entrepreneurship :
The
capacity and
willingness to develop,
organize and manage a
business venture along
with any of its risks
in order to make a profit. The most obvious
example of entrepreneurship is the starting of new businesses. In economics,
entrepreneurship combined with land, labor, natural resources and capital can produce profit.
Entrepreneurial spirit is characterized by innovation and
risk-taking, and is an essential part of a nation's ability to succeed in an
ever changing and increasingly competitive global marketplace.
leadership
The
activity of leading a group of people or an organization, or the ability to do this. In its
essence, leadership in an organizational role involves (1)
establishing a clear vision, (2) sharing that vision with others so that they
will follow willingly, (3) providing the information, knowledge, and methods to realize that
vision, and (4) coordinating and balancing the conflicting interests of all members or stakeholders. A leader comes to the
forefront in case of crisis, and is able to think and act in creative ways in difficult
situations. Unlike management, leadership flows from the core of a
personality and cannot
be taught, although it may be learned and may be enhanced through coaching or mentoring. The individuals who are the leaders in an organization, regarded
collectively.
bureaucracy
System of administration
distinguished by its (1) clear hierarchy of authority,
(2) rigid division of
labor, (3) written and inflexible rules, regulations, and procedures, and (4)
impersonal relationships. Once
instituted, bureaucracies are difficult to dislodge or change. See also Parkinson's Law and Peter Principle.
innovation
The
process by which an idea or invention is translated
into a good or service
for which people will pay, or something that results from this process.
To be called an innovation, an idea must be replicable at an economical cost and must satisfy a
specific need.
Innovation involves deliberate application of information, imagination,
and initiative in
deriving greater or different value from resources, and encompasses
all processes by which new ideas are generated and
converted into useful products. In business, innovation often
results from the application of a scientific or technical idea in
decreasing the gap
between the needs or expectations of the customers and the performance of a company's products. In a
social context,
innovation is equally important in devising new collaborative methods such as alliance creation, joint
venturing, flexible working hours, and in creating buyers' purchasing power through
methods such as layaway
plans. Innovations are divided into two broad categories: (1) Evolutionary innovations
are brought about by numerous incremental advances in technology or processes
and are of two types
(a) Continuous evolutionary innovations result in an alteration in product characteristics instead of
in a new product, and do not require any user-learning or changes in his or her routine. Examples are the
multiblade shaving razor, fluoride toothpaste, and laptop computers. (b) Dynamic continuous
evolutionary innovations require some user-learning but do not disrupts his
or her routine. Examples are fax machines, instant
photography, and handheld
computers. (2) Revolutionary innovations
(also called discontinuous
innovations) require a good deal of user-learning,
often disrupt his or her routine, and may even require new behavior patterns. Examples are
photocopier (xerography) machines, personal computers, and
the Internet.
Innovation is synonymous with risk-taking and organizations that
introduce revolutionary products or technologies take on the
greatest risk because
they have to create new
markets. A less risky
innovation strategy is
that of the imitator who starts with a new product (usually created by a
revolutionary-innovator) having a large and growing demand. The imitator then
proceeds to satisfy
that demand better with a more effective approach.
Examples are IBM with its PC against Apple Computer, Compaq with its
cheaper PCs against IBM, and Dell with its still-cheaper clones (sold directly
to the customer)
against Compaq. Although many innovations are created from inventions, it is possible
to innovate without inventing, and to invent without innovating.
matrix organization
An
organizational
structure that facilitates the horizontal flow of skills and information. It is used
mainly in the management of large projects or product development
processes, drawing employees from different
functional disciplines for assignment to a team without removing them
from their respective positions. Employees in a
matrix organization report on day-to-day performance to the project or product manager whose authority flows sideways
(horizontally) across departmental boundaries. They also continue to report on
their overall performance to the head of their department whose authority
flows downwards (vertically) within his or her department. In addition to a multiple
command and control structure, a matrix
organization necessitates new support mechanisms, organizational culture,
and behavior patterns. Developed at the US
National Aeronautics & Space Administration (NASA) in
association with its suppliers, this structure
gets its name from its resemblance to a table (matrix) where every
element is included in
a row as well as a column.
Ansoff matrix
Strategic marketing planning tool that links a firm's marketing strategy with
its general strategic direction and
presents four alternative growth strategies as a table (matrix). These strategies are seeking
growth: (1) Market
penetration: by pushing existing products in their current market segments. (2) Market development: by
developing new markets
for the existing products. (3) Product development: by
developing new products for the existing markets. (4) Diversification: by
developing new products for new markets. Named after its inventor, the father of strategic management, Igor
Ansoff (1941- ), and first published in 1957 in Harvard business review.
Collected from BusinessDictionary.com
