Service Management Assignment Example | Topics and Well Written Essays - 500 words

Service Management - Assignment Example rt charging their clients for the value of the "transformation" which the experience provides, for instance, as education offerings may do if they were capable of participating in the value, which is created through the educated person (Pine and Gilmore 2). This, it is argued in the article, is simply a natural evolution in the value imposed by the business in addition to its inputs. According to the article, even if the idea of the Experience Economy was given birth to in the business field, it has crossed over its frontiers to fields such as tourism, architecture, urban planners, nursing and many other fields in the economy. The article also considers the Experience Economy as the main foundation for client experience management. In the hospitality management academic programs, both in the United States and Europe, Experience Economy is frequently shortened to Exponomy plus is of rising focus (Pine and Gilmore 3). The article consider experience as the fourth economic offering, but one that until recently gone unacknowledged. Experiences have existed ever since, but businesses, their clients, together with economists, lumped them into the service field, as well as such uneventful events such as auto repair, dry cleaning, wholesale distribution together with telephone access. When an individual pays for a service, he or she pays for a set of intangible events done on his or her behalf (Pine and Gilmore 3). However, when they pay for experience, they pay to spend their time enjoying or benefiting from a string of memorable activities, which a business stages to engage them in a more personal way (Pine and Gilmore 3). As a customer, I have had two types of experiences in the economic world, good and bad, which have made me loyal to some businesses and never to return to others after experiencing what they had to offer. I have been loyal to the person who sells me Blue Ray DvDs because of the experience I get when visiting his store. Every time I visit his store, he

Public Relation Essay Example | Topics and Well Written Essays - 1000 words

Public Relation - Essay Example Thus, PR can be defined as the management function that recognizes, ascertains and upholds communally valuable relationships between an organization and the various publics on whom its success or failure depends (Lattimore et al, 2004). Categorically, organizational functions of PR are activities carried out by an organization for its own benefit. On the other hand, societal functions of PR are activities carried out by a business for the advantage of the society alone. I have chosen Metro Toronto Inc as an organization, Metro Toronto Inc is a retail company operating in the food industry in Montreal, Canada. Metro Toronto Company is one of the largest grocers in Canada having over 200 locations all over the cities of Ontario and Quebec. Metro Toronto Inc buying group is currently created in a specific economic context. Moreover, in order to fulfill the functions of PR, Metro Toronto Inc considers factors such as the type of product market, the channel intentions, the consumer prompt ness to purchase, the company’s focus and the cost. On the other hand, according to Lam, (2000) the organizational functions of public relations comprises of community relations, the media, consumer relations, exposure, industry relations, governmental and political campaigns in which each carries out its own function. Therefore, most of the organizational functions entail keeping the public and the organizational shareholders alongside each other (Bizcovering, 2010). Among the organizational functions, the most vital one is media relations, which need formulation of suitable media mix through channels like, television, newspapers, and magazines. In addition, media relations frequently depend on planning and executing a well-designed plan. Hence, when talking about media relations, an organization has to decide the type of media that is most preferable for them to use in terms of accessibility and affordability, as well as to messages that are most appealing to their targeted audience, in addition to understanding of the audience's requirements, sensations, concerns and activities to guarantee the accuracy and significance of any message (Karpf, n.d). Furthermore, publicity is the responsibility of reporters and writers to choose what will be publicized and not the organization itself. As per Metro Toronto Inc website, excellent business and good values go hand-in-hand with each other. Therefore, Metro Toronto Inc accomplish following to heed consumer needs. Firstly, it listens to its clients through regular meetings and seeking their suggestions. The business accomplishes this by offering high quality products that are delicious and enjoyed by consumers. Secondly, the business converse with the clients directly and this enables it understand their trends. Additionally, the business has set aside an office that deals with consumers’ uncertainty and grievances. Thirdly, the business responds promptly to the clients’ needs to ensure they are satisfied with their quality of products and services. Nevertheless, this is accomplished by producing a variety of products through suggestions from clients (Sriramesh and Vercic, 2012). Conversely, societal functions of public relations are social liability and publicity. In other words, the purpose of societal public relations is to sustain a reliable relationship with the organizations structures (Bizcovering, 2010). Thus, to accomplish this, Metro Toronto Inc carries out diverse tasks to satisfy the public; firstly, it ensures the increasing community value

Concept Of Corporate Entrepreneurship

Concept Of Corporate Entrepreneurship Corporate entrepreneurship is a growing trend in large companies. Partly this development comes from the fact that markets become more and more competitive which makes it more important for companies to look for entrepreneurial opportunities that can improve its performance (De Clerck, Dimov Thongpapanl, 2009). It is argued that corporate entrepreneurship is an opportunity that can improve a companys performance. Also corporate managers are aware of the need for new entrepreneurial opportunities and are seeking new innovative methods of motivating people to be more creative and make thereby the organizations more competitive (Ginsberg Hay, 1994). In relation with the upcoming trend of corporate entrepreneurship, sources of knowledge are becoming more and more important in the process of innovation (Kelly, Peters OConnor, 2008). In the 1980s senior corporate managers became interested in the process of entrepreneurship, because they realized the need to speed up the process of inventing and commercializing innovative products and services. In these years, managers became aware of the importance of strategic innovation in responding to the competitive challenges of a shifting marketplace (Ginsberg Hay, 1994). Much research has been done in the field of corporate entrepreneurship and innovation. In large companies the concept is used with regards to stimulating innovation or to improve the performance of the company. Baden-Fuller and Stopford (1992) say that corporate entrepreneurship can be the tool which can boost companies in order to get them out of stagnating industries. In contrast, there are also indications that corporate entrepreneurship strategies are also effective when exercised in small and medium enterprises (Sinetar, 1985). This thesis addresses what SMEs can learn from corporate entrepreneurship. 1.2 Problem statement What can Small and Medium Enterprises (SMEs) learn from developments in corporate entrepreneurship? 