Global Business Issues Sample Assignment

Ways in which the Government Intervenes in the Economy

Introduction

Governments worldwide today have more interest in market intervention than in previous years. In the United Kingdom, the government has decided to help minimize the influence of the economic downturn and financial crisis on consumers, companies, and employees to assist in economic recovery and secure future economic growth (Dicken, 2015). Generally, today, markets and governments are highly linked. Government enacts institutional and legal frameworks that the market operates. Government raises taxes depending on the business practices and consumers’ activities in the market. Also, the government has a considerable interest in the outcomes of the market and wants to encourage the market to offer specific products and services for economic benefits. Thus, this essay highlights how the government intervenes in the country’s economy, such as privatization, Deregulation of markets, Creating Laws, Regulations, and policies, direct participation, and through subsidies and taxation.

Privatization

Privatization implies the transfer of different assets to the private sector from the public sector. Privatization is one way in which the government can intervene in the economy. In the United Kingdom, privatization has resulted in a sizable decrease in the size of the public sector. According to (OECD, 2020), in the UK, state-owned enterprises provide at most 2% of the GDP and less than 1.5% of the total employment. Privatization has become a fundamental micro-shift in the economic transition in Europe. In the past few years, UK’s economic privatization has provided a way for new nationalization waves, such as building societies, profile banks, and transport services (Worthington, Britton, and Thompson, 2018, p.419-422). Some examples of significant privatization in the UK today include British Airways, British Gas, British Rail, British Steel Corporation, Electricity Supply Industry, and Rolls Royce. Typically, the government intervention in privatizing some of the public assets in the free market is essential for effecting the management of businesses, hence, improving the economic welfare.

Deregulation of Markets

The government also intervenes in the economy through the Deregulation of markets. Market Deregulation entails opening up the markets and encouraging new suppliers to enter. In the UK, examples of Deregulation of markets include opening up markets for household energy suppliers, bus services, financial Deregulation, and household liberalization impacting building societies and banks. The European Single market expansion has precipitated the process of market liberation (Worthington, Britton, and Thompson, 2018, p.315-318). The single markets boost four freedoms: free labor movement, financial capital, products, and services. In the long run, people expect to see microeconomic impacts in the EU single market working its way through different British markets. Also, the general expectation that the public has is that through this government intervention, the competitive pressures for business organizations working in the European Union will intensify. In short, the market liberation brought through government intervention brings down prices for customers, improves market supply, and encourages competition and investment, leading to economic efficiency.

Creating Laws, Regulations, and Policies

Government plays a critical role in establishing fundamental policies and frameworks within which open competitive, and fair markets can exist. At the elementary stage of its intervention, the government has to create the rule of law and establish policies and regulations, entailing property rights, ensuring that business contracts are upheld, and building the required institution to function in the markets appropriately. Typically, the government intervenes by creating a consumer law framework and a competition that directs how individual businesses and organizations should conduct themselves during their operations in the market. Competition laws prevent organizations from involving in anti-competitive agreements and ensure that the dominant companies cannot use their position to distort market results (Worthington, Britton, and Thompson, 2018, p.427-435). For example, the government can restrict the entry of new organizations and charge higher competitive prices. The policy also restricts mergers that may result in a robust lessening of competition. In short, through laws, regulations, and policies, the government intervenes by protecting consumers from scams, Freud, and abusive activities in the market (Dicken, 2015).

Direct Participation

Government can intervene through direct participation in the market. The are two main ways through which the government can intervene and participate in the economy. Government can intervene by offering public products and services that are unlikely to be provided by the free market at a considerable level and also to profit from the public sector assets’ commercial value (Dicken, 2015; Gössling, Scott, and Hall, 2020). The government usually buys services and products from different private sectors. The approximation of public procurement’s total size in the UK ranges from 11% to 18% of GDP (OECD, 2020). Government purchases from the private sector to give public services and continue its functions. For example, it provides IT items, offices, and research services. In essence, different governments utilize public-private partnerships to procure multiple assets. Rather than borrowing to pay for asset construction, the government contracts with an organization that pays for the assets. In exchange, the government shows commitment to pay the company to cover the cost (Dicken, 2015).

Subsidies and Taxation

Government intervenes in the economy by imposing taxes and providing subsidies. The government utilizes subsidies and taxes to influence the behavior and incentives of private organizations. There are different reasons why government employs subsidies and taxes in this manner. First, when the government needs to address the market failures, they can decide to tax businesses that cause negative externalities like pollution. An example is subsidizing education, lo-carbon, innovation, and environmentally friendly products. Secondly, taxation and subsidies are applied when the government wants to solve the cyclical difficulties in the market (Worthington, Britton, and Thompson, 2018, p.419-422). Government can utilize grants to support organizations in financial trouble, especially when the collapse of these companies would bring massive consequences. For instance, during COVID-19, the UK government recently supported UK banks and organizations at risk of collapsing due to financial issues.

Conclusion

The recent growth in the economic downturn and financial markets has highlighted the government’s new role in the markets. The public’s trust in the market’s ability to provide stability and efficiency has primarily been challenged. Therefore, there is a need for a government to intervene through privatization, Deregulation of markets, Creating Laws, Regulations, and policies, direct participation, and through subsidies and taxation to provide good services, protection, and opportunities for efficient operation in the market. Even in the markets seen as natural monopolies, government intervention has made them improve quality, develop new and cheap products for consumers, and foster innovation. Through intervention, the government gives critical facilities and allows private organizations to compete for operations in the free market within the regulatory framework.

Reference list

Dicken, P. (2015). Global shift : mapping the changing contours of the world economy. 7th ed. Los Angeles (California): Sage.

