CORPORATE INNOVATION AND ENTREPRENEURSHIP

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Table of content

Answer 1. ........................................................................................................................................ 3
Critical awareness of factors, which give rise for changing management in organizations ........... 6
Innovation of challenges within an organization and how to address them ................................... 7
Answer 2) ........................................................................................................................................ 9
Implementation of entrepreneurship theory .................................................................................. 12
Identifying corporate issues and criticizing them through practice of strategy ............................ 13
Recommendation .......................................................................................................................... 14

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Answer 1.
Innovation approves all the processes such as designing, planning, operating etc., which utilize
new ideas, imaginations or information for enduring the new and useful products, which helps
the organization for the extension of the business nationally and globally. An organization
welcomes some innovations such as technical innovation, administrative innovation, product
innovation, process innovation etc. for the growth of the business.
In this question the concept of innovation and challenges within an organization has been stated.
For simplification, the focus is being on AirAsia. This assignment also devises the critical
awareness of factors, which give rise for changing management in organizations. It also televises
the innovative challenges with an organization and how to address them.
An organization introduces some technologies in its products through technical innovations. As
per the comment of Drucker, (2014), by this innovation process, the company involves some
advanced technologies in the products to compete in the marketplace. Advanced technologies in
the products help the organization to grow the level of the products and the business as well.
Administrative innovations of a company include the structure of the organization and the
process of the administration. Through this innovation, the company devises the activities of the
management and its employees, which is one the key element for the growth of the business. Asa
per the opinion of Burns, (2016), by the product innovations, the company constantly tries to
improve its products and its services to satisfying the crave of the customer. The company
introduces new and advanced products including advanced technologies by this innovation
concept. By the process innovations, the company improves the processes and endures various
ne processes which the company can escalates its level of business.
AirAsia, which is recognized one of the most innovative aviation company globally, endures
these concepts of innovation for the betterment of its products and services. It introduces auto
check-in process in which the passengers confirm their presence in the flight via internet 24
hours before the time of departure. It also introduces the facility of mobile boarding pass in
which the passengers get their boarding passes in their mobile phones and it helps to save the
usage of paper as well. AirAsia also includes some facilities such as automatic document
validation and verification and automated baggage drop which help the customers to provide

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their luggages at the fully self-service counters which help them to experience the airport facility
better and it helps to save their time as well.
It has been analyzed in AirAsia that they introduce the highly educated and talented people as
employees of the company. Sometimes, it is shown that they are unable to proceed the way of
innovation as all the employees try to be innovative in their own ways and sometimes it leads the
way of miscommunication. This issue of miscommunication creates gap among the employees
and sometimes they become violent with one another. They do not feel empowered when their
innovations are not accepted and sometimes it lead the way of bullying or harassment.
An established company employs highly skilled employees because it helps to grow the business
rapidly. As referred by Knoke (2018), a business with quality workers can help a company to
compete in the business environment even with small resources. The training cost is reduced and
also save time for the organization. Hiring skilled employees increase the production growth for
a company. It has been found out that the employees of a company sometimes face several
problems among them for the management.
But everything has pros and cons together. The negative aspects of hiring efficient workers are:
The problem in choosing the role model. Problems comes in the high skill work environment
when the administration cannot decide who can be the role model; whose innovative idea will be
more reliable for the company. If the idea of the employees on which the company relied, failed
it will have a negative impact on the company growth. Then the company will have to take
another strategy that consumes time (Ward, 2016). As the employees of AirAsia are talented
ones, they face a problem accepting the role model.
Deterioration in confidence level. With increasing in competition within the workers as leads to
failure most of the time, the employees lack confidence in themselves. Even the workers with
comparatively low skills feel inferior and lose confidence thinking them as capable to do the
work. They hesitate to implement the idea and become unenthusiastic in working in the
organization maintaining good relationships with the staffs. They also feel reluctant to take
responsibility for the organization they work in. It has been analyzed in AirAsia that the
confidence level deescalates among some of the employees when their innovation is not
accepted.
Increased competition. As referred by Ward (2016), as the competition among the employees'
increases for the above reasons, company growth decreases. Increased competition becomes a

