Question

Question: How can innovation and entrepreneurship influence a company's business strategy?

Instruction: The first sentence MUST answer the question in a general way so that the reader understands the response. The supporting content must be in alignment with the first sentence and needs to be provided in order of importance and relevance. The first sentence must generally answer the question, with supporting sentences to provide content, critical thinking, problem-solving/decision making, and communication skills. Needs to be in an essay format. The first sentence can be the thesis statement/sentence (1st sentence answers the questions) and the supporting sentences must provide examples and content. (sentences following the first sentence)

Answer 1

Strategy formulation is the process of offering proper direction to a firm. Business strategy can only be done after looking into the mode of business operation and level of creativity which a business firm posses. So both the innovation and the entrepreneurship affect the business strategy strongly. Business strategy is the way in which the business can achieve the goal/objective, and this can be only done if there is a space of innovation and the mode of business. Innovation doesn’t always mean creating something new: innovators often take something that already exists, improves it, change it, make it better and make it the best for their customers. It helps to make the business competitive. So this does influence the strategy formulation. To achieve competitive content, Entrepreneurship promotes the search for competitive advantage through innovation in products, processes, and markets.

Need for innovation and entrepreneurship in Strategy formulation.

1. Innovation includes the means to identify the business and the social need and this helps in formulating the best strategy.

2. Innovation helps in developing a unique solution for an existing common problem.

3. Entrepreneurship articulates a “mission statement” consistent with its business definition and this helps in formulating a better strategy.

4. In Entrepreneurial Mode, unity of command and direction can be obtained, avoiding the confusion and conflicts.

5. Monitoring the effectiveness of the company’s governance practices.

6. Overseeing the process of disclosure and communications.

Stages of strategy formulation.

1. Identifying Basic Objectives:
2. Obtain Opportunities and Risks:
3. Analyze Alternative Resource:
4. Identify Alternative Strategies:
5. Analyze these Alternatives:
6. Put forward Basic Strategy:
7. Strategy Implementation:
8. Evaluate the Strategy and take corrective measures, if required:

Challenges if the Innovation and the entrepreneurship is not taken into account-

1. There are instances where the top management, among themselves and across organizations, fails to achieve synchronization of the vision, strategic intent and hence the strategy for the way forward.

2. Lack of unity of direction may pave a way for conflict.

3. Imposing leaders and self-motivated managers are often causes of dissonance at the strategy formulation stage.

4. If innovation is absent, then there won't be a competitive strategy formulation.

5. Failure in identifying the unique solution can only be obtained with innovation.