Entrepreneurship and Small Business Management

Introduction:

Entrepreneurship is one of the fundamental components for the economic and social growth. It brings forth not only national development but also regional as well as local too. For this reason, even though the entire concept of entrepreneurship seems simple, the entire working of it is complex and dynamic; and also each of the entrepreneurial capabilities in an individual differs from one another in respect of the life experience and knowledge they acquired. The report aims to discuss the aspect of entrepreneur and entrepreneurship in an extensive way.

Part 1:

P1: Provide an introduction to the report by examining different types of entrepreneurial ventures and explaining how they relate to the typology (different types) of entrepreneurship. Your introduction should aim to define entrepreneurship and explore entrepreneurship scope and typology

Ducker (2014) defines the process of entrepreneurship as one of the most creative approach towards the business and business activities to organize, manage and lead people within the organization towards the organizational goal. It is also important an effective entrepreneurship will bring forth positive change and development for the organization. Ducker (2014) points out that the overall entrepreneurial activities consist of innovative way of developing and enacting materials, the techniques in which the developed materials are utilized and adopted, and finally expand the entire process of production or the manufacturing. 

On the other side, Kirzner (2015) signifies the mental ability that an entrepreneur should have during the operation, in order to bring order and harmony to the chaos, this involves all the risk that are hidden in the business and marketing activities. Krirzner (2015) also associates the term ‘entrepreneurship’ with the words ‘innovation and creativeness’ , which in turn contributes to the growth and sustainability of the organization as a whole. 

It is a known fact that the current and the future business, and also other important sector dwells upon effective and efficient entrepreneurial skills of the individuals. Ducker (2014), one of the fundamental aspect of the concept of entrepreneurship is to formulate a vision for the company, and through time implementing it in the most strategic and timely way. Hence, assessing true entrepreneurship does not only confines within walls of an organization and the development of a specific organization, rather it influences and contributes to the overall local and national economy as well, and also take into consideration all environmental requirements during the momentum. 

Here are the various kinds of entrepreneurship in accordance with its companies or the organization associated with: 

Large Corporations: When it comes to large corporations, it has a certain life cycle; and this mainly because they acquire growth as well as sustainability through synthesizing new services and products, and also through the business of the persisting products and services respectively. When it comes to large corporations, they are always subjected to competition; hence it is important for them to mould their products and services accordingly with the changing business environment and trend, and the most adaptive and effective change can be bought forth by efficient entrepreneurs. According to Kirzner (2015), the innovative and creative ability of the entrepreneur manifests best during the turning point or the imminent change. 

Entrepreneurship of Small Businesses: When it comes to small businesses, UK has an immense rate in the sprout of start-ups. According to Shattner (2016), there is a tremendous growth in the emergence of startups in UK, in the year 2015-16 only, there were more than 3630 startups sprouted in UK only. It is also important to convey the very fact that these startups are also contributing to the overall employment in UK to more than 19.8%. Local and regional supermarkets, internet cafes and stores, consulting companies, automobile retailers and even small-scale production houses constitutes some of the small-business startups emerged in the last few years in UK. The formations of these companies are through few members or even as a family business model. 

Scalable Business Startups and Entrepreneurship: The ventures that have the goal to dynamically change the entire persisting model, says Ducker (2015). This type of entrepreneurial ventures focuses more on the quality and in the creative aspect of the business, and for this reason they involves efficient personnel as their workforce. As the term itself suggests, the main aim of these companies are the ‘scale’, which indicates the financial investment and the venture capital funds for the expansion. 

Social Entrepreneurship: The fundamental aim of this kind of entrepreneurship is to develop the products and services for the betterment and progress of the people and societal systems. The entrepreneur of these firms focuses to produce and implements products or services that would lead to effective and efficiency of the society and environment, and also towards the betterment of the population.

P2: Building on the different types of entrepreneurial ventures explored in P1, you are now required to explore the similarities and differences between each. You could consider the roles, characteristics and objectives of different types of ventures: private; public; social enterprises - as well as different sized ventures: micro; small; medium.

The similarities and the dissimilarities are of different types of entrepreneurial ventures according to Schaper et al (2014) are;

Type of Entrepreneurial Ventures	Attribute of the venture	Roles	Goals
Business Entrepreneurship	The main attribute of the business is to generate revenue and profit.	Since the main aim of these ventures is to generate profit and revenue, the role they acquire is also competitive in nature. For this, they would indulge in ht e production of quality product or services or both in order to win the customer segment	As discussed in the ‘role’ section, the main aim of the business company is acquire maximum revenue and profit, and through this to become the leading company in the respective industry and also to acquire maximum market share.
Social Entrepreneurship	Social entrepreneurship is mainly oriented on the betterment of the society, people and the environment	Social entrepreneurship’s role is to synthesize product and service for the overall betterment and improvement of the three afore said areas, and that is people, society and the environment	Through development of the effective and efficient products and services that would influence and improve the ongoing condition of the environment, people’s living and through this society as a whole
Macro Entrepreneurship	Macro entrepreneurship is largely managed and lead by business founders and owners of large businesses. For them, their main vision is to bring change within the industry they are established through more market shares and expanded revenue, and establish themselves as leaders of it.	The entrepreneurs of these types take the role of the captain, and through this a better understanding of the organization they are at work can be understood with all its strength and weaknesses. Hence, by strategizing suitable market and operational strategies to become successful and acquire market shares in the respective industry.	Goal is to become the market leaders and successful in acquiring the maximum market segment.
Micro Entrepreneurship	Founded and operated as a small-scale, within minimal investment. When it comes to small business or the macro-entrepreneurship, the maximum number of employees would range 5-10, since the initial annual revenue would range from £50,000-£100,000.	Although the workspace for the employees are comparably small than that of the macro entrepreneurial ventures, it is important to comprehend the very fact that these small businesses would provide an efficient ground for the employees to acquire industry knowledge and to develop efficiency. For this reason a better understanding and knowhow on the activities, operations and the role they have to play would empower the entrepreneur in efficient entrepreneurship.	To generate maximum profit within the established industry

P3: Present, interpret and assess relevant data and statistic to illustrate the impact micro and small business have on the economy. You should consider local, regional, national and international economic impacts.

As discussed earlier in this reported startups or in other words small-scale businesses are sprouting in a significant rate in the country of UK. As Shattner (2016) posited in the Forbes article, more than 3500 startups in UK alone during the time period of 2015-16. One of the main reasons for this phenomenon is the nation’s political and economical condition that is favoring the start as well as growth of these companies. Shattner (2016) also says that there is a major contribution by these small scale companies towards the country’s economy, for this reason the political and legislative factors are immensely favoring the country in its economic and financial position. 

Parker et al (2012) in their international business journal states that there are various factors, which are contributing to this strong economic condition in the UK for the small businesses and they includes the overall industry growth rate and the revenue turnover. In the 2015 ‘Telegraph.uk’ article by Elizabeth Anderson, a whopping amount of £ 5.7 Billion was accounted in the year 2014-15 alone as micro business turnover, and in comparison to the total turnover that is evaluated in the UK’s small-medium-large businesses, this accounted to 13.7%. On the other side, the employment rates have risen with the sprout of startups during those periods of time. 

It is estimated that more than 27 million people are employed under small-scale businesses across UK and this includes both men and women. If the total workforce in UK has to be estimated, among the total workforce 25.7% is considered to be employed in small scale businesses (Anderson, 2017). It is also important to signify the fact that the overall business growth of the small scale is surging, in comparison to the big companies in UK, and according to Anderson (2017) the major reason for this growth factor is the introduction of innovativeness and creativeness in the strategic and operational area in the small businesses. When comparing these factors with the big companies, innovative and creative’s are lesser in percentage says Anderson (2017). 

Ducker (2015) asserts that importance of creativity and innovation in business are crucial for its growth and sustainability, hence in this case UK’s small business have developed and implemented various creative and innovative techniques in acquiring business and market leadership. And Anderson (2017) affirms this fact that a larger percentage of the sprouting as well as the existing small businesses are heavily indulging in the development and implementation of creative and innovative strategies for the growth and sustainability. From this, it can be comprehended that the small businesses in UK are currently a major contributors of the business ideas and also contributing to the overall economic growth of the country. On the other side Parker et al (2012) affirms that small-businesses or the companies in UK played a major role in surpassing the difficulties and challenges faced by the nation during the 2007-08 global recession. 

When it comes to UK business sectors, there are mainly three business industry that played and still playing crucial role in the economic growth, and they are the ‘Hospitality Industry’, Real-estate Industry and the ‘wholesale-retail industry’. And it is in these three industries that maximum numbers of startups are occurring throughout UK. According to Storey (2016), 39.8% of the total revenue constitutes and is generated from these three major sectors. It is also important to note the fact among the 10 companies that get registered in each week of a month, at least four of them belongs to any of these three industries discussed as per Storey (2016). 

