Contextual factor Management and Business

Added on -2020-02-23

| MGMT20144| 7 pages| 1998 words| 34 views

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Running head: CONTEXTUAL FACTOR 0
CONTEXTUAL
FACTORS
CONTEXTUAL FACTOR 1
Table of Contents
Introduction:............................................................................................................... 1
Contextual factor:....................................................................................................... 1
Impact on strategy and structure of the company:....................................................2
Impact on the decision making of the company:........................................................3
Conclusion:................................................................................................................. 4
References:................................................................................................................ 4
CONTEXTUAL FACTOR 2
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 company’s
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 considered 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.

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