Gössling, S., Scott, D. and Hall, C.M. (2020). Pandemics, tourism, and global change: a rapid assessment of COVID-19. Journal of Sustainable Tourism, [online] 29(1), pp.1–20. Available at: https://www.tandfonline.com/doi/full/10.1080/09669582.2020.1758708.

OECD (2020). OECD Economic Surveys: United Kingdom 2020. OECD Publishing.

Worthington, I., Britton , C. and Thompson, E. (2018). The Business Environment: A Global Perspective . 8th ed. Pearson.

Discuss the Key aspects of the External Environment that Have an Impact on Business.

Introduction

Business environments frequently change, and they need consideration by the business owners when doing operations and planning. Organizational executives and managers are responsible for examining external issues and how their concerns can influence business decisions. According to (the World Bank Group, 2020), a business’s external environment, also understood as the macro-environment, consists of factors outside an organization’s reach that can affect the company’s operations. Usually, external factors influence a business’s choices because they identify risks and opportunities. Therefore, an organization must understand and monitor any external environmental factors that can affect how a company operates and develop approaches for overcoming the issues. This article discusses some critical aspects of the external environment that impact businesses, such as political, economic, social, cultural and demographic, technological, legal, ethical, and ecological.

Political

The political environment is one aspect of the external environment that businesses must be aware of. Some of the considerations in the political environment are challenges like government instability, tight tax policies, trade restrictions, regulation of competitions, law discrimination, and safety and data protection (Worthington, Britton and Thompson, 2018, p.64-80). Generally, most political aspects emanate from the government, and businesses may have no say or do anything to regulate. Remarkably, political actors primarily influence the ability of a business organization to maintain and serve consumers while benefiting through profits. For instance, in recent years, the high organizational tax era in the United Kingdom resulted in organizations such as Cadbury moving sections of their businesses to other locations with low taxes. (OECD, 2020) indicates that Cadbury established a European HQ in Swaziland a few years ago.

Technological

The technological landscape has realized robust transformation in recent years; hence, understanding technological advancement is critical for the business. Understanding technology in business entails various elements, including the rate of technological change, the level of technology in a specific business industry, communication infrastructure, access to the latest technology, and internet infrastructure (Worthington, Britton and Thompson, 2018, p.64-84). For the organizations like Amazon, technological advancement and innovations over the last ten years have resulted in different new product and service opportunities. For instance, according to (Causo et al., 2020), Sparrow is one of the latest Amazon robotic systems intelligence essential in streamlining the fulfillment procedure by moving individual products before they are packed. Furthermore, the fundamental area in businesses that have benefited from technology is manufacturing, where various manufacturing and production lines are becoming automated.

Legal Aspect

The legal aspect of the external environment is incredibly essential. The legal aspect is critical regarding its ability to leverage any chance. Businesses must keep up with the pace to remain within the law. Some legal areas include laws of discrimination, anti-trust laws, data protection and safety laws, consumer protection laws, employment, and copyright laws (Worthington, Britton and Thompson, 2018, p.64-84). However, Trademarks are an area of most interest in most businesses, where organizations ‘own’ their branding aspects. On many occasions, the UK courts have rejected other organizations’ applications to register a specific Trademark which have already been utilized with another business. For instance, the application that was brought against Cadbury by Nestle concerning the Shade of Purple as a UK chocolate Trademark had the European Union Court of Justice affirmed that only one color can be registered as a Trademark (OECD, 2020).

Economic

One of the external environmental aspects that play a crucial role in several businesses, governments, and citizens is the aspect of economics. Different economic factors, including demand and supply, unemployment, rates of exchange, inflation, and wages, greatly influence how organizations make profits and improve efficiency and effectiveness (Worthington, Britton and Thompson, 2018, p.64-84). Businesses that study these economic factors have the potential to predict the customer and plan their marketing energy to boost their performance. For instance, currently, the United Kingdom’s economy is approximately 5.5 percent poorer than it would be if it remained in the EU (Dicken, 2015). Typically, exports and imports have significantly been affected, and so is investment. According to (Dicken, 2015), the Centre for European Reform research shows that had the UK remained in the EU; tax revenues would have been approximately £40 billion more than it is currently.

Social, Cultural, and Demographic

Contemporary businesses have different experiences for various individuals and classes in the Social, Cultural, and Demographic environment. There is no doubt that the current society is changing continually; there is a rapid population increase, a change in human settlements, a shift in the use of social media platforms like Twitter by the youth, and a transformation in the dressing style. Therefore, businesses must study and understand these changes and adjust to customer needs (Worthington, Britton and Thompson, 2018, p.64-84). For instance, an increase in population may require firms to increase production. According to (OECD, 2020), the world population has been growing, and it is approximated that by 2030, the global population will hit 8.5 billion, and by 2050, it will be 9.7 billion. Based on the study, the number of people in the UK alone will rise above 69 million by 2029. This indicates that businesses have to change their production rates.

Ethical and Ecological

The ecological factors affecting businesses are linked to activities and procedures required to protect the natural environment and equally keep efficiency in the organization. Ecology takes the form of corporate environmentalism, including all the activities boosting sustainability, getting customer appreciation of eco-friendly commodities, and building the image of a responsible organization (Worthington, Britton and Thompson, 2018, p.64-84). In the UK today, some of the most pressing local business concern is whether. More rainfall interferes with business activities since people find moving goods from place to place hard.

Ethical aspects also affect businesses since every person has different beliefs and concepts of morality and ethics. Therefore, some organizations need help to balance the personal lives of their employees and the company’s expectations. For instance, several times, companies worldwide have experienced challenges where personal social media accounts like Facebook portray activities differently from organizations. On the other hand, the company requires employees to engage in activities that protect the business’s image.