P4: Building on the information you provided for P3, you must explain the importance that small businesses and business start-ups on the growth of the social economy

As discussed before, the small businesses in UK play a very crucial role in the economic growth and sustainability of the country. A larger percentage of the populations within UK are employed or in other words working in small-businesses and these small-enterprises acts as a core generator of employment in the industry. With these employment, the flow of cash within the economy becomes and effective (Lewis, 2013). Many of the small businesses, which became successful and also emerging, are opening up significant opportunities for the local and regional population of UK. With these facts, information and data discussed, it becomes clear that small-businesses are without a doubt one of main component and spine for the economic growth and sustainability in UK.

New jobs and new opportunities are getting created by the small businesses without a doubt, which in turn contributes to the bigger economic growth of the country itself. Apart of being a major reason for the economic boost and employment, small businesses in UK are also playing an important role in modernizing the entire UK’s financial structure as well as the lifestyle. Hence by understanding the entire facts tabled here, it becomes clearer on the very role of small businesses and its contribution towards social as well as financial economy of the nation.

Part 2:

P5: Determine what makes a successful entrepreneur. You could consider examples of successful entrepreneurs and determine the characteristic traits and skills they possess. Similarly, you could explore whether entrepreneurs are born or made and whether entrepreneurship skills can be learned over time.

Entrepreneur or entrepreneurship is a concept that surpasses the mere confinement of business management. When it comes to success of an entrepreneur in the current context, he or she should surpass the conventional way of starting and managing a business, and reach towards a new level where innovation and business go hand in hand. It is also important for an entrepreneur to develop ideas in accordance with the changing business environment and implement those business ideas in the form of strategy towards the business. Hence a mere ability or a skill is not sufficient in an entrepreneur; it rather requires passion and desire too. 

During an recent article, Richard Branson, the Co-founder of the company Virgin Groups asserted that there are numerous factors that influences a entrepreneur. One of the main assertions he made was on taking the risk, since entrepreneurs should always be ready to take risk (Branson, 2013). According to him, risk brings forth tremendous opportunity for the business as well as for the personal growth of the entrepreneur. Apart from it, it is also important for the entrepreneur to be adaptive towards the situation, especially when it comes to leadership styles (Branson, 2013). 

When it comes to question whether leaders or the entrepreneurs are made or born, there a two notions sustained among the scholarly world; where one side posit that ‘entrepreneurs are made’ and the other says ‘entrepreneurs are born.’ Baum et al (2014) in their book, ‘The Psychology of Entrepreneurs,’ asserts that the entrepreneurs are made, rather than the notion of being born is merely an old one according to them. They add that it is the external environment of an individual, which supports and moulds the internal aspect of that individual; and entrepreneurship, which is a combine factor of leadership and management skill, is mostly formed through that external stimulus as per Baum et al (2014).

P6: Assess how aspects of the entrepreneurial personality reflect entrepreneurial motivation and mindset. You may wish to consider how personality is shaped by family upbringing, lifestyle, cultural differences and personal motivation and drivers amongst other factors.

There are various elements that constitute an success entrepreneur, according to Ducker (2014), it includes the ability to innovate, risk taking, development and implementation of new business ideas and even acquiring dynamic leadership and management skills. Understanding these aspects, it becomes clear that entrepreneur is an individual who reinvents from time to time in order to become competitive. There is a greater correlation between the entrepreneurial personality towards entrepreneurial motivation and mindset. Baum et al (2014) affirms that the entrepreneurial personality is majorly formed from the childhood itself, and the external environment in which he or she grew has a greater influence on the personality. The individuals who are bought up in an environment of creativity and freedom have shown prominent traits of leadership and management, than that of the individuals who are born and bought up in strict childhood environment. It is also important that these individuals who possess these positive personality traits acquire more skills in understanding their fellow men or the workers, which in turn contributes to the overall mindset and above all towards entrepreneurial motivation. 

P7: Examine, using relevant examples, how a person’s background and past experiences can hinder or foster entrepreneurship. Factors to consider may include level and type of education, national culture, economic circumstances and character traits. The risks and rewards of starting a business should also be considered. 

The approach of each entrepreneur is different when it comes to business and decision making process. These differences are mainly because of the personality traits they acquired through time and life experiences. Education and the life experience is a greater catalyst in the formation of an individual personality, and the same applies to an entrepreneur too. Baum et al (2014) points that traits such as self-motivation, self-management and coordination is important in an entrepreneur and they are derived from factors such as education and life experience, since it is these aspects that make the individual to surpass the challenges in the way. 

For example, Richard Branson says that his risk taking ability is mainly formed from his past experiences, since he believes that with each challenge an opportunity and knowledge opens up for the individual. Assessing his positive view or the character towards the business, it becomes clearer that this was formed through the education or the knowledge he received through the life experience. 

One of the main and the more prominent terms that has been uttered throughout the scholarly articles on the subject of entrepreneurship is the word ‘risk’. The concept of risk carries a tremendous opportunity as well as challenges for the individuals, and it is one of the profound character traits in a successful entrepreneur. It is also important that this risk taking factors in an entrepreneur have developed through time with the factors such as knowledge and the life experience in which that knowledge is acquired. Therefore for an entrepreneur who is initialing a business startup, risk is one fundamental factor that he or she must understand in all its aspect, because risk does not mean blindingly taking a leap of faith, rather constituting the idea through the calculation of challenges faced in the past, makes the entire process effective and efficient.

M3 To achieve M3 you are required to develop your response to P5 and P6 by exploring and examining different lines of argument relating to entrepreneurial characteristics

Task P5 and P6, explores more into the concept of entrepreneur and entrepreneurship. One of the fundamental questions has been explored here, what makes the entrepreneur successful, and as the discussion detailed there is not one but many elements at play for its success. This affirms the notion that each of the entrepreneurs has same as well as different approach towards their business, and this approach is greatly influenced by the character traits or the personality of the individual, which formulated through the course of time.

M4 To achieve M4 you are required to develop your response to P7 by analysing the link between entrepreneurial characteristics and the influences of personal background and experience to specific successful entrepreneurs, differences that small, medium and large businesses make to the economy, applying relevant data and statistics.

Task P7 extensively explores the entrepreneurship through the concept that entrepreneurs are born. Each of the positive or the negative attribute that a entrepreneur has, is because of the past experience and the knowledge he or she accumulated through that experience. Since the notion has been affirmed that the entrepreneurs are born, it becomes a clear factor that accumulated life experience has a greater role to play in the formation of the entrepreneurship. The example of Richard Branson himself would clarify this notion, since his risk taking ability is mainly an acquired skill, in which he have already dealt with the same situation before in his business experience. When each of the challenges are surpassed, it gives an extra confidence for the entrepreneur to face the next, as discussed in the earlier part the ability to take risk does not mean to take a leap of faith, rather a calculated move towards the challenges and opportunities.

Conclusion:

The report explores the concept of entrepreneur and entrepreneurship in an extensive way. It also discusses the contribution of business or the entrepreneurial ventures towards the growth of the region as well as for the nation. On the other side, the report also conducted a detailed study on the attribute of entrepreneurs and entrepreneurship.

References:

Anderson, E. (2017). Britain hits record number of startups as more aspiring entrepreneurs take the plunge. Telegraph.co.uk. Retrieved 8 July 2017, from http://www.telegraph.co.uk/finance/businessclub/11692123/Britain-hits-record-number-of-startups-as-more-aspiring-entrepreneurs-take-the-plunge.html

Baum, J. R., Frese, M., & Baron, R. A. (Eds.). (2014). The psychology of entrepreneurship. Psychology Press.

Drucker, P. (2014). Innovation and entrepreneurship. Routledge.

Kirzner, I. M. (2015). Competition and entrepreneurship. University of Chicago press.

Lewis, W. A. (2013). Theory of economic growth (Vol. 7). Routledge.

Parker, S. C., Congregado, E., & Golpe, A. A. (2012). Is entrepreneurship a leading or lagging indicator of the business cycle? Evidence from UK self-employment data. International Small Business Journal, 30(7), 736-753.

Branson, R. (2013). Richard Branson on Taking Risks.

Schaper, M. T., Volery, T., Weber, P. C., & Gibson, B. (2014). Entrepreneurship and small business.

Shattner, W. (2017). Forbes Welcome. Forbes.com. Retrieved 8 July 2017, from https://www.forbes.com/sites/yoavvilner/2016/01/18/16-london-based-startups-ready-to-take-on-2016/

Storey, D. J. (2016). Understanding the small business sector. Routledge.

