
-To evaluate contracts.
-To determine the need for protection of ideas and intentions.
2. Competency Assessment:
3. Competency Mapping:
Now, the actual competencies possessed by an entrepreneur are compared with the
competencies required to become a successful entrepreneur to ascertain the gap in
the entrepreneurial competencies of an entrepreneur (Cooper 2000). This is called
in the human resource training and development lexicon as Competency Mapping.
In other words, this is just like training needs identification in case of HR training.
This is presented as follows:
This may result in four possible situations as shown in the following Figure:
Among all four situations, this is the ideal one. The entrepreneur is fully able, i.e.
qualified and is performing his job as designed and desired. He is supposed to be
star or ideal performer as an entrepreneur.
In this situation, the entrepreneur is putting out his efforts to perform the job, but is
not getting the desired results out of his efforts. It means he is lacking ability or skill
to perform the job. Thus, it implies that the entrepreneur needs training, or say,
competency building.
Here, the entrepreneur is qualified or possesses the ability to do his job but is not
willing to perform the same. This implies the lack of desire or motivation. Thus, the
entrepreneur needs to be motivated to perform his job.
The entrepreneur has deficiency in both ability and will (motivation). In a sense, he
is just like deadwood and his entrepreneurial job is in jeopardy. Thus, the
entrepreneur either needs to continue like this or disappear from the
entrepreneurial role.
4. Development Intervention:
In simple terms, feedback means to know the strengths and weaknesses of ones
new behavior. This helps one know how the new behavior has been rewarding. This
enables one to sustain or give up the exhibition of a particular behavior or
competence in his future life.
Edgar Schein (1990) says that the only important thing that leaders do may well by
constructing culture. He says that an organizations culture is grounded in the
founders basic beliefs, values and assumptions. Values what is worth having or
doing and vision where we are going and how we will get there and how it is
communicated are vital ingredients in creating culture. Having entrepreneurship at
the core of these values is fundamental and essential for the success of the
Define clearly what the values and vision are. This provides a clear focus on
key issues and concerns for the organization.
Get everyone in the organization to understand the values and vision through
effective communication practices.
Guide the development of policies and programmes that support the vision.
Encourage the enactment of the values and vision through their own personal
actions walking the talk acting consistently over time to develop trust,
showing that they are reliable and can be trusted to do what they promise.
This reassures people who are concerned about change.
Show concern and respect for the members of the organization,
demonstrating through actions that they are important.
Bowman and Faulkner (1997) talk about organizational culture being formed or
embedded in an organization from three influences; organizational processes,
cognitive processes and behaviors. All these influences Burns represents in
following figure:
Burns talks about five high level elements that really set the culture of the
organization apart as being entrepreneurial. They represent the real DNA of the
entrepreneur:
Examples:
Zappos: Zappos has become almost as well known for its culture as it is for the
shoes that it sells online. What does that culture look like? It starts with a cultural fit
interview, which carries half the weight of whether the candidate is hired. New
employees are offered $2,000 to quit after the first week of training if they decide
the job isnt for them. Ten core values are instilled in every team member as:
1. Deliver WOW Through Service
2. Embrace and Drive Change
3. Create Fun and A Little Weirdness
4. Be Adventurous, Creative, and Open-Minded
5. Pursue Growth and Learning
6. Build Open and Honest Relationships With Communication
7. Build a Positive Team and Family Spirit
8. Do More With Less
9. Be Passionate and Determined
10.Be Humble
Twitter
Employees of Twitter cant stop raving about the companys culture. Rooftop
meetings, friendly coworkers and a team-oriented environment in which each
person is motivated by the companys goals have inspired that praise. Employees of
Twitter can also expect free meals at the San Francisco headquarters, along with
yoga classes and unlimited vacations for some. These and many other perks are not
unheard of in the startup world.
Google
It would almost seem wrong not to mention Google on a list of companies with great
culture. Google has been synonymous with culture for years, and sets the tone for
many of the perks and benefits startups are now known for. Free meals, employee
trips and parties, financial bonuses, open presentations by high-level executives,
gyms, a dog-friendly environment and so on. Googlers are known to be driven,
talented and among the best of the best.
Adobe
Adobe is a company that goes out of its way to give employees challenging projects
and then provide the trust and support to help them meet those challenges
successfully. While it offers benefits and perks like any modern creative company,
Adobe's is a culture that avoids micromanaging in favor of trusting employees to do
their best.