1.3 Research questions To answer the formulated problem statement, three main research questions are formulated: What is corporate entrepreneurship and what strategies have been developed? What are the characteristics of entrepreneurship and innovation in SMEs? What are the limitations of SMEs towards organizational learning? 1.4 Relevance This thesis is of academic relevance, because it provides insight into the value corporate entrepreneurship can add to SMEs. The insights of this research are also of managerial relevance, because corporate managers can benefit from the insights into the effects of corporate entrepreneurship and what value these can add for SMEs. This information can guide managers in making important decisions on the subject of innovation and strategic renewal. Corporate Entrepreneurship can in this case be used as a tool to set organizational strategies. 1.5 Research design and data collection The specific method that has been used to tackle the problem is a literature review. Many articles and journals are used to analyze this. This thesis relies on secondary data from available literature. To collect reliable and useful data, the databases and search engines of the Tilburg University have been used, for example ABI/Inform Global and Web of Science. Corporate Entrepreneurship, innovation (capability) and SMEs are the key concepts in this search for relevant literature. Besides these concepts, forms of corporate entrepreneurship, like intrapreneurship have been used to find data. 1.6 Overview of the chapters The thesis consists of five chapters, in which the several concepts and relationships are defined and researched. Chapter 2 focuses on the first research question: What is corporate entrepreneurship and what strategies have been developed? The third chapter discusses what the characteristics of entrepreneurship and innovation are in SMEs. The fourth chapter describes the limitations of SMEs towards organizational learning. The last chapter provides an answer to the research question, a conclusion, discussion and academic and practical recommendations. It addresses the question in what way can corporate entrepreneurship add value to the (innovation) processes of SMEs. Chapter 2: What is corporate entrepreneurship and what strategies have been developed? 2.1 Introduction In this section the literature on corporate entrepreneurship is reviewed, providing insights into the definitions and forms of the concept, as well as comparing and contrasting how these are dealt with in the literature. 2.2 Defining corporate entrepreneurship In the literature seems to be a general consensus on the definition of the concept of corporate entrepreneurship. Ginsberg and Hay state that corporate entrepreneurship is one that generates and exploits new technologies, products, or businesses under the corporate umbrella of an established firm. (Ginsberg Hay, 1994, p.382). In this view, corporate entrepreneurship can speed up processes inside the company and helps to invent and commercialize innovative products or services. Wolcott Lippitz support this statement, they state that Corporate entrepreneurship is the process by which teams within an established company conceive, foster, launch and manage a new business that is distinct from the parent company but leverages the parents assets, market position, capabilities or other resources. (Wolcott Lippitz, 2007, p.75). According to this definition of corporate entrepreneurship, corporate entrepreneurship often involves internal partners. The resources of the parent company and the internal teams of the company are usually managing the projects (Wolcott Lippitz, 2007). According to Wolcott and Lippitz (2007) corporate entrepreneurship is also more than the development of new products; it also implies innovations to existing products or brands. Scott, Rosa and Klandt (1998), as described by Kenney and Mujtaba (2007), define the concept corporate entrepreneurship as the process of stimulating innovative ideas and processes. The common goal of the concept is creating wealth. This definition differs from the other two definitions above in the sense that it doesnt mention the protection of an established firm as a characteristic of corporate entrepreneurship. In contrast, Thornberry (2001) approaches corporate entrepreneurship from another viewpoint: he says that we need to define an entrepreneur in order to come- up with an adequate definition of corporate entrepreneurship. In his viewpoint an entrepreneur is an individual that is able to identify, shape and develop new opportunities and can turn these opportunities into new business or new ideas. Covin and Miles (1999) highlight the importance of the characteristic innovativeness in approaching entrepreneurship. He mentions that innovation was the single common theme underlying all forms of corporate entrepreneurship. According to Ginsberg and Hay (1994) the concept of corporate entrepreneurship is namely effective when a company has to deal with rapidly changing environments. In these environments it is often difficult to predict what will happen in the future. Thornberry (2001) provides a solution to deal with the changing environments: companies can prepare for the unexpected by buil ding opportunity-focused organizations. In this way the companies is able to capture new business opportunities by the resources and people available. To conclude, there is a general consensus in the literature about the meaning of the concept of corporate entrepreneurship. Corporate entrepreneurship is an innovative way to create new products, technologies or business. Thus, it is about the creation of something new. 2.3 Forms of corporate entrepreneurship According to the literature of Thornberry (2001) there are four different forms of corporate entrepreneurship: corporate venturing, intrapreneuring, organizational transformation and industry rule bending. These four forms of corporate entrepreneurship are explained below. 2.3.1. Corporate venturing Corporate venturing is about the creation of a new business inside the established firm, with the focus on a new product or market opportunity (Thornberry, 2001). The concept of corporate venturing is often used with the goal of generating new revenue and creating value for companies shareholders (Narayanan, Yi Yang Zahra, 2009). Kuratko, Covin and Garrett (2009) define an internal corporate venture as an entrepreneurial initiative that is originated within the corporate structure and is created with the goal of creating a new business for the organization. In figure 1 is indicated in the grey areas what corporate venturing is. According to this figure corporate venturing is about entering new markets with new or current products or launching new products in existing or new markets (Morris, Kuratko Covin, 2008). However, they also highlight that corporate venturing brings along some culture problems between the established and new company. Figure 1: Umbrella of corporate venturing (Morris et al., 2008, p.83) 2.3.2. Intrapreneuring There is a general consensus in the literature about the meaning of intrapreneuring. Intrapreneuring can be seen as the exercise of entrepreneurship, but within a large company (Wickham, 2006). In this view, the role of an intrapreneur can be compared with the role of an entrepreneur. Hereby, it is very important to create a balance between allowing him the freedom to make his own decisions and while working between the strategic boundaries of the firm (Wickham, 2006). Mostly some current managers are denoted to work as intrapreneurs in order to identify new business opportunities, because they often already possess entrepreneurial competences (Thornberry, 2001). These individuals form entrepreneurial groups and try to persuade others to reproduce their behavior. In this way the intrapreneurs hope to create new corporate resources (Stopford Badenfuller, 1994). To create successful intrapreneurship, top management of companies has to ensure that managers (intrapreneurs) feel supporte d by them when searching for new innovation opportunities. Otherwise intrapreneurship will not be effective (Kuratko, Montagno Hornsby, 1990). Besides that, management has to take care that they provide intrapreneurs enough freedom to work on the things they like with sufficient resources and failing opportunities (Duncan, Ginter, Rucks Jacobs, 1988). 