Network Concept

1. Networking Systems: 

1.1. Networking system’s constraints and benefits:

1. LAN aka Local Area Network: A network that is isolated in its nature and it usually built within a physical location such as home and office. Under this system, the computers are linked with a server that is small and also to a wide area network or in other words internet. They are usually utilized and are helpful in sharing data such as small to big documents, files, games and others. 
2. MAN aka Metropolitan Area Network: MAN or the Metropolitan Area Network is usually a computer network large in its size that are linked or connected with each other from various geographical or distant locations. It has a similar structure with the LAN network, and the only dissimilarity it has with it is the area it is covered, since MAN covers typically larger area than LAN does, for example, a college campus and sometimes an entire city. 
3. WAN aka WIDE Area Network: Similar to that of Local Area Network or LAN, however in this case there more devices that are interlinked within each other by means of telephone, satellites or optic cables.

Networking Topologies:

1. Bus: A set of links made by every device towards other devices individually. Although the entire system is simple in nature, various errors or troubleshooting occurs in it. Data redundancy issue is one of the primary examples, and also if one device cease to work, it effects the device which is connected with it too. 
2. Ring: Almost similar to that of the bus network. Unlike bus topologies, ring does not have termination. Ring topologies is considered to have no end, and this mainly because the entire linkage in a circular form. Adding or linking new network might sometimes challenging due to this circular nature of connection. 
3. Star: Under this topology, each node is linked towards an individual switch. And it is at this switch all other nodes are also linked. Therefore a direct connection is made from switch to node. The disadvantage of this system is that a large amount of wire is required for the connection. 
4. Mesh: In this topology, every other node is used to connect each other. Mostly this topology is used in developing wireless network. The main disadvantage of this topology is that it requires extensive management as well as the overhead is usually high. 
5. Hybrid: This when more than one topology’s are used to connect with each other. Star and ring topology is used under this networking.

1.2. Current Network Technology:

It is to be assumed that it would take more than usual time to access files from a remote server using a thin client. All the processing is done within the server, especially in one specific implementation of the thin client. However, the modern LAN technology would come for aid at this moment, which causes fewer problems. When it comes to LAN, Gigabit Ethernet could offer 10-100 GB/sec data rate.

It is also a noticeable factor that the hard-disk technology as well as processors is evolving at an immense rate. With this the memory capacity and the performance are also enhancing tremendously. Higher access speed and enhanced capacity is required for the server in the current context, since most of the clients are using central server for the storage of their data. On the other side, the technology is also becoming cheaper in the course of time. All these factors are contributing to the evolution and development of computer network concept.

1. OSPF: A routing protocol used in large, single and also in group network. It was Internet Engineering Task Force that developed it. It can be also utilized in Gateway protocol. 
2. FTP: FTP aka File Transfer Protocol is typically a standard protocol, utilized for transferring data from one server to another, or from one client to another host. In order to upload any file to the website, the admin or the user requires username, password and the host id as well. 
3. SMTP: Simple Mail Transfer Protocol aka SMTP is used in the exchange of email. This would work in align with POP3 service. 
4. TCP/IP: Transmission Control Protocol and Internet Protocol are nothing but a stack of protocol. Considered to be different in nature, however, it is has its similarity with HTTP, SMTP and FTP.

1.3. How Protocols Enable the Effective Utilization of Different Networking Systems

It is indeed a fact that diskless workstation and the network computers has the capacity to transfer maximum data to and fro within the servers than from a ordinary PC workstation. For this reason the traffic will be increased and the user or the client could access the server at any given time. This scenario would eventually lead to collision, in which it triggers numerous retry from the client, since this would increase the traffic of the network and contribute to the immense growth in the traffic rate. For this reason there is a requirement of multiple access protocol for the effective utilization of network computer’s actual capacity, within the network. TCP/IP protocol stack would contribute to a effective multiple access technology within the data link layer. 

Three of the pivotal physical layer protocol that enables the rapid communication between the network computers is fast Ethernet, GB Ethernet and Ethernet. Network protocol would assure the use of different networks systems.

1. OSI model layer tow handles the logical as well as physical linkage to the packet’s destination through the utilization of a NIC aka Network Interface Card 
2. Layer 3 Protocol aka Network Layer Protocol is used for routing as well exchange of datagrams from a one to another network. IP protocol usually assesses bigger datagrams and recognizes the host with a 32-bit Ip address. 
3. TCP, UDP are level 4 protocols. TCP aka Transmission Control Protocol assures the linkage between multiple hosts, especially two, within the network through socket, in which it is later determined by the port number as well as the IP address. It would also assure lower level of overhead in the transmission service; however, the error assessment is usually lower in this.

2. Software and hardware:

2.1. Software and Hardware Component’s Role:

1. Software: All the network software has protocols and programs, which require connection with the computers. One of the main usages of this is the data sharing.

• Application Sharing: Uses the same platform for the connection and management of the computer. The network cost can be reduced by the use of network share application software platform. 
• Hardware Sharing: Hardware such as phone, fax and printer can be used for the sharing. If a printer is linked with the server, and server with the computers, the user could use the printer by using any of the computers connected. 
• Security and Management: Most of the Network software offers basic security as well as backup of the valuable files. It can also monitor and report the efficiency as well as usage of the computer. 
• Operating System: Linux or Windows operation system.

2. When it comes to hardware there are many, and this includes;

• Gateway 
• Modems 
• Routers 
• Hub 
• Network Interface Cards aka NIC 
• Bridges

2.2. Types of Servers:

If user requires a server, there are mainly five types of server, and they are,

• Server 
• Proxy server 
• Web server 
• Mail server 
• FTP server 
• SMTP server

Server: Structured and designed to receive as well as to process request from other devices and also to deliver or to process the data towards other devices within a wide area or a local network.There are many servers that is operating in the current times, hence here few of the common server types.

• Proxy Servers: Acting just like middle between the real server and the user. The client mentioned here is usually a web-browser. Usually when a query is made by the user towards the browser, initially the browser would try to provide a solution, or it would forward the request towards a real server. Through this time consumption is reduced. On the other side proxy servers are also used in the filtration of the requests. 
• Mail Server: Used for the deliverance of email within a network. The servers receives the email from other servers and send it to the right client. 
• Web Servers: Used for hosting websites. Delivers the webpage to the requested client. Image or HTML documents are used in all of the web content. 
• Application Server aka App Server: Used for the management of application between the user and the server. 
• FTP Server: Also known as File Transfer Protocol is a standard protocol used for the exchange of data from one client server to another or a client to host.

A new network always requires the selection of server type. Despite the location, the selection process is usually intricate.

2.3. Selecting Server Based on Requirement

1. Sever Hardware: To Setup a Strong Foundation. Severs are in most of the places today, from corporate servers that linked with printers, to the storage servers attached with the network used in the backing up of files. Although they are not much powerful than a normal desktop computer, it is designed in such a way that multiple people could access it at one time. In order for the website to work, a good enough server is required to handle multiple connections at a time, and could do the operation without error or interruption.

2. Server Scaling: During the selection of a server, there are mainly three components that could determine the most suitable package, and they are;

• Processors: Considered as the central nervous system of the server. Today most of the servers available have multi-core processors, which could solve many of the challenging computing in a greater precision and speed. More efficient and faster the processor, faster will be its efficiency to solve the computing as well as for the application to run smoothly. 
• RAM: Another pivotal component is the Memory of the server, since this would allow the information to flow without any force to read or write operations into the storage drives of the server. Even for a simple blog page requires a adequate amount of memory. 4 GB is the minimum, one should look for. 
• Hard Drive Space: The most important part of the server, since it is here all the storage of the data and the information occurs.

3. Redundancy and Support: Speed as well as power is a pivotal part of server, since this would increase the ease of accessibility. On the other side, the built in hardware and software should be taken into consideration for the protection of data and failover. For example, most of the servers backup the files from the main hard drives; hence no data loss would happen if one hard drive fails in the process. However for this to be success, multiple hard drives are required. 

4. Peak traffic: it is important to consider peak traffic as important, as it is the number of people trying to access the webpage that would in turn provide it publicity and popularity. When it comes to corporate websites, usually peak traffic occurs when a newsletter on any of their new launch would happen, and on the other side personal website gets its traffic whenever they get popularity through secondary sources. 

5. Dangers being Unprepared: If the website is incapable of handling high traffic, it would either lags or it would go offline. Since this is dire disadvantage for the site owners, for they could lose the peak traffic in these instances. This situation would also allow mirror WebPages to take over and take advantage of the situation, if the original webpage fails to open. 

