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Running head: MANAGEMENT AND BUSINESS CONTEXTManagement and Business ContextName of StudentName of the UniversityAuthor Note
1MANAGEMENT AND BUSINESS CONTEXTIntroductionThe business contextual factors are concerned with the environment within which thebusiness entities operate (Hau, 2016). There are two kinds of contextual factors namely internaland external business factors. These facstors are characteristics of the external as well as internalenvironment of the organization. The selected contextual factor for this study is innovation andentrepreneurship. In this competitive world, the new business entities need to formulate newand creative business ideas, so that the customers are attracted to it easily. This essay woulddiscuss about the effect of innovation on the functioning of Yummy Fast Food. The wayinnovation component would be able to improve the business process of the given organizationwould also be discussed. DiscussionIn the present business scenario, contemporary business organizations have to determineand consider various aspects in maintaining their foothold in the market. The current businessstate of affairs is mostly depended on technological advancement (Carayannis, Sindakis &Walter, 2015). Thus, contemporary business organizations have to be technologically advancedenough in order to stay ahead in the competition. One of the key aspects that should beconsidered by the business organizations is innovation (Carayannis, Sindakis & Walter, 2015).This is due to the reason that, generation of innovative ideas will help the organizations increating distinctive image in the market along with enhancing the value creation for thecustomers (Carayannis, Sindakis & Walter, 2015). However, the extents to which the innovationscan be generated as well as the effectiveness of the innovative ideas are being determined by theeffectiveness of the entrepreneurship in the organizations.
2MANAGEMENT AND BUSINESS CONTEXTThe dependence of innovations on entrepreneurship is due to the fact that it is the primeresponsibility of the upper managerial levels to promote innovations in the organization. Themore will be the effectiveness of the entrepreneurship in the organization, the more will thegeneration of innovative ideas from the internal stakeholders (Carayannis, Sindakis & Walter,2015). According to the entrepreneurship innovation theory by Joseph Schumpeter, it is theresponsibility of the entrepreneurs to initiate the strategies of introducing new products or anynew approach in the existing business process (Hair, 2015). According to him, it will help theorganization in developing competitive advantages in the market, which eventually helps them ineffectively targeting the customers. The corporate entrepreneurship is highly dependent on the level of internal innovationand their ability to transform the organization. This can take place through the renewal of ideasas well as strategic renewal which would have maximum organizational effectiveness. There aremainly two types of innovation that affects the business organizations such as disruptive orincremental (Nagy, Schuessler & Dubinsky, 2016). The disruptive innovation is concerned witha different value proposition in the market which is not presently available. These kind ofinnovative technologies do underperform the already established products in the markets. IfYummy fast food is able to provide unique menu items, which is not available in the market,then it is said to have implemented disruptive innovation (Nagy, Schuessler & Dubinsky, 2016).This kind of innovation is able to open up new market segments within the market, which wouldbe preferred by the customers on an early basis. The incremental innovation is concerned withthe series of minute improvements within an existing product line, which would help in thedevelopment of competitive position within a period of time (Acemoglu et al., 2014). Thesekinds of innovations are often evolutionary in nature and they help out in strengthening the
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