Management and Business Context Organization

Question: Discuss about the Management and Business Context Organization. Answer: Introduction The business context model should be explained as the mode of expressing the present business problem and define the scope of the project (Park et al., 2016). A business context is relevant in all the organizations surviving in the modern market place. The modern-day organizations need to alter their adaptation to the business context in order to fulfill the organizational goals (Saidani, Rolland Nurcan, 2015). The business context selected in this organization is- Innovation and Entrepreneurship. The business contextual factors are aimed at informing the organization regarding the present status and how it can be improved in the future. The systematic innovation is one of the integral components of management in the organizations (Anderson, Poto?nik Zhou, 2014). The organizations must be able to transform the organization and make it suitable for surviving in the competitive market (Park et al., 2016). The selected organization is Adidas. The report would discuss different concept s related to the subject of entrepreneurship and innovation. The impact of these factors on the organization would be assessed. The way these contextual factors impact the business functioning are discussed. Definition of Entrepreneurship The process of managing, designing, launching and functioning of a business entity for a definite motive is termed as entrepreneurship (Carland, Carland Stewart, 2015). It is concerned with the following components- Creation of an environment of mutual cooperation in which the different contextual factors are considered. Creation of good organizational culture that is enriching and beneficial Successful formulation of strategies that capture the different opportunities Focus on project scope, goals, assumptions and the specifications of the operations. Locus of control theory- Entrepreneurship The theory of locus of control specifies that there is particular degree of belief of an individual regarding the power of control, which is believed to lie in ones destiny. There are internal as well as external control of focus for the entrepreneurs (Hsiao, Lee Chen, 2016). The internal control factors believe in the principle that the business operations are a result of the internal business parameters evident in the organization (Park et al., 2016). The external business factors also influence the smooth functioning of business. However, this theory believes that the internal business factors have more strong influence than the external business factors. Definition of innovation The process of translation of a business idea regarding a product or service which is used for value creation and greater amount of sales is known as innovation (Aghion, Van Reenen Zingales, 2013). The idea must be implemented in an economical cost and the idea should meet the customer expectation. The process of innovation involves the following components- Judicious application of information Good use of imagination Grater initiative in deriving a greater value addition to the company Economical nature of the innovation Cost benefit analysis of the unique business idea Conversion of new ideas into products or services Application of Innovation and Entrepreneurship in organizations The innovation of business process can be defined as the procedure that allocates resources to new capacity so that there is revenue generation for the company (Turr, Urbano Peris-Ortiz, 2014). The entrepreneurship process is concerned with the successful implementation of innovation for creating competitive advantage in the market (Turr, Urbano Peris-Ortiz, 2014). The work of an entrepreneur is concerned with the innovation in the resource management and the innovation in the process management. The entrepreneurs are supposed to search for alternative sources of creativity in the organizational context (Turr, Urbano Peris-Ortiz, 2014). The entrepreneurial company focuses on the opportunity without compromising the crucial management problems. This often includes periodic evaluation and the analysis of the strengths of the competitors. Impact of innovation and entrepreneurship on Adidas Adidas is a multinational company which aims to provide best products to their target markets (Adidas-group.com, 2017). The company aims to provide the best quality of sports footwear to the athletes, who are their primary target market (Adidas-group.com, 2017). The company can use innovation and entrepreneurship to influence the customers so that there is a greater sale of their shoes. It can have different raw materials and alter their manufacturing process in order to increase the environmental footprint of the shoes. It should try to implement ideas that would increase the customer satisfaction as well as reduce the damage to the environment (Turr, Urbano Peris-Ortiz, 2014). For example, it can implement oil based plastic in their products which would help the company to reduce its carbon emissions. It can have greater use of technology to create unique products that meets the growing needs of the customer base (Turr, Urbano Peris-Ortiz, 2014). They should also focus on making unique changes in the organizational structure so as to increase the economic growth of the company. The entrepreneurs should be capable of influencing the organization in a positive manner (Turr, Urbano Peris-Ortiz, 2014). It should increase the operational efficiency of the company and increase the business survival of the organization. The introduction of innovation would increase the profit generation of the company and the organization would gain competitive advantage. The new society, new innovation and the new technology has resulted in greater performance in the organizations (Leonidou et al., 2015). There is a need of proactive and innovative in the organizational entrepreneurship. There are several stimulants of entrepreneurship and the organization must handle the environmental challenges. The form of entrepreneurship can occur in the form of services, products or business processes (Leonidou et al., 2015). It can also be concluded that the organizations need entrepreneurs to deal with the external environment challenges. Domestic and international contextual factors An organization is affected by both the domestic as well as international contextual factors. The domestic contextual factors are concerned with the strategies, goals, organizational culture, procurement of the materials and the availability of the raw materials (Yeniyurt, Henke Yalcinkaya, 2014). These factors are intrinsic in an organization and affect the functioning of an organization. The organizational culture is inclusive of the values, artefacts and the motivation of the employees. These factors are also responsible for increasing the productivity of the employees. These factors also influence the socialization of the organizational entities, which affect the functioning of the organization (Yeniyurt, Henke Yalcinkaya, 2014). The domestic contextual factors should be utilized fully by the organization so that there is an increase in the organizational productivity. The international contextual factors comprise of the economic factors such as inflation rate, recession, tax rate and others (Leonidou et al., 2015). There is also provision of the technological and the environmental factors. The technological factors may include the recent digitalization of the nation which affects the functioning of the company. The environmental factor comprises of the labor market, scientific communities, regulatory agencies, customers, competitors and others (Leonidou et al., 2015. These factors are important for the smooth functioning of the organization in the external market. Schumpeters innovation theory The theory of Schumpeter emphasizes on the structural changes as well as the historical process which have an effect on the wellbeing of the organization (Witell et al., 2015). The innovation theory focuses on five different categories of innovation which are often applied in the organization (Witell et al., 2015). The person who is aiming for gaining profits must know the right implementation of innovation in the business practices. Mr. Schumpeter labelled innovation as the process of industrial mutation in which the economic structure is believed to damage the old structure (Witell et al., 2015). He also argued that the change in the investment is a major cause for the increased innovation in business which often leads to business fluctuations. They are- Application of the new process of sales as well as production of goods Entry into new target markets which would prove lucrative for the company Acquisition of new sources of supply concerning the raw materials Formulation of unique products that fulfil the customer preferences The innovation, as conceived by Schumpeter, implies that there are changes in the process of transportation as well as production process (Witell et al., 2015). It is also concerned with the enhanced production capabilities, venturing into new markets and changes in the structure of the industrialized organizations. The meaning of innovation is not confined to new inventions; however, it is concerned with the application of new material, technology and the improved methods of production (Witell et al., 2015). Conclusion The business context determines the success factors of an organization. There are several business factors out of which the innovation and entrepreneurship is discussed in this unit. This report discussed the essential concepts of innovation such as their definition, relevant theories, international as well as domestic contextual factors, impact of innovation as well as entrepreneurship on Adidas and others. The report aims to implement the theoretical concepts into practical organizational for the clarity of understanding. The innovation is very important in the modern-day organizations for gaining competitive edge, which can be implemented through the process of entrepreneurship. 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