This is author biographical info, that can be used to tell more about you, your iterests, background and experience. You can change it on Admin > Users > Your Profile > Biographical Info page."
Opportunity costs stem from trade-offs that exists as a result of scarcity of resources. It is necessitated by decisions to make choices between one or several options that must be given up for one alternative to prevail (Bouman, 2011). Opportunity cost in economics is the costs of the opportunity missed as a result of the alternative given up. It can be expressed in monetary terms or in any other terms of time and it includes both implicit and explicit costs (Mankiw, 2014).
The opportunity costs of watching Good Times are the costs that would be forgone as a result of the choice made to watch Good Times in concert. The alternative costs of watching Good Times are watching the Hot Stuff that basically costs $150 as the entry fee besides the time required to drive to the concert. The implicit and explicit costs of watching Hot Stuff have been valued at $225 while other costs include the hours needed to drive to the location to watch the Hot Stuff concert.
Since the explicit costs have been estimated to be $150 then the implicit costs would be $225 – $150 which equals to $75. The opportunity cost of watching Good Times can be estimated to be $75. But the cost of the hours that would be forfeited in case of travelling to watch the Hot Stuff would also have to be considered. The hours required to prepare for the exam are also valuable and the choice of watching Good Times means that those valuable hours would be saved. The opportunity costs of watching Good Times is watching Hot Stuff.
Opportunity-cost analysis has a lot of practical applications in business operations as long as scarcity of resources exists. The value of the next second best alternative must be considered when deciding the product to be rolled up from the factory. Opportunity costs are never reflected on the Balance Sheet nor in the income statement but the costs are real and must be considered (Mankiw, 2014). The only problem is that quantifying opportunity costs is rather difficult as it relates mostly future events besides most people overlook it (Waggoner, n, d).
To conclude, the opportunity costs of making any decision is literally what is given up as a result of the decision. Opportunity costs are made up of implicit and explicit costs. In economics, profits are calculated based on opportunity costs while in accounting, only explicit costs are used. It is worth noting that opportunity costs is the value of the best alternative, for example the opportunity costs of going to college would be the wages that may have been earned, or the value of the experience that would have been gained or the value of all the activities that one may have missed while studying, or the money paid for tuition or the interest that would have been earned.
The opportunity cost is the value of one alternative not the value of all the aggregate hence the opportunity costs would be one of the most valuable alternative listed. Due to scarcity, resources are limited and only one alternative among many others must be selected. Either the time or the income is always limited due to scarcity hence the opportunity cost in economics is the costs of the opportunity missed as a result of the alternative given up.
References
Bouman, J. (2011). Principles of Microeconomics, Columbia, Maryland.
Mankiw, N. G. (2014) Principles of Economics, Cengage Learning
Sigmund Freud is the one of the most influential and controversial theorists of the 21st century. This paper discusses Sigmund Freud, from his life to his theory on dreams as discussed in his book The Interpretation of Dreams.
Sigmund Freud is recognized as the father of psychoanalysis. The work of Sigmund Freud aims at revolutionizing the study of dreams. In his book The Interpretation of Dreams, Freud analyzed dreams for the purpose of understanding personality aspects in relation to pathology. He believed that when people explain their own behavior, they rarely provide a true account of their motivation. Nevertheless, it is not that a person is deliberately lying.
Freud was born on May 6, 1856 to Galician Jewish parents in Austria. In 1881, he qualified as a medical doctor from the University of Vienna. Upon completion of his habilitation, Freud got an appointment as a docent in neuropathology. In 1902, he was promoted to an affiliated professor. Sigmund Freud resided in Vienna. He established his clinical practice in Vienna in 1886. In 1938, he moved away from Austria in the bid to escape the Nazi regime. Freud died in 1939 in exile in the UK.
Freud is considered the most famous figure as well as one of the most controversial and influential thinkers of the 20th century. His work and theories helped in shaping perspectives on therapy, sexuality, memory, personality and childhood. Out of Freud’s legacy grew several major thinkers who contributed to his work, while others have developed new theories to oppose Freud’s work.
Freud is famous for founding psychoanalysis, and for creating a wordlist that has been embedded within the vocabulary of western society. Through his theories, he introduced such vocabularies as neurotic, Freudian slip, cathartic, repression, denial, and libido.
Sigmund Freud introduced his theory on dreams in his book The Interpretation of Dreams. In the book, Freud explores the theory of the unconscious in line with dream interpretation and establishes ideas that would later be known as the theory of the Oedipus Complex. According to Freud, dreams refer to all forms for fulfillment of wishes; they involve attempts by the unconscious part of the brain to resolve any conflict arising from the past (Freud 3).
The fact that the information stored in the unconscious is disruptive and keeps disturbing a person implies that it cannot pass to the unconscious without alteration by a censor in the preconscious. When a person dreams, the preconscious tends to be more inactive in its duty of censoring information than in times when the person is awake. Therefore, information has to be distorted in the unconscious mind as the meaning of it proceeds to be censored.
In most cases, images in dreams are not a true representation of what they appear to be, and thus require a deeper interpretation for purposes of informing the structures of the unconscious. Accordingly, people struggle to remember their dreams when the superego is at work. The Superego plays the role of protecting the Ego from disruptive images and wishes conjured by the Id.
Freud proposed the condensation phenomenon, though which he suggested that a simple image or symbol presented in a dream is capable of many meanings. In line with this thinking, Freud focused on details during psychoanalysis and even requested his patients to tell him everything including what they might have termed as trivial. For instance, applying the phenomenon of free association, he could ask patients to interact freely and tell him whether they had seen any sign on the wall and what the sign actually was.
While Freud focused on individual biological drives, his colleagues such as Adler, Jung and Breuer did not subscribe to these ideas. According to Freud, when a person sees a hollow image in his/her dreams, such as a cave or a box, this may symbolize a womb. A long image may symbolize a penis. Critics attacked these statements and labeled Freud as a misanthrope or sexist on the ground that he overemphasized the role of instinct, implying that he perceived human beings as wild beasts.
It is interesting to note that Freud’s ideas had a very strong impact on psychology that a school of thought was established from his work. Although psychoanalysis was eventually replaced by behaviorism, the school of thought had a long-lasting impact on both psychotherapy and psychology. A limitation of Freud’s work is that most of his ideas were drawn from cases studies and clinical cases, which made it difficult to generalize his findings to a larger population (Mitchell and Black 102).
Psychoanalysis theory is an illustration of a global therapy that aims to help patients in bringing about major changes of their perspective about life. According to Wittels and Freud (47), psychoanalysis is based on the belief that the prevailing maladaptive perspectives are closely related to deep-seated personality traits. Most global therapists are guided by the contrary approaches that focus majorly on reduction symptoms such as behavioral and cognitive approaches.
Works Cited
Freud, Sigmund. The interpretation of dreams. Read Books Ltd, 2013.
Effects of donating to Charities and nonprofit organizations
This paper intends to analyze the effects of donating to charities along with donating to nonprofit organizations. Charity refers to giving help voluntarily, which characteristically is in monetary form, to people who are in need. In contrast, nonprofit organizations are organizations whose main purpose is not to make profits. Mostly, nonprofit organizations dedicate their efforts at furthering an exact social cause or to advocate for a certain opinion.
Effects of donating to charities
Donating to charities has a number of effects. Among the effects is a tax deduction on the charity giver. Notably, when one donates to a charity which is approved by IRS, then writing off of a person’s tax return is allowed. In addition, donating to charities helps in improving a person’s personal management of their money (Chin, G. pg 596). A person is more likely to budget his/her finances to ensure that they don’t default giving monthly donations.
