Question

Enumerate at least five specific entrepreneurial aspects to include in a strategy formation process.

NB: PLEASE EXPLAIN THE 5

Answer 1

Below are the five entrepreneurial aspects that should include in the strategy formation process

1) Innovation

Innovation should be a part of strategy formation as it focuses on improving existing practices so that required results are met easily and also if there is any scope for more growth in results, that can also be achieved by having innovative measures.

With innovation, an organization can enter new markets to be the leader within a short span of time.

Example - To have an R&D (Research & Development) department as a part of your strategy.  

2) Diversification

Diversification is a process wherein the company has a wide range of footprint across different sectors or might have a wide range of products. This is very important to nullify the effect of uncertain markets and to make sure that the business is always making profits in some way or the other.

With diversification the market reach is wide and hence it specifically enhances the brand image and leads to more revenue generation

Example - Samsung - Operates in Major electrical & electronic goods like Refrigerator, Microwaves, Mobiles, etc.

3) Change management

To have a robust process for change management and to open to new changes, market conditions are always uncertain and they accompany uncertainties and hence there should be proper planning and execution process to deal with these changes and to make sure that the organization is affected positively by the changes.

Often organization refuses to change or become open-minded this leads to failure of an organization.

Ex - Nokia - It refused to change and hence lost its brand value in the new smartphone segment of the mobile phones.

4) Company culture

Often not given much importance but to have a company culture that brings an environment of positivity and ease of doing work will always help an organization to retain the best of the talents and hence will enhance the competitiveness of the company in terms of the talent pool.

Shrewd thinks and smart solution providers are the key to the growth of any organization.

Ex: HR policies like Work from home, flexible working hours, transparency within the organization, team culture, etc.

5) Financial

To have a strategy to generate funds from sources so that enough capital is available for the organization to run smoothly also to have a backup strategy plan in case of a grave failure so that the organization is never impacted.

To define the financial strategy in such a way that it incorporates all the above-mentioned aspects viz. Innovation, diversification, change management & Company culture.

Ex - Raising funds from investors or going for IPO (Initial public offering)

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