2.3.3. Organizational transformation According to Stopford and Badenfuller, organizational renewal is a more expansive notion of a complete business (legally or economically defined) altering its resource pattern to achieve better and sustainable overall economic performance. (Stopford Badenfuller, 1994, p. 522). As readable in the quotation above, the goal of organizational renewal or transformation is often to improve a firms performance. Examples of organizational transformation forms are de-layering, cost cutting and downsizing (Thornberry, 2001). Beer, Eisenstat and Spector (1990) have indicated what differentiates a successful transformation process from a less successful revitalization. It is not advisable to change the organizational structure of a company neither the human resource policy, but managers have to start with revitalizing small operations to be effective in the organizational transformation process. To make the transformation successful, Barr, Stimpert and Huff (1992) argue that the involvement of top management is very important when transforming the organization; top management should make timely adjustments in their business models in order to cope optimally with changing environments. Besides that, Wickham (2006) argues that a flexible organization is of advantageous when transforming a company. Organizational transformation is not about the creation of a new business. However, it still is a form of corporate entrepreneurship because it is about the creation of something new; a transformed organization. An example of such an innovation is business model innovation, which seems to be as important as the creation of new products and services. Business model innovation ensures that companies can more easily capture growth opportunities (Pohle Chapman, 2006). 2.3.4. Industry Rule- Bending Little attention has been paid in the literature on this form of corporate entrepreneurship. Just a few companies have tried to create new opportunities by changing the industry (Badenfuller Stopford, 1992). The form industry rule- bending is a sort of transformation that focuses on changing the rules in the industry in which the company is engaged to create new opportunities in the field of entrepreneurship and innovation (Thornberry, 2001). Stopford and Baden-Fuller (1994) also label this form of corporate entrepreneurship as frame- breaking change, because not only the enterprise itself has to be transformed, but also its industry. Changing the industry creates opportunities for growth and innovation (Pohle Chapman, 2006). In agreement with this, Wickham (2006) argues that a company can be successful by following the rules in a right way, but the company will be most successful when transforming the rules in order to let them suit the company. Results that can be created by indu stry rule-bending are for example high quality at low costs and speed or efficiency (Stopford Baden-Fuller, 1994). In order to set up a successful industry rule-bending strategy, Thornberry (2001) advises to denote some managers as corporate entrepreneurs and let them search for rule- bending opportunities. Over time, this focus can be broadened towards organizational renewal. 2.4 Corporate entrepreneurship models According to Wolcott and Lippitz (2007) companies have four ways in which they build new organizations from within established companies. They argue that it is very important to understand that for different kinds of companies different corporate entrepreneurship strategies will be advantageous. Two dimension are identified which differentiate the way in which companies approach corporate entrepreneurship, namely organizational ownership and resource authority. The person responsible for ownership and new business creation and the financial resources are significant influencers of the way in which corporate entrepreneurship is exercised. In figure 2, a short explanation is given of the four business models of corporate entrepreneurship. Figure 2: Corporate entrepreneurship models (Wolcott Lippitz, 2007, p.77) A corporate entrepreneurship model is comparable with the business model of a company. Both must be adjusted over time due to different needs in the market, changing environments and growth paths (Wolcott Lippitz, 2007). Business model innovation enables a company to differentiate itself from the competition and create sustainable competitive advantage. According to Pohle and Chapman (2006) the most beneficial effects of business model innovation are cost reduction and a more flexible organization. Business model innovation facilitates companies in grasping the growth opportunities. 2.5 Conclusion To conclude, corporate entrepreneurship is described by various authors as the process of creating new businesses, products, brands or technologies under the corporate umbrella of the established firm (Wolcott Lippitz, 2007; Ginsberg Hay, 1994; Kenney and Mujtaba, 2007). Corporate entrepreneurship is a broad concept which is not purely about creating new businesses or products corporate venturing as many people think. Acting in an entrepreneurial way and being innovative are the key elements of the concept. The concept of corporate entrepreneurship is namely advantageous when dealing with rapidly changing environments (Ginsberg Hay, 1994). As has been discussed, the concept of corporate entrepreneurship has been divided into four forms; corporate venturing, intrapreneuring, organizational transformation and industry rule-bending. All these four forms have their own characteristics. Furthermore, Wolcott and Lippitz (2007) came up with four corporate entrepreneurship models; the enabler, producer, opportunist and advocate model. Whether these models are advantageous for companies strongly depends on the sort of company and its strategic direction. The four models are characterized regarding their resource authority and organizational ownership. The opportunist model seems to be the most useful model for SMEs, since it is characterized by ad hoc resource authority. In order to indicate the skillfulness of corporate entrepreneurship forms and models for SMEs, insight is needed into the characteristics regarding innovation and entrepreneurship in SMEs. These characteristics will be discussed in the next chapter. dus ben er niet bij..Chapter 3: What are the characteristics of entrepreneurship and innovation in SMEs? 3.1 Introduction In this chapter entrepreneurship and innovation in SMEs is characterized. First, an explanation of entrepreneurship has been given. Later, entrepreneurship and innovation are characterized by using mainly the framework of Hausman (2005) which indicate determinants of innovation in SMEs. This model is discussed and compared with literary articles in the research area. Besides these models, important characteristics of entrepreneurship in SMEs are discussed, such as growth and financial capital. 3.2 Defining entrepreneurship Different authors give different definitions of the concept of entrepreneurship. Schumpeter (1934) argues that the concept has a positive influence on the economy. The essence of this process is innovation, in which innovation has been seen as everything that makes profit (Massa Testa, 2008). This definition of innovation is connected with the market; they consider that making money refers to an improvement in products or services which leads to an increase in profit. It is argued that entrepreneurship creates value to the growth of the economy (Baumol, 2004). However, according to Stevenson and Gumpert (1985) entrepreneurship is more than being innovative, the concept is also about being flexible, dynamic, creative, growth oriented and it is about taking risks. In his viewpoint entrepreneurship is a trait that is neither related to one type of person or organization. As discussed by Ginsberg and Hay (1994) the concept entrepreneurship can be exercised in both large and small companies, but will be mostly present in small organizations, because small companies provide better conditions for exercising entrepreneurship. According to Wickham (2006) an entrepreneur is an individual who lives and functions within a social setting. Entrepreneurs are characterized by the actions they take in order to create new wealth with their ventures. 