Moreover, openly donating to charity motivates people close to the person donating to make charity donations themselves. However, donating to charity also has adverse effects. In some cases, donated goods do not reach the recipients who are intended. Moreover, charities may miss the target. An example is when a teddy bear is given to a sick person instead of medicine (Kajonius, Petri, pg 43).
Effects of donating to nonprofit organizations
Donating to a nonprofit organization gives one the chance for supporting an important cause. Notably, many people feel that certain causes are relevant though they don’t have enough time to get involved with the cause through volunteering (Kristmundsson, Ómar H. and Steinunn Hrafnsdóttir, pg 567). Therefore, donating to a nonprofit organization enables one to get involved without being there physically.
Moreover, when one donates to a nonprofit organization, one gets a feeling of satisfaction. However, donating to a nonprofit organization also has negative effects. In some cases, this might lead to learned helplessness. An example is when a country has little incentive for growth due to the constant supply of donations from nonprofit organizations (Mulder, Mark R. and Jeff Joireman, pg 240).
The paper above has shown that there are positive effects of donations and charities along with negative effects. For instance, there is a positive effect of a tax deduction and a negative effect of charities not reaching the recipients who are intended.
Work Cited
Chin, G. “How To Increase Charitable Donations“. Science, vol 346, no. 6209, 2014, pp. 596-596. American Association For The Advancement Of Science (AAAS), doi:10.1126/science.346.6209.596-h.
Kajonius, Petri. “The Effect Of Information Overload On Charity Donations”. International Journal Of Psychology And Behavioral Sciences, vol 4, no. 1, 2014, pp. 41-50. Scientific And Academic Publishing, doi:10.5923/j.ijpbs.20140401.06.
Kristmundsson, Ómar H. and Steinunn Hrafnsdóttir. “What Is The Value Of Volunteers For Non-Profit Organizations?”. Veftímaritið Stjórnmál Og Stjórnsýsla, vol 9, no. 2, 2013, p. 567. Institute Of Public Administration And Politics – Icelandic Review Of Politics And Administration, doi:10.13177/irpa.a.2013.9.2.16.
Mulder, Mark R. and Jeff Joireman. “Encouraging Charitable Donations Via Charity Gift Cards: A Self-Determination Theoretical Account”. Journal Of Nonprofit & Public Sector Marketing, vol 28, no. 3, 2016, pp. 234-251. Informa UK Limited, doi:10.1080/10495142.2015.1129249.
Want help to write your Essay or Assignments? Click here
Managing Financial Resources in a Health Care Organization
Abstract
Financial resources are critical to the operations of organizations in the sense that they promote efficacy through acquisition of human resources, equipment, and technology among other vital organizational elements. However, the management of financial resources is also a challenge as many cases of misappropriations are reported all over the world. In the health care sector, the management of financial resources is even greater considering that the sound financial resources management improve the quality of care given to the patients and save healthcare expenditures.
Unit 14 Assignment
Introduction
Financial resources are critical to the success of organizations because with sound financial backgrounds, the institution can achieve efficiencies in a number of areas. However, a robust financial background implies having effective and relevant financial management strategies. This is even more important when it comes to the health or social care sector where there are diverse departments and many personnel. This essay explains some of the aspects related to financial management in the health or social care sectors.
1.1The Principles of Costing and Business Control Systems
In the health or social care organizations, costing applies to the financial process of estimating the amount of money spent while generating services to patients or clients (Field & Brown 2007). In this regard, costing includes aspects such as estimating the money to be paid to healthcare workers for service deliveries and the amount spent on equipment used to deliver healthcare services among other activities that require expending financial resources (Field & Brown 2007).
In short, costing in the healthcare organization relates to estimation of financial expenditures. On the other hand, the business control systems apply to the different systems that collect and use information to evaluate the performances or efficiencies of the business operations of the organization such as those relating to finance (Broadbent & Cullen 2003).
There are different principles of costing and business control systems that are adopted to improve efficiency. One of the principles is integrity that means personnel charged with handling financial resources should act ethically (CIMA 2016a). Due diligence is another principle of costing and business control system and it means being keen to avoid errors. When undertaking costing and business control systems, employees are expected to be transparent hence this also a principle desired (CIMA 2016a).
There are also different elements related to the principles of costing and business control systems. One of the elements embodied in the principles of costing and business control systems concerns costs. Under costs, the organization estimates the entire expenditure spent on different activities and uses the costs to inform the development of an appropriate costing control system (Field & Brown 2007).
The second element present in the costing and business control system regards income that is the amount of money the organization is able to raise because of the services it provides. This element is critical to the establishment of the business control system because the amount of income determines the type of business control system to be adopted (Broadbent & Cullen 2003). The third element used in the costing and business control systems entail costs benefits analysis.
This means evaluation of the benefits and demerits associated with different costing and business control systems adopted. Another element of the costing and business control system relates to expenditure and this refers to the analysis performed with a view to determining the financial effect that the implementations of the costing and business control systems have on the organization (CIMA 2016b).
In the same vein, the element of budget is also associated with the costing and business control systems and the budget element is used to establish whether the costing and business control systems are affordable to the organization. Lastly, the element of capital is also vital to the principles of costing and business control systems since it is the capital that is used to allocate resources to the costing and business control systems in the organization (Broadbent & Cullen 2003).
1.2Information needed to manage financial resources
Management defines the process of controlling things while financial resources are the money the organization has at its disposal to spend and is available in different formats such as credit lines, liquid securities, and cash (Field & Brown 2007). The management of financial resources does not occur in a vacuum but instead require certain critical information. In the health or social care sectors, business costs arise from different components that also act as the key information necessary for the management of the financial resources.
One of the sources of information of business costs in healthcare regards the people. Under people, this means the service users, employees, and suppliers and the information originating from the people is essential to the management of financial resources (CIMA 2016b). Equipment refers to the entire tools and technology used in the healthcare facility to deliver services and because the organization spends a great deal on equipment, information from the equipment line is valuable when it comes to the management of financial resources (Field & Brown 2007).
The core of financial resources in the organization is the finance that encompasses all the funds that the organization has and handles. This information is necessary if effective financial resource management is to take place. Buildings are the housing resources that the healthcare organization has and the information from building is important in the management of financial resources because how buildings are used can provide indications of the financial flows (CIMA 2016a).
Consumable items are those items that are used recurrently such as paper, food, bed sheets, towels, and soaps to mention but a few. The information that arises from the use of consumables is significant in the management of financial resources because failing to establish the pattern may mean not having an appropriate control system. Administration refers to the process of management and because there are equipment, technology, and personnel tasked with the administration purposes, the information from administration is also key to the management of financial resources.
Lastly, income streams apply to the organization’s sources of income and this information is crucial for the management of financial resources because it helps to determine the balance between income and expenditure (HFMA 2015).
1.3The Regulatory Requirements for Managing Financial Resources
Regulatory requirements are the policies and legislations that control the financial operations in the organization. It is the regulatory requirements that function to align the financial operations of the organization with the statutory provisions standards expected. For instance, in the UK, the Health and Social Care Act of 2012, governs all the financial operations in the health sector (HFMA 2015).