Conclusion

The external business environment keeps changing in all categories. Therefore, businesses and organizations must consider external environmental aspects while executing and planning their operations. A company manager must analyze and understand the different external factors and how such factors can affect the organization’s activities and decisions. Every external environmental aspect, political, economic, legal, technological, ethical and ecological, and Social, Cultural and Demographic aspects, can affect the operation of the business. Typically, the consistent shifts in the external environment of a business are way beyond the control and management of a business. The only thing that a business can do is to track the changes and reduce their effects.

Reference list

Causo, A., Durham, J., Hauser, K., Kei Okada, (College Teacher, Rodriguez, A. and SpringerLink (Online Service (2020). Advances on Robotic Item Picking : Applications in Warehousing & E-Commerce Fulfillment. Cham: Springer International Publishing, Imprint Springer.

Dicken, P. (2015). Global shift : mapping the changing contours of the world economy. 7th ed. Los Angeles (California): Sage.

OECD (2020). OECD Economic Surveys: United Kingdom 2020. OECD Publishing.

World Bank Group (2020). Doing Business 2020: Comparing Business Regulation in 190 Economies. Doing Business. [online] doi https://doi.org/10.1596/978-1-4648-1440-2.

Worthington, I., Britton , C. and Thompson, E. (2018). The Business Environment: A Global Perspective . 8th ed. Pearson.

Global Marketing Plan – Сemex, India Essay Example

Executive summary

The report develops the global marketing plan for Cemex’s entry into the Indian construction industry. Cemex deals with selling cement into the global market, with operations in 28 countries. The analysis of the external micro and macro environment indicates that there are favorable factors that attract Cemex into the Indian market. These include; market size growth and performance, economic growth, stable political condition, and good demographic characteristics such as the availability of market and labor due to the high population in India. The company will utilize a strategic alliance with NCC to enter the Indian construction market and introduce its products. The marketing plan program is designed using the 4Ps of marketing, such as the products factor, which includes the design of cement that meets customer specifications, pricing that is based on India’s economic performance, the place strategy that consists of the use of a global distribution channel that ensures the timely distribution of cement. Promotion strategies include using sales discounts, impressing contractors, and online marketing on the Cemex website. Finally, the analysis of India’s business environment implies that Cemex has a high chance of survival because of economic growth, political stability, labor market, increased market size, and clear legal framework.

Step 1: Introduction

A global marketing plan is a business strategy that enables the company to penetrate an international market. The global business plan utilizes various alternative techniques, such as using the target market’s local culture, franchising, strategic alliances, joint venture, and wholly owned subsidiaries. Others include using global production and marketing distribution through designing and manufacturing products in different countries. Also, other marketing model uses social media, planning global campaigns, and pricing strategies to penetrate the international market. Therefore, this report develops a global marketing plan for the Cemex company’s entry into the Indian construction industry.

Company Brief

Company's logo

Cemex is a multinational company across America, Africa, Europe, the Middle East, and Asia Continents. The company is a major dealer in construction materials such as cement, ready mix cement, aggregates, and urbanization solutions, creating opportunities for more than 96000 people (Cemex, 2023, Par. 2). Its global locations are Mexico, USA, and others locations are Croatia, Czech Republic, Egypt, France, Germany, Philippines, Israel, Poland, Switzerland, Spain, United Arab Emirates, UK (EMEA&A). Also, it has a presence in SCA&C like Colombia, Costa Rica, Barbados, Dominican Republic, EI Salvador, Guatemala, Guyana, Haiti, Jamaica, Nicaragua, Panama, Peru, Puerto Rico, Trinidad and Tobago (Cemex, 2023, Par. 1). Therefore, the company global presence makes it possible to utilize existing strategies to enter into Indian market construction industry which is expected to grow in next two to three years.

Step 2: External macro and micro environment analysis

The external environment is a variable that Cemex company may not be able to control because they affect the business environment externally; such factors include demographic factors such as age, and population size, among others. Economic factors such as GDP growth also form the macro environment of the global market, and natural forces that promote a good business environment influence the business’s success in the international market. Also, cultural factors, political and technological factors play a major role in business success in the global market. The legal environment influences business penetration in the international market; these legal frameworks in the country may include taxes, policies on the construction industry, and standards to be met by Cemex. The microenvironment consists of issues such as the availability of suppliers in the foreign market, marketing channels in the global market, customer characteristics, the extent of competition, and public view of the company’s products.

Step 2a: Macro-environment analysis

Demographic forces

India’s population is steady increase, which calls for an increase in construction materials for building structures for living. The population currently stands at 1.4 billion people, thus creating a potential market for the products of the Cemex company (Jain and Korzhenevych, 2020, P. 102). The average age group in India is between 14 and 60 years that represents about 67% of the total population; this is an important analysis because it shows a high supply of active labor force required by the company in its operations, thereby showing that Cemex will not face any labor risks operating in India (Asher et al., 2019, P. 3). Thus, this analysis indicates that India’s population characteristics favor introducing the construction company in the country to tap the future opportunity for population growth.

Political forces

The political environment involves political risks, policies, and sovereignty influencing the construction industry in India. World Bank data (2021, par. 5) shows that political stability in India is strong, with a figure of negative 0.62, thus being stronger than most developing countries. The good political climate is due to the absence of violence and terrorism activities reported by the government of India, therefore, a strong score in terms of political stability. Therefore, there is no risk to Cemex regarding the political instability risks when investing in the global market segment in India. The construction industry in India is influenced by various political frameworks such as labor policies, environment protection policies, and remuneration policies that increase the cost of operating in the company through complying measures in the country. Also, taxes on construction goods are classified as Goods and Service Tax (GST), which introduced taxes on construction materials and thus contributed to solving tax complexity that used to occur in taxation in India. The tax policy has removed the exercise duties and VAT on construction materials, promoting a good business environment for Cemex company.