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reason for dispute among the employees. It has found out that to prove themselves innovative
employees try to compete with one another which lead AirAsia to the way of degression.
Accountability. It has been analyzed that sometimes the employees are not responsible for their
work. This problem is caused for several reasons. As per the comment of Ferraro, and Briody,
(2017), sometimes the employees failed to recognize the value of accountability. It also has been
found out that one of the reason behind being accountability is that the employees do not feel
empowered and they are blamed when something wrong happened in the company. Sometimes it
has been shown that employees of Air Asia fail to be accountable for the deterioration of their
confidence level.
● Reorganization: The company use the process of reorganization, when it finds any
problem in the way of the business. The company craves more customers and thinks
getting more customers helps to expand the business. As per the opinion of Ward (2016),
for that reason, they make the existed products more efficient, but in real reorganizations
create some bad effects on the company. Sometimes it fails to solve the problem for
which the company incurs a great loss.
● Busyness: Sometimes the employees talk about their busyness but they have several
things to do. As a result in the end they get confused with their work and priorities. It
implies the other employees that they are not vital and they have no value in the
company. Reality is that employees who always talk about their busyness usually do not
involve themselves with their work.
● Never-ending search for right people: The company spends so much time for searching
the right people instead of giving them adequate training within the organization. As per
the comment of Ferraro, and Briody, (2017), most of the people want to introduce people
with their great performance and their capability.
● Managing people: According to El Ebrashi,(2013), sometimes the organization fails to
involve skilled managers who can manage the employees in a skilled manner to get the
desired goal in a short time.
● Trust: the manager of an organization fails to trust the employees. As per the comment of
Goetsch and Davis, (2014), for that they do not allocate the employees with the
significant jobs as per their capabilities. As a result, the employees do not get the feeling
of empowerment.

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 ● Cooperation: According to Gomes et al. (2013), when the employees of a company get
the feeling of distrust and enslavement they do not cooperate with the other colleagues
and this leads the company in the way of the digression. Some employees of AirAsia fail
to be cooperative when their innovation is not accepted.
● Communication: as per the comment of AlAali and Teece, (2014), the employees of the
organization sometimes face the issue of miscommunication and it leads the company to
the way of digression.

Critical awareness of factors, which give rise for changing management in organizations
An organization faces such problems due to employment of skilled employees in an organization
can hinder in the way of the progression of the business. Sometimes, it faces some external
forces like market changes, political and social pressure, advancement of technologies,
demographic characteristics, and internal forces like HRM issues, managerial behaviour etc.
Therefore, it involves some changes in the management of the company for an effective
outcome.
Enduring some changes in the management in an organization is one the complicated issues
faced by the organization. It adjusts and manages its products and services very carefully to grow
the marketplace.
There are several factors such as economy, structural changes in the organization, incorporation,
rules and regulations, competitive market etc. that escalates the changes for the management in
an organization. These factors welcome the changes in organizational culture and structure,
policy, distribution of power etc. The factors escalate the needs of changes in the organization to
introduce new strategies or concepts to cope up with the changed situation. Furthermore, the
factors such as the market competition, growth of the economy, the standard of living influence
the organization for enduring changes of updated programs to control the external forces
(Aib.edu.au, 2018).
As the aviation industry is becoming tough and complex, the strategy of AirAsia for growing its
business becoming weak as per the market competition. AirAsia is high reputed aviation
company with a low product portfolio and this issue creates some blocks in the way of
progression. The company always focuses on the higher price. As the customers are concerned
for their economic growth this over pricing strategy reduces the profit in the way of their
business.

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Innovation of challenges within an organization and how to address them
Innovation of challenges helps the company to reach the desired goal. A company faces some
common challenges in the way of the business innovation.
Some managers assume that innovation in the company can distract the employees from their
track. As a result, the employees of the company are restricted to involve some new ideas or
method. Managers need to support for enduring the internal innovation as it is helpful in the
way of success. The managers motivate their employees for the innovation of new ideas. For
that, they need to accept the innovation of strategies which is helpful for the implementation of
any operation. One thing the company has to keep in its mind that collaboration and cooperation
are the key elements of innovation and success. Both the internal and external collaboration
and cooperation among the employees are equally important for a company to get success. The
company needs to provide diversity in his team as it is helpful for the innovation of ideas in the
organization. Sometimes a company becomes failure to know the need of the customers. For
coping up with this issues company gives the facility of feedback so that the customers directly
give their feedback which is helpful to rectify or improve the products and the service of the
company. Sometimes the company faces the internal structural issues. For that the company
segments its employees in several provisions with their specific jobs. This activity is helpful in
observing the performance of the employees, comparing their performances against the
standards. It is also helpful to criticize and give feedback in the ongoing process. Sometimes the
employees face the work pressure as they are allocated with less time. For that reason, the
company provides sufficient time to the employees so that they can appear with more innovative
ideas. Sometimes the employees face negative vibes among them. As per the comment of
Gomez, (2013), for coping up with this issue the company provides a positive corporate culture
in which the employees can express their innovative ideas without any hesitation. Positive
corporate culture also helps to break the barrier of miscommunication.
These challenges can be addressed through some events or implementing of some policies. It has
been analyzed that in March 2017, AirAsia involves some innovative ideas for improving the
experience of its customer. It presented an event called AIRVOLUTION, in which 97 people
involved. The event lasted for 18 hours. In this event they asked some questions to the customers
for understanding their need and the effective innovations needed for the company for the
betterment of the services.