In healthcare, there are external influences to business costs from a regulatory requirement perspective. One of the external influences to business costs revolves around changes in policies. When there is a change in healthcare policy, the organization has to embrace changes that will reflect the adaptation to the new policy and the integrations of the new requirements means expenditure (Lindsay et al. 2014).
Competitive factors such as the pricing of health care services or diagnostic costs also represent another external influence to business costs in the healthcare sector. With the competitive factors, the healthcare organization is forced to introduce new technologies or professionals and this means additional costs (Field & Brown 2007). Legal requirements are the other external influences that add costs in the healthcare sector.
The legal requirements imply that the organization has to be regulated by certain bodies and this implies subscription fees and other necessities to be fulfilled. The financial legislation and codes of practice also have their associated implementation costs and when the healthcare institution implements them, there are costs incurred. Another source of regulatory cost to the business is audit. Although internal auditors can undertake auditing activities, sometimes it is a requirement that external auditors have to be used.
In such case, external auditing firms have to be given the job at a fee or contract and this means additional costs to the business. Lastly, accountability is another external factor that influences business costs. Accountability generates costs in the sense that the organization has to implement systems and establish external associations to oversee accountability (Monitor 2016).
1.4Systems for Managing Financial Resources in a Health Care Organization
Systems for managing financial resources refer to the processes that healthcare organizations can use to manage their financial resources. There are different systems for managing financial resources on health care organizations. Sources of income are among the systems for managing financial resources in healthcare organizations. The sources of income entail the different ways that that the healthcare organization generate its income. For example, government funding and voluntary donations are sources of income to the healthcare institutions (Field & Brown 2007).
The advantages for using this system of financial resource management are that it readily identifies misallocated funds and promotes accountability in financial resources. Its disadvantage is that it focuses only on the income sources (Field & Brown 2007). Setting of budgets is another system that can be used to manage the financial resources of the organization and under budget setting, the healthcare facility outlines the different requirements and how the costs should be catered for (Broadbent & Cullen 2003).
For example, the healthcare organization can peg the yearly costs that are expected to run the different activities in the organization. The advantages of this system are that it establishes the variances and identify the effective departments. On the other hand, setting budgets prevent flexibilities in terms of operations and therefore its demerit. Like setting of budgets, administration of budgets is also another system that can be used to manage the financial resources.
Administration of budget is a system of managing the financial resources of the organization whereby a detailed financial plan for a given period is prepared (Field & Brown 2007). This is usually done on annual or quarterly basis. The advantages of administration of budgets are that it facilitates the control of financial resources on a daily basis and tracks the costs associated with supervisory and non-production aspects.
However, its main limitation is that it is time consuming (Broadbent & Cullen 2003). Another system of managing financial resources in healthcare organizations is the creation of cost centers, which are departments, charged with calculating revenues and costs of the healthcare institution (Field & Brown 2007). The advantages of cost centers include facilitating quick control of financial resources and they are motivational to the managers and employees.
However, they can be a source of pressure to the staff members hence the disadvantage. Accountabilities are systems that use transparency principles as a way of managing the financial resources in the healthcare organization. The advantages of accountabilities are that they promote responsible use of financial resources in the organization and they improve the image of the organization. Nevertheless, implementation of accountabilities means extra spending and more costs to the organization.
Finally, auditing can also be a system for controlling financial resources through the identification of gaps in usage of financial resources. The advantages of auditing are that it can help to detect hidden malpractices and can also be used to establish the trends in the financial spending. In the same vein, auditing requires investments of time and other resources hence the disadvantage (Field & Brown 2007).
References
Armit, K. and Oldham, M., 2015. The Ethics of Managing and Leading Health Services: a view from the United Kingdom. . Asia Pacific Journal of Health Management, 10(3), pp.118–121. Retrieved, 2016 from Ebscohot.com
Ball, R., Eiser, D. and King, D., 2013. Assessing Relative Spending Needs of Devolved Government: The Case of Healthcare Spending in the UK. Regional Studies, 49(2), pp.323–336. Retrieved, 2016 from Ebscohot.com
Broadbent, M. and Cullen, J., 2003. Managing financial resources. Oxford: Butterworth-Heinemann.
CIMA, 2016a. . [online] CIMA Financial Management Magazine | Chartered Institute of Management Accountants. Available at: <http://www.fm-magazine.com/> [Accessed 15 Nov. 2016].
CIMA, 2016b. HELPING PEOPLE AND BUSINESSES TO SUCCEED. [online] CIMA. Available at: <http://www.cimaglobal.com/> [Accessed 15 Nov. 2016].
Field, R. and Brown , K., 2007. Managing with plans and budgets in health and social care. Exeter: Learning Matters.
Want help to write your Essay or Assignments? Click here
Question 1: In my opinion, Mr. Willy Watt should not bid in order to avoid conflicts of organization. The main responsibilities of board of members are to ensure financial accountability of the healthcare organization. The Board members are the trustee’s of organization assets. If he must bid, the governing board must exempt him from fiduciary duty. There is no problem with governing boards fiduciary as long as they remain trustworthy, loyal and accountable. However, there would be an issue with Mr. Watt’s fiduciary duty because there is conflict on Mr. Watt’s loyalty and interest (Gannons Solicitor, 2013).
Question 2: Dr. Wilson the gastroenterologist actions are permitted expect in situation where the healthcare providers acts are proven as gross negligence. There is problem’s with contract unless he coerces a patient to sign his contract without the knowledge of the liability exemption clause. If a patient sues him for negligence, he cannot be accused because the patient signed the contract knowingly (AHIMA, 2013).
Question 3: The areas associated with high incidences with fraudulent billing practices that are problematic are up-coding, patient identification error, cloning, phantom billing, repeated billing and service fragmentation and unbundling (AHIMA, 2013).
Question 4: There are six tips that facilitate effective compliance program. These include establishing culture of compliance, outlining procedures, policies, training, and effective communication, establishing corrective system and performing audits. These tips are all important, but the most important one is training. This is because continuous training will help the staff understand importance of providing commitment plan with technical and monetary support. Through training, the staff will understand the policies and procedures specific to their job function. Training process provides an opportunity for interaction between the various departments (National Law Review, 2016).
Topic: To what extent should government policy give greater priority to managing the contribution of transnational corporations to national economic success?
Introduction
Transnational corporations play an imperative role in a country’s development and foreign direct investment is considered among the most widely used approaches for economic growth in developing nations. The extent to which the government policy should give priority to managing transnational corporations’ contributions to national economic success is however a subject of debate. Depending on the national goals, the government may place stringent or relaxed measures in managing transnational corporations.
China is among the countries that have embraced foreign direct investment and whose policies on transnational corporations have been geared towards supporting their contribution to the economy. Accordingly, China’s foreign direct policies have contributed significantly to its current economic state, making it among the rapidly growing countries in the world in terms of economic growth. As the country continues to advance economically, local companies have demonstrated exponential growth; with an observable growth in the number of transnational companies.
Expectedly, these Chinese companies operating internationally are contributing a substantial proportion of the country’s income. It is for this reason that China is highly supportive of companies that invest internationally, ensuring that they can support the national economic success. However, China is yet to put in place vital laws and regulations aimed at protecting or advancing international business expansion.
This paper is a discussion of the extent to which government policy should prioritise the management of transnational corporations’ contribution to economic success. It seeks to recommend whether China should expand its investments and business to Britain and Japan through comparing competitive advantages and disadvantages of the two countries. It also details the lessons learnt with regards to government policy and managing transnational corporations’ contribution to economic growth, besides giving policy recommendations with reference to China’s policy formulation towards host economies.