Legal forces

Several laws that influence the construction industry’s success in India include the labor code 1995 Act, which requires construction companies to allow workers to join labor unions. Also, there should be no discrimination against age, sex, or religion (Dhal, 2020, p. 200). Another political environment is the factories act 1993, which regulates working conditions in the Indian construction company, such as a clean environment and free drinking water at the company premises (Dhal, 2020, p. 206). Also, the act requires that companies pay sick wages if the worker is suffering. The contract law in India, especially the contract act 1872, outlines the guidelines on contract formation and termination of construction workers (Mojumder & Singh, 2021, p. 10). In addition, environmental law in India governs the companies’ operations and environmental protection, such as forest conservation and protection of water resources for all building and construction industries. Finally, Cemex company must adhere to the material safety data sheet on safety at work.

Economic forces

Economic forces include issues such as the financial stability of India’s economy, some degree of economic freedom, national income, and economic integration. According to the world bank, India’s biennial flagship publication shows the Indian economy has demonstrated economic resilience to economic shocks. Therefore, despite the existing challenges, India remains to be the fastest-growing economy in the world, with a GPD growth of 7.7% annually in the first quarter 2022/2023 financial year (World Bank, 2023, P. 23). The economic growth prospects indicate clearly that income growth of consumers will be high thus, increasing the purchasing power of the customers. Therefore, it shows that businesses have chances of success because of good sales and high demand for building and luxury products in India. Hence Cemex company benefit more through the availability of the market.

Socio-cultural forces

The social and cultural characteristics of the Indian population include religion, values, beliefs, and cultural difference that affects the establishment of a construction industry. There are two main ethnicities in India such as Indo-Aryan and Dravidian; theIndo-Aryans live in the northern part of the country, while Dravidians live in the southern half of the country (Cultural Atlas, 2023 Par.5). However, these two ethnic groups do not show any form of divided society thereby indicating that the company will not face any ethnic politics in its establishment in India. The largest religion in India is Hindu, thus showing harmony in faith, thereby supporting the construction industry in India because of the lack of religious disparities. In addition, India has a highly stratified social structure, hence showing that some groups require specialized building designs that promote the use of construction materials.

Step 2b: External analysis of micro-environment

The micro-environment of the Indian construction industry includes the market size of the construction industry, the market growth rate, market potential, consumer buying power and level of competition, market similarity, and average industry margin. The market size of the construction industry in India is growing immensely, with the expectation to reach around $ 1.4 trillion by 2025 (National Investment Promotion and Facilitation Agency, 2023., Par. 3). With the expected elections in 2024, the demand for construction materials will be high because the government seeks to finish the projects such as roads, sports facilities, and cities. According to NIPFA (2023, Par. 4), the construction industry is expected to grow at about 6.3% due to the Pradhan Mantri Gati Shakti master plan. Thus, this shows that India’s construction market size provides opportunities to new investors such as Cemex company. Further, the report indicates that India’s economy is expected to grow due to these strategies, increasing buyers’ incomes and promoting their purchasing power.

External macro and micro environment analysis

Figure 1 External macro and micro environment analysis

Step 3: Develop Global Marketing Strategy

How to enter the market

Cemex company penetration strategy into the Indian construction market is through a strategic alliance agreement, which involves a bilateral agreement between two multinational companies (Collier et al., 2022, p. 511). The two companies under the strategic alliance agreement ensure that each firm maintains its intellectual property. Therefore, Cemex will agree with NCC Limited to promote entry into the Indian market through combined sales of construction materials such as cement. The framework involves joining together to boost competitive advantage in the market; NCC company is among the top companies in civil engineering, thus will require a reliable supplier of cement products, thus promoting Cemex products. Two types of strategic alliances exist horizontal strategic partnership and strategic vertical coalition, which need a company to agree with another company that uses company product in its production process (Collier et al., 2022, p. 514). A horizontal alliance agrees with companies that sell similar products to promote competitive advantage.

Market entry framework

Figure 2 Market entry framework

According to Figure 2, the vertical strategic alliance will penetrate India’s construction industry; the Cemex company will make a joint venture agreement with NCC to promote selling company products in India. The key rationale for this decision is that it will enable safe entry into the Indian market and the introduction of new cement products in the Indian market. The move also allows the company to improve its leadership position in the industry; the joint venture promotes a competitive advantage for the Cemex company in India. According to a study by (Ryan et al., 2022, p. 751), the outcomes of the vertical strategic alliance include more competitive advantage in the industry and enable companies to access global markets. In addition, Sodangi (2022, Par. 5) indicated that a joint venture is efficient in international marketing if the partner company has a similar organizational culture and has knowledge of local regulations.

The target customers are construction materials buyers who are contractors in building roads, power stations, market infrastructures, and modern houses. The NCC will be the main buyer of the cement produced by Cemex company; the product will be used in the building of various projects such as roads, buildings, and water projects, among others. Also, the Cemex company is a multinational company with a framework for operating in global markets; thus will be able to work well in a joint alliance agreement with NCC.

