Entrepreneurial Strategy Term Paper Example | Topics and Well Written Essays - 1750 words

Entrepreneurial Strategy - Term Paper Example According to Amit, Brigham and Markman â€Å"entrepreneurial strategies let people to be innovative, creative and responsible for decisions they make† (Meyer & Heppard, 2000).As a result of pursuing entrepreneurial strategies, companies put themselves in a situation to frequently and systematically recognize and exploit entrepreneurial opportunities.Enterpreneurial strategy involves a persistent, managerially sanctioned pattern of innovation related activities and resource allocations that compose a component of the company’s inclusive corporate strategy (Russell, page 640). This thesis will dwell majorly on entrepreneurial strategy concerning its importance/significance, opportunity recognition; .Current theories on economic literature explain strategy adoption according to forces of the competitive environment. Importance of Entrepreneurial Strategies Designing of business plan An entrepreneurial company develops innovations slowly.Explotation tends to force out explo ration and the company hits a performance crisis. Small companies have to balance exploration and exploitation. At some point in small companies at the start of the lifecycle design and innovation capability gets relegated in order to bring in the profits from the idea on which the firm was founded. Successfully spotting change factors, assessing their significance, reacting and adapting creates long term values. This can only be achieved by having a entrepreneurial strategy. Innovation The global environment moves faster all the time, innovation and its partner change are requirements for survival and success. Innovation often the foundation of creations is vital for any company to compete effectively in the twenty first century. Building on the importance of entrepreneurial action, Smith and DiGregorio explain that the fundamental nature of entrepreneurialship is newness, new resources, new clients, new markets, new combination of existing resources and clients. They put forward t hat equilibrating actions are based on both existing and related resources that modify existing knowledge about markets. In dissimilarity disequilibrating consequences are based on both existing but unrelated resources that are incompatible with existing mental methods. Execution of corporate entrepreneurship strategies is important and can play a major role in the success of efforts to produce innovation in companies. The development of a new proposal requires the recombination of existing knowledge and its extensions (Bettis & Hitt, 1995). Creating new businesses requires new knowledge which is necessary because new businesses are based on technologies that differ from currently employed companies. These new businesses function in new markets, making it a necessity for the company to develop knowledge of how to use new technology and compete effectively in the new market. Their work explains the inertia that sometimes occurs with larger successful companies. Many companies are usi ng alliances and networks to acquire knowledge that is critical for innovation and implementation. Entrepreneurial Resources Entrepreneurs and entrepreneurial companies identify and exploit opportunities that competitors have not discovered or underexploited. An appropriate location of resources is needed to identify entrepreneurial opportunities with the utmost potential returns and to be used as a disciplined approach to exploit them (McGrath & MacMillan, 2000).The entrepreneurial s