Government policy and the contribution of transnational corporations in China
A number of studies have established that government policies are highly influential in the activities of transnational corporations. Through policy, the government can easily control the growth rate of transnational companies and thereby influence their contribution to the economy (Tihanyi et al, 2015).Cardoza, et al (2015) sought to study whether government policy has an impact on international expansion of transnational corporations; concluding that government policy can determine the performance of transnational companies and hence influence economic performance.
According to Cardoza et al (2015), governments should actively influence the contribution of transnational economies in order to maximize the gains derived from them. This may be achieved through encouraging international expansion, based on policies that support the growth of transnational corporations. Chow (2016) and OECD (2012) identify state ownership, public financing, assistance programs and regulatory frameworks as some of the policy issues that may influence transnational corporations’ contribution to the economy.
China’s economic growth has to a great extent been associated with foreign direct investment (FDI). In a bid to promote economic growth, China’s policy on FDI was considerably accommodating, thus leading to an influx in foreign companies that sought to take advantage of cheap labour and raw materials (Chow, 2016). However, the increasing number of foreign corporations almost proved unmanageable and China had to put in place more stringent measures to control FDI and to protect the local industries.
In contrast, China has shown great support for local companies investing internationally, with an aim of growing local organizations while ensuring that the country gains more from international trade (Das, 2015). It is evident that the number of transnational companies in China has grown tremendously over the years, a process that is attributed to increased globalization and government support for transnational companies.
The government is encouraging companies to invest internationally through its ‘go global’ strategy. Established in 1999, the policy as aimed at promoting large enterprise internationalisation through offering financial resource accessibility and state-supported research (Chow, 2016). The policy which has been instrumental in Chinese multinational company expansion ensured that companies could access below-market rate capital in the form of soft and subsidised loans from state-owned banks. This policy greatly influenced the growth of transnational corporations in China.
In 2002, the SME Promotion Law was adopted, with an objective of persuading financial institutions to make financing available to small and medium sized companies. As a result, a considerable number of SMEs have expanded globally and account for 70% of exports in China (Chow, 2016).
Government tax incentives issued by China on transnational corporations ensure that companies can reinvest their proceeds in the country and thus contribute to economic development. In China, transnational corporations can get a 40% refund on profits which are re-invested to increase the firm’s capital or develop a new firm (UNCTAD, 2016). The tax refund is only applicable if the company has re-invested the capital for five years. Such an incentive not only encourages business growth but it also ensures that money earned from international business is beneficial to the economy.
Reduced corporate tax for businesses exploring overseas expansion has also been instrumental in influencing the growth of transnational corporations and consequently their increased contribution to the economy (UNCTAD, 2016). Therefore, government control through policies can play an important role in ensuring that transnational economies can contribute to economic performance.
The stringent measures taken by the Chinese government in managing multinational companies in the country has had a direct impact on local companies. As the country seeks to protect domestic industries, there has been exponential growth among small and medium firms, many of which are exploring international possibilities in a bid to expand their businesses.
Britain’s competitive advantages and disadvantages
Advantages
Britain’s competitive advantages are mostly associated with the friendly business environment. Britain is considerably open to foreign investment and the equal opportunities are given in private company formation and operation (UKTI, 2016). There are no special national requirements, except that one of the company’s directors must reside in the UK. Accordingly, the government is keen on defending all businesses despite their ownership nationality.
This makes investing in Britain highly favourable for foreign firms. In addition, Britain is a key economy and is known as an export platform linking with most major economies, and hence a suitable investment destination (Ernst & Young, 2016).
Britain is considered one of the strongest world economies in the globe. By this virtue, Britain is a favourable destination for international business. Other economic advantages include skilled labour availability, advanced infrastructure, low inflation, low taxation and government commitment to economic reform including privatization and deregulation.
Britain enjoys a relatively stable political environment. This is a major prerequisite for successful international business as it ensures productivity and return on investments. Dittmer (2016) notes that political instability could affect business significantly through disrupting operations, hence the need for organizations to assess a target country’s political environment.
Britain’s membership in various trade alliances presents a major advantage as it means that the country has a wide market for its products. Britain belongs to the Commonwealth of Nations, United Nations, OECD, G7, G8, G20, and the World Trade Organisation among others.
Disadvantages
Britain’s heavy taxation and regulations place the country at a disadvantage and has been a constant barrier for investment. 21% in corporate tax is charged on profits that exceed $ 2.1 million (UKTI, 2016). This is because foreign companies have to sacrifice a significant portion of their income towards tax and other legal requirements.
Britain’s economic performance has slowed considerably, a factor associated with global trends, the recent recessions and the country’s housing market slump (Stepek, 2012). Declining economic performance has a considerable impact on business proceeds for companies investing in Britain.
Britain’s EU exit, which has been christened ‘Brexit’ is currently considered a disadvantage because of the uncertainty that engulfs the country’s decision to exit. It has been argued that this may lead to trade imbalances and affect Britain’s international trade prospects. According to BBC News (2016a), the future trading relationship between EU and Britain is uncertain and this may impact the economy through lower levels of investment and reduced consumer spending, from 2.5% expected this year to 0.5% next year. Economic growth is thereby expected to slow down considerably before the country stabilizes.
Japan’s competitive advantages and disadvantages
Advantages
Japan is among the best performing economies globally, with the country being ranked the third largest based on nominal GDP (Agr, 2014). Japan’s per capita GDP was $37,519 in 2014. The country is known to achieve trade and international investment surplus.
Japan is considered among the countries with the highest innovation and this has propelled the economy to a great extent. The country is the home of manufacturing companies and innovations including vehicles, machinery and technology. Japan’s automobile industry is the 3rd largest in the globe while the electronics products industry is the largest.
Foreign companies investing in Japan can benefit from the accommodating foreign investment rules. Japan is generally considered as a friendly international business destination based on the ease of business. According to the 2013 ease of doing business index, Japan was ranked 27th out of 185 countries (Agr, 2014).
Entry of foreign of companies in Japan is considerably easy and the country is considered as having among the lowest tax rates globally for consumption and personal income taxes. Japan also has among the leading stock exchanges in the globe, following the merger of Tokyo and Osaka Stock Exchanges (BBC News, 2016b).
Disadvantages
Japan’s currency exchange is highly volatile and this makes it prone to economic fluctuations. Due to the volatility, the country’s GDP in terms of dollars oscillates significantly. The currency fluctuations can be a major short-coming for foreign companies because they are likely to experience major losses in the process of transferring funds back to their countries and during the process of exporting and importing raw materials and finished goods (Yildirim & Ivrendi, 2016).
While the government is easy on personal and consumption tax, corporate tax is relatively high at 36.8% and considered second highest globally (Temple-West & Dixon, 2012). A high tax bracket can limit business performance exceedingly by impacting on profitability. Organizations that seek to invest in Japan must evaluate their strategy to determine whether it would be profitable to invest in the country.
Japan is currently experiencing a shrinking workforce and this is likely to influence companies’ ability to access skilled workforce. This can be explained by the decline in birth rate and the country’s immigration barriers (Takao, 2014).
Lessons to be learnt with regards to government policy and the contribution of transnational corporations
Transnational corporations experience constant challenges in the quest to successfully profit from their international business endeavours. Accordingly, they require adequate support from the government through policies that favour their international competitiveness.