ENTREPRENEURIAL MOBILITY
There are following some important factors influence the entrepreneurial mobility in
a given situation and time:
1. Education: An entrepreneur must be educated person. He/she also enables to
adjust with the different conditions more easily and clearly and communicate
others in a better manner. Thus, an educated entrepreneur tends to be more
mobile than an uneducated one.
2. Training and Experience: An entrepreneur must be properly trained and must
have some past experience in business or industry. An experienced
entrepreneur better perceives the available opportunities, better analyses
his/her strengths and weaknesses and also understands the complexities
involved in running an enterprise. That technical knowledge and experience
influences the entrepreneurial mobility.
3. Availability of Facilities: The entrepreneurs may move from the areas with no
or less facilities to the areas with more and better facilities. These facilities
include -
a. Govt. facilities - availability of raw materials, labors, market facilities.
b. Infrastructural facility.
4. Political Conditions: The entrepreneurial mobility is also influenced by the
political factors, such as tax policy, employment laws, environmental
regulations, political stability, trade restrictions and tariffs.
5. Size of Enterprise: Entrepreneurial mobility is related to size of enterprise.
Larger business houses are found more mobile than smaller ones. Because a
large size of enterprise will have the capability to start a new business at a
new place.
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PRACTICE EXERCISES:
Opportunity search means the extent to which possibilities for new ventures exist
and the extent to which entrepreneurs have the Smooth way to influence their odds
for success through their own actions.
Now how do you turn a business idea into an opportunity? Well, you can turn a
business idea into a business opportunity by conducting market research and
feasibility study on your idea, writing a business plan and assembling a business
team that will work with you on your idea. Only then will such idea become an
opportunity that will attract investors and probably get the needed financing.
Successful entrepreneurs are good at turning ideas into opportunities.
By Paynes lights, most innovations fail because their creators didnt ask tough
questions at the outset. He calls the problem putting the wow before the 'how.'"
Google Wallet. Intended as both a new convenience for consumers and a way to
harvest more customer data to drive targeted advertising, the product was
designed to replace your old leather billfold with an all-digital phone-based app.
Google Wallet had plenty of wow but the how has been its downfall. For one
thing, it involves digitizing credit cards, and the card companies demanded such big
fees for participating that Google reportedly lost money on every transaction. Phone
The debacle has so far cost Google at least $300 million, and the executives who
led the team have left the company. Google Wallet is perhaps an idea ahead of its
time, though some of the structural factors impeding its success will be hard to ever
overcome, Payne writes. But for now, its a great case study in what can go
wrong with any companys world-beating idea when too many tough questions go
unansweredor unaskedat the start.
What is an opportunity??
Attractive Opportunity: First and foremost, your idea needs to be attractive to your
target customers who will buy your idea. You first you need to identify who your
target customers are for this idea to work. The idea must also be attractive in the
industry in which it is going to compete. When I say attractive I do not mean just
aesthetics and a cool look and feel. I am also referring to the idea itself. Does it
create excitement? Does it have an attractive price point? Will the quality and ease
of use meet or exceed the users expectations? Is it unique? Does it have attractive
features and benefits? Basically, what about your idea would make people want to
buy it?
Durable: Durability of an idea from a business standpoint means that it can last as a
business. A PRODUCT and a BUSINESS are two very different things. Businesses
create products, but a whole business built around one product that has little
scalability is pretty much a dead end. A scalable product can penetrate multiple
markets and sometimes industries with many ways to grow. A perfect example is
the invention of the microfiber textile. Some may see this as just a rag for cleaning
thus just a cleaning product. But it can also be cut into the shapes for clothing,
embroidered with corporate branding, and BOOM! Now that same rag is sold in the
clothing departments with minimal change to the textiles manufacturing and
production processes.
Creates Value: This is obviously one of the most important factors to generate sales.
Your idea must create value in order for people to purchase it, thus generating
revenue for your business to be sustainable. A big consideration here is the cost of
the idea in relation to the value it creates for the customer. If it costs more than the
value of the pain you are solving, then people will not want to buy it, aka willingness
to pay. Recently, consumers have been facing this issue with high-end smart
watches. They have a $700 phone in their pocket, so do they really want to spend
another $200-$400 to read a text on their wrist? Is the time they save from having
to pull their phone out of their pocket really worth $400? The watches do much
more than that, but the mass market does not see things the same way as the
innovators did. This is common in the early adoption stages, where products are
looked at through a very simplified lens by the mass consumer. However, now that
the prices have come down, more people are adopting this technology now that the
price is beginning to match the perceived value. So, again, does your product create
perceivable value that is affordable? Do some research and talk to people in your
target markets. Its amazing how much you can learn if you just ask the right
people.