6. Selection of the host for handling Peak Traffic: There is plenty of third party content delivery system available currently to support the websites during its peak traffic or viral success.

2.4. Inter Dependence of Workstation Hardware with Network Components

When it comes to diskless workstations they have their own operating system within the server. If there is a requirement for the workstation to use any of the network components such as server or printer, it has to establish its communication with the network component; or in other words behalf of diskless workstation, the server has to communicate. Because of this, there is a high possibility of increase in the traffic and eventually congestion. Also the workstation or the client hardware has to wait, while the network computers are utilizing the hard disk (CPU, Memory etc). Therefore by the deployment of network computers or the diskless workstation, the interdependency of the workstation station would increase. For this reason it is pivotal to install reliable software as well as hardware within the server, and also allow backup and redundancy techniques as well for the server.

The responsible enterprise in action

1. Introduction:

The main aim of this report is to critically assess the sustainability choice that is available to a business, and also to evaluate the sustainability performance as well as actions of the firm through application of suitable scholarly frameworks. The entire report is divided into five parts, where all the objectives will be critically assessed and interpreted. Apart from it a set of recommendation has also been developed at the end of this report towards the chosen organization. 

With the changing business scenarios, organizations around the globe are facing multi facet challenges, both internally and externally. Jones and Jones (2010) in his book ‘Handbook of organizations’ have asserted on this growing challenges, and according to him the business sectors are becoming complex through the course of time, and this complexity is acting as both challenge as well as the opportunity for the organizations currently. 

In the assignment one, one of the main challenge asserted was on the employee-skills. March (2013) also supports the notion put forth by Jones and Jones (2010); that the challenges within the business sector is significantly increasing, especially the technological, structural and also environmental challenges. In order for the company to overcome, it is important for the workforce as well as the management to equip the skills and ability required, in order to adapt with the change itself. On the other side empowering the employees and the management would not only makes the entire organization capable of facing and overcoming the scenario, but also would help the firm to acquire competitive edge and market leadership as well. 

Another important address made in the assignment one was on the growing demand for the quality and the productivity. According to Goetsch and Davis (2014), quality is the degree in which the customers believe that a particular product has met and sometimes even exceed their expectation. For example, today when a customer purchases an Apple smart phone or an Iphone, there are few expectations adhered in the customers, and the future sales and success of that smart phone has a larger dependency on the rate in which the customers are satisfied. At the same time, it is also important for the organization to meet the demand through productivity once the demand and sales go high with the respective product through sustainable means. Although quality and the productivity factors are indeed posed as challenges for an organization, nevertheless these factors would also pose as opportunity that boosts the organization in its many aspects, including the brand equity. 

Third and the final challenge asserted in the assignment one was on the management of diverse workforce. The term diverse encompasses a wide variety of category, and this includes ethnicity, race, homosexual, elderly, physically challenged and sometimes even community based. According to Harvey and Allard (2015) managing the diverse population or the diversity management is a persisting challenge within an organization. Although there are various scholarly as well as business frameworks developed for the effective management of the diverse population within an organization, accommodating the diverse workforce by acknowledging their difference in their lifestyle, family requirements and work style is still an ongoing challenge for the companies. However, a company’s objective of recruiting diverse population has always been primary due to the potential it brings forth.

2. Strategies to Address the Challenge: 

Every organization has either a collective or individual strategies to address the issues or the challenges ahead. McNie (2012) defines strategy as an action plan structured to acquire a long-term objective or sometimes to overcome an obstacle.

2.1. Strategies for the Development of Employee Skills in Technological, Structural and Environmental areas:

Although most of the companies are indulging in off the job training and coaching sections, it proves to be insufficient, says McNie (2012). This is mainly because the awareness and exposure that the employees are getting during off the job top training are not effective as the on the job, where the employee could comprehend learn through trial and error. 

According to Daley (2012) there are three main strategies for improving or developing the employee skills, and they are mentoring, networking and nurturing.

Source: Daley, 2012

• As per Daley (2012) mentoring is the process of advising and guiding the employee through the work procedure. During a recent interview with the Coca Cola Manager Brandon M. Buchanan, he asserted that the on the job training has more potency than the off the job training (Maya, 2017). As a part he profoundly believes that the act of mentoring is most effective and efficient one. Through mentoring strategy Daley (2012) asserts that the manager or the employer could guide the workforce suitably through real life scenarios and with this it is not only the knowledge that is expanding for the employees, but awareness as well. He also affirms that the employee knowledge and awareness in the environmental aspect of the company and the industry will be strengthened through this strategy. 
• Through the strategy of networking, the employees are able to forge themselves with the organizational culture as per Daley (2012). In a recent article from the popular Virgin Groups, the Chairman and the Founder of the company Sir Richard Branson have emphasized the importance of employee networking. Through this method he have affirmed that the employee confidence level in many areas have increased significantly. 
• Another main strategy proposed by Daley (2012) is through nurturing, and by the term ‘nurturing he meant to provide the right experience to the employees, and make them evolve within it. It is important for the employees to gain knowledge and experience in multiple areas in order to become efficient, and the area includes technological, structural and environmental. For this, nurturing would enable the management to develop the skills in these areas says Daley (2012).

2.2. Strategies for Improving Quality and Productivity by Adapting Sustainable Practices:

According to Griffin (2012) it is important for every organization to improve its products’ quality as well as productivity, since this would contribute to the increase of the customers as well as satisfaction of the employees. With the traditional approach of process mapping, cost-benefit analysis and benchmarking, an organization could acquire the improvement in the workflow, however, in the current context it is also important for the companies to be aware of environmental issues as well while strategizing quality and productivity improvement. Therefore the productivity could decrease the percentage of defects, delay, cost as well as the other environmental issues as per Griffin (2012).

• 

  Source: Griffin, 2012

• Assessing the Process: Through standardization of the policies and procedure in order to improve efficiency. 
• Effective Alignment: The business process should be aligned with the industry standard, especially of the environment and workplace health and safety. 
• Developing Performance Scale: With the use of key performance indicators as well as the environmental standards, the organization should be able to forecast the future outcomes. 
• Efficient Quality Testing: The product should comply with the industrial as well as environmental policies, and at the same time should decrease the defect by a greater percentage.

2.3.Strategies for Effective Management of the Diverse Workforce for the Workplace wellbeing:

Diversity management is not only a strategic requirement for the organization today, but also ethical as well. As Labelle et al (2010, p. 341) stated, “Although the traditional notion of diversity management as an ethical necessity has surpassed, still most of the organizations consider it as an essential ethical element.” However, in the current context, the major importance is given on its potentiality rather than the ethical aspect. As Labelle et al (2010) pointed out; the amalgamation of various cultures contributes to enhancement of creative ideas and experiences. There are mainly three strategies that could pave path to the effective management of the diverse workforce, and they are;  

Source: Labelle et al, 2010

• The recruitment process: An effective recruitment process by providing equal employment opportunity guidelines. 
• Training: Providing effective training and education in order to nurture the skills of the diverse workforce 
• Reviewing the Policy: Ensuring equal treatment to all the workforces.

2.4. How Organizations can become Responsible for the production of Sustainable Products:

Over the past two decades, the significance of sustainability has increased tremendously. Various researches conducted around the world are pointing out the benefits a company could acquire by turning themselves into a responsible organization by producing more sustainable products. Srirangan et al (2012) asserts that by the production of sustainable products, the organization could become responsible mainly in two crucial areas.

• Reduction of Waste: One of the important aspects to adapt to the production of sustainable products is to reduce the waste. 
• Decrease the Risk of Environmental catastrophe: With the emergence of issues such as climate change and global warming, the environmentalists as well as scientists around the globe are asserting to cut down the level of usage unsustainable products. Hence by the production of sustainable commodities, the organization could contribute to environment and its sustainability.

3. Impact of adapting responsible approach over the customers:

The quality of an organization is pivotal in the current business context. As all the business required being responsible towards the society as well as towards the environment they thrive upon. 

According to Maxwell and Van der Vorst (2009) it is the quality of the organization that determines its ability to thrive and survive during the economic fluctuations, and one of the main qualities is always acquired through being a responsible company. By the term ‘responsible company’ the authors asserts on a company that projects quality in all its aspects, especially by giving primary importance to the society and environment; in the second context is also important to have elements such as efficient and effective employees, improved quality and productivity, and also effective as well as efficient diversity management system in order for a company acquire quality. 

According to a recent study, it has been found that companies that produce more sustainable products with quality, and also has an efficient workforce would contribute to the increase of the overall profit and would also boost the brand equity of the company (Allwood et al, 2012). It is also an evident factor that in the current business context, customers are willing to pay more on the sustainable products. 

