Discuss the relationship between enterprise culture, creativity and innovation, and analyse the importance of this relationship in light of the recovery from the recent economic downturn in the UK?
The process of doing the creation of something new with the value of doing the devotion of the time and the effort which are new and also by assuming some of the things which are associating with some of the social, psychic and also the financial risk and by receiving the result rewards on the basis of the personal satisfaction, monetary and also the independence. Entrepreneur is actually a person who has the ability to take some of the risk and also the some of the innovative ideas so that it becomes more possible to start something new. The key word entrepreneur is actually comes from ‘enterprendre’ which basically means ‘to undertake’. In this assignment it also discuss the brief relationship of the enterprise culture, innovation and creativity and also do the proper analyze of their relationship in the context of the recovery of the economic turn down of UK. Here it also needs to evaluate the given three learning outcome in the relation with the given economic down turn which is recently occurs in the UK (Adamska and Minárová, 2014).
The term culture denotes a typical way in which the entrepreneur needs to acts in any of the organization as whole. The culture of the organization needs to be more creative and also imaginative in nature which is also supportable to take the risk. The enterprise culture is actually a society where mostly the earning of the money, doing the development in the business platform and also the personal achievement are supported. After the occurrence of the economic turn down of UK, the most important things of the UK become the earning of the money. For improving the economic turn down of the UK, the entrepreneur needs to follow some of the business functions which are given below (Ang, Hutton and Majadillas, 2013):
Innovation: The entrepreneur needs to be innovative in nature and also have the ability to take some of the risk so that they can innovate and implement the new ideas by considering all the factors which includes the market structure, demographic types of the structure, and also the innovation needs to be based on the needs of the process and also the gathering of the new knowledge (Bogers and West, 2012).
Organization building: For building the organizational culture after facing the major economic turn down in the market of UK the entrepreneur needs to have the clear perception and also the ideas of the market and also about the target of the market where they are going to do the business so that they can bring the profit in their business. They also need to have the ability of managing the human relationship in the firm and also have the ability of managing the finance, productions and also the relationship between the supplier and the customer. It also helps in doing the up gradation of the product and the process by introducing the new techniques of the production and also the products (Bouthevillain, Paul and Pavot, n.d.).
Some of the stages which are included in the entrepreneurial process are analyzed on the basis of the proper conducting of the analysis of the opportunity, it also helps in the development of the proper plan which can set up the company and also helps in doing the proper determination of the required resourced and also implement the plan. Some of the modern concepts of the entrepreneurship which the entrepreneur needs to follow to do the proper set up of the business are listed below (Damaraju, Barney and Makhija, 2014):
- The entrepreneur needs to perceive the opportunities which are based on the profitable investment.
- The entrepreneur needs to take some of the proper initiative in doing the proper establishment of the business.
- Needs to draw out the co-ordination between the different factors which are based on the production.
- Needs to have the ability of bearing the risk.
- Needs to do the proper introduction of the innovations and introduce some of the provision of determining the capital.
In the context of the entrepreneurship, the entrepreneur needs to know some of the basic differences between the innovations and the creativity where innovation deals with the introduction of the changes in to some of the relative stable system. Innovation is mainly based on the identification of all the types of the needs and on the basis of which the appropriate solution is designed. On the other hand, in the creativity it mainly deals about the unleashing of some of the potential of the mind to give some of the new ideas. To enhance the economic growth of UK, the entrepreneur needs to follow some of the important steps which are given below (Durand and Vergne, 2014):
- Entrepreneur needs to increase the output of the business on the basis of per capita so that the income of the people of the country can increase.
- They also needs to initiate and also needs to do the proper creation of the proper structure of the business and also the suitable society for doing the business.
- It also needs to do the proper modification and the improvisation of the existing product so that it can meet the better customer requirements.
- They also needs to create the self employment process and also needs to decrease the dependency rate of the employment of the people (Prange, 2012).
It mainly deals with the UK recession which occurred when the global tendencies were low in nature. In this review it mainly deals with the some of the factors whet the entrepreneur face at the time of the occurrence of the economic turn down (Spatacean, 2014):
- First of all the entrepreneur needs to do the proper identification of the threats, opportunities and also the pressures due to which the operating of the business faced some of the difficult condition on the context of the economic which they are experiencing in UK and also on the global platform.
- Needs to do the proper identification of all the strategies which are adopted in the business having the proper experience of the conditions (Lee, DeLone and Espinosa, 2006).
- It also needs to do the proper assessment of the strategies which can be problematic in nature and also allowed to emerge and also survive by improving the economic condition strongly (Durand and Vergne, 2014).
The crisis which UK are facing more keenly on the basis of the degree of the economic dependence which give a major hit mainly to the financial service factors and also the maximum level of the indebtedness. The economic outlook also remains highly uncertain on the basis of the duration and also the depth of the economic turn down. To meet this uncertainty of the economic turn down and also to do the proper recovery of this uncertainty the entrepreneur needs to meet the rate of the globalization so that it can increase the rate of the flow of the ideas, good and also the flow of the know ledges which crate a transition in the economic turn down. They also need to do some of the development in the technologies background which helps to increase the productivity and also the innovation of the creation of the new products. The entrepreneur also needs to keep notice on the changing demands of the consumer by increasing the intellectual content and also the technology advancement of the technological products and the services (Galvin and Arndt, 2014).