3.3 Entrepreneurship and innovation in SMEs Hausman (2005) has developed the scheme below, which indicates four antecedents of innovativeness in SMEs. This model is discussed below in the subheadings as mentioned in the scheme. Besides this model, other aspects influencing the innovativeness level of SMEs are discussed, like growth and the availability of financial resources. Figure 3: Model of small firm innovation and adoption (Hausman, 2005, p.777) 3.3.1. Industry concentration Markets become less transparent when competition is intense. Therefore it becomes more and more difficult to respond rapidly to environmental changes with intense competition. According to Hausman (2005), this can have a negative influence on the innovativeness level of SMEs. Not all markets provide the same incentives for companies to enter the market, for example it is more advantageous to enter a market in which a few firms operate (Sorescu, Chandy Prabhu, 2003). Industries in which large companies are involved are often more innovative than other industries. Research done by Acs and Audretsch (1987) shows that entry barriers do prevent potential entrants from entering existing industries and that the level of innovation activities is negatively related to the capital- labor ratio in industries. The research also indicates that industries in which innovation is promoted are characterized by high technological opportunities. 3.3.2. Manager factors Owners of SMEs have large influence on the strategic direction adopted by their firms and the performance achieved by setting the strategic direction (Donckels Frohlich, 1991). O Regan (2006) also defines leadership as an important determinant of innovation, the leaders characteristics can significantly influence the strategic direction and organizational performance of a company. The objectives of the firm are mostly equal to the desires of the owner and this will indicate whether a firm will pursue growth or survival objectives. Not commercial considerations, but personal lifestyles are common reasons for companies who are wishing to stay small and just have the goal to survive (Birley Westhead, 1990). Furthermore, it is argued that the managers of SMEs sometimes lack the skills and education to cope with increasingly complex organizations (Rothwell, 2001). Business managers lack the specific types of education and training that can be linked with innovation in companies (Romano, 1990). This lack of expertise can hold up companies from transforming the managers knowledge into new products and services, and it can decrease the companys ability to respond adequately to the customers needs (Gruner Homburg, 2000). Innovativeness in SMEs is mostly limited by the power and innovation potential of the companies owner, because he has the decision-making authority (Verhees Vermeulenberg, 2004). The view of Verhees and Vermeulenberg (2004) is supported by a research provided by Birley and Westhead (1990) that shows a positive relationship between separated ownership and management from the original owners and the profitability of the company. According to the reviewed literature above, it seems that the manager often lacks the right competences and education to encourage sustainable growth in the company. Therefore, companies would profit from separate ownership, because a hired manager can complement the owners skills and in this way the growth potential is secured. This will also enhance the profitability of the company, as mentioned in the research of Birley and Westhead (1990). However, separated ownership can also face agency problems, because of different goals of the owner and manager (Millgrom Roberts, 1992). So, this means that it is important when having separate ownership in a company that the goals and expectations of the owners are in line. Otherwise this will cause problems with setting up strategic directions. 3.3.3. Network effects The internal communication networks are more efficient in SMEs than in larger ones, because the networks provide SMEs a fast response towards problem solving. SMEs can easier reorganize tasks and processes and adapt to changing environments. Besides, it is also easier for SMEs to respond to rapidly changing environments due to the organizational structures of the businesses. They are less bureaucratic and have more clannish structures, which makes them able to cope with unmet customer needs (Rothwell, 2001). Although, the flexibility of SMEs means that they can easily respond to changes in the market, SMEs will be less innovative over time because they lack the external contacts which makes them less aware of innovative technologies (Hausman Fontenot, 1999). According to Rothwell (2001) SMEs often lack the time and resources to identify and use external sources of scientific and technological expertise and advice. This business mostly lack suitable qualified technical specialists to support research and development activities. 3.3.4. Tangible products Tangible products will often be more easily adopted by SMEs than intangible products, because of the characteristics of tangible products. This speed of adaption will be advanced when people can observe and try the products, because in this way a better insight is created into the product (Hausman, 2005). 3.3.5. Financial capital According to Hausman (2005) SMEs are not pure simplifications of large firms, because SMEs lack the financial and human capital and have different governance and reward structures than large firms. This can make it more difficult for SMEs to be entrepreneurial and innovative. For example, developing a new product is a high risk activity for a small company and it requires large investments. The problem here is that SMEs can have great difficulties with attracting capital, especially risk capital (Rothwell, 2001). Large companies can spread the risk of innovation mostly over several portfolio projects. This can also influence the growth potential of the businesses, because growth often requires an investment of money. 3.3.6. Growth Growth inside SMEs can vary a lot between different sorts of SMEs. Also growth is characterized differently compared to large companies. Independent of action, the organizational structure and its management style are important indicators of the level of growth attainable in a company (Churchill Lewis, 1983). Moreno and Casillas (2007) conducted a research on the differences between high-growth and low-growth SMEs. They concluded that the size of a firm is an important indicator for growth: the smaller the business, the higher their ability to grow. Their research also indicated that high growth firms are often characterized by low availability of financial resources; because a lot of the money is spent on research and development in high growth SMEs. This finding fits the view of Stevenson (1983), as described by Brown, Davidsson and Wiklund (2001), which created an opportunity-based view on entrepreneurship. This view focuses on the exploitation of new opportunities. This has a ne gative influence on the availability of financial resources. According to Churchill and Lewis (1983) the main problems SMEs face when striving to expand are low customer acceptance, difficulties in coping with changing environments, delegation problems of