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MGMT20144 - Management Business Context

   

Added on  2020-03-13

9 Pages2090 Words258 Views
Running Head: MANAGEMENT AND BUSINESS CONTEXTMANAGEMENT AND BUSINESS CONTEXTAssignment BStudent NameProfessor nameUniversity

2MANAGEMENT AND BUSINESS CONTEXTMANAGEMENT AND BUSINESS CONTEXTIntroductionBusiness organizations can succeed by formulating and implementing effective strategies which align with the vision and mission of the organization (Kronsbein, Meiser, & Leyer, 2014). Strategic management is dynamic because the formulated strategies largely depend on the environment in which the company operates. Almost all business organizations don’t have exactly similar environments; it suggests that the outcomes of the business enterprises are largely dependent on the context of the business (Shin & Edington, 2007). The paper analyses the contextual factors impacting the Costume Jewellery business introduced in the previous paper. A jewelry store is started in Sydney, and the contextual factors that impact the jewelry business are identified and explained. The internal and external contextual factorsthat impact the business are identified. Costume jewelry business is mostly an innovative and entrepreneurial venture and the contextual factors related to innovation and entrepreneurship are analyzed. The impact of the contextual factors on the business strategy, structure and decision-making are discussed. The paper discusses how the contextual factors will be utilized for enhancing the business practice of jewelry business.Contextual FactorsContextual factors can be defined as the characteristics of the environmental factors which largely affect the business practice. The contextual factors can be external like policies, legal and governmental regulations, and internal factors which include the size of the firm, innovation, knowledge management, and entrepreneurship. The costume jewelry business is an innovative entrepreneurial venture, and the most important contextual factors that impact the business are innovation and entrepreneurship.

3MANAGEMENT AND BUSINESS CONTEXTInnovationInnovation is considered as the key driving force which shapes competition and enables the organization to take revolutionary approaches to business operations and thereby transform the nature of the market and the industry in which it operates (). Innovation takes place on three important levels namely Revolution, Renewal and Resilience. Revolution relates to the phase where new products or business approaches are designed by challenging the existing fundamentals of the industry. Renewal relates to the phase where the process of rethinking and recreating existing models take place. Lastly, Resilience refers to continuous improvement and reconstruction of new product and services.Disruptive and open innovation is the new innovation concepts which should be adopted by organizations today so as to compete and sustain in the industry. Disruptive innovation aims at improving the not so good products, but these products are introduced as simpler and attract less demanding customers. Open innovation is the modern model of innovation and as discussed by Chesbrough (2003) in open innovation model, the organizations can commercialize the ideas generated by it and also the innovations of outside firms and deploysthe new innovations to explore new markets (Chesbrough, 2003).Researchers have identified norms that promote creativity as well as innovation. According toDawson and Andripoulous (2014), six important norms should be seen in innovative organizations (Dawson & Andriopoulos, 2014). The organizations must foster an innovative culture. These norms include stress on idea generation, and inculcating a learning culture and risk taking attitudes, handling the conflicts sportingly and supporting the necessary change while tolerating some mistakes. Contrasting to these six norms, Dyer, Gregson and Christensen (2009), have a different approach which suggests that innovation can be inculcated and taught to individuals (Dyer, Gregerson, & Christensen, 2009). Dyer et al.

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