The relationship of the innovation and the creativity in the light of the economic turn down of the UK that along with the entrepreneur the government of UK also needs to introduces some of the short term and also the long term of the plan so that it becomes helpful and also can give some of the financial support. The innovation is also needs to mitigate all the negative impacts for managing the crisis and also needs to introduce some of the policies which is mainly create a focus on the public support of the research and also the new innovation which can create a great impacts on the some of the societal changes which includes ageing factors, environmental factors etc. It also needs to improve and also needs to set up a well designed partnership between the public and the private sectors which helps in achieving and also to do some of the adjustment between the public and the private funding. With the development of the investment infrastructure both the sectors needs to contribute in the stimulation of the demand on the both long term and also the short term plan. To do the contribution in solving all the social challenges they also need to introduce and open competitive background where both the sectors can take the effective participation. Government also needs to put the major focus to take both the medium and also the long term action so that it can strengthen the innovation of the business background of UK (Garratt, 2014).
Some of the new business opportunities need to be introduced for doing the proper reallocation of all the resources by declining all the activities in the direction of the vital recovery of the opportunities. Government also needs to so ease all the liquidity constraint to some extents which are faced by the small firms so that they can do the set up of the business (Yang, Chi and Young, 2014).
Different types of the forms of the activities at the time of the economic turn down of the UK are mentioned. At the economic down turn of UK, the medium sized of the enterprises also faced major down turn because of the inflation of the economy as the people are not interested in doing the investment in the business so the many of the organization are facing problems to run the business (Im and Rai, 2014). The economic down turn also create huge impacts on the small term business and as result of this many of the short term organization becomes shut down due to the unavailability of the funds for doing the business. Some of the types of the enterprises of the business which also gets affected at the time of the down turn on the economic basis of UK are mentioned as the autonomous enterprise does not needs to hold on the jointly access of the public enterprises of UK (Kominiarczuk and LedziÅ„ska, 2014). They also play some of the positive role in doing the business financing and creation of the funds. In the cases of the partnership of the business they also needs to do the proper representation of the situation of the enterprises in which it helps in the establishment of some of the financial partnerships with the other enterprises by doing the proper exercising of both the indirect and the direct control. Partnership enterprises are not autonomous and also linked with each other in nature. The linked enterprises needs to do the correspondence with the economic condition of the enterprises which helps in the formation of the groups with both the direct and also the indirect control of the business which includes shareholders, agreements etc. the enterprise becomes linked with the requirements of the laws and also required to draw the consolidation accounts (Global Property Investment: Strategies, Structures, Decisions2014 1 By Andrew Baum and David Hartzell Global Property Investment: Strategies, Structures, Decisions Wiley-Blackwell 30 December 2011 Paperback 1444335286, 2014).
Some of the businesses strategies which the entrepreneur needs to maintain in doing the improvement after the economic turn down of the business in UK are given below:
Retrenchment strategies: It is one of the most common approaches which the entrepreneur needs to adopt in their business so that it becomes very easy to deal with the entire recessionary context which involves the cutting down the economic costs, operating cost and also the diversities of the non-core assets mainly on the basis short term goals. Under the retrenchment strategies it also includes some more strategies which are given below (Ð¤Ð°Ñ€Ñ‚ÑƒÑˆÐ½ÑÐº and Ð¦Ð¸Ð±ÑƒÐ»ÑŒÐºÐ¾, 2014):
Turn down strategies: Turn down strategies includes the withdrawing, retreating of the wrongly taken decision in the previous context so that it properly reverse the whole plan decline. Some of the certain conditions and also the indicators which needs to do the proper point out if the organization needs to maintain to overcome the economic turn down includes persistency in the negative cash flow, continuous effects of the loss, declination in the market share, uncompetitive nature of the products and the services (Halac, 2013).
Divestment strategies: This strategy mainly involves with the liquidation and the sales of the business. It also includes the proper restructuring of the plan. It also includes some of the major reason to do the proper implementation of the plan are: inability of the firm to face the competition, requirement of the up gradation of the technologies in order to survive the business and also needs to determine the better alternatives which becomes available for doing the investments.
Liquidation strategies: under the liquidation strategies it mainly includes to do the closing down of the firm and also the selling of the assets of the firm. Liquidation strategy becomes very difficult for getting the strategic alternatives of the business. Some of the reason of the liquidation strategies includes: to get the unprofitable outcomes of the business, overcapacities of the industries, strategy failure and also the high competitive platform.
Investment strategies: In this strategy it mainly involves all the expenditure on doing the innovation and also the market diversification. Recession becomes an opportunity to do the proper implementation of the occurrence of the strategic changes. This type of the strategy also becomes more risky with the availability of the survival of the short term goals. Under the investment strategy it includes some of the major strategies (Hemphälä and Magnusson, 2012):
Bottom up or top down investment: in the bottom up investment it mainly deals with the stock based selection on the basis of the strength of the organization regardless the economic happening of the countries. In the top down investment strategies it mainly deals with the choosing of the assets which is mainly on the basis of the big theme.
Technical or fundamental analysis: the fundamental analysis mainly involves with the proper evaluation of all factors which can create the greater impacts on the investment performance. It mainly deals with the technical analysis of choosing the assets which are mainly based on the prior types of the trading.
Dividend investing: it suggests some of the dividends funds which need to buy the stocks on the basis of the analysis of the records of the dividends and the earnings. The recent recognition of the dividend stocks can be overvalued on the current basis.
Ambidextrous strategies: in this strategy it deals with the combination of the retrenchment and also the investment. It is mostly adapt by the firms under some of the recession circumstances which includes the asset cutting, doing the investment in the innovative nature of the product and also the development of the market (Hoare, 1983).
To figure out the conclusion of the above study and also by doing the proper assessment of all the learning outcomes it properly evaluate the entrepreneurship concept at the time of the economic turn down of UK. In this context, it also critically evaluate the different types of the forms and the norms of the enterprise activity and also do the proper demonstration of some of the research strategies.
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