Comprehensive Report: Managing Human Capital and Entrepreneurship

This report examines the critical role of human capital management and entrepreneurship in achieving organizational goals. It explores the significance of implementing innovative strategies and ideas, the impact of the changing business environment (analyzed using PESTEL), and effective employee management techniques. The report emphasizes the importance of creativity and innovation, providing insights into how entrepreneurs can leverage these elements for business success. It also discusses the challenges associated with implementing new strategies and the importance of market research. Furthermore, the report highlights the need for entrepreneurs to adapt to changing market dynamics and utilize tools like Lewin's change theory for successful organizational transformation. It also focuses on the need for balancing work life to keep employees motivated.

Running head: MANAGING HUMAN CAPITAL AND ENTREPRENEURSHIP
Managing Human Capital and Entrepreneurship
Name of the Student:
Name of the University:
Author’s Note

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Executive Summary
This report deals with significance of developing and implementing appropriate strategies for
fulfilling organizational goals and objectives. The report consists of three tasks that cover
different aspects of management. In the first task, the report has highlighted the importance of
implementation process for different innovative strategies and ideas for maximizing the benefit
level. The second task deals with changing business environment and its impact on the decision-
making procedure. Third task focuses on the best possible way to manage employees within the
workplace so that organizations can able to fulfill all the business objectives.

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Table of Contents
Introduction:....................................................................................................................................3
Task 1:.............................................................................................................................................4
Task 2:.............................................................................................................................................7
Task 3:...........................................................................................................................................11
Conclusion:....................................................................................................................................13
References:....................................................................................................................................15

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Introduction:
In the present competitive business environment, development of effective strategies and
policies is essential for any business entity to fulfill all their goals and objectives. For that reason,
entrepreneurs have to formulate different unique decisions for accomplishing all their goals and
objectives. Innovation is the heart of any growing economy, especially where traditional business
models or practices have become obsolete. Without proper utilization of innovation or creativity,
businesses can become financially stagnant within the market. Successful entrepreneurship needs
a focus on integrating innovation, creativity and strategic business practices. Secondly, the report
deals with the changing nature of the business environment and its impact on the strategies and
policies of entrepreneurs. Several factors like political, economic, legal, technological and
environmental plays significant role in creating overall business environment. For that reason,
any changes in these factors alter the present business environment completely. The
entrepreneurs will always have to be ready to face such type of complex business environment in
order to accomplish sustainable growth in the market. The report will provide an idea regarding
the way managers can implement different changes in present strategies or policies for
countering the changing business environment. Thirdly, the report deals with the importance of
handling employees within the corporate environment for accomplishing all the business goals
and opportunities. The report will highlight different concept associated with the handing people
for providing an idea regarding the amount of impact it can have on the overall business
environment. It will also include different critical argument regarding the best way to handle
people within the organization for accomplishing all the business goals and objectives.

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Task 1:
As per the article by Wolf (2012), creativity refers to the ability to bring, create into
existence, to produce through imaginative skills, to invent into a new form. Creativity is not the
ability to produce something out of nothing, but the ability to formulate new concepts or ideas by
changing, combining or reapplying the existing ideas. Creativity also refers towards an attitude
for accepting new changes in the business environment that can add dimension to the overall
business structure. On the other hand, innovation refers to the development of process that is
more creative or changing process, ideas and products. For businesses, innovation reflects to
initiating new concepts, ideas and dynamic products for enhancing the efficiency of the present
operational process. Innovation is fostered by capturing new form of connections with new
disciples, places and collegial network. However, Boncz et al. (2015) have mentioned that
innovation needs a fresh way of looking into regular activities. It also requires proper
understanding of the people along with organization’s willingness to take additional risks in the
business processes. Different elements are associated with the innovation process such as
customer focus, challenge, creativity, communication, collaboration, competition and culture that
can have significant impact on the overall business environment. Entrepreneur reflects to those
persons who are responsible for setting up new businesses. Generally, entrepreneurs’ posses high
level of skills and knowledge that allows them to oversee the entire operational procedure of a
business. Entrepreneurs are prime catalyst for the development of different innovative and
creative strategies that provides new dimension to the organization.
In any business firm, entrepreneur is considered as the prime actor in developing
marshalling resources and business ideas for accomplishing operational objectives. In the present
competitive business environment, it is critical for any businesses to look for new opportunities

