Entrepreneurship Essay Example | Topics and Well Written Essays - 250 words - 7

Entrepreneurship - Essay Example Therefore, for an entrepreneur to succeed in combining innovations to revolutionize the patterns of production, he has to carry out new combinations in productions, through a process that requires a work force. In addition, entrepreneurs require professional management skills, since their obsession becomes a liability in managing the growth of a business. 2. On the other hand, feasibility analysis before venturing in a business is necessary, since the analysis enables an entrepreneur to understand the business process and identify the factors that will facilitate success s of the business venture. Therefore, venturing in to a business without conducting a feasibility test can lead to an over estimation or underestimation of factors that will facilitate the continuation of the business. For example, an entrepreneur may have an idea of starting a business, which requires acquisition of a certain machine for production. If the entrepreneur fails to conduct a technical feasibility analysis, a technical problem on the machine can cause a downfall of the business. Therefore, if the entrepreneur had decided to conduct a technical feasibility analysis, he would have had the chance of identifying availability of technical expertise to correct the problem if it occurs, hence sustaining productivity in the Entrepreneurship Essay Example | Topics and Well Written Essays - 2500 words - 2 Entrepreneurship - Essay Example on creating positive outcome for new products and services as well as in the operational processes of that particular business or start up that engages in it. The managerial processes, the market segment and the organizational structure of the business may also experience the positive impact of innovation when it is clearly and properly implemented and integrated into the business. Different businesses and startup companies engage in innovation for different reasons. The ultimate goal of innovation is to improve the businesses (Lee et al., 2000). The changes that are associated with innovation are intended to improve the efficiency, profitability and the viability of that particular business. There are several aspects of a business that are known to benefit from innovation both in an existing businesses or a new entrepreneurial start up. Some of these aspects and areas include finance, research and development, sales, human resources and marketing. Acs and Szerb (2009) state that innovation does not need to be new or revolutionary for it to be of benefit to the business or entrepreneurial start up. The aim of this paper is to explore the role that is played by innovation in entrepreneurial startups and in the growth of businesses. This is done through a reviewed of existing literature in peer reviewed journals. In order to unravel and explore the role of innovation in entrepreneurial startups and in the growth of businesses, this paper relies on secondary data that exist in journals. To explore and understand how innovation impacts on entrepreneurial startups and the role that it plays in the growth of existing businesses, the paper will use peer reviewed journals. The journals that will be used in this paper are those that deal with innovation, entrepreneurship and growth of businesses. In selecting the journals to be used in the paper, an analysis of various journals that deal with the topic was done. After this, the journals that contain data and information

What are the key internal factors and external factors to be Essay

What are the key internal factors and external factors to be considered in price decision making - Essay Example he equilibrium point where demand curve intersects with supply curve is the deciding point at which price is determined. When price is considered in terms of demand and supply, it can be said that price has inverse relationship with demand and positive relationship with supply. In other words, when price increases demand decreases and vice versa, while price increases supply also increases. This is because, when price increases, the customers would like to reduce its consumption as the product seems to be more expensive. Likewise, when price increases, the firms will be encouraged to produce or supply more, as they expect more for their products. In another words, price has the tendency to be increased by the increased demand and to be decreased by the increased supply. But in a real market, price is not solely determined by the equilibrium position of supply and demand, but some other factors also play crucial role in deciding the price of the products. Pricing is a more a complex a nd complicated process than a simple determination of demand and supply. Hence, pricing policies which are deliberately taken by the firm is the most important deciding factor which decides the price of a particular product. These pricing policies of the firm are influenced, in general, by two sets of factors- internal and external. Both the internal as well as external factors influence the pricing decisions of any enterprise or firm. These factors may be psychological, economical, quantitative or qualitative. (Sawyer, 1981 and Kotler, 1997). 2. Internal Factors Pricing decisions are influenced by a number of internal factors which consist of profit margin, cost of production and other expenses, brand image and expectations of the company, suppliers’ and employees’ efficiency and responsiveness of the product to the price changes (Kotler, 1997). . These factors can broadly categorized under the following heads: 2.1 Corporate and marketing objectives of the firm. Corpo rate and marketing objectives of the firm mainly seek to recover the cost elements of all types, to make target returns and to maximize the profit. Coverage of the corporate cost of production as well as marketing should be an influential factor of pricing policy of the firm. Corporate objective of making specific return rates on the basis of internal cost factors is another important internal factor which play crucial role in an organization’s pricing strategy. Some important examples of other market objectives are survival of the firm in a high competitive atmosphere, current profit maximization, market share leadership and product quality leadership (Munroe, 1990). 2.2. Image sought by the firm through the price By setting a particular price or implementing a pricing policy, the firms seek a particular public image and this image plays a crucial role in the pricing policy. For example, premium prices are usually being charged for global brand. Likewise, a plant keep going by setting a low price in the hope that in future, the plant can increase the demand. In this case, survival is more important than price or profit maximization (Forman, 1998). 2.2 The Stage of the Production in its life cycle The stage of the production under which the firm goes through is an important factor in the price setting strategy. Whether the firm is going through increasing, decreasing or stagnant returns of scale and where the position of its average and marginal product curves stand, are the important things which decisively play role in the pricing policy of the firm. 2.3. Capacity Utilization and Market Contribution rates Capacity utilization has a positive influence on cost-based pricing strategies. Organizations operating at full capacity are capable of spreading the fixed cost to various units and