The first lesson derived from this discussion is that while transnational corporations play an imperative role in driving a country’s economy, ensuring international success requires considerable support from the government (Marinov & Marinova, 2012). Through this paper, it can be established that having targeted policies that recognize the contribution of transnational corporations in economic success is highly necessary.
Despite the efforts by the Chinese government to encourage foreign investment, the country must put in place dedicated efforts to develop effective policies to protect transnational companies. According to Chen (2014), a majority of private enterprises in China are still in the development stages as far as international expansion is concerned. They are not only small-scale but also lack basic support in terms of laws protecting their transnational operations.
Chen (2014) notes that the government needs to develop an overseas investment and insurance legislation, institute financial lending mechanisms and support innovation and technology development. It is notable that Chinese companies face considerable resistance in the international market due to business culture differences that impact on profitability margins. An example is that Chinese firms focus on the production of cheap products, which are often labour intensive, such that their profitability overseas is greatly dwarfed by competitors.
Creating trade alliances with various countries can contribute significantly to promoting the contribution of transnational corporations to a country’s economy. Backer (2015) note that by creating trade relations with foreign countries, an economy can benefit from tax benefits and more favourable environment for their businesses abroad.
This makes it easier for transnational corporations to survive in the foreign market and thereby contribute more to national economic performance. China must strive to forge new trade treaties and put in place policies that support such alliances, with countries in which it targets for investment. This way, businesses can gain an easy mode of entry and also benefit from higher profitability levels.
Circumstances and evidence for China in formulating policy towards host countries Britain and Japan
As the economy of China continues to grow, it is evident that the level of global competition has grown significantly. In order to position itself for further economic growth, China must formulate policy that will ensure that its economic growth prospects are assured (Mesquita, 2013). Through formulating policy towards host countries, China can influence its operations in those countries and consequently its economic performance.
Surviving in a foreign economy can be daunting for transnational organisations due to high competition. Accordingly, the formulation of policy must be done with the objective of protecting local companies in the host countries and ensuring that they are profitable enough to sustain their activities overseas. This insinuates that the government can develop policy that reduces transnational corporates’ expenditure if they invest in Britain or Japan. This way, the country can encourage companies to invest in those countries.
Formulating policy towards host countries ensures cooperation between a country and the host, given that there are clear guidelines on their relationship (Mesquita, 2013). This includes the kind of environment that the country’s businesses operate in. It therefore becomes clear for companies that seek to invest in the host countries, about the business environment they are expected to operate in.
Glass & Saggi (2014) explore the question of tax policies and determine that such policies are likely to affect foreign direct investment. Cognisant of this, developing policies that seek to influence host countries into offering favourable tax policies may be effective in promoting transnational corporation expansion into the host countries. In Britain for example, the high tax rates may discourage Chinese companies from investing in the country and by formulating policy towards Britain, China may influence the tax rates and hence encourage investment in this economy.
Conclusions and recommendations
Effective economic contribution by transnational corporations is dependent on various factors, among them the level of support offered by the government in their quest to venture overseas. This includes the policies adopted to support international business and promote performance of transnational corporations. In essence, the government should to a great extent influence transnational corporations’ economic contribution through its policies.
In order to maximize the performance of its transnational corporations, China must strategically make policies aimed at improving their international market survival. This will ensure that they can compete effectively and that they have adequate returns to bring back home. Through developing various regulations including taxation policies that favour international expansion, making funding easily available for budding transnational corporations and easing international trade barriers, China could effectively utilize policy to influence transnational corporations’ contribution to the economy.
Japan and Britain both offer great prospects for China in terms of foreign investment. Being among the world’s largest economies, Japan and Britain present favourable investment destinations for transnational corporations in China. Britain offers great investment opportunities in a country with a stable economic and political environment, which are major prerequisites for business growth.
As a country that is highly developed, transnational companies from China stand to gain considerable international experience through investing in Britain. Besides, Britain promises a wide market for products due to its numerous memberships in international trade alliances. In Japan, it is evident that economic growth is at its peak, as the country continues to rank among the top economic performers in the world. This promises great opportunities for Chinese companies that invest in Japan.
It is notable that despite the attractiveness of host countries, there are always shortcomings or comparative disadvantages that a company must explore before making a decision to invest. Based on this discussion, it is evident that Britain and Japan are characterised by various disadvantages, with the main one for Britain being the uncertainty associated with Brexit and for Japan the currency exchange volatility. Accordingly, China must weigh its options before investing.
A comparison between the advantages and disadvantages of investing in Japan and Britain indicates that Britain have great prospects for international trade. While disadvantages exist, these are outweighed by the advantages. In conclusion, China should seek to promote trade relations with Japan and Britain, with the objective of expanding business and investing in these countries.
References
Agriculture and Agri-Food Canada (Agr) 2014, Business environment: Japan, Retrieved from www5.agr.gc.ca/resources/prod/Internet-Internet/MISB-DGSIM/ATS-SEA/PDF/6506-eng.pdf
Backer, LC 2015, ‘Regulating Multinational Corporations: Trends, Challenges, and Opportunities’, Brown Journal Of World Affairs, 22, 1, pp. 153-173, Business Source Complete, EBSCOhost, viewed 26 November 2016. Retrieved from web.b.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=d9b162f5-2cf2-4339-bdf7-cc59457814b1%40sessionmgr120&vid=0&hid=124
Cardoza, G, Fornes, G, Li, P, Xu, N, & Xu, S 2015, ‘China goes global: public policies’
influence on small- and medium-sized enterprises’ international expansion’, Asia Pacific Business Review, 21, 2, pp. 188-210, Business Source Complete, EBSCOhost, viewed 26 November 2016. Retrieved from web.b.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=ec848aff-7ad9-4fdc-a874-a7a6cf1a62b9%40sessionmgr105&vid=0&hid=124
Chen, M 2014, ‘Study on the Strategy and Countermeasures of Chinese Private Enterprises
Chow, DK 2016, ‘How China Promotes Its State-Owned Enterprises at the Expense of Multinational Companies in China and Other Countries’, North Carolina Journal Of International Law & Commercial Regulation, 41, 3, pp. 455-490, Business Source Complete, EBSCOhost, viewed 26 November 2016. Retrieved from web.b.ebscohost.com/ehost/pdfviewer/pdfviewer?sid=4e86befc-a977-4bbe-93aa-2a8cf8e92bac%40sessionmgr106&vid=0&hid=124
Das, DK 2015, ‘Multinational Corporations and the Transforming Operational Environment
in China’, Thunderbird International Business Review, 57, 4, pp. 271-280, Business Source Complete, EBSCOhost, viewed 26 November 2016. Retrieved from web.b.ebscohost.com/ehost/pdfviewer/pdfviewer?vid=7&sid=6e0ee173-8fd3-4d42-bec0-9e05529dab55%40sessionmgr106&hid=124
Dittmer, L 2016, ‘Xi Jinping’s Political Economic Transformation and Its International Implications: A Preliminary Assessment’, Romanian Journal Of Political Science, 16, 1, pp. 4-30, Academic Search Premier, EBSCOhost, viewed 26 November 2016. Retrieved from web.a.ebscohost.com/ehost/pdfviewer/pdfviewer?vid=4&sid=354e6f5b-8d57-4389-bb08-6dbf5480e1ed%40sessionmgr4008&hid=4001
Glass, A, & Saggi, K 2014, ‘Coordination of tax policies toward inward foreign direct investment’, International Journal Of Economic Theory, 10, 1, pp. 91-106, Business Source Complete, EBSCOhost, viewed 26 November 2016. Retrieved from web.b.ebscohost.com/ehost/pdfviewer/pdfviewer?vid=6&sid=7041d077-1dd6-4a04-b726-13074d080f0e%40sessionmgr106&hid=124
KPMG. (2012).The Future for MNCs in China.