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for maximizing the profit level in a major way. The opportunities for innovation include in
process where the entire focus is provided on the enhancing the overall process for achieving
success in the market. Similarly, proper utilization of innovative products and services can also
increase the overall revenue level of the organization. Moreover, entrepreneurs can also focus on
utilizing different strategies for maximizing the utility of the present resources. As stated by
Schnackenberg and Tomlinson (2016) innovation centers on culture, people, process and
technology, which converts different market opportunities into profitable, workable and
marketable ideas. However, utilization of innovation or creativity also can generate different
challenges for businesses for accomplishing all the goals and objectives. For instance,
management will have to focus on assessing the kind of impact any new initiated strategies can
have on the present organizational culture. Moreover, management will have to assess present
level of skills of the employees before initiating any new technologically advanced process. It
will help the management to understand the kind of training and development needs for the
employees. Otherwise, it can affect the overall motivational level of the employees in a
significant manner. For that reason, organizations like Apple, Microsoft and Samsung have spent
huge share of the total revenue in providing proper training facilities to the employees. It has
allowed all the employees to enhance their present level of skills in a significant manner, which
is likely to create positive impact on the eventual organizational performances.
On the other hand, efficiency in product or service innovation also heavily depends on
the present market needs and wants. Thus, it requires proper utilization of market research
strategies for understanding exact type of innovation requires for achieving success through
innovation and creativity. For instance, Nestle and Cadbury always focuses on investing huge
amount of money in the market research activities for having clear idea about the market needs.

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It allows them to reduce the risk level associated with the launch of any new products. Similarly,
management will also have to remain very careful about the way different new strategies were
initiated to maximize the utility of the available resources. As illustrated by Dent and Whitehead
(2013) it is critical for entrepreneurs to create a balance between work pressure and personal life
for the employees. The term work life balance have gained significant amount of intersect in
recent times. Almost all the prime organizations like Samsung, Microsoft, Coca Cola and many
others have provided enough flexibility for the employees so that they can give maximum effort
for the benefit of the organization.
Thus, the above discussion has highlighted the fact that proper implementation of any
developed new idea is critical for any organization. Without the exact implementation of the
initiated strategies, it will be extremely difficult for any organization to accomplish all the goals
and objectives. In fact, the success of any innovative or creative strategy heavily depends on the
way it is executed in the corporate environment (Molloy and Heath 2014). The execution process
determined the amount of impact it can actually create on the desired goals and objectives.
Hence, the statement “An idea that is developed and put into action is more important than an
idea that exists only as an idea” is absolutely correct. In fact, management needs to be more
careful on the execution process of an idea compared with the development process. Proper
execution will provide employees a specific guideline regarding the way they can fulfill all the
goals and objectives. Therefore, it will keep them motivated towards the provided roles and
responsibilities, which will enhance the efficiency level of the operational process (Smith et al.
2012). On the other hand, proper utilization of market research strategy will provide clear
understanding regarding the needs and wants. Therefore, it will increase the efficiency level of

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the implemented innovation and creative product or service development strategy in a major
way.
Task 2:
As per the article by Cummings and Worley (2014) all the organizations are looking to
initiate different unique strategies for gaining competitive advantage in the market. Over the
years, market dynamics for different industry have changed in a significant manner. Therefore, it
has induced organizations from different sector to implement new strategies and procedures for
fulfilling all the business goals and objectives. Now, PESTEL is among the most popular tools to
evaluate macro environmental condition of overall business environment. It will help to highlight
all the critical elements that have induced market to change its dynamism.
PESTEL theory:
Political factor:
Political factors include all the government rules and regulations imposed on different
industries. As stated by Ho (2014) different economies have their own set of rules and
regulations that businesses have to follow to remain competitive in the market. Now, government
tax, fiscal or trade policies change over certain span of time that directly creates adverse impact
on the overall profit level of the businesses. Hence, it provides businesses no alternative options
than to initiate unique strategies for maintaining competitive advantage in the market.
Economic factor:
Economic factors include all the determinants like foreign exchange rate, inflation rate,
interest rate, tariff and quota of an entire economy. Now, any changes in these rates directly

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increases overall operational cost (Clegg, Kornberger and Pitsis 2015). As a result, organizations
have to consider different alternative strategies to reduce the cost as much as possible. For
instance, high rate of inflation increases the overall cost of the raw materials for any production
firm. Therefore, it reduces profit margin, which eventually increases massive pressure on the
overall efficiency level of the operational process.
Social factor:
As stated by Morse, Babcock and Murthy (2014) social factors include factors like
demographic, culture, age group, gender of the entire community. It has been assessed that
overall market needs and wants heavily depends on the dynamism of the market. For that reason,
with the changes of social structure, organizations will also have to initiate different changes in
their initiated strategies for maximizing the revenue level. Now, initiation of unique strategies
eventually changes the overall business environment.
Technological factor:
Technology is arguably the most important factor that changes the overall business
environment completely. The entire globe has seen significant technological advancement across
industries (Oster and Strong 2017). As a result, it has allowed organizations to produce more in a
limited span of time. On the other hand, it has also changed the market dynamism or
competitiveness in a significant manner.
Environmental factor:
Environmental factor focuses on assessing the locations, transport and other facilities that
can eventually create major impact on the overall business perspectives. With increasing