Step 4: Designing a Global Marketing Programme

The global marketing program shall involve comparing the marketing mix of the Indian construction market and the Cemex company’s internal marketing mix. The marketing mix is a combination of variables that the company controls to promote the sale of the products in the market. The marketing mix principles in the marketing plan involve four key factors; Product, Price, Place, and Promotion. According to a study by Peres et al. (2022, P. 10), the global marketing mix entails the 4Ps of worldwide marketing and how this affects the marketing activities of local companies.

Product

The cement and construction materials, such as ready mix cement from the Cemex company, will be able to meet the customer needs in construction engineering. The Cement products will be developed based on the customer demand and requirements; this ensures the sustainability of company projects in the global market. The product analysis will entail understanding the customer’s unique needs in construction materials, thus boosting the chances of meeting the customer’s demands (Kaur et al., 2022, p. 5). The Indian construction market is growing, so opportunities for construction materials and needs will be met using this model. Thus, three main product strategies shall be used to promote company entry into the Indian market: high product and solutions, high-quality customized products, and tailor-designed products for modern construction.

Price

pricing of the products will include a reflection of the market research, production cost, and logistics cost. Also, the pricing strategy will consider India’s existing economic performance, whereby the pricing strategy will take care of customer ability to buy the company products. The price of 50kg of cement will cost between $ 4.77 and $ 4.52, based on international market segmentation and growth potential (Dhal, 2020, p. 7). Hence, the pricing of cement products is influenced by India’s market growth and GDP.

Placement

The place factor considers the distribution model, and Cemex utilizes its global distribution model. The framework will involve cement production on the company site and follow international distribution channels (Kaur et al., 2022, p. 3). It will include cement production from the company headquarters, then distributing the product through identified means to reach the NCC premises. The cement shall be distributed by the joint company to various distributors of the NCC, then to the wholesales of the commodity, then the retailing stores of the cement, and ultimately to the final consumer. Thus, the global distribution channel shall ensure that the product is distributed from the company manufacturing point up to the final user of the cement.

Promotion

The promotional strategy includes joint strategies such as sales promotion of cement in India. The promotion strategies that Cemex may use include popularizing the company products through advertising in media, such as leading TV stations in India. Another promotion strategy to use includes unified products in India; the component of cement sold in Mexico should be the same in the form of composition as one sold in India (Kaur et al., 2022, p. 5). There will also be a reservation for the impress of contractors who uses the Cemex product in the building; such will be in terms of discounts and other recognitions. Online marketing will promote the sale of Cemex products through updates on the company website; the feedback mechanism will be auto-updated on the company website.

Market mix

Figure 3 Market mix

Step 5: Invest recommendation

According to our analysis of the macro and micro environment of the construction industry in India, the recommendation is to invest in the market. Several variables have contributed to this conclusion; firstly, the Indian market is likely to grow up to 6.3% by 2025, thus presenting an opportunity for a company willing to invest in the market (NIPFA 2023, Par. 4). Also, the economic growth in the country empowers the consumers to be able to buy construction materials, therefore increased sales and development of the industry (Collier et al., 2022, p. 511). In addition, the political stability and absence of complicated regulations in construction are other factors that will favor Cemex’s investment in the Indian market (World Bank data 2021, par. 5). The Indian demographic forces, such as high population, provide the necessary labor for running the company and operates at a lower cost. Therefore, these factors improve Cemex company’s attractiveness in the Indian construction market, and the analysis shows high success potential due to the favorable environment.

References

Asher, S., Lunt, T., Matsuura, R. and Novosad, P., 2019. The socioeconomic high-resolution rural-urban geographic dataset on India (SHRUG). 3(1), 1-18. doi: https://doi. org/10.7910/dvn/dpesak

Cemex, (2023). Company locations. https://www.cemex.com/locations

Collier, Z.A., Wood, M.D. and Henderson, D.A., 2022. Balancing risk and trust for strategic alliance formation decisions. Journal of Strategy and Management15(4), pp.509–523. doi: https://doi.org/10.1108/JSMA-03-2021-0067

Cultural Atlas, 2023. Indian culture. https://culturalatlas.sbs.com.au/indian-culture/indian-culture-core-concepts

Dhal, M., 2020. Labor stand: Face of precarious migrant construction workers in India. Journal of construction engineering and Management146(6), p.04020048.doi: https://doi.org/10.1061/(ASCE)CO.1943-7862.0001761

Jain, M. and Korzhenevych, A., 2020. Urbanization as the rise of census towns in India: An outcome of traditional master planning? Cities99, p.102627.doi: https://doi.org/10.3390/data4010035

Kaur, B., Gangwar, V.P. and Dash, G., 2022. Green marketing strategies, environmental attitude, and green buying intention: a multi-group analysis in an emerging economy context. Sustainability14(10), p.6107. doi: https://doi.org/10.3390/su14106107

Mojumder, A. and Singh, A., 2021. An exploratory study of green supply chain management adaptation in the construction industry: The case of Indian Construction Companies. Journal of Cleaner Production295, p.126400.doi: https://doi.org/10.1016/j.jclepro.2021.126400

National Investment Promotion and Facilitation Agency, 2023. Building a sustainable future. https://www.investindia.gov.in/sector/construction

Peres, R., Schreier, M., Schweidel, D.A. and Sorescu, A., 2022. Blockchain meets marketing: Opportunities, threats, and avenues for future research. International Journal of Research in Marketing, 40 (1), 1–11. doi: https://doi.org/10.1016/j.ijresmar.2022.08.001

Ryan-Charleton, T., Gnyawali, D.R. and Oliveira, N., 2022. Strategic alliance outcomes: Consolidation and new directions. Academy of Management Annals16(2), 719–758. doi: https://doi.org/10.5465/annals.2020.0346