Today more and more companies are adapting to sustainable and responsible practices, and this is mainly because of the understanding that these two factors have turned into crucial strategies for the business to acquire market leadership and competitive edge. As Allwood et al (2012) stated, today the business organizations around the world could expect a lump-sum return on their investment through practices that are environmentally and socially sustainable. For example, today the consumers in UK and Australia are willing to an extra $3 for a bottle whine that is produced through sustainable practices (Aschemann-Witzel, 2015). It is important to note at this point that these consumers are willing to pay for the products that made through sustainable practices; in fact the figures actualize the fact that they are already buying the products, which was certified as ‘sustainable.’ 

In another study conducted by the Solar City Group over the ’Consumer Trend and Sustainability’, it has been found that 72% of the customers wanted know about the sustainability initiatives adapted by the organization; 75% customers are most likely to buy products from a company that is responsible and are initiating enough effort on the sustainable practices; 82% of the customers are most likely to buy products from the companies that projects Corporate social responsibility than those companies which projects less; and 93% of the customers are aware of consuming the energy and protection of the environment (Solarcity.com, 2017). 

During a 2013 industry-environmental study conducted in the United States by Gibbs and Goel (2013), asserted that 75% of the people affirmed that they buy products from the companies that adopts sustainable practices, 60% of the people said that they read news on companies that are going green; while 72% of the people showed interest in learning on the sustainable practices that the companies are practicing. 

Understanding these perspectives of the customers, it becomes clear that majority of the customers around the world are becoming more aware of the sustainable practices and the importance they give to those companies that are practicing it. And through sustainable practices and by becoming a responsible company there are mainly two advantages or the benefits that it would achieve in the business perspective, an enhanced brand awareness and a competitive advantage (Maxwell and Van der Vorst, 2003).

Source: Maxwell and Van der Vorst, 2003

Maxwell and Van der Vorst (2003) states that, by improving brand awareness, the company projects that they are ‘doing good’ for the environment as well as for the society, since this becomes one of the major pillar not only for the company’s sustainability within the industry but also for its growth as well. Many companies are today integrating their sustainable practices and corporate social responsibility with their marketing campaign. For example, the 2017 TV commercials of Pepsi and Colgate in UK, on the water conservation and the employee welfare respectively caught attention from the viewers. It has been reported that there has been 9.3% increase in the sales after that advertisement is aired in UK (Solarcity.com, 2017).

4. Conclusion:

As discussed in the report, there are tremendous challenges that a company has to face today, and among them adapting to sustainable practice and also being a responsible company is the most difficult one. Although there are various challenges when it comes to adaptation of the sustainable practices by various companies, there are few that are considered crucial and require immediate attention. One of the main issues is the lack of employee skill and knowledge, the other is the improvement of quality and productivity through sustainable practices and third is to effectively manage the diverse workforce. The first two are considered as a direct contributor and the third, an indirect contributor. It is also important to understand that all these challenges pose as a business opportunity in another aspect, hence by finding resolution for each of these issues with suitable strategy, would opens up the opportunity abided in each. The report also discussed impacts a responsible organization would make on its relationship with the customers, mainly through emphasizing growing customer awareness and knowledge on the organizational company practices.

5. Recommendations: 

It has affirmed that the adapting to sustainable practice and being a responsible company would not only bring forth company sustainability, but growth as well. Comprehending its significance and its role in enhancing the business opportunity, few recommendations are synthesized for the company.

• It has been understood through the study that it is important in the current context to improve the skills and knowledge not only on the business and industrial aspect, but also on the environment and sustainable practice as well. For this reason it is recommended that the organizations should equip their employees with adequate knowledge on the importance of environment and on the related sustainable practices that the company is operating on. 
• Improving the quality and productivity of the organization is another challenge that a company could turn into an opportunity. The study has also affirmed that more and more customers are now buying products, which are made through sustainable ways. For this reason it is recommended for the organizations to develop effective and efficient plan to improve the quality of the product and also productivity of the organization through sustainable ways. Integrating quality with suitable ways of production would help the organization in its growth in the long run, this includes enhancement of brand awareness and increasing competitive advantage.

References:

Allwood, J.M., Cullen, J.M., Carruth, M.A., Cooper, D.R., McBrien, M., Milford, R.L., Moynihan, M.C. and Patel, A.C., 2012. Sustainable materials: with both eyes open (p. 384). Cambridge: UIT Cambridge.

Aschemann-Witzel, J., 2015. Consumer perception and trends about health and sustainability: trade-offs and synergies of two pivotal issues. Current Opinion in Food Science, 3, pp.6-10.

Daley, D.M., 2012. Strategic human resources management. Public Personnel Management, pp.120-125.

Gibbs and Goel (2013). SENSE & SUSTAINABILITY STUDY. 2nd ed. [ebook] United States: Perspectives on Corporate Sustainability Among U.S. Adults and Employees, pp.10-11. Available at: http://file:///C:/Users/admin/Downloads/0413_Sense%20and%20Sustainability.pdf [Accessed 3 Aug. 2017].

Goetsch, D. L., & Davis, S. B. 2014. Quality management for organizational excellence. Upper Saddle River, NJ: pearson.

Griffin, R.W., 2013. Fundamentals of management. Cengage Learning.

Harvey, C. P., & Allard, M. 2015. Understanding and managing diversity: Readings, cases, and exercises. Pearson.

Jones, G. R., & Jones, G. R. 2010. Organizational theory, design, and change.

Labelle, R., Gargouri, R.M. and Francoeur, C., 2010. Ethics, diversity management, and financial reporting quality. Journal of Business Ethics, 93(2), pp.335-353.

March, J. G. (Ed.). 2013. Handbook of Organizations (RLE: Organizations)(Vol. 20). Routledge.

Maxwell, D. and Van der Vorst, R., 2003. Developing sustainable products and services. Journal of Cleaner Production, 11(8), pp.883-895.

Maya, F. 2017. Forbes Welcome. [online] Forbes.com. Available at: https://www.forbes.com/sites/dailymuse/2013/06/25/5-strategies-that-will-turn-your-employees-into-leaders/#19d489267f6e [Accessed 3 Aug. 2017].

McNie, E. C. 2012. Delivering climate services: organizational strategies and approaches for producing useful climate-science information. Weather, Climate, and Society, 5(1), 14-26.

Srirangan, K., Akawi, L., Moo-Young, M. and Chou, C.P., 2012. Towards sustainable production of clean energy carriers from biomass resources. Applied energy, 100, pp.172-186.

Virgin Group. 2017. Richard Branson: why you should network. [online] Virgin. Available at: https://www.virgin.com/entrepreneur/richard-branson-why-you-should-network [Accessed 3 Aug. 2017].

Managing Innovations

1. Discuss the difference between Delphi and Scenario methods, and identify in which circumstances you might use each.

1.1. Introduction: 

When it comes to business and business operations, forecasting is one of the pivotal elements. This is because the growth and sustainability of a specific business is profoundly depended on how that business would adapt to changes, technological as well as consumer trend, in the future. As per Granger (2014) forecasting is a tool to understand future events, in his work ‘Forecasting in business and economics’, he defines the forecasting as a process of predicting or estimating a possible future event. When it comes to prediction or the process of predicting an event, it mainly emphasizes an imminent change that is approaching towards a business sector or an industry. The word change can be synonymous of the external or internal environment factors, which includes political, social, technological, legal, economical or even sometimes environmental. 

The essay aims to learn, understand and establish the difference between the Delphi method and the Scenario method. In order to acquire that it is also important to understand the approach of qualitative forecasting and quantitative forecasting; since both the methods, Delphi and scenario comes under two of these fundamental approaches respectively. This was affirmed by Baker (2016) in his work, by asserting the importance of understanding both approaches fundamentally before learning and implementing any of the methods under those.

1.2. Qualitative Forecasting and the Quantitative Forecasting:

The business communities and the scholarly world are asserting on two fundamental types of forecasting or prediction method, and they are qualitative method and quantitative method. Gilliland (2011) asserts that both the approach has its own advantages and disadvantages, and is used in scenarios suitably more than its weightage as effective method; since various researches conducted on the both the approaches have bought forth different degree of accuracy while forecasting. 

When it comes to qualitative approach, it is said the method is subjective, mainly due to its nature of forming the decision. According to Baker (2016), qualitative forecasting is done mainly on the basis of judgment and opinions exerted by the consumers or a expert of an area, and it is most effective when there is a lack or sometimes even absence of past records or data. It is also important to understand that qualitative forecasting is typically used as an application to long-range decision. One of the best examples of qualitative forecasting is the Delphi method. 