the owner and a shortage of cash to do investments. Partly because of these problems SMEs are not all growth orientated. The results of a study done by Gray Gonsalves (2002), presented in figure 4 on the next page, supports the argument that in the years 1990-1999 very few small firms in the United Kingdom were growth orientated. Figure 4: Growth objectives of small firms in the UK (Gray Gonsalves, 2002, p.31) 3.4. Conclusion To conclude from chapter 3, the strengths of SMEs are their flexibility in responding to changing markets and their grow ability. The flexibility-advantage of SMEs is greatest when operating in markets characterized by less competition, because these markets often provide a higher level of transparency. Besides that, SMEs have a high ability to grow, because their management structure is less complex than in large organizations; they can operate more independent. But although they have the ability to grow, many companies are not growth orientated. However, SMEs are also characterized by some weak points. For example, SMEs are not always able to quickly respond to changing markets because they lack external contacts in comparison with large companies, which make them less aware of new trends and technologies. Also, the owner of SMEs has a strong influence on the strategic direction of a firm. These owners often lack the right skills to be innovative or manage complex organizations. Hereby, innovativeness is limited by the character and education of the owner. SMEs could thus benefit from separated ownership. Furthermore, SMEs lack financial resources and human capital to attain a high level of innovation. For example, developing a new product is high risk activity for SMEs in comparison with large companies, because they cannot spread risks. Chapter 4: What are the limitations of SMEs towards organizational learning? 4.1 Introduction In this chapter organization learning is discussed regarding SMEs. Firstly, an explanation is given of the concept of organizational learning. Secondly, organizational learning is characterized in SMEs by their advantages and limitations in comparison to large companies. 4.2 Definition organizational learning Different theories of organizational learning exist in the literature. Every organization learns, although they are not always aware of it. However, without learning it is impossible for an organization to exist (Kim, 1993). According to Jerez-Gomeza, Cespedes-Lorentea and Valle-Cabrera (2005) organizational learning begins at the individual level and is a process based on knowledge. It is about the exchange of knowledge between individuals and members of a group. Individual learning is important for organizational learning since a company exists out of many individuals. According to this author the process of organizational learning is more complex than individual learning. Organizational learning is seen as knowledge about the interrelationships of a companys actions (Kim, 1993) and it improves the quality and quantity (e.g. more sales) of a companys performance (Senge, Roberts, Ross, Smith Kleiner, 1994). Organizational learning is positively related to the innovation level of a company, because the innovation level strongly depends on the knowledge base of the firm (Cohen Levinthal, 1990). According to Calanstone, Cavusgil and Zhao (2002), the amount of organizational learning is an important indicator of innovativeness, since it creates opportunities to rapidly respond to changing environments and customer needs. Huber (1991) speaks primarily about the effectiveness of organizational learning in the sense that the concept of organizational learning is only used when a company acquires knowledge that is useful for the organization. Huber (1991) summarizes his research in the following way: More organizational learning occurs when more of the organizations components obtain this knowledge and recognize it as potentially useful More organizational learning occurs when more and more varied interpretations are developed More organizational learning occurs when more organizational units develop uniform comprehensions of the various interpretations (Huber, 1991, p.90). 4.3 Limitations towards organizational learning in SMEs It appears that little research has been done in the field of organizational learning in SMEs. Nevertheless, it has already been pointed out that organizational learning is a phenomenon present in all sorts of companies, also in SMEs. According to (Oyelaran- Oyeyinka Lal, 2006) organizational learning is a way in which SMEs can survive in the market. Large firms seem to have a competitive advantage regarding innovation, because they possess the resources to enter capital- intensive markets and invest in specialists (Wolcott Lippitz, 2007). However, SMEs have an advantage in highly innovative industries because of their flexibility and entrepreneurial mindset (GarcÄÂ ±a-Morales, Llorens-Montesa Verdu Jover, 2007). In small organizations the level of organizational learning equals the individual learning capacity of the owner, where in large companies organizational learning is facilitated by different activities which stimulate the share of information and experiences (Gray Gonsalves, 2002). It is argued that the managers of SMEs sometimes lack the skills and education to cope with increasingly complex organizations (Rothwell, 2001). Nonaka (2

A Passage to India:An Examination of the Work in a Historical Context :: essays research papers

A Passage to India by Edward Morgan Forster is truly one of the great books of it’s time. Written in an era when the world was more romantic, yet substantially less civil to the unwestern world than it is today; E. M. Forster opened the eyes of his fellow countrymen and the world by showing them the truth about British Colonialism. The novel aids greatly in the ability to interpret events of the time as well as understand the differences between the social discourse of then and now.   Ã‚  Ã‚  Ã‚  Ã‚  To fully understand A Passage to India and its cultural and historical significance one must first understand the world in which it was written, and the man who wrote it. Forster published the novel in 1924 England, a place much different than the England of today. At the time the sun still didn’t set on the British empire and there were still serious societal influences form the Victorian Era.   Ã‚  Ã‚  Ã‚  Ã‚  Forster was born on January 1st 1879; his family was part of London's upper-middle class. At the age of two Forster's father died, leaving only his mother to raise him. Their relationship was very strong and stayed that way up until her death in 1945. Forster was educated in Kent up until 1897, and then went on to King’s College at Cambridge.   Ã‚  Ã‚  Ã‚  Ã‚  Immediately after his graduation from the University in 1901, Forster began to travel around the world, spending much of his time in Italy, Greece, and Germany. His first novel, Where Angels Fear to Tread was published in 1905 and was received with good reviews. By the publication of his fourth novel, Howard's End in 1910 Forster had become a member of what was known in writing circles as the Bloomsbury Group, a distinguished group of writers including Virginia Wolf, John Maynard Keynes, and many others. In 1912 Forster made his first visit to India; and in 1021 after having served for the Red Cross in Egypt during world war one, he returned to India to be the private secretary to the Maharajah of Dewas. Forster based A Passage to India on the experiences he had while working for the Maharajah.   Ã‚  Ã‚  Ã‚  Ã‚  The world of Colonial India was much different than that of England at the time, or of the India of today. The country was ruled by the British military. British patriots and ex-patriots living in India had a culture all there own; they were not at all oppressors but did have a completely different culture than the indigenous peoples of the country.