Sodangi, M., 2022. Towards attaining efficient joint ventures in international construction: The case of Saudi Arabia. Engineering, Construction, and Architectural Management. doi: https://doi.org/10.1108/ECAM-07-2021-0647

World Bank, 2023. The global economy: India political economy. https://www.theglobaleconomy.com/India/wb_political_stability/

World Bank, 2023, Indian Economy Continues to Show Resilience Amid Global Uncertainties. https://www.worldbank.org/en/news/press-release/2023/04/04/indian-economy-continues-to-show-resilience-amid-global-uncertainties

Innovation & Entrepreneurship Sample Essay

Introduction

Innovative entrepreneurship represents developing new business concepts to produce earnings and help communities while accomplishing corporate objectives. A solitary entrepreneur and an organization of businessmen might use innovation to enhance or improve a certain product, method, or service. This enables companies to enhance the items by implementing innovative concepts and morals. Innovative entrepreneurs employ various tactics to tackle business obstacles (Yakubu et al., 2022). Entrepreneurs must have a clear plan and purpose to incorporate anything new into the firm. Generating innovative concepts might involve continually challenging oneself and discovering new avenues or approaches. This form of entrepreneurship may assist professionals in focusing on gathering concepts through various sources and gathering adequate information to develop the best approach for putting those concepts into action. Entrepreneurs may infuse innovations into their businesses by improving their products, processes, services, and business models.

A startup represents a corporation that develops an enterprise model centred around a service or product innovation that renders them scalable, reproducible, and self-sufficient. Innovation is inextricably linked to the entrepreneurial sector. Unidentified challenges provide the foundation for minds that are creative. Since it is challenging to accurately forecast the stages, time, and consequences of creative thinking, innovation approaches are distinct from numerous company tactics. An innovative strategy directs how assets are employed to accomplish a company’s goals for inventiveness, value delivery, and edge over competitors (Urbano et al., 2022). Innovation This enables the company’s growth to take effect due to the increased need for effectiveness and profitability. A business person who concentrates on developing an entirely distinct product or improving current solutions will eventually discover it easier to solve difficulties and obstacles.

Process

Strategic Startup, business plan and innovation process

An innovative concept is vital for launching a successful firm. This enables companies to provide value to prospective consumers by answering a requirement such as this, whether it’s an upgraded version or something entirely novel. Furthermore, this has been recognized as one of the primary selection requirements for startup assistance programmes (Mansur., 2022). Consequently, the significance of innovation within the achievement of an organization can be identified once more. The capacity of a successful entrepreneur to implement the concept in the most effective possible manner is equally crucial as the concept itself and its level of creativity. In other words, the initial crucial stages for achievement have been comprehending the concept and realizing the need for innovation. Yet it must be supported by a company model, strategic preparation, objective, time frame environment, instruments, and most importantly, devotion and commitment.

Step by Step Innovation Process for business plan

An innovation process involves a series of processes that occur beyond the development of thought and subsequent realization. It refers to a simplified process handled in an approach that demonstrates a corporation’s organizational foundation and innovation objectives (Adu-Gyamfi et al., 2022). The robust innovation process aids with identifying, capturing, and curating the world’s finest ideas towards their realization. Organizations demonstrate to their employees that inventiveness and any individual concept count by following and repeating a process while providing comments throughout every level. A tailored approach that fits the organization’s structures and streamlines the process between concepts to effective innovation must be meticulously established.

Step 1(Idea generation and Collection): Everything begins with a concept, and the most outstanding ones may come from anybody in the group at any moment. As a result, everybody must understand ways to collect and preserve thoughts. Investigating and implementing specialized idea management programmes is the most straightforward as well as the most successful approach to gathering outstanding concepts across the team, according to previous experience (Ismail., 2022). This is a central repository for collecting thoughts and putting those ideas into practice in an accessible and effective way.

Step 2 (Idea review and evaluation): Ideas must be assessed and appraised on an ongoing schedule to guarantee they’ll progress rapidly and potential ideators get feedback right away. They do not want individuals thinking that their thoughts are going down the drain since an absence of response could demotivate individuals and possibly dissuade them from continuing to participate in the innovation initiative in subsequent years.

Step 3 (Proof Of Concept or Pilot): Ideas consistent with business tactical objectives have already cleared the review step and can be explored further. Whenever the notion makes a major difference, it is an excellent decision to conduct a small pilot, produce the most valuable player, or perform a proof of concept before spreading it across the entire company. Consider this phase a trial and a chance to develop a communications plan for impending adjustments. Feedback becomes essential to a productive pilot stage (Kollmann et al., 2022). Watch, which is listen, as well as interact, as well as don’t only concentrate solely on the advantages. This may be an opportunity to drastically reduce risk before entering full-scale manufacturing. Nevertheless, whether the concept is an immediate success, this makes more sense to act swiftly and easily into the executing and implementing stage to maintain forward motion. Concentrate on paying attention to any specifics at this phase since they’ll want to set clear, measured key performance indicators before a comprehensive deployment.

Step 4 (Full rollout and implementation): It’s time to spread the word throughout the organization. Fortunately, following a pilot, the company must feel assured, and every one of the company stakeholders must be online. Continue examining how this fresh concept will be incorporated into the current processes, and seek assistance in creating comprehensive training instructions.

Step 5 (Adoption and benefits realization): While the company has effectively implemented a concept, keep in mind to review it on an ongoing schedule to see if the fresh approach continues to be solving the original issue as well as had been well accepted by everybody in the company (Rajkamal et al., 2022). It is equally critical to maintain gathering input. So, keep track of the organization initiative’s progress towards its very first key performance indicators and make an entry of any insights acquired.