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It has always been noted that the skilled employees enhance the performance of a company but
however contradiction occurs if there is a presence of skilled labors more than the sufficient
level. Hence presence of skilled labors in an organization shows that it leads to various types of
issues whether it is human resource, innovative or entrepreneurial. These issues affect the
organization in such way that sometimes the organization fails to generate the desirable output.

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Answer 2)
Corporate Entrepreneurship is the process, which consists of innovation, renewal of strategies
for a concerned firm in account of improving the business. It is necessary to grow a new
business. Entrepreneurs endure some theories for the development of the business or the
company.
This question focuses on the expansion of business and the issue it faces due to cultural diversity.
Furthermore, it focuses on the implementation of entrepreneurship theories. The question also
highlights on the identification of corporate issues and criticizes them through practice of
strategy. Finally, it gives the recommendation for the betterment of the entrepreneurial condition
within an organization.
As per the comment of Burns (2016), the corporate entrepreneurship theory consists of corporate
venturing as well as strategic entrepreneurship.
The corporate venturing consists of
 Internal corporate venturing
 Cooperative corporate venturing
 External corporate venturing
Strategic Entrepreneurship consists of
 Renewal of the strategies.
 Reconstruction of the business models
 Rejuvenation of the Organization
For the globalization it is not surprising that workers from different corners of the world work in
a single organization and they use one specific language but they belong to different cultures and
different religions. Technology has made the communication system so easy that people get
connected easily. The organization consists of various employees from different cultures. They
carry their respective beliefs and follow respective norms. They also behave differently. Their
attitude, personality, communication skills everything is different from one another. There are
differences in beliefs, ideas, strategies, among the different cultures (Ferraro and Briody, 2017)
Their trends, traditions, perspective also varies from one another. These lead a conflict among
The employees and lead to miscommunication in management. Sometimes it becomes a delicate
issue for which employees become reluctant to work smoothly. Even sometimes the differences
And miscommunication between the manager and employees lead to the reason for face loss

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Before the clients and affect negatively to the reputation of the company. These cultural issues in
An organization create conflicts among the employees even it damage the whole management
System. It deteriorates the business growth and become a reason of obstruction in future and
Damage the whole system. There are few examples of cultural diversity in an organization like:
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● The first point comes as an example is the generation gap. The generation gap has
become a major problem in a business which results in conflict in the work environment.
There are employees of the different generation in an organization. New generation
depends on technology, they value career growth and they are flexible in different
conditions of the workplace. On the other side, the old generation values their age-old
cultural norms; they are not always flexible in every working condition. These different
characteristic traits create conflicts in the organization.
● The second point is the education. According to Ferraro and Briody (2017), there are
some employees who come in the new business who are trained and carry knowledge
about the job skills but there are some employees who join the organization as a trainee
and they completely depend on the training provided by the organization for progress in
their career. This becomes another issue of disagreement and creates an obstruction to
achieve goals for the company.
● Thirdly there are differences in beliefs about personal strategies, for example, there may
be differences in greeting styles in different cultures. People mainly belonging to western
greet each other by shaking hands, or kissing each other while most of the people in
eastern countries greet each other by stretching arms and hugging each other and
sometimes by shaking hands also. It leads to a problem in their communication.
● In the fourth point, differences come in the matter of cues. In some culture the word "yes"
implicate agreements but for some, it refers that the message given by the opposite party
is understandable. Some culture believes in being silent to assure the proposal is not
accepted while others believe in being frank; clearly stating the proposal is not accepted.
● Finally, there are differences in class, rules, and regulations, status, tradition, and
ethnicity among the employees of a new company which becomes sensitive issues
sometimes.

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As opined by Martin (2014), cultural differences are increasing keeping pace with the expansion
of globalization. Different people carry different opinions ideas, thoughts and they value their
culture and tradition differently. The organization fails to implement a good teamwork strategy.
For these the organization growth becomes stagnant. So it becomes essential to remove these
conflicts relating to culture to start the new business in an effective way that will reflect a good
impact in future for the business.
There are some solutions to address these conflicts by the theories of corporate entrepreneurship
so that the new business does not have to face the problems evolving from different cultures in
the long run. Some necessary steps to eradicate the problems are as follows:
● The first step towards removing this problem is to know the types of conflicts and
assessing them precisely like communication problems, agreement problems etc.
Depending on the issues, strategies to remove those also vary. It depends on the
administration how to meet the problems recognizing them. The administration should
also be flexible in changing strategies knowing the issues faced by the employees (Moore
2014).
● The administration must be cooperative with the employees so that sentiment of
everybody is satisfied. The administration should provide equal value so that everyone
gets equal value in the firm. The environment should be fair for each culture coming from
different countries. Friendly corporate culture should be created so that the employees are
satisfied.
● There must be face to face interviewing sessions or frequent meetings to address the
problems entirely. It will be a constructive step to remove the diversities related to culture
in the organization.
● Personal and emotional issues must be kept at a distance from the professional life so that
the rules of the companies do not change and a friendly corporate culture is maintained.
The administration should be more responsible in this particular section.
● As different cultures have different political views any political discussions in the
organization must be avoided.
● Even sometimes these conflicts have some positive aspects because there may be
solutions in meeting a problem, taking right and innovative decisions, making changes in
strategies that will increase the company profit.