British Citizenship Under Neoliberalism

Neoliberalism simplifies trade between nations. It involves uncontrolled exchange and movement of goods, services, resources and activities with the aim of acquiring profit leverage with efficiency through cheap resources (Shah, 2007). Neoliberalism espouses the removal of the free trade barriers. These barriers include tariffs, regulations, laws and legislation, and investment restrictions. Neoliberalism is the intensification and expansion of the market through the increase in quantity, frequency, recurrence and formalization of transactions (Treanor). The goal of Neoliberalism is to enhance market competition in every transaction process.These transactions tend to be more competitive if they occur repeatedly for short periods of time. This way the dynamism of the cycle of cost and profit remains active. The basic principles of Neoliberalism include the freedom of trade in goods and services, limitless circulation of capital and, investment capacity and opportunities. The concept o f Neoliberalism involves several vital points mainly in reference to the economy. The five points include the rule of the market, reducing public expenditure for social services, privatization, deregulation, and the concept of individual responsibility against public good (Martinez & Garcia, 2000).The rule of the market means limitless freedom of the flow and exchange of goods, services and capital. It sustains that the market regulates and balances itself through the dynamics of market demand. The government has a hands-free policy when it comes to the dealings of the private enterprises like the freedom to determine prices of commodities. International trade and investment are likewise encouraged. The next point is the reduction of public expenditure for social services. Social Services comprise health, education and infrastructure development among others.Privatization is a main aspect of Neoliberalism in that it espouses the transfer of the previously state-owned enterprises or businesses like banks, schools and hospitals to private investors. There are two opposing views on privatization. On one hand, it increases efficiency of the enterprise under the ownership of a specialized private group. On the other hand, privatization results to a concentration of wealth and power to a few groups. Deregulation is another aspect of Neoliberalism. It refers to a reduction in the regulating power of the government. Instead, the market is allowed to regulate itself with the aim of maximizing profits.The last point is the concept of individual responsibility versus public good. Each individual is responsible for his or her conditions in life. The decrease in government support to the community for education, health care and social security should be compensated by the individuals themselves. What are the justifications of Neoliberalism? Is it an underlying theory for most of the economic successes of a nation? Neoliberalism promotes the idea of a free market without go vernment interventions in order for resources to be more efficiently distributed to groups in society who can better handle businesses.It likewise supports the idea that privatization of enterprises takes away the inefficiency or incompetency of the public sector in running businesses. Neoliberalism believes that the best way to achieve progress is through continued economic growth and the inevitable road to success is economic globalization. Economic globalization pertains to trade and financial movement as the factors which increase the integration of world economies (IMF Staff, 2000). It is also referred to as the transfer and exchange of knowledge and labor beyond the national boundaries and into the international field.The term Globalization is most often interchangeably used with Neoliberalism because of the similar principles that both concept advocates. Both support free trade as the ultimate means to achieve economic growth. Globalization leans more towards the weakening of national borders and the increase in the assimilation of global policies and trends in the national level. The aspects of Globalization include trade, movement of capital, movement of people and information dissemination and exchange through technology.Information exchange has been significantly globalized due to the proliferation of the internet. The global financial market run on a very fast pace due to the internet where transaction can be done with just one click. Movement of capital involves foreign investment and movement of people refers to employment opportunities outside the home country. These employment opportunities give way to an increasing trend of migration from developing countries to countries with more advanced economies.On the other hand, Neoliberalism is more focused on the nationwide aspect of trade with major effects from the international trade community. Other policies supported by Neoliberalism include the maintenance of competitive exchange rates where mar ket-determined exchange rates are followed instead of government-fixed exchange rates (Neoliberalism). Another policy is fiscal rectitude where expenditures are reduced and taxes are increased to sustain a budget surplus. II. The Neoliberal Revolution in Great BritainPrior to the Neoliberal Revolution, the dominant principle in both Western and most parts of the Third World economies is the Keynesian concept (Ambrose). John Meynard Keynes was an advocate of the idea that government interventions are needed to lead markets in endeavors which would benefit the most number of people. This idea was put to a halt when Neoliberalism began to take shape. In 1975, Margaret Thatcher became opposition Conservative Party head and was elected as Prime Minister in 1979 (Scott, 1997).She was determined to alleviate the condition of the British people from recession to economic greatness. The Neoliberal Revolution started in 1980 with Margaret Thatcher as the main proponent. The proposal of the re volution included decrease in corporate taxes, corporate regulation reduction, public services privatization and abolition of international trade barriers (Moore, 1998). At this time, privatization was a major practice and the primary force of Neoliberalism, as power, assets, rights and responsibilities along with a great deal of autonomy were afforded to private enterprises.Thatcher’s principle of Neoliberalism was supported by her TINA or There Is No Alternative campaign (George, 1999). The significance of Thatcher’s neoliberal policy lies in the idea of competition as an essential part of growth. Nations, regions, companies and individuals compete with each other. This competition makes the market more effective as it maintains only those who survive or those who won against the others. Thus, only the best resources, may it be natural, human, physical or financial, are included in the final market competition.It is the belief of Thatcher that people by nature are un equal so there are no worries about issues of social inequality as a hindrance to economic success. Those who are the strongest, more intelligent and well-educated can contribute best to the welfare of the country and its people. On the other side of the fence, the weak and the poorly educated are only responsible for themselves and have themselves to blame for their status. The Neoliberal Revolution introduced changes in policies which brought about the negative effects to the public sector.The budget for the health sector was reduced which meant less free health services for the people and the privatization of health services was started resulting to the charging of fees and introduction of insurance policies (Navarro, 2006). A very important factor