Entrepreneurship or Innovation theory

Entrepreneurial Locus Of Control

People with an internal locus of control consider that they influence their surroundings. In other words, it refers to whatever or whoever determines a person’s fate. Persons alongside an internal locus of autonomy have been thus more inclined to have faith that their behaviours affect the advantages or outcomes they get in return (Zafar et al., 2022). Internal locus of control enables the owners and managers to efficiently seek to identify and uncover excellent enterprise chances because their confidence in their abilities renders them less reactive and responsive to opportunities for entrepreneurship. According to entrepreneurial theory, an internal locus of control is usually employed to rationalize entrepreneurship operations. In this aspect, the choice someone makes to pursue an entrepreneurial profession is influenced by their internal locus of control. Individuals with an internal locus of control suspect they will be successful in business.

Entrepreneurs must have an overwhelming sense of control. This serves as a catapult to self-confidence. Whenever an entrepreneur feels they have become the controller of their course of action, they are considered to have an internal locus of control (Singh et al., 2022). People with external locus control are often swayed by fate and believe outside influences such as financial circumstances, politics, technological advancements, and societal problems dictate their lives. An individual possessing an internal locus of control feels that they can affect results by utilizing their skills, exertion, and talents rather than by external causes.

“Rotter’s Social Learning Theory framework has four basic components: Behaviour Potential (BP), Expectancy (E), Reinforcement Value (RV)/outcome of Behaviours, as well as the whole combination”. According to his Predictive Formula, persons with an internal centre of control contend that they are primarily responsible for the degree to which they are rewarded. This group takes imaginative and autonomous judgements, demonstrates competence in resolving following difficulties, and accepts entirely accountability for whether they succeed (Kuratko et al., 2023). Effective managers have a strong sense of internal oversight. People with an internal LOC have optimism regarding their capacity for accomplishing what they desire while transforming the surroundings, which could clarify the relationship between internal LOC and governance. They hold themselves accountable for their accomplishment while recognizing their weaknesses whenever they fail.

Entrepreneurs are accountable for their decisions. Therefore, there is a favourable relationship between control-oriented with innovation. People with an internal LOC are different from those with an external LOC. In an effective scenario, the former group assumes ownership and accountability and is prepared to look for and utilize knowledge quickly. At the same time, the latter shows symptoms that they are connected with the world around them. Rotter contends that individuals face tasks front on and act on their obligations (Kiani et al., 2022). Entrepreneur that is internally motivated might experience greater achievement. Starting an entrepreneurial enterprise is a demanding process that requires determination and objective concentration. Alignment influences a person’s capacity to begin, take moderate risks, and persist.

Creation Social Network

Social networking brings people and companies together by permitting companies to exchange ideas, knowledge, and communications. Organizations utilize social media to build and improve brand awareness, market goods and services, and react to consumer questions and issues. The entrepreneurial process primarily relies on social networks, with business people motivated by chance-seeking behaviour rather than a simple desire to invest money (Wei et al., 2023). Businesses must continuously search for methods to maximize profits, which they can only accomplish so by seizing and capitalizing on possibilities that come along their way. One method of recognizing and capitalizing on possibilities is by attempting to tap into a person’s social network, wherein a social network is believed to encompass a genuine collection of relationships of various types amongst a group of persons.

Enterprises’ economic action/behaviour includes social ties. Various experts recommend an alternate viewpoint on entrepreneurship, in which they perceive it as connected to connections of ongoing social relations. Their companies said that entrepreneurship is potentially promoted or restricted by links among businessmen, assets, and chances via this complex system of relationships. It contends that one of the most significant advantages of social networking for people is the ability to gain access to data and guidance that is required for connections in social networks, as well as suggests that the sole element that can link multiple social networks with strong ties has become a weak relationship (Vatavu et al., 2022). Within entrepreneurship, social value refers to the intellectual resources and assets obtained or contributed by relationships with whom the entrepreneur is engaged within their particular social systems. Entrepreneurs require knowledge, expertise, labour, finances, and other materials. While certain of these assets already reside in the possession of a businessperson, most of them can be acquired from their social network. Relationships or individuals capable of achieving the performer’s aim or assisting them in reaching their objective constitute social capital benefiting the businessperson and the company.

Dynamic Capabilities in Innovation

Organizational talents capable of embracing modifications to surroundings, particularly those that emerge from within the organization, are called dynamic capabilities. Organizational executives move their focus from their primary company objectives to initiatives that serve as stepping stones toward potential future opportunities which require various capabilities. Other theories, which include the resource-based view, have been criticized using dynamic capability theory (Kim., 2022). Whenever organisations utilise resource views in changing situations, encompassing ideas such as core competency need to be corrected. The suggested strategy of both methods is to invest in and utilize competencies inside a clear fundamental company sector while contracting out anything else that is non-essential or extraneous.

Dynamic Capabilities represent the company’s capacity to incorporate, construct, and rearrange internal and external funds/competencies to meet and effectively influence constantly evolving economic conditions. Dynamic Capabilities represent the company’s capacity to incorporate, construct, and rearrange internal and external funds/competencies to meet and effectively influence constantly evolving economic conditions (Ughulu., 2022). “According to Teece, dynamic capabilities are generally described as a firm’s ability to combine, construct, as well as restructure internal and external competencies to meet shifting circumstances”. An instance of a progressive ability within the automobile production sector includes Toyota’s manufacturing process, which each business has perfected after 25 years. Contrary to conventional capacity, Dynamical capabilities are generally characteristic: these are distinctive to every company and generally discovered in the company background.