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Implementation of entrepreneurship theory
As per the comment of Frederick et al. (2015), the internal corporate venturing is a model is
an important factor for a growing business as many companies struggle hard in achieving it. This
focus on the internal problems of a company and the strategies required to implement the
strategies (Sloanreview.mit.edu, 2018).
By applying Cooperative corporate venturing a company is able to enrich the performances and
this will reflect in its production growth. This helps the new businesses to acquire a cooperative
relationship with its partners in the market environment.
The capitals, funds invested in a business from then external environment lie in the external
corporate venturing section. New business opportunities are developed by this.
Strategic renewal Entrepreneurship includes renewal of strategies with time to time basis as
per requirement by monitoring the competitors. The reconstruction of the models made for the
business as well as the structure of the company needed to be flexible for a growing company to
have a positive growth in the economy share. The company must review their strategies in order
to emerge a new plan for the business. Proper changes in the strategies depend on the
circumstances of the business. The administration should follow the changes in the market
environment to renew and reconstruct their strategies followed by proper implementation of the
strategies to the business.
The renewal of the strategies in the changing business environment, the strategies to
reconstruct the company’s structure are very important to achieve the goal of corporate
entrepreneurship. According to Druker (2014), a company in its budding stage needs to be
innovative to capture the market. The company needed to keep pace with the advancement of
technology to make their products innovative in the market. Innovation helps a new business to
grow and compete with its competitors in the business environment. The final requirements in
achieving the objectives of a new business are its corporate venturing. The three types of
corporate venturing discussed above are required for the new business to broaden its profit in the
market. The company needs to be cooperative with its business partners. The company needed to
be flexible about the investments and capitals used for the business and used for adopting new
strategies to grow a business. According to the theory of Corporate Entrepreneurship the internal
disputes often come as a negative point for a growing business. Thus a business must ensure a

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good internal environment for work. Thus for this reason the conflicts related to different culture
in an organization must needed to be amended for a new business.

Identifying corporate issues and criticizing them through practice of strategy

There are several competitors present in the market, but a company fails to be innovative to
introduce an effective strategic management. The employees of the company suffer several
corporate issues such as technical issues, cultural diversity issues, performance issues, HRM
issues. Sometimes this company faces technical problems. For that reason, sometimes it fails to
provide the good services to the customers. As the company expands its business globally,
cultural diversity is screened among the employees. Sometimes the employees disrespect other
cultures which lead the way of miscommunication and create some blocks in the way of
innovation. Sometimes the company allocates the employees with less time and huge work
pressure and for this the employees’ makes errors due to inattention or poor judgment. It also
escalates the inability to concentrate in their work. Sometimes the HR management fails to
provide good treatment among the employees. It has been analyzed that the HR management
fails sometimes to grow the productivity level or provide sufficient training among the
employees. It also has been analyzed that the recruitment process sometimes decreases for the
intention of the HR management and it fails to identify the different cultural recognition in the
company.
It is concluded that a company introduces some concept of innovations such as technical
innovation, administrative innovation, product innovation and process innovation for the
betterment of the products and services. It also faces some critical factors such as economy,
structural changes in the organization, incorporation, rules and regulations, competitive market
etc. For rectifying these factors it introduces some events in which it drew the active
participation of the customers and getting their feedback the company tries to rectify and
improve its products and services (Moore, 2014). By enduring some entrepreneurship theories
such as economic theory, resource-based theory, psychological theory, sociological theory and
opportunity-based theory, the company improves its services. It is also concluded that sometimes
a company fails to cope up with the corporate issues for its strategic management.

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Recommendation
It is recommended to the company that it should be innovative in some aspects for the growth of
the business. The company should value the economic growth of the customers. For that they
have to reduce the price of the tickets and provide exclusive offers. The management of the
company should be sensitive in different cultural recognition so that the employees can feel the
familiar environment within the company and they don’t face the problem of miscommunication
among themselves and it would be helpful for more unique innovation. The company should
introduce more events so that it can reach its customers and know their need directly.
There may be some conflict between two cultures where both the parties are right according to
their views and both thinking are right. Then the company should not biased to one culture and
give equal values to all cultures to eradicate the personal problems in the workplace. If the above
strategies are implemented properly it will definitely lead the new business in a positive
direction, The company will get profit and the effort that is applied to create a new business will
not be reasons for the downfall of the company.

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References
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