Timely: Timely can get a little tricky as this is really an area of economics,
demographics, psychographics, and various other externalities. Basically, this
quality comes down to the question, Is this the right time for my idea? When
analyzing this, it is always best to look at various trends. Major trends to consider
are economic trends, social trends, technological trends, and industry trends.
Window of Opportunity
OPPORTUNITY IDENTIFICATION
The first approach to identifying opportunities is to observe trends and study how
they create opportunities for entrepreneurs to pursue. There are two ways that
entrepreneurs can get a handle on changing environmental trends:
They can carefully study and observe them.
They can purchase customized forecasts and market analyses from
independent research firms.
When looking at economic factors and how they affect opportunities, first you
should evaluate who has money to spend.
When incomes are high in a particular group or there is disposable money available,
people are more willing to buy products and services that enhance their lives. A
great example of this would be the teen and pre-teen market. When kids have
money, they buy stuff. Products and services such as designer clothing,
downloadable music services, new smart phones and all the other things that these
kids buy are a huge market and therefore have opportunistic possibilities. Another
gigantic market is the aging baby boomers. These folks have spent a lifetime saving
money and preparing for their retirement and they have disposable income.
An understanding of the impact of social forces on trends and how they affect new
product, service, and business ideas is a fundamental piece of the opportunity
recognition puzzle. Often, the reason that a product or service exists has more to do
with satisfying a social need than the more transparent need the product fills. The
proliferation of fast-food restaurants, for example, isnt primarily because of
peoples love of fast food but rather because of the fact that people are busy and
often dont have time to cook their own meals. Similarly, social networking sites like
Facebook and Twitter arent popular because they can be used to post information
and photos on a Web site. Theyre popular because they allow people to connect
and communicate with each other, which is a natural human tendency.
Changes in social trends alter how people and businesses behave and how they set
their priorities. These changes affect how products and services are built and sold.
Technological factors:
Given the rapid pace of technological change, it is vital that entrepreneurs keep on
top of how new technologies affect current and future business opportunities. Entire
industries have emerged as the result of technological advances. Airstrip
Technologies, a recent start-up, enables doctors to monitor critical patient
information remotely on a smart-phone or computer. The companys founding was
motivated by a desire on the part of doctors to stay in closer contact with their
critical care patients while away from the hospital and while those patients are
receiving treatment in locations outside a hospital. Advances in wireless
technologies made the system possible. In most cases the technology isnt the key
to recognizing business opportunities. Instead, the key is to recognize how
technologies can be used and harnessed to help satisfy basic or changing needs.
For example, OpenTable.com is a Web site that allows users to make restaurant
reservations online and now covers most of the United States
Political Factors:
Political change also engenders new business and product opportunities. For
example, global political instability and the threat of terrorism have resulted in
many firms becoming more security conscious. These companies need new
products and services to protect their physical assets and intellectual property as
well as to protect their customers and employees. The backup data storage
industry, for example, is expanding because of this new trend in the tendency to
feel the need for data to be more protected than in the past. An example of a start-
up in this area is Box.net, which was funded by Mark Cuban, the owner of the Dallas
Mavericks. Box.net allows its customers to store data offsite on Box.net servers,
and access it via any Internet connection.
SOLVING A PROBLEM
There are three basic stages/steps involved in product/venture selection. These are
idea generation, evaluation and choice.
Evaluation: Screening of the product ideas is the first step ill evaluation. Such
criteria as potential value of the product, time money and equipment
required, fitting of potential product into the businesss long range sales plan
and availability of qualified people to handle its marketability need be
thoroughly considered.
In selecting product for your business venture, the following factors must be taken
into consideration:
2. Fund: The size of the funds that can be mobilized is another important factor.
Adequate fund is needed to develop, produce, promote, sell and distribute
the product selected.
5. Profitability/Marketability: Most often, the product that has the highest profit
potential is often selected. However, a product may be selected on the basis
of its ability to utilize idle capacity or complement the sale of the existing
products. The product must be marketable.
A wrong choice when made, often leads to product failure. Product failure may be
caused as a result of one or combination of the following:
Product problems and defect e.g. the manufacturing of a product that is too
costly or too complicated.
Inadequate marketing support. For Instance, the company may have rated
the product so high in the market that they cut back on promotion.
Lack of consumer education about the product.
Product Modification
Product selection is one thing, the sustainability of the product in the market is
another thing entirely. There need to at least stabilize the sale of the product. This is
where product modification comes in because of the dynamic nature of the business
environment. However, the technique to use to modify a product is dependent upon
the circumstance of the product in relation to the buyer. There are some possible
alternatives of product modification, namely: