Management and Business Context: Innovation and Entrepreneurship Essay

This essay explores the critical role of innovation and entrepreneurship in contemporary business environments, using Yummy Fast Food as a case study. It examines the impact of both internal and external contextual factors on business operations, emphasizing the significance of technological advancements and innovative ideas in maintaining a competitive edge. The discussion covers disruptive and incremental innovations, the influence of leadership and entrepreneurship on fostering innovation, and the importance of decision-making processes. The essay highlights the significance of technological measures and the need for entrepreneurs to possess specific attitudes and skills to gather and assess information effectively. It concludes by underscoring the importance of innovation for creating effective managerial frameworks and achieving business success in a competitive market, emphasizing the need for entrepreneurs to leverage available innovative technologies.

Running head: MANAGEMENT AND BUSINESS CONTEXT
Management and Business Context
Name of Student
Name of the University
Author Note

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Introduction
The business contextual factors are concerned with the environment within which the
business entities operate (Hau, 2016). There are two kinds of contextual factors namely internal
and external business factors. These facstors are characteristics of the external as well as internal
environment of the organization. The selected contextual factor for this study is innovation and
entrepreneurship. In this competitive world, the new business entities need to formulate new
and creative business ideas, so that the customers are attracted to it easily. This essay would
discuss about the effect of innovation on the functioning of Yummy Fast Food. The way
innovation component would be able to improve the business process of the given organization
would also be discussed.
Discussion
In the present business scenario, contemporary business organizations have to determine
and consider various aspects in maintaining their foothold in the market. The current business
state of affairs is mostly depended on technological advancement (Carayannis, Sindakis &
Walter, 2015). Thus, contemporary business organizations have to be technologically advanced
enough in order to stay ahead in the competition. One of the key aspects that should be
considered 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 in
creating distinctive image in the market along with enhancing the value creation for the
customers (Carayannis, Sindakis & Walter, 2015). However, the extents to which the innovations
can be generated as well as the effectiveness of the innovative ideas are being determined by the
effectiveness of the entrepreneurship in the organizations.

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The dependence of innovations on entrepreneurship is due to the fact that it is the prime
responsibility of the upper managerial levels to promote innovations in the organization. The
more will be the effectiveness of the entrepreneurship in the organization, the more will the
generation of innovative ideas from the internal stakeholders (Carayannis, Sindakis & Walter,
2015). According to the entrepreneurship innovation theory by Joseph Schumpeter, it is the
responsibility of the entrepreneurs to initiate the strategies of introducing new products or any
new approach in the existing business process (Hair, 2015). According to him, it will help the
organization in developing competitive advantages in the market, which eventually helps them in
effectively targeting the customers.
The corporate entrepreneurship is highly dependent on the level of internal innovation
and their ability to transform the organization. This can take place through the renewal of ideas
as well as strategic renewal which would have maximum organizational effectiveness. There are
mainly two types of innovation that affects the business organizations such as disruptive or
incremental (Nagy, Schuessler & Dubinsky, 2016). The disruptive innovation is concerned with
a different value proposition in the market which is not presently available. These kind of
innovative technologies do underperform the already established products in the markets. If
Yummy 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 would
be preferred by the customers on an early basis. The incremental innovation is concerned with
the series of minute improvements within an existing product line, which would help in the
development of competitive position within a period of time (Acemoglu et al., 2014). These
kinds of innovations are often evolutionary in nature and they help out in strengthening the

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market position of the company. This is done by refining the existing offering of the market so
that the customers are eager to purchase it.
Yummy fast food is a new entrant in the market of fast food in Australia. They are
operating in one of the most intensely competitive market with having several global and
domestic players already plying in this market. Thus, for an organization such as yummy fast
food, the key criterion to survive and compete in this market is initiation of innovative ideas.
However, to generate innovative ideas in the organizations, the leadership will have to play an
important role. The leadership or entrepreneurship in this organization should have the visionary
goals, which will be unique among the existing market scenario (Renko et al., 2015). They
should have clear conceptual idea about the potentiality of their innovation. Moreover, in the
organizations, innovative ideas are being generated from the mutual and effective coordination
and cooperation among the internal stakeholders. Thus, it is the responsibility of the
entrepreneurship to design the organizational culture and structure in such a way that it will
provide effective working environment for the employees (Nagy, Schuessler & Dubinsky,
2016). The employees will be motivated and engaged in their workplace, which in turn will help
the organization to generate innovative ideas from them (Cummings & Worley, 2014).
The innovation plays a major role in the entrepreneurship decision making of the firm
(Chen et al., 2015). The act of cognition plays a major role in the entrepreneurial decision
making. Cognition includes the aspect of perception, awareness, reasoning, judgment and others
which would help in the betterment of the business entity (Chen et al., 2015). The investigation
of the cognitive factors would help in better understanding of the role in the decision making
process. In the event of uncertain environments, this helps in taking accurate decisions. The
entrepreneurs operate in a highly complex environment and they need to make a large number of

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business decisions on a daily basis (Chen et al., 2015). They are often more susceptible to biases
and hence they face a tough time in making judgment on crucial matters (Osiyevskyy & Dewald,
2015). The optimistic bias is concerned with the expectation of the things which would turn out
well and this should be adopted by the decision makers. However, there are instances when the
heuristics lead to irrational decision making (Kirzner, 2015). The entrepreneur is concerned with
the trading of the present gains for the purpose of profitability of the business firm. An
entrepreneur’s job is concerned about finding the best opportunities for his firm, which requires
extensive decision making (Chen et al., 2015). This would not be successful without the
intervention of successful technological measures. In this age of technology, innovation can be
best associated with particular incorporation of technological measures.
The entrepreneurs should undertake innovative decision making activities for the purpose
of gaining business success (Drucker, 2014). The firm would be able to collect more information
and valuable data from the market with the help of innovative technologies. It is also possible to
work on other’s experience which would be beneficial for the firm. This kind of decision making
would also enable the recognition as well as reduction of bias as well as error in judgment. The
innovation managers do need to exhibit particular attitudes, skills and behaviors that would allow
them to gather as well as assess information (Chen et al., 2015). It is thus important for the
entrepreneurs to pursue formal management education level to formulate better questions as well
as analyze experience that would lead to managerial excellence (Kuratko, 2016). The ability to
act on diverse situation is important for entrepreneurs so that they can gain success in a limited
period of time (Chen et al., 2015). The innovation made by other firms also leads to the fact that
the business managers behave in a particular way.
Conclusion

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The introduction of innovation is important for the firms as it helps in the creation of
better managerial framework. The organization should know how to manage the different
external managerial challenges and deal with them accordingly. This paper discussed the various
external factors of innovation and different factors related to entrepreneurship. It is important
that the entrepreneurs do take note of the different innovative technologies available to them and
should know their correct usage. This would ensure that there is a high level of operational
efficiency in the firm, which would be implemented for achieving business success. In this age
of competition, the innovation plays an important role in keeping the company position within a
wide number of rivals. This would enable the success of the firm within a period of time.

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References
Acemoglu, D., Akcigit, U., & Celik, M. A. (2014). Young, restless and creative: Openness to
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Drucker, P. (2014). Innovation and entrepreneurship. Routledge.
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