Question

Briefly DISTINGUISH entrepreneurially from traditionally managed firms; based on associated conceptual dimensions?

Answer 1

Entrepreneurially managed firms:

A firm which undertakes risky ventures and engages in product-market innovation is called an entrepreneurial firm. An Entrepreneur is a person responsible for setting up a new enterprise. He has the initiative, skill for innovation and ideas.

Tradionally managed firms:

Traditional organization represent the organizational structure in a business is hierarchical, meaning power flows vertically and upward, and employees are departmentalized.

All employees follow a chain of command. Always traditional organization is fixed and rigid

Difference between these two are as follows:

1. Basis: entreprnueral firms are started with a new idea and concept,whereas traditional business are set with an existing idea.
2. Market position: a traditional business is a market player whereas an entreprenueral firm is a market leader.
3. Nature: traditional comes with calculative while entreprenueral comes with intuitive nature.

4. Market: Traditional ones makes there place in market where the other creates its own market.

5. risk factor: ner idea comes with great risk,while traditional has less risk.

6. Methods: tradional business uses conventional methods whereas entreprenueral firm has unconventional methods of their business.

7. Approach: the older on has holistic approach while the new on has atomistic approach.

8. Orientation: The traditional works for profit while the new one works for the people.

9. Competition: Traditional one has high risk while the other has no risk.