Marinov, M & Marinova, S 2012, Emerging Economies and Firms in the Global Crisis, New York, Palgrave Macmillan.
Mesquita, B 2013, Principles of International Politics Principles of International Politics, London, SAGE.
OECD 2012, Policy Priorities for International Trade and Jobs, France, OECD Publisher
Tihanyi et al 2015, Emerging Economies and Multinational Enterprises Advances inInternational Management Contributors, Bingley, UK, Emerald Group Publishing.
United Nations Conference on Trade and Development (UNCTAD). (2016). Tax Incentivesand Foreign Direct Investment: A Global Survey. Retrieved from http://unctad.org/en/Docs/iteipcmisc3_en.pdf
Yildirim, Z, & Ivrendi, M 2016, ‘Exchange rate fluctuations and macroeconomic performance’, Journal Of Economic Studies, 43, 5, pp. 678-698, Business Source Complete, EBSCOhost, viewed 26 November 2016. Retrieved from web.a.ebscohost.com/ehost/detail/detail?vid=2&sid=9e4a3e73-75ca-4150-b770-6f7cf40ca97f%40sessionmgr4010&hid=4001&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#AN=118069643&db=bth
Want help to write your Essay or Assignments? Click here
During this era of digital advertising, podcasting has undoubtedly become a substantial channel through which consumption of digital content take place (McNurlin, 2009). An example of using a podcast as an advertising tool include the use of Apple iTunes app through which advertisers can upload their promotional media clips that are viewed by subscribers as they stream their preferred digital content (O’Brien, 2013).
The possible revenue model of podcasting would be through subscriptions whereby a fee is paid, and the difference between podcast and traditional advertising is that the former is based of digital content consumptions (McKeen & Smith, 2014). Some examples of mobile applications possible for use in podcasting include Apple iTunes app, Oracle, IBM among others.
Podcasts allows brands to communicate to a captive audience. With lifestyle on-the-go, the power to have the podcasting on demand allows companies and brands tell their story anywhere at any time, which helps to establish authority in your industry and create advocates brand along the way.
You can use podcasts to assume a greater engagement to your current and potential customers, providing an email address associated with the podcast where people can respond directly to the content. This will also give you material for new content. In the next episode you can answer questions or deal with the feedback you received.
References
McKeen, J. D. & Smith, H. A. (2014). Making IT Happen: Critical Issues in IT Management, Wiley Series in Information Systems. New York, NY: Prentice Hall.
McNurlin, B. (2009). Information Systems Management in Practice (8th ed.). New York, NY: Prentice Hall.
O’Brien, J. (2013). Management Information Systems: Managing Information Technology in the Internetworked Enterprise. Boston, MA: Irwin McGraw-Hill. ISBN0-07-112373-3
A consideration of telecommuting from the perspective of managerial decisions means that, a lateral direction model of managerial decisions has to be adopted whereby the manager has to engage employees outside an organizational work place that is centralized (Sardeshmukh, Sharma & Golden, 2012). According to Matthews & Williams (2012), the management style has to change from classical management styles to Laissez-faire management style where most of employees work by telecommuting.
In this style of management, employees are motivated to work independently and allowed to nurture their creativity by getting a chance for their ideas to flourish. The management should then provide guidance when need and facilitate brainstorming in decision-making, which makes the manager to seem more of a mentor instead of a leader (Matthews & Williams, 2012). This makes it difficult to accomplish common objectives, which require frequent meetings to exchange ideas due to lack of trust and teamwork originating from the lack of frequent face-to-face contact (Sardeshmukh et al., 2012).
In this style, management takes a hands-off approach to leadership.
Staff is trusted to do their work without supervision, and they are left to control their decision making and problem-solving.
Management is present at the delegation and delivery stages of work, but otherwise steps back and gives staff the freedom to control their workflow and outcomes. Management is only involved during the process if the staff requests their assistance.
References
Matthews, H. S. & Williams, E. (2012). Telework Adoption and Energy Use in Building and Transport Sectors in the United States and Japan. Journal of Infrastructural Systems, 11(1), 21-30. doi:10.1061/(ASCE)1076-0342(2005)11:1(21)
Sardeshmukh, S. R., Sharma, D., & Golden, T. (2012). Impact of Telework on exhaustion and job engagement: A job demands and resources model. New Technology, Work and Employment, 27(3), 193-207. doi:10.1111/j.1468-005X.2012.00284.x
Want help to write your Essay or Assignments? Click here
In the modern world, there exists stiff competition in the global business arena on the perception of the entrepreneurial marketing. Recently, many organizations work in business environments that consist of increased uncertainties, reduced ability to foresee, fluid companies and industries jurisdictions. The competitive advantage has also been featured by the major factors such as contradiction, chaos, complexity, and change. These factors have the significant impact on marketing in an international know-how economy where clients are becoming tougher.
What appears to be apparent to the readers or researchers about the traditional marketing activities is where they are not in a position to opposite for entrepreneurial companies competitiveness amidst antagonism. Therefore, it can be noted that entrepreneurial marketing is view as a paradigm that combines certain aspects of the entrepreneurship and marketing into a comprehensive theory where marketing turn out to be a procedure used by the organizations to conduct themselves entrepreneurially.
There is a developing evidence to sustain the concept that organizations which are competitively advantaged are those which are betrothed like entrepreneurial marketing. That means that the marketing ways that are used by the entrepreneurs show the innovative orientations. The approaches vary in their connection or impact on the enterprise performances.
It becomes severe for a new business to comprehend the entrepreneurial marketing activities to apply and therefore it becomes significant to attain diversity of successful outcome and in due course for increased performances.
Lincoln marketing associates are described as the beehive of marketing operations, and it has been achieving a lot of concentration. Lincoln marketing associates top management and the working staffs use the innovative and creative marketing techniques to compete fairly in the market arena. Therefore the top management together with the workers requires taking on to the cord of conducts that guarantee the growth and application and development of the dimensions of the entrepreneurial marketing strategies.
The idea of entrepreneur marketing appears to have not been paid a lot of attention even if it is considered of great significance factor that counts in the development and extraordinary performances of the entrepreneurial companies. The general objectives of this essay are to discuss into details the dimensions of entrepreneurial marketing strategy.
Problem statement
The diversity in the competitiveness arena inside the marketing business environment has created competition for the companies to be terrible. The urge for an adequate comprehension of the entrepreneurial marketing strategies and the employment to the entrepreneurial organizations has continuously become a subject of vital concern to many researchers, employees and entrepreneurs of the business enterprises. The inadequacy of attention paid to the entrepreneurial features such as pro-activity, opportunity recognition and innovative poses a significant challenge to the Lincoln marketing associates.
The entrepreneurial pro-activity is serious to build an edge over the rivals. It entails the capability and the attitude that permits the control and the implementations of services, products or even the processes in front of the principal competitor in the global market within the same industry. On the contrary, entrepreneurial corporations are challenged with continuous dynamic changes in political, social, economic and technology thereby coming up with a congruent requirement to re-plan their entrepreneurial marketing operations to suit the changes.