Quantitative forecasting on the other side is used to predict the future events or scenarios by using past data. As Evans and Basu (2011) defined the quantitative forecasting process as a ‘prediction method derived from the past data’. Evan and Basu (2011) also points out that the quantitative forecasting is most effective and above appropriate where there are adequate numerical data available for the formation of decision. Forecasting an event or a scenario requires an affirmation of a pattern and these numerical data can be used to form that, as Frechtling (2012) asserted “With similar pattern emerging at a periodic juncture, a future forecasting can me made or formulated. At the same time Frechtling (2012) also highlights on the unpredictability of certain events too, by positing that all events cannot be predicted solely through numerical data. Quantitative forecasting is typically is typically used as an application of short or in other words intermediate range. One of the best examples of quantitative forecasting is the scenario method.

1.3. Delphi Method vs. Scenario Method:

As discussed earlier, each method has its usage and advantages and above all the degree or the level of accuracies varies with each techniques. 

According to Hyndman and Athanasopoulos (2014), the method of scenario is basically a ‘narrative prediction’ which explains the course of events that is potential to happen. They also assert that it has a similarity towards the cross-impact matrix method, which aid in recognizing the interrelationship of components within a system. For this reason the scenario method has the ability to elaborate or explain the affect of an event over the components and then on the system as a whole. This is the main reason Coates (2016) in his work defines ‘scenario method’ as a ‘script’ that has the capability of clarifying details of an events that are uncertain. In order to bring that clarity in the prediction or in the process of forecasting, the scenario integrates factors such as technology, preferences of the customers and sometimes even the shifts among the population (Hyndman and Athanasopoulos , 2014). For this reason, scenario method is able to table long term forecasting of the future events. Ogilvy (2015), says that the scenario method are usually presented with one positive along with a negative scenario, hence this would enable the decision makers to weigh each of the scenarios presented at them, and synthesize appropriate decisions. For example, a company might use scenario method to determine the future purchases, by analyzing past data and trends on sales. 

Delphi method on the other side keenly relies on the expert advice and notions. As Cuhls (2017) asserted, the method is used to formulate and conceptualize a future event through key assumptions from a group of individuals, which belongs to a specific area or an expertise in a specific sector. The method was introduced by Norman Dalkey and Olaf Helmer in order to bring forth a solution towards a problem in the early American Military. The main focus of the Delphi method is to build a collective views and predictions from a group of experts through a systemic and mathematical manner. Cuhls (2017) terms the entire process as ‘iterative’ due to the effort that goes on to develop the prediction or the forecasting, and the entire procedure requires a facilitator for the collection and formulation of the qualitative data. In the most cases, Delphi method is used for the forecasting of science and technology trends, however, today the same method is used to evaluate and implement the stakeholder approaches for the development of participative policy making, especially in the developed countries.

1.4. Conclusion:

Delphi method and the scenario method come under qualitative forecasting approach and the quantitative forecasting approach respectively. Each of these methods is used in different scenarios, and offers different levels of accuracy. Delphi is mainly used in the formulation predictions that are long-range in nature, while the scenario is mainly used in the construction predictions that are short-range in nature.

2. Explain five factors that influence the adoption and diffusion of innovations

2.1. Introduction: 

Drucker (2014) in his book ‘Innovation and Entrepreneurship’ have defined entrepreneurship as an idea, object or even sometimes a practice that is accepted as new and revolutionary. At the same time Drucker (2014) also says that the revolutionary aspect is relative, since many of the innovative initiations are sometimes not perceived as revolutionary. A same perception was shared by Hedström and Wennberg (2017) who supports the notion put forth by Drucker (2014) on the aspect of revolution. 

When it comes to adoption of an innovation, the attribute and also the way in which it is perceived by the people within a society, carries a significant important and role. As Nguyen et al (2016, p. 2476) asserted in their business journal, “The characteristics as well as the way an innovation is looked upon determines the rate of adoption. And this is the main reason in some cases the diffusion of an innovation takes time than it was relatively thought, and this was affirmed by Nguyen et al (2016, p, 2477) as he states, “innovation in some cases diffuse slowly and on other it diffuses rapidly.” 

According to Lissoni (2016) the process of diffusion is when the communication of an innovation occurs through certain channels, in the course of time. It is through the individuals within the society or a social system that the entire communication process would happen. Lissoni (2016) also posits that the entire communication is considered as peculiar in nature that is concerned with the wide spreading of the messages that is looked upon as ideas that are new, which then is mostly acquired with certain level of uncertainty. When it comes to diffusion of ideas there are mainly four elements that constitutes its, and they are, the innovation itself; the channels where the communication flows; timeframe and finally the social system or the society. 

The essay focuses to understand the diffusion and adoption of innovation in a greater detail, and for this it is important to comprehend the characteristics or the factors that determine the rate of adaption when it comes to innovation. Among various factors or the characteristics, five are chosen to evaluate comprehensively, and they are the compatibility, triability, observability, complexity, and its relative advantage.

2.2. Five factors that influence the adoption and diffusion of the innovation:

Compatibility holds a profound importance in the adaptability and diffusion of an innovation. In fact, it is significant for the innovation to be perceived as stable and above all consistent. As Storey et al (2016) asserted; the compatibility aid in forming the perception of being consistent with the persisting values, potential utility and the experiences from the past, for an innovation. For this reason, a concept or an idea that is found incompatible with the persisting values, potential utility and the past experience would most probably fail to get adopted. As supported by Johannessen and Dolva (1994, p. 2011), “it is extremely difficult for an incompatible idea to be adoptable, in comparison to an adaptable idea; and at the same time it is also important to understand that the adoptability rate varies a highly in both the cases.” Therefore an idea that is incompatible to get adopted, it is necessary to adapt to a whole new value system. Johannessen and Dolva (1994) say that even adapting to a new value system would take time, which in turn contribute to the difficulty. For example, when a new incompatible software get launched in the market, which is not compatible with the general operating system such as Windows; it would take tremendous time to adopt and diffuse operating system that is compatible with that software. Hence compatibility always plays a significant role in an innovation. 

Another important factor that influences the adoption and diffusion of an innovation is the trialability. Putzer and Park (2010) define traibility as the level to which the idea can be tested, mainly on a limited basis. As the term itself suggests, an innovation find its success when there is a possibility that it can be experimented within the conditions given. Putzer and Park (2010) states that the ideas that can be tested in an installment basis would usually have the higher adoptability rate than that of the ideas or an innovation that cannot be divided. Through the factor of triability, the idea projects lower uncertainty towards the people who are potential users. 

Visibility or the observability is another important factor that influences the adoption and diffusion of an innovation. Johannessen and Dolva (1994) say observability determines the level to which the outcome of an innovation is able to be measured or in some case visible. It is important for a potential user or the individual to see the outcome of a specific innovation and is able to measure it, Johannessen and Dolva (1994) asserts that the visibility of the innovation determines the potential users’ adaptability. Hence more visible or observable the innovation becomes higher its chance to get adoptive. It is this observability then becomes the discussion matter among the potential individuals, who will be using the innovation later. 

When an innovation possess difficulty in understanding it, as well as using it, the rate of adoption and diffusion becomes slower than that of the innovation that possesses simple attributes. Therefore complexity plays a greater role in adoption and diffusion process. Putzer and Park (2010) states that, innovations that are simple in nature will be adopted faster in the society, than the innovation that are complex in nature. The main reason Putzer and Park (2010) assert on this is the time requires for the people to adapt to the complex nature of the innovation, as they stated “adaptability rate would be slower due to its complex attribute.” 

Relative advantage is another pivotal factor that influences the adoption and the diffusion of an innovation. As the name itself suggests, it is a notion among the users or the individuals within the society that a particular innovation has a better attribute and functioning than the other similar ideas or innovation in the market. According to Bayarçelik et al (2014) the relative advantage has many dimensions and can be measured in various aspects including economic term, social term, satisfactory term and convenience term. Due to these reasons, the objective advantage of an innovation gets overshadowed by the relative advantage. For example, a customer could buy a smart-phone with similar features of an I-phone with lower price from another brand, here the relative advantage through economic term is highlighted and taken into consideration by the individual.

2.3. Conclusion:

Compatibility, triability, observability, complexity, and relative advantage has a profound influence on the adoption and diffusion of an innovation.

References:

Baker, W. 2016. Qualitative and Quantitative Analysis. In The Creative Enterprise of Mathematics Teaching Research (pp. 171-178). SensePublishers.

Bayarçelik, E.B., Taşel, F. and Apak, S., 2014. A research on determining innovation factors for SMEs. Procedia-Social and Behavioral Sciences, 150, pp.202-211.

Coates, J. F. 2016. Scenario planning. Technological forecasting and social change, 113, 99-102.