in the Neoliberal Revolution is not only the promotion by the U. K. and U. S. governments, but the support it got from international organizations like the International Monetary Fund (IMF), the World Trade Organization (WTO), the Worl d Bank and the World Health Organization (WHO).III. Effects of Neoliberalism on British Citizenship The main goal of citizenship is equality among the people. There are three forms of citizenship: civil, political and social citizenship. Civil Citizenship comprises employment, private property and contract protection, and market access. Political Citizenship involve the right to vote and hold public office, while Social Citizenship means the right to the provision of education, health benefits and other social services (Sparke).The rights of the citizens are mainly dependent on the policies of the government. Neoliberalism had a great impact on the government policies in that citizenship was largely affected to its detriment. It is important to note the social policy of Neoliberalism before we move further into a discourse of its negative effects on citizenship. In Neoliberalism, social policy means the provision of equal opportunities available in the market and equal legal treatme nt to all citizens (Rosch). This is also the measure of social justice.The social policy does not include concern for the social welfare of the people. Its premise lies in individual responsibility where each person is responsible for achieving his or her own social and ethical ideals. This responsibility is not to be shouldered by the government in any way. This social policy is deemed as leaning favorably to those with financial power and is discriminating and pushing those at the lower level of the economic ladder further down. Neoliberalism threw its strongest punch on the social form of citizenship.Social services were privatized and budget cutbacks were enforced as part of the fiscal rectitude policy where expenditures are reduced to maintain a budget surplus. Education, health services, housing, transportation and other social services were stripped off their importance as part of the government’s responsibility to its citizens. Instead, the people are encouraged to st rive on their own to meet these needs. The social services organizations were handed over to private institutions which now are to be dealt with if the people need the kinds of services they offer.Since these private enterprises are now competing in an open market, the cost of availing their services becomes expensive and incomparable to the previous benefit that the citizens were receiving from the government. The negative impact is most felt by the underprivileged and advantage is savored by the wealthy and powerful. Civil Citizenship was likewise adversely affected by Neoliberalism in terms of the contract and employment terms. The most notable effect is the reduction, if not elimination of the trade unions which are primarily based in public enterprises.Privatization meant abolishing of the existing systems as the policy making is transferred to the owners of the private companies. Protection of the employee was abandoned with the increasing short term contracts along with short duration of jobs. Employees now are offered shorter tenures which force them to undergo the tedious task of re-applying to companies. With private companies’ anti-union policies, the employees now have nowhere to go. They either sink or swim. Employment opportunities are now available to more competent and well educated individuals.The name of the game became employability or the capacity of the individual to sell his or her services based on the acquired knowledge and skills. This now brings us back to the issue of the advantage of the more financially able citizens. Individuals with access to good education from schools which are now private enterprises and which are now able to charge high fees, has the advantage. The flow of trade money between enterprises, regions and even between nations on a wider scale as espoused by neoliberalism, has a tremendous effect on the electoral system or the political aspect of citizenship.The exercise of electoral right is now deemed futi le as doubts are cast upon the veracity of the election results because of the money generated inside the politics arena. Politics, as a powerful venue of pushing legislative programs or business leverage, is considered to be a channel used by some groups or enterprises in advancing their own personal agenda. Neoliberalism has in great part affected the entire nation including the people and how they function in society. Its effects are criticized left and right by different groups as to its advantages and disadvantages.Critics and proponents both have their valid points. It has to be stressed though that for a concept or idea to be considered truly successful is to analyze if a great majority of the people has benefited from the underlying principles of the concept. The ultimate question now is: Has Neoliberalism created a healthy balance between the rich and the poor or has it been an instrument to push the rich to the topmost part of the economic ladder and to push the poor furth er down the pit? Bibliography Ambrose, S. (n. d. ). The Roots of Corporate Globalization in IMF/World Bank â€Å"StructuralAdjustment† Policies. Public Eye. Org. [online] Available from: http://www. publiceye. org/magazine/v18n2/ambrose_imf. html [Accessed 25 June 2007] George, S. (1999, March 24). A Short History of Neo-liberalism. Global Exchange. [online] Available from: http://www. globalexchange. org/campaigns/econ101/neoliberalism. html [Accessed 25 June 2007] IMF Staff. (2000, April 12). Globalization: Threat or Opportunity? International Monetary Fund. [online] Available from: http://www. imf. org/external/np/exr/ib/2000/041200. htm#II [Accessed 25 June 2007] Martinez, E. , & Garcia, A. (2000, feb 26).What is â€Å"Neo-Liberalism†? A Brief Definition. Global Exchange. [online] Available from: http://www. globalexchange. org/campaigns/econ101/neoliberalDefined. html [Accessed 25 June 2007] Moore, R. (1998, May). Absolute PowerThe Making of a new World Order. Thi rd World Traveler. [online] Available from: http://www. thirdworldtraveler. com/New_Global_Economy/Absolute_Power. html [Accessed 25 June 2007] Navarro, V. (2006, Oct 23). What is happening at the World Health Organization? The coming election of the WHO Director-General. People's Health Movement. [online] Available from: http://www.phmovement. org/en/node/279 [Accessed 25 June 2007] Neoliberalism. (n. d. ). Wikipedia. [online] Available from: http://en. wikipedia. org/wiki/Neoliberalism [Accessed 25 June 2007] Rosch, M. (n. d. ). What does neoliberalism mean? Internetseminar. [online] Available from: http://tiss. zdv. uni-tuebingen. de/webroot/sp/barrios/themeA2a. html [Accessed 25 June 2007] Scott, D. (1997). The Path from Old Labour to Tory Neoliberalism to New Labour. People's News Agency. [online] Available from: http://www. prout. org/pna/uk-capitalism. html [Accessed 25 June 2007] Shah, A. (2007, March 5).A Primer on Neoliberalism. Global Issues. [online] Available from: http ://www. globalissues. org/TradeRelated/FreeTrade/Neoliberalism. asp [Accessed 25 June 2007] Sparke, M. (n. d. ). Center for Communication and Civic Engagement. University of Washington. [online] Available from: http://depts. washington. edu/ccce/assets/documents/pdf/Passportsintocreditcards. pdf [Accessed 25 June 2007] Treanor, P. (n. d. ). Neoliberalism: origins, theory, definition. InterNLnet. [online] Available from: http://web. inter. nl. net/users/Paul. Treanor/neoliberalism. html [Accessed 25 June 2007]

Brunelleschi’s Dome