Critical Evaluation and Discussion

Process and Financial Plan

Assessing the value of assets, including hazard description, creating short to long-term financial targets, including updating company goals over time are all part of the financial preparation approach. This also includes techniques for retiring with no worrying regarding economics and protecting companies future (Hammerschmidt et al., 2022). A sound financial strategy maintains the company engaged and on target while the firm expands, new difficulties emerge, and unanticipated catastrophes occur. This enables businesses to interact easily with staff and shareholders while building a contemporary, accessible corporation. Individuals benefit from financial preparation in various ways, including the enhanced capacity to establish objectives, and budgetary constraints, preserve, loan sensibly, make investments, handle risk and taxes, manage succession, etc.

Project Feasibility: The analysis of a project’s numerous parts to determine whether it possesses an opportunity towards accomplishment is known as project feasibility. Before starting an initiative, a corporation might assess the project’s viability to identify problems, develop ways to get around them, and eventually draw in financiers (Mwatsika., 2022). While establishing the feasibility of an endeavour, executives think about the available resources and their financial needs. The project’s viability becomes obvious whenever a firm prepares to introduce an innovative product, extend its physical presence, or engage in operations that affect the organization and the various divisions.

Whenever a company decides to embark on an entirely novel endeavour, it initially assesses its viability. The feasibility of a project relates to the probability that it will ultimately be effective and how it will conquer any project hurdles. Economic feasibility relates to the expense of an initiative which includes specific information on estimated income and earnings, including the company’s return on investments (Roemintoyo et al., 2022). This explains the initiative’s financial advantages in estimating its value. The operating expenditures and investments required by the company for starting or finishing the undertaking. Attempt to address and outline every project expense, including projected income. Companies can also highlight the financial backing required to attract shareholders, for instance, laying out a strategy for approaching financial institutions, investors from the public sector, or venture capitalists for financing. To estimate the financial expenses and how those expenditures might generate profits, including the undertaking’s earnings from the investment.

Context Methods Of Financing: Entrepreneurs spend most of their precious time collecting funds to make their ideas a reality while beginning a business. This entails addressing investors and requesting funding to establish activities and acquire resources. Friends, relatives, entrepreneurs, investors in angels, financial institutions, as well as additional sources of financing can contribute (Dimov et al., 2022). Entrepreneurs must be adaptable, clever, and able to quickly get the funding required to devote themselves to increasing activities, employing staff, and driving their organization ahead. Finding funds in unexpected places must become automatic to create and sustain a profitable company. As a result, businesses ought to be willing to investigate possibilities for financing such as angel investments, venture capitalists, financing from banks, acquisitions, including economic bootstrapping.

Angel investors put a portion of their capital into creative firms in their early phases to aid companies in developing quickly. Angel contributions may be extremely beneficial to a young company, having angels often giving three times the amount of venture funding. Venture capital has become a method of funding a rapidly developing firm to transfer its ownership in the middle phase (Doan., 2022). While investing in emerging businesses, venture capitalists utilize considerable hazards and anticipate high returns. Banks loans represent money a financial institution grants against corporate or consumer credit. Financial bootstrap takes place whenever an entrepreneur spends their capital and leverages money to move the firm ahead, using strategies that include joint utilization, personal investment, proprietor funding, payment delaying, and decreased inventory, among other techniques, to maintain the organization’s lean. Lastly, buyouts transfer a firm’s control to different parties to increase its market value. Buyouts can only be possible if a business has achieved private ownership.

Potential Contribution: In enterprise, the notion of contribution seems critical. This emphasizes the contribution a company generates from every piece of goods produced and whether the reward meets the requirements to enable the company to make revenue despite deducting its recurring expenditures. Contribution is the portion of profits left over following the deduction of every direct expenditure of revenues (Mi’rajiatinnor et al., 2022). This amount of money can be utilized to pay any fixed expenditures incurred by a firm within its reporting period. Any contribution to the surplus above fixed expenditures corresponds to revenue. Entrepreneurs form the company organization to capitalize on their assets, including acquiring funds through lenders, shareholders, including customers in general. This mobilizes communal money and enables citizens to gain advantages through entrepreneurs’ and the growth of enterprises’ achievement.

Conclusion

Businesses may prosper because innovation gives new answers to challenges and helps entrepreneurs use their creative skills to establish their existence as desirable in the competitive marketplace. Innovation enables businesses to implement ongoing enhancements and contributes to increased company inventiveness. For many years, company practices have remained mostly unchanged. Nevertheless, alongside the emergence of innovation in company operations, there currently has been an ongoing disturbance that has been speculated to have occurred due to creativity, originality, and distinctive qualities. This also helps distinguish the company from the competition, resulting in higher revenue and market share.

As previously said, among the most significant benefits of innovation is that it helps improve earnings and market share. As a result, there will be a cost savings. Additionally, whereas innovation provides numerous benefits in business, the elements provided should assist entrepreneurs and management, along with management, in comprehending the significance of proactively executing innovative ideas. Executives and leaders may design distinctive promotional strategies by considering them innovatively or artistic. Develop promotion and advertisement strategies to increase the market share and income, providing the organization a competitive advantage. Innovation can also be utilized to enhance a company’s operating procedures or to incorporate cutting-edge automation technology. The combination of innovation may help organizations develop exponentially.

Entrepreneurs have to possess a strong feeling of command. This provides a springboard to self-assurance. Whenever entrepreneurs believe they have gained control over their path of action, they are said to have an internal locus of control. Individuals with an external locus of control are frequently affected by destiny and feel that other forces, such as financial conditions, politics, technology breakthroughs, and social problems, govern their lives. Individuals with an internal locus of control believe that their actions may influence outcomes via their abilities, effort, and capabilities rather than through external sources.

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