Cuhls, K. 2017. Delphi method. 2000. Fraunhofer Institute for Systems and Innovation Research, 174-186.

Drucker, P. 2014. Innovation and entrepreneurship. Routledge.

Evans, J. R., & Basu, A. 2010. Statistics, data analysis, and decision modeling. Pearson.

Frechtling, D. 2012. Forecasting tourism demand. Routledge.

Gilliland, M. 2011. Business forecasting effectiveness. Analytics Magazine, 16, 21-25.

Granger, C. W. J. 2014. Forecasting in business and economics. Academic Press.

Hedström, P., & Wennberg, K. 2017. Causal mechanisms in organization and innovation studies. Innovation, 19(1), 91-102.

Hyndman, R. J., & Athanasopoulos, G. 2014. Forecasting: principles and practice. OTexts.

Johannessen, J.A. and Dolva, J.O., 1994. Competence and innovation: Identifying critical innovation factors. Entrepreneurship, Innovation, and Change, 3(3), pp.209-222.

Lissoni, F., 2016. Migration and Innovation Diffusion: An Eclectic Survey (No. 2016-11). Groupe de Recherche en Economie Théorique et Appliquée.

Nguyen, B., Yu, X., Melewar, T.C. and Gupta, S., 2016. Critical brand innovation factors (CBIF): Understanding innovation and market performance in the Chinese high-tech service industry. Journal of Business Research, 69(7), pp.2471-2479.

Ogilvy, J. 2015. Scenario Planning and Strategic Forecasting. Stratfor, January, 7.

Putzer, G.J. and Park, Y., 2010. The effects of innovation factors on smartphone adoption among nurses in community hospitals. Perspectives in Health Information Management/AHIMA, American Health Information Management Association, 7(Winter).

Storey, C., Cankurtaran, P., Papastathopoulou, P. and Hultink, E.J., 2016. Success factors for service innovation: a meta‐analysis. Journal of Product Innovation Management, 33(5), pp.527-548.

Essay on Information Technology

''Information Technology is increasingly being used by firms in order to achieve and sustain a competitive advantage when engaging with stakeholders.''

Introduction:

The technological change that the world is undergoing is complex and above all at a rapid rate. It is also important to comprehend the fact that technology is one sector that is constantly changing. As Waser (2012, p.41) posited, “the only that is changing the world at a constant rate is the technology.” With the emergence of more and more people coming into the global business filed, the sector of information technology, especially its usage and developments is occurring with the occasion. 

Oliveira and Martins (2011) defines the information technology as the study as well as the use of any computers, networking or any other devices related to it, also the processes as well as the infrastructure for processing, creation, storage, exchange and security of data in the electronic form. While Mel and Grance defines it as the skills specially utilized in analyzing, comprehension development, creation, allocation and operation of computer software and hardware, or any other structures related to computers for the control and the management of electronic data. Or in other words, information technology is the usage of all the update technology that world has currently, and uses those technologies to gather information through effective communication, even though some of the aspect requires strong assessment to avoid any errors. 

According to Walker and Madsen (2016), almost all the companies use information technology one way or the other. In a recent study conducted in 150 multinational companies in Europe and Australia, it has been affirmed that 98.9% of the companies adapts to various kinds of services from the modern information technology. The study also profoundly points that 99.2% of all the start-ups that are emerging today in Europe and Australia uses information technology as a base for the growth, sustenance and also competitive advantage of their businesses. 

Although there are many definitions posited various authors from different field, the concept of information technology is vast. As Schwalbe (2015, p.91) posited, “It is important to understand that the concept of information technology cannot be defined or in other words conceptualized towards a single idea, and this is mainly because with the course of time the technological aspect integrated to concepts are numerous, hence it becomes difficult to cover all that perspective in a single definition.” 

Today the time of information technology is changing the entire world, especially the corporate sector. This notion was supported Holtshouse (2013) in his work, and according to him the time of information technology is profoundly changing the way people are approaching the corporate world. This is evident in many of the business activities and operations such as monetary transaction and the communication with various stakeholders. On the other side development and the immense progress that various multimedia as well as programming is achieving is also catapulting the growth and the success of the corporate, and companies like Intel, Apple and Microsoft are few of the best examples. 

With the emergence of social media in the late 2000, the entire model of information technology existed those time became more complex and even enhanced in a significant way. Social media pages such as Facebook and Twitter opened new opportunities for the business and the corporate world. As Miller (2012, p. 159) posted in his work ‘Social networking sites’, “When social networking entered into the global business sector, this has opened new ways of innovations and opportunity that they never thought before.” Apart from the social networking sites that offered numerous opportunities for the business world, many other sites and web pages emerged in support of the business sector by offering various kinds of promotion, and some of the examples include search engine optimization, web development and traffic optimization. 

Therefore as discussed before, the current context of information technology is not only a limited activity of sharing information or data, since it encompasses a larger perspective. As per Schwalbe (2015), it is not only communication that the information technology is mainly utilized for, rather to comprehend the people’s requirement as well as their necessity. 

The sector of information technology is going to make immense difference in the current as well as in the future, since it is all about innovation and progress that integrates human needs and requirements as discussed. It is also becoming a significant platform for the corporate and business world in terms of communication and storage. When it comes to communication, the current information technology has put the business-customer, customer-business and business-business interaction into a whole new level. As Bloom et al (2014) posited, the organization are now using information technology in order to acquire market and business advantage, and they are successful in achieving it in a significant manner. It is indeed a fact that this is mainly due to the much developed level of stakeholder interaction that these organizations could sustain due to the current services and solution that the information technology have offered. 

The essay aims to assess and determine the role of information technology as a tool used by the organizations today, for the acquisition and sustainment of competitive advantage within the chosen market, through interacting or in other words engaging with the stakeholders.

Information Technology and Competitive Advantage:

The revolution of information technology is changing the global economy. As Porter and Miller (1985) stated earlier in their work, “Soon the information revolution would sweep our economy, and no organization would be able to escape from its impact.” It is evident now, on how this change is really taking over, the effect that is bought forth, especially by bringing down the cost of processing, transmitting and obtaining of the information, which in turn is dramatically changing the business sector. 

Jones and George (2015) defines competitive advantage as an ‘advantage’ that an organization gains through offering a service or a product that a customer values; or in other a condition that allow an organization to manufacture specific goods or serves at prices that are lower or in a more desirable way a customer needs. Through these scenarios the companies would be able to generate more sales and profit, hence by acquiring the advantage over its rival. Understanding this aspect, it is important to comprehend the very fact that it the role of information technology not as a direct contributor to the competitive advantage, rather indirect. As Jones and George (2015) pointed out that it is the effective use of information technology that creates the competitive advantage or the difference. Therefore it is important for the company to utilize the tool of information technology in a creative and effective manner to gain competitive advantage. 

Innovation plays a crucial role in devising the information technology suitably for the advantage of a particular business, since innovation demand to do things in the creative and above all simplest way. As Breznik (2012) stated in his ‘economic and business review’, using the information technology in the most traditional way to do business would not solve the issue or would help the organization to achieve competitive advantage. He also asserts that is significant for an organization to create, develop and implement unique ways to use information technology in order to acquire competitive advantage over their rivals in the industry, and one of the ways is to improve the interaction between different stakeholders. 

Bilgihan et al (2011) affirms that the existence as well as the evolution of the global information network is changing the commerce and this especially for the consumers as well as for the business. Through the term ‘change’ the authors are asserting more on the vanishing gap between the two entities; that is the customers and the company. As Bilgihan et al (2011) added to his notion that customers are not limited with the remoteness today and the difficulty on communicating the company directly is possible in the current scenario. With ease and speed the customers can communicate their issues, requirement, necessity and even desires to the organization using the information technology.

Information Technology to Develop Competitive Strategies:

In another perspective, the competitive advantage gained by the companies through information technology can be analyzed through the ‘Five Force’ framework of Michael Porter. According to Michael Porter, and industry can be analyzed through five competitive forces that moulds it (Baltzan and Phillips, 2010), and they are; Power of the competitor, threat to new entrants, threat of the new substitutes, customers bargaining power and the suppliers bargaining power. 

As Porter exerted on the five forces, it is important to any organization to synthesize and implement strategies that could effectively and efficiently counter the five competitive forces. According to O’Brien and Marakas (2011), companies could adapt to any of the five competitive strategies, which are directly related to the three of the Porter’s strategies of broad differentiation, focused strategy and the broad cost leadership. 

When it comes to cost leadership the companies could use the information technology to basically shift the costs of operating the business says Booth et al (2011), or in other words, to decrease the costs incurred by the business, then there by decreasing the costs towards the customers and the suppliers. For, example the companies could utilize online services such as business to consumer, or business tto business systems to reduce the costs in the operation. 