Filippo Brunelleschi was in many senses a modern day entrepreneur in the Middle Ages. He is the architect and innovator responsible for building the Santa Maria del Fiore, arguably the greatest dome ever built. In the years leading up to and during the construction of the dome, his life was surrounded by managerial aspects. There were several critical success factors for the construction of the dome including access to financial resources, raw materials, and product equipment. The building of the Santa Maria del Fiore was not something that could be done overnight, in fact it took the better of two centuries until it was complete. Probably his greatest competitive advantage, Brunelleschi was able to separate himself from his competitors by using technology to create new products and come up with innovative solutions to problems. Seeing as the creation of the dome was the first project of its kind, certain product equipment was required but not available. Brunelleschi himself invented and created much of the equipment needed, such as the ox driven hoist and the pulley. With the Opera del Duomo constantly bidding out the different projects involved with the construction of the Santa Maria del Fiore, Brunelleschi was able to create far more innovative designs than his competitors to win these bids. Another factor that played into Brunelleschi’s competitive advantage was the fact that there wasn’t much work in the city of Florence. Laborers worked for a cheap rate and did not hold any power. When they went on strike, Brunelleschi simply fired them and found a replacement which was in need of work. Filippo Brunelleschi basically held a monopoly on the labor market. The organizational behavior was one that that the capomaestros, or managers, did not have to motivate the workers one bit. The fact that the workers held employment in a city where jobs were in desperate shortage was enough motivation. Something very important to any project’s completion is time management. Entrepreneurs must master time management skills in order to get your product to the market within your budgeted time. When dealing with a new product, time frames are difficult to estimate because of delays and nforeseen circumstances, but Brunelleschi was able to manage his time and reach deadlines productively. When he had to come up with a way to hoist the marble up to the top of the dome, he did it quickly and effectively. When there was an unexpected crack in the wall after it was completed and he needed to come up with a way to fix it without delaying the overall completion of the dome, he was able t o. He did not only manage his time productively with the building of the dome but with other projects as well. Like any good entrepreneur, Brunelleschi did not put all of his time and effort into one project such as the dome, but instead took on many side projects. These little projects were not only a source of income or a way to get more recognition, but most importantly they allowed him to test his techniques and skills intended for use on the dome. He gained much respect and notoriety for his skills and successes on projects other than that of the dome. In a sense, these side projects were a way of marketing for himself, showing his precise skills and abilities through these successful projects. Although he seemed to be very well rounded, Brunelleschi did not excel in the area of communication. He was paranoid, constantly worrying about his designs or plans being stolen which is why he kept to himself. He felt as if his competitors believed the saying, â€Å"instinct tells us to watch what our competitors are doing and simply try to do the same thing better. † During a project, communication is key- the managers and workers need to be on the same page and communicate directions and progress. This is something that was never present during the building of the dome. In a business, knowledge must be shared within all units of the organization, but Brunelleschi did not believe this. If Brunelleschi had known the importance of communication, he could have received feedback from his workers and possibly avoided setbacks such as the cracks in the nave of the church. In addition to his lack of communication, another setback of Brunelleschi’s technique was the poor working environment. The culture of the business created during the building of the dome was not a worker friendly one, with no benefits or accommodations given to the workers. There was no set of directions but rather, workers ‘went with the flow’ as Brunelleschi gave directions on the fly. This was a disadvantage to his progress because things may be forgotten without realizing their importance and crucial role to the project. With his big fear of plagiarism, it’s no surprise the very first patent was issued to Brunelleschi for his boat that was to be used as a transporter known as Il Badalone. Ironically, this was Brunelleschi’s most unsuccessful invention but he felt the need to protect it. Nonetheless, it can be seen that patents are a necessity for entrepreneurs. Brunelleschi was in constant fear of his competitors stealing his ideas and designs and this stands true in today’s society as well. Entrepreneurs need to protect their ideas from their competitors because everyone is looking to get ahead and come up with a new and better idea. Brunelleschi often followed his prime instinct, trusting it would work and that it was the best idea. This stood true for many of his projects and inventions. When he decided to lay the transverse bricks to prevent the dome from collapsing, there was no past documentation stating that this would work but he felt that it was the best way to go about it. Often times, entrepreneurs have to make final decisions based on gut instincts and Brunelleschi was what we may call a master of this. Being a very confident man, Brunelleschi often refused advice or help from other sources. He very rarely collaborated with others on designs or projects, but rather did it all himself. It may be argued that he may not have had the success he did if he teamed up with others. It may also be argued that if he did take advice from others, some of his unsuccessful inventions might have had a different and more successful outcome, such as Il Badalone. Filippo Brunelleschi is one of the most influential architects in history, with success in many areas due to his innovative ideas. He had access to plentiful financial resources and was able to take advantage of a labor force that worked for minimal fees. His ingenuity provided him with the capability to create unique product equipment that could not be found anywhere else. Brunelleschi was a proud and confident man, his confidence helping him in many ways. When his theories were questioned, he simply followed through and proved why his designs were going to work. When problems arose on the job, he trusted his intuition and was able to fix the problems. Although he showed many characteristics of an entrepreneur, Filippo Brunelleschi is not known as one of the greatest managers in history. In order to be successful in today’s world, he would have needed to brush up on a few things, such as his poor communication skills due to his fear of plagiarism of his designs and ideas. Communication is a must when talking about being an effective manager, but this was not all he would have to alter. He was a selfish man, refusing to work with others on projects or reluctantly working on a project with others. Effective managers need to be able to collaborate and work with numerous people at once. Brunelleschi was always more worried about his reputation and image rather than the overall well being of the project. A manager needs to put the overall success of the business first before their own ego and pride.