Entrepreneurs are inclined to adhere with the uncertainties business as chances represent the probability of returns. The pursuit of these returns is challenged by the potential of risk over the underestimated efforts. As companies strive to pursue such chances, the top management of a given company is countenanced by the technical solving tactics, decision-making potentials and the potential to choose the right chances which make sure a competitive edge is higher than that of their principal rival.
The entrepreneurial firms are plagued with the problem of selecting from key projects that will maximize their performances, bearing in mind that not or corporations services or products innovation come to be successful, due to the fact of a high rate of return.
The concept of entrepreneurial marketing
The phrase entrepreneurial marketing comes from two different fields that are used to explain the marketing system of companies pursuing chances in dangerous market conditions always under the limited resources. To comprehend the entrepreneurial marketing, it is vital first to introduce the meaning of the expression entrepreneurship and commercialization.
The established conceptualizations of marketing hearts on the onset of operations which smooth the progress of the exchanged connection. According to the American Marketing Association, “Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals.”
Recently, an entrepreneur is becoming heroes in the recessionary period and the capability or the potential to work and develop an enterprise in an uncertain business environment which is of greater significance to the community. On the other hand, the term entrepreneurship is defined as the “process of creating value by bringing together a unique package of resources to exploit an opportunity.”
The system entails the set of operations that are essential to identify a chance, describe a business idea, look into the required resources, get those resources and control and reap the business.
The theory of entrepreneurial marketing explains the principles, tactics, and cord of conduct of an entrepreneur in addressing their problems and looking for business chances. It shows various ways to envisaging the venture by itself, its linkage with the marketing place and the purpose of the marketing functions inside the company or as a plan entrepreneurial pose or cord of conduct in marketing that is characterized by corporations.
Enterprises work in business environment represented by high uncertainties and low probability of forecasting categories of forces such as contradiction, complexity, change and chaos. Entrepreneurial marketing is defined as the “effectual actions or the adaptations of marketing theory for the unique needs of the firms.” The valid activities sited address many marketing issues simultaneously. These problems include resource constraints, risk, innovation, and opportunities.
Dimensions of entrepreneurial marketing strategy
Pro-Activeness
Researchers have argued that the pro-activity is an original cord of conduct built which shoe a relatively firm propensity to impact the business environmental changes. Other says that the pro-activity have a positive effect on a person as well as an enterprise performance.
The pro-activity helps the owner and the managers to be able to define their organizational objectives and their vision and the mission statement they will use to enable them to attain their strategic objectives. Therefore, Pro-Activity can be explained as a state of thought and will be broadly be driven by an individual perception to maintain the organization’s mission, vision and to attain the planned goal, (Hooi, Ahmad, Amran, and Rahman, 2016)
It is imagined that the vision towards the formulation of the strategic restriction for recreating, impacting and influencing the nature of which they work in line with their foreseeable future. The entrepreneurial pro-activeness can also be viewed as the awareness of the firm. Scholars suggest that the entrepreneurial pro-activeness does not continue living or have to turn out to be unsuspected to rich clients and where the new process of processing that may be unidentified to other tend to be practicable.
Pro-activeness portrays the entrepreneurial enthusiasm to control competition by combining the aggressive and proactive moves. For example by establishing new services or product ahead of the competitors and working in the imaginations of the forecasted demand so as to build change and shape the nature of doing business. Furthermore, encompassing proactive orientations entails the satisfactory and the discovery of the unarticulated requirements of clients by gathering them and the competitor based data.
The dimension of pro-activeness is stated to show the top management orientation in following improved competitiveness, and it entails the risk-taking, initiative, boldness, and the competitive aggressiveness. The pro-activeness portrays a stable active connection with the performance.
The entrepreneurial pro-activeness is not enough for it to be associated to the know-how of organizing the transformation of inputs to output for making sure that high performance is recorded. It makes the entrepreneurs look into the past, present and the future with same passion, using the historical pattern to describe and fully comprehend the present and to confront and build its own pro-active in future.
Pro-activeness is creating change, initiative taking, achievement oriented, foreseeing the evolution towards a serious condition and early preparation before the emergence of short risks. It reveals itself by the activities in the creation of the “stated belief” and the implantations of individual’s attitudes.
The tendency of the pro-active offer a company the potential to imagine the changes or the requirements in the market arena and be amidst the first to operate on them and the first to apply it is assured of excellence performance.
Opportunity recognition
The concept of entrepreneurial marketing stress on takings on the chances regardless of the resources available. Chances portray themselves unnoticed to the market positions which are capable for the sustainment of profit potentials. Pursuit and recognition of opportunity are marketing operations significant to the success of a company. Marketability is estimated by the degree of firmness which links to the abilities and resources of the business.
It is the firm tendency to show the best opportunity that establishes success, (Shane, and Nicolaou, 2015). Even if the opportunity may come randomly, the entrepreneurial marketers have the propensity to survey for new chances proactively. Being pro-active and having the willingness to be lead the way allows the entrepreneurial companies to serve the unsatisfied requirements and take gain of upcoming chances before the competitors.
Creativity and innovation are vital tools that help the entrepreneur’s companies to change opportunity onto the reality. Chances pay a fundamental role in the company’s ability to choose the best opportunity that establishes success, (Maine, Soh,. and Dos Santos, 2015). Opportunities are viewed as a goal phenomenon which exist sovereignty of the entrepreneur and as such be inherent in a flowing exposure that is outside the entrepreneur awaiting exploitation and discovery.
It is suggested that a firm market knows how establishes whether the innovation is employed at best era, under little idea perceptions. The marketing know-how provides as a restriction, stopping the companies from extravagating resources in vain. Also, it allows the organization to take the best of its time, direct the firm towards its success.
The availability of the chances is likely to show a relationship between the rates of the changing business environment, indicating the demand for the marketing personnel to connect in heightened categories of both actions for the discovery and search. Moreover, the exploitations of the chances include the continuous adaptations and the learning by the marketing staffs prior, during and after the formal employment of the innovative ideas.
Opportunities portray unidentified marketing positions which are the sources of sustainable income potentials. They are consequential from the market imperfection, where the know-how relating to the defect and how to take advantage of them are differentiating the entrepreneurial marketing.
Innovation
The concept of entrepreneurial marketing is found in the ideas and the innovation development that are linked to the intuitive comprehension of the market demands. It can promote the essential core competencies for a proactive company that finds innovative ways for the clients. Innovativeness is explained to the dynamic organizations that discover new chances rather than just make the most of the recent strengths. Therefore, it seems necessary to an innovative effort that is capable of expanding the customer’s wants, (Boso, Cadogan, and Story, 2012)
Scholars have argued that innovativeness entails promoting the spirit of supporting research, creativity, development, establishment of new product and services, technological leadership, experimentations and developing new processes. An innovation-oriented marketing operation helps the company to aim at concepts that lead to new processes, products, and markets.
The degree to which flourishing the companies places innovation in its marketing operations can grow from highly innovative new market know-how. Companies may select to aim at the original lines of marketing since the organization may not have the asset to attain or sustain the industry requirements. An entrepreneur shows a general openness to the introduction, and they also portray a single domain in the research that compares entrepreneurial marketing, corporate marketing, and the traditional marketing.
It can be said that, in the scenario of the entrepreneurs, the marketing plans take over from the traditional marketing ideas by the innovation shown by the entrepreneurs of today, flexibility, and creativity, (Pahnke, McDonald, Wang, and Hallen, 2015)
Innovation consists of positive technical knowhow concerning how matters can be done better that the previous state of creativity. Being innovative will assist the companies to increase new ventures and sole proprietorships opportunities and successfully finalize in a changeover economy. It helps firms determine a leading competitive position and can have enough money to a new venture and change to receive an edge in the market.