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competition, organizations have to face more pressure to utilize environmental friendly strategies
(De Anca and Vega 2016). It has allowed many prime organizations like Tesco, Wal-Mart or
Woolworths to represent itself as a responsible corporate citizen. Thus, environmental factors
have also created significant impact on the changes of overall business activities.
Legal factor:
Legal factor focuses on evaluating different legislative rules and regulations that restricts
different business procedure (Day 2014). Over the years, different economies have changes their
legislative guidelines in such a way so that it can able to add more dynamism on the entire
business structure. Specifically, changes in legislative guidelines completely transform the
dynamism of the international business. Therefore, it can be mentioned that changes is obvious
in business environment of any industry.
Now, in order to counter continues changing business environment, entrepreneurs will
have to focus on utilizing different unique strategies and procedures. Now, Lewin has suggested
one of the most popular organizational change theory that management can utilize for fulfilling
business goals and objectives.
Lewin change theory:
In this theory, Lewin has suggested three steps for the entrepreneurs to utilize at the time
of initiating change in the present business strategy. The stages are discussed as follows:
Unfreeze:
As illustrated by Reason (2016) first step of the change theory involves preparing the
business to accept the necessary changes. Therefore, management will have to focus on breaking

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down the current status quo in many segments. Here, management will have to ensure that all the
employees associated with the organization can understand the significance of change in an
appropriate manner. Thus, management will have to challenge the values, attitudes, beliefs of the
employees in order to initiate different changes in the operational procedure successfully.
Change:
In this step, management needs to focus on implementing different change strategies so
that it can able to maintain its position in the market. For instance, if any management is looking
to introduce any advance technology base instrument on the operational process. They will have
to introduce it in this step along with proper training and development facilities for the
employees (Hanks 2015). It will ensure employees do not have to face too many challenges in
performing their roles and responsibilities in an appropriate manner. In this step, employees start
to learn how to cope up with the changes in the operational procedure. Here, employee might
have to work with new teams in completely new environment. Therefore, management will have
to provide required level of support at each step to ensure they remain motivated towards the
organizational goals and objectives.
Refreeze:
After the initiation of changes, management will have to concentrate on refreezing the
entire operational process in an appropriate manner. In this step, employees are likely to
understand the new initiated tools and technologies in an effective manner (Gupta, Pistorius and
Vijge 2016). Moreover, they have developed strong team bonding with each team member.
Refreezing step reflects the successful implementation of change strategy for gaining
competitive advantage in the market.

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Now, innovation requires proper changes in the present business procedure. Therefore,
entrepreneurs will have to remain very careful at the time of initiating Lewin’s change theory in
the corporate framework. Otherwise, it can create massive affect on the overall accomplishment
of business objectives. Therefore, entrepreneurs will have to follow all the steps of change theory
module for successful accomplishment of all the goals and objectives.
Task 3:
As opined by Birkinshaw and Gupta (2013) employees are the most valuable resources
for any business entities to accomplish all the business goals and objectives. Proper maintenance
of employees is one of the prime responsibilities for any management in order to fulfill all the
organizational goals and objectives. In the present complex business environment, leaders or
managers have to deal with different aspect of the business on regular basis. The responsibilities
of the leaders include keeping track of the stock levels of raw materials, efficiency the operation
process, target achievement, team bonding and many other things. However, all the
responsibilities associated with the leaders are linked with employees. According to Bridges and
Bridges (2017) without proper help from the employees, no organization can able to grow in the
competitive market. Hence, keeping all the experience and talented employees happy and
satisfied with the organization is among the prime goal of any organization. Experienced
employees are likely to possess more in-depth knowledge and skills, which is likely to help
organization to handle any types of complex business situations in an appropriate manner
(Trevino and Nelson 2016). On the other hand, organizations are likely to found very difficult
with the full support from the workforce. Hence, the statement “Managing people (employees) is
one of the ‘must have’ leadership skills for an entrepreneur” is very much correct. Since, without
handling employees appropriately, no organization can achieve success in the market.