When it comes to differentiation strategy, the business organizations could use the information technology in order to synthesize differentiation attribute towards their products or services or by reducing the differentiation advantage of the rivals as per Booth et al (2011). For example, a company could utilize online chat-services as well as various social networking sites such as Facebook and Twitter to comprehend the consumer necessity and requirements, and in turn serve them better. Also information technology can be created to develop inform-diaries, and there by offering value-added services to the customers, and maintain their retention towards the company; and to apply advanced tools to measure various online and offline activities (Booth et al, 2011). 

As discussed before innovation has always been a major part of the competitive advantage that the company could acquire through information technology. For the identification as well as the creation of new products or services, information technology can be used, and at the same time it can also be used in the creation of the market. As Chui and Flemming (2011, p. 8) posited, “For the development of niche or a new marker or to radically bring change to business operations through automation information technology is an effective tool.” The same can be used in the development new initiatives for the establishment of any kind of online operations or businesses, since the telecommunication and internet services is capable of providing better and smarter opportunities for innovation. According to Robert and Grover (2012), open innovation and combinational innovation are two of the most effective examples. It is also important to understand that many of the infrastructural requirements of a business organization has been replaced by new components that links to information technology, and made the overall operations and activities much efficient and effective. Robert and Grover (2012), affirms this by pointing out that today the companies could combine and recombine various components or the parts to develop innovation linking to information technology. Meanwhile, the companies have numerous opportunities to co-create with its various stakeholders that are linked through various means of technology such as laptops, smart-phones and other mobile devices connected to the internet. 

Information technology can also be used to integrate with growth strategies. As Rigby (2011) stated that the companies could utilize the information technology to enhance their domestic or the international activities and also used in the integration and diversification with other services and products. As an example, Rigby (2011) points out the establishment of worldwide intranet and operation base that many of the multinational companies have, and also through the establishment of omni-channel strategy to benefit growth and sustainability. On the other side, the companies could also use the technology to develop and encompass their relations with their business partners through specially catered applications, such as creating inter-organizational information system and virtual organization.

Information Technology and Stakeholder Engagement (Internal and External):

There is a common notion on the very concept of stakeholder engagement, mainly as a concept or a term used for the corporate social responsibility of an organization. However, in the relative business context, the term has various meanings or aspect to it. For some scholars and the business communities it is an idea that hovers within the cavity of CSR, while for the others it is a concept that generalize interaction between the companies and its stakeholders. 

According to Noland and Philips (2010), stakeholder engagement is the process utilized by the companies to interact with the significant stakeholders in order to acquire the organizational objectives. While Ayuso et al (2011) defines it as a very important element of corporate social responsibility or CSR, and achievement of it is very important for the organizations. For Ayuso et al (2011) the stakeholder engagement is mainly for the purpose of discussing matters that are concerning society and the environment, mainly the businesses’ role in contributing to the betterment towards these two factors. 

Although CSR has been exalted as an accountability element of an organization towards the society and environment more than a strategic operation, in the current context most of the companies are using CSR as a strategic tool for gaining competitive advantage. As Russo Spena and De Chiara (2012) stated, “the CSR has now evolved into a whole new paradigm, and has been used a integral part of competitive advantage for growth and sustainability in the industry.” 

It is an evident factor that the current information technology would allow the top management of a company to access various financial data and information from any part of the globe. This would ensure to a certain level the care and diligence from the companies part, and also assure the active involvement of all internal stakeholders without any reason or cause. This indeed would help the company to create certain value towards its stakeholders by binding strong ethics with it. As line Louche and Idowu (2010) pointed out, the directors or the top-management within a company are positioned in such a way that it would assure a certain level of solvency, which in turn would guard the company against any kind of wrongful trade. 

It is a common practice within an organization to gather effective advices from the experts by a director or by a company manager, especially a range of designation from financial advisors to accountants to auditors. In order for the better engagement and indulgence for these advices and guidance, the directors or the company top management always relies on the information technology. And through this there would be greater harmony in the operations as well as the intelligent utilization of the labor. Line Louche and Idowu (2010, p. 71) supports this by stating, “The internal stakeholder interaction and engagement is extremely valuable for the organization’s growth and sustainability; therefore through this, all the necessity and requirements of the internal stakeholders are met and in turn it would empower them in the contribution towards the organizations growth and sustainability.” 

When it comes to corporate governance, growth and competitive advantage within the industry, the role and significance of investors are very high. Since they have certain amount of investment or shares they possess of the company, they have the rights over the governance of the company. According to Noland and Phillips (2010), the ownership over the shares provides the investors with certain power over the company, and also they have the right to analyze the performance of the top management and even replace them with the system of voting.” Investors also plays a significant role in the embedding the company with a strong and good corporate governance and practices. In order to enable this in its entirety and efficiency, information technology becomes the pivotal component. “The information technology becomes the primary platform for the investor interaction,, especially allowing the investors to monitor the company activities” says Noland and Philips (2010).

Conclusion: 

The role and significance of information technology have increased for the past a two decades. Today information technology is not only looked upon as a tool for corporate or the business communication, but also as a tool that aid in the governance of the corporate and business sector as well. Today a business enterprise gains its competitive advantage through various means, and information technology is one of the pivotal ways it is achieved. It is also important that all the major strategies or the strategic framework that exists today in the business field can be integrated with the information technology for its effective result. On the other side, it has also taken the stakeholder engagement to a whole new level. For these reasons, it can be affirmed that the Information Technology is increasingly being used by firms in order to achieve and sustain a competitive advantage when engaging with stakeholders.

References:

Ayuso, S., Ángel Rodríguez, M., García-Castro, R. and Ángel Ariño, M., 2011. Does stakeholder engagement promote sustainable innovation orientation?. Industrial Management & Data Systems, 111(9), pp.1399-1417.

Baltzan, p. & Phillips, A. 2010, Business Driven Technology, 4th edn, McGraw-Hill Irwin, Boston, USA.

Bilgihan, A., Okumus, F., “Khal” Nusair, K., & Joon-Wuk Kwun, D. (2011). Information technology applications and competitive advantage in hotel companies. Journal of Hospitality and Tourism Technology, 2(2), 139-153.

Bloom, N., Garicano, L., Sadun, R., & Van Reenen, J. 2014. The distinct effects of information technology and communication technology on firm organization. Management Science, 60(12), 2859-2885.

Booth, A., Roberts, R. & Sikes, J. 2011, ‘How strong is your IT strategy?’, McKinsey on Business Technology, Number 23, Summer 2011, pp. 2–7.

Breznik, L. 2012. Can information technology be a source of competitive advantage?. Economic and Business Review for Central and South-Eastern Europe, 14(3), 251.

Chui, M. & Fleming, T. 2011, ‘Inside P & G’s digital revolution’, McKinsey Quarterly, November 2011, pp. 1–11.

Holtshouse, D. K. 2013. Information technology for knowledge management. Springer Science & Business Media.

Jones, G., & George, J. 2015. Contemporary management. McGraw-Hill Higher Education.

line Louche, C. and Idowu, S. eds., 2010. Innovative CSR: From risk management to value creation. Greenleaf Publishing.

Mell, P., & Grance, T. 2011. The NIST definition of cloud computing.

Miller, D. 2012. Social networking sites. Digital anthropology, 156-161.

Noland, J. and Phillips, R., 2010. Stakeholder engagement, discourse ethics and strategic management. International Journal of Management Reviews, 12(1), pp.39-49.

O’Brien, J. A. & Marakas, G. M.2011, Management Information Systems, 10th Edition, McGrawHill, New York, USA

Oliveira, T. and Martins, M.F., 2011. Literature review of information technology adoption models at firm level. The electronic journal information systems evaluation, 14(1), pp.110-121.

Porter, M. E., & Millar, V. E. 1985. How information gives you competitive advantage.

Rigby, D. 2011, ‘The Future of Shopping”, Harvard Business Review, December 2011, pp. 65–76

Roberts, N., & Grover, V. (2012). Leveraging information technology infrastructure to facilitate a firm's customer agility and competitive activity: An empirical investigation. Journal of Management Information Systems, 28(4), 231-270.

Russo Spena, T. and De Chiara, A., 2012. CSR, innovation strategy and supply chain management: toward an integrated perspective. International Journal of Technology Management, 58(1/2), pp.83-108.

Schwalbe, K. 2015. Information technology project management. Cengage Learning.

Walker, G. and Madsen, T.L., 2016. Modern competitive strategy. McGraw-Hill Education.

Waser, R. (Ed.). 2012. Nanoelectronics and information technology. John Wiley & Sons.