Firms that sustain the culture of innovation have a higher probability to maintain a competitive market and dynamic in a way that it is by an intuitive comprehension of the marketing demands. Creativity and innovations are conditions intrinsic in the purpose of the entrepreneurship and show a company needs to improve techniques which may impact in the establishment of products, technological systems, and processes.
Scholars argue that innovativeness has to turn out to be a pre-requisite for an organization’s core competencies and survival. It seems specifically significance to SMEs with limited assets. Innovativeness is a significant determinant of a company’s performances.
Calculated risk taking
The authority of risk taking entails the willingness to use the substantial asset for exploiting the chances by using business plans based on the effects which may vary with risk. Companies which have taken on the entrepreneurial marketing develop the calculated take, rational and weigh uncertainties, (Lückenbach, Baumgarth, Schmidt, and Henseler, 2016)
Companies that have taken on the entrepreneurial marketing developments are not speculators but are risk takers who comprehend that the innovation in the current technological, social and economic environment is intrinsic unsure and needs the rational laying a bet on the long shots. One technique for managing risks is to operate in coalition with other groups, that the companies thought will offer the complimentary potential and assist tilting the loss to other people.
Customer intensity
The dimension of client’s strength creates on what is seen as the driving factor of marketing in the corporation. The client-centric-orientation applies the innovative manner to build and maintains the customer based relationship, (Lechner, and Gudmundsson, 2014).Some of the researched studies explains that the organization successes are which placed on a greater stressing of the customer intensity. On the contrary, it has additionally opts those extreme clients orientations might slow down the burst through of the innovation which builds markets and disrupt equality.
It is because the fundamental changes are out in front of the client. Customer orientation has its base in introductory services marketing text in that the significance of customer focused workers was a physical sign of quality for the company and its services. Since then, the ideology of customer orientation inside the company has been examined by various researchers and authors. Indeed, some of them see the client directions as the “pillar of marketing,” (Anning-Dorson, 2016)
Value creation
The optimal point of the entrepreneurial marketing is the innovative value creation. It is assumed that the value creation is the precondition for the relationship and transactions. The work of the marketing workers or the marketers is to find out the unused resources of the client value and to build a first integration or asset to bring into being value, (Amit, and Zott, 2012).
It is because, the paramount ability to see and utilize chances is argued that the companies that take on the entrepreneurial marketing system are well able to recognize good-looking entrepreneurial prospects and use them by leveraging innovation to improve the sacrificed merits and reduce the sacrificed costs that result in paramount value for the client, (Dess, Lumpkin, and Eisner, 2014).
Resource leveraging
The primary challenges that occur for the new business as far as marketing is concerned are the limited of personal and financial resources. The insufficiency requires a thorough monitoring of the marketing expenditures and constrains the intensity and the range of marketing operations within the new business that can be pursued, (Hallbäck, and Gabrielsson, 2013).
The entrepreneurs can deal with this challenge by trying to attain additional assets like the bank’s loans, venture capital, and trying to meet the optimal impact of the limited resources. Two approaches can be reviewed on how to deal with the scarcity of the resources. The first one is the strategies and techniques that are used to minimize the amount of asset used for a given marketing operation.
They entail; strategies for creating a coalition with other firms and the free rising plan. The second ones are the strategies and methods that need only a few assets yet assure to regenerate higher return in the marketing arena. They include step by step development plan, adoption of a niching strategy, low-cost guerilla methods in marketing, (Becherer, and Helms, 2016)
Implications of the findings
The study has shown that the entrepreneurial marketing is a multi- dimensional assembly whose features have an important, optimistic power on the greater performance of the Lincoln marketing associates. The essays portray that the seven dimensions of the entrepreneurial marketing strategies that is the resource leveraging, value creation, customer intensity, risk taking, innovation, opportunity recognition, and the pro-activeness by the Lincoln marketing associates will improve the performance.
Moreover, the essay confirmed that the entrepreneurial pro-activeness is the fundamental driving factor to attain the core competencies. The aggressive steps and system by the establishment of the new products or services ahead of the key rivals determines the core competencies firm exposure to other companies within the same industry, (Franco, and Haase, 2013)
Additionally, the entrepreneurial company’s pursuit and recognition of the chances are the marketing operations that are significant to the performance. Therefore going by the latent marketing chances by looking innovative explanations to improve core competencies. A chance of a company aims at the capability to choose the good chances to establish success. Thus the Lincoln marketing associates chances recognition potential has an enthusiasm result on the performances, (Alegre, and Chiva, 2013)
Bibliography
Alegre, J. and Chiva, R., 2013. Linking entrepreneurial orientation and firm performance: The role of organizational learning capability and innovation performance. Journal of Small Business Management, 51(4), pp.491-507.
Amit, R. and Zott, C., 2012. Creating value through business model innovation. MIT Sloan Management Review, 53(3), p.41.
Anning-Dorson, T., 2016. Interactivity innovations, competitive intensity, customer demand and performance. International Journal of Quality and Service Sciences, 8(4).
Becherer, R.C. and Helms, M.M., 2016. The Role of Entrepreneurial Marketing in Improving Market Share for Small Businesses Facing External Environmental or Resource Challenges. Journal of Business and Entrepreneurship, 27(2), p.119.
Boso, N., Cadogan, J.W. and Story, V.M., 2012. Entrepreneurial orientation and market orientation as drivers of product innovation success: A study of exporters from a developing economy. International Small Business Journal, p.0266242611400469.
Dess, G.G., Lumpkin, G.T. and Eisner, A.B., 2014. Strategic Management: Text and Cases.
Franco, M. and Haase, H., 2013. Firm resources and entrepreneurial orientation as determinants for collaborative entrepreneurship. Management Decision, 51(3), pp.680-696.
Hallbäck, J. and Gabrielsson, P., 2013. Entrepreneurial marketing strategies during the growth of international new ventures originating in small and open economies. International Business Review, 22(6), pp.1008-1020.
Hooi, H.C., Ahmad, N.H., Amran, A. and Rahman, S.A., 2016. The functional role of entrepreneurial orientation and entrepreneurial bricolage in ensuring sustainable entrepreneurship. Management Research Review, 39(12).
Kuratko, D.F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
Lechner, C. and Gudmundsson, S.V., 2014. Entrepreneurial orientation, firm strategy and small firm performance. International Small Business Journal, 32(1), pp.36-60.
Lückenbach, F., Baumgarth, C., Schmidt, H.J. and Henseler, J., 2016. Identity, customer needs or risk-taking? Empirical analysis of the impact of brand, market and entrepreneurial orientation on the performance of Social Entrepreneurship Organisations (SEOs).
Maine, E., Soh, P.H. and Dos Santos, N., 2015. The role of entrepreneurial decision-making in opportunity creation and recognition. Technovation, 39, pp.53-72.
Pahnke, E.C., McDonald, R., Wang, D. and Hallen, B., 2015. Exposed: Venture capital, competitor ties, and entrepreneurial innovation. Academy of Management Journal, 58(5), pp.1334-1360.
Shane, S. and Nicolaou, N., 2015. Creative personality, opportunity recognition and the tendency to start businesses: A study of their genetic predispositions. Journal of Business Venturing, 30(3), pp.407-419.
Want help to write your Essay or Assignments? Click here
