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Key Topics
Requirement
Entrepreneurial Strategy and Management Strategy
Solution
Introduction
In a challenging and competitive environment, management strategy and entrepreneurial strategies play an important role in establishing the existing and a new enterprise. Due to the high completion, and dynamic environment, the entrepreneur, need to formulate more entrepreneurial strategies so that they can compete in existing environment and can survive for a long time. In this paper, we will study the differences and similarities between the Entrepreneurial strategies and the management strategies and also utilize some literature concepts to understand them in a large context. The essay will attempt to contrast and compare the Entrepreneurial strategies and management strategies by recognizing and measuring an apparent characteristic and exploring in deep context critical differences and similarities. Management strategy and entrepreneurial strategy are considered two different management disciplines which providing different opportunities to business houses and individuals. These both are related to the better performance of the organization. The management of an organization can easily establish itself by focusing these strategies in a large context (Feldman, 2014). This will provide an opportunity to compete with existing competitors and gain different competitive advantages in their existing market. Strategic and entrepreneurship management both play an efficient role in contributions to different management theory. They both are mutually related and complementarily supportive of each other. These are the fields which are considered inseparable and two sides of a coin. Thus, the main aim is to create a better understanding in both the fields of management which enhance existing knowledge of management and brings fruitful result for an organization. In addition, the strategy is considered the primary building block of an organization because it is helpful in bringing competitive advantage by differentiating it from other available organizations. Development of both entrepreneurship and management strategy requires high attention and large experience from the management (Gans, 2016). With the high attention, they can develop as per determined objective and can provide required outcome which supports attainment of alternate objectives of the organizations. Thus, the results from this paper can be utilized to increase integration of both management disciplines further.
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Keywords
The keywords involved in this paper are an entrepreneurial strategy, management strategy, strategy, intersection, and entrepreneurship.
Entrepreneurial Strategy
The entrepreneurial strategy is considered as a way through which an organization formulates and reformulates its basic set of relationships with its existing environment. In addition, it is considered as a strategy which involves less and more simultaneous change in the decision patterns taken by an organization. The requirement for an entrepreneurial strategy arises with the establishment of a new organization (Ching, 2014). It is necessary for the organization to introduce high innovation in its product which will enable the organization to survive and prosper in the competitive and dynamic environment. Once the organization is formulated, the entrepreneurial behavior of the organization is evoked by actual or potential misfit between the environment and the organization. Organization perception towards the potential misfit enforces the organization to behave proactively in following environment changes smoothly. Environment change will bring a big change in the working of the organization so they should ready for this in advance. Adopting environmental changes facilitates long-term survival of the organization and also brings various market opportunities. However, it is considered that entrepreneurial strategy not always proactive. Mainly, it is a response regarding actual misfit between environment and organization. Entrepreneurial strategy mainly depends on three different assumptions which are: all entrepreneurial organizations are different from the other existing organization in important ways, all these differences influence both how entrepreneur sources and compete for their competitive advantage, and prescriptions and theories derived from measuring strategy in different existing organizations may not apply to entrepreneurial organizations. The entrepreneurial strategy is influenced by various initial endowments (Huang, 2012). These face huge challenges that reduce their overall profitability capacity. Entrepreneurial strategy helps a business organization in identifying the available opportunities with which they can establish their value in the eyes of individuals. They make competent an organization to exploit available opportunities to gain large profit and establish a competitive advantage in the organization. Thus, it can be said that entrepreneurship is a combination of measuring and recognising available opportunities and exploit them for enhancing the size of the organization. So, it can be said that both entrepreneurial management and strategic management are connected with the growth and subsequent creation of value.
Management Strategy
Management strategy is considered as the process of managing the pursuit of the organizational mission while managing the organization relationship with its existing environment. It mainly deals with how an organization establish its sustainable competitive advantages resulting in the value creation. Management of the organization utilized these strategies to obtain better performance and establish a competitive advantage of their organization in the existing market. It can also be defined as a collection of facts and decisions which a manager of an organization formulates and which decides the outcome of the organization performance. Managers of the organization utilize SWOT analysis to evaluate its performance and market situation (Dess, 2014). After conducting SWOT analysis, they ensure that best use of all available resources is performed by its members. Management strategy is nothing but planning for both unanticipated and anticipated contingencies. Management strategy is applicable in both the smallest organization and the largest organization. Both organization can face competition and can survive in the market with by enforcing management strategy which proves helpful in bringing sustainable competitive advantage. It is a continuous process that controls and evaluates the industry and the business. it evaluates the goals and strategies and existing competitors of an organization to provide them suitable strategies with which they can compete with their potential competitors. One of the important roles of management strategy is that it incorporates different functional areas of an organization to ensure that these functional areas get together and harmonise well. Apart of it with the help of management strategy, the organization can continuously put its eyes towards its future objectives and goals (Rothaermel, 2015). With the help of management strategy, employees of an organization can understand their jobs in an efficient manner and can produce high productivity for the organization. Management strategies provide tools to the management of the organization for implementing strategies at the operational and tactical level. The profitability of the organization mainly depends on their data systems, and strategic management provides tools for deploying the data systems that can enhance their productivity level. The key role of the management strategy is transforming the different business processes. By doing so, the organization can enhance its operational efficiency and compete in the existing environment in a high context. The most crucial phase facing the management is the development of different software applications that can support different initiatives of the organization (Byeon, 2013). Thus, it can be said that both entrepreneurial management and strategic management play an important role in the success of the organization.
Similarities
Both the strategic management and entrepreneurial strategy have large similarities which enforce them together. The most important similarity between the strategic management and entrepreneurial strategy is that both management disciplines focused more on the process of exploiting the available opportunities and changing structure as per change requirements. Most of the scholars said that these both management disciplines should integrate together. This is because they both contributing more towards the exploitation of available opportunities. This is the reason for which most of the organizations wants to focus more on both concepts instead of focusing on single (Gibson, 2012). Furthermore, the most apparent similarity between management strategy and entrepreneurial strategy are opportunities. Generally, opportunities are considered the main part of management strategy and entrepreneurial strategy such as SWOT analysis. It plays an important role in determining the strengths, weaknesses, opportunities, and threats of an organization. With the identification of available opportunities, the organizations try to add more values in their extrinsic environment by advancing competitive advantages to using them efficiently.
Another similarity between EM and MS are that both the disciplines of the management related to the creation of value for different organizations. It is considered the major organizational goal of these disciplines. Management strategy and entrepreneurial strategic action contribute more for establishing the value of organizations in their existing markets. By doing so, they want to become the organization more competitive and recognised in their existing markets because this will become their strengths in their near future. Apart of it, organizational learning is also called the similar functions of both management concepts. Organizational learning is considered as a characteristic of the organizations because it makes them competitive with which they can create is value in their existing markets. Organizational learning mainly produces, conveys, expresses, and organizes knowledge in different organizations (Priem, 2012). This will enable them to adjust themselves to the dynamic and evolving environment. The basic characteristic of organizational learning is the synergy that occurs among individuals in organizations which have their presence in both disciplines of the management. ES and MS both have made their precious and unique contributions to different management theories. Both management disciplines are considered very supportive towards the management theories. This will enable them to provide large and competitive information to conduct business further. Another similarity between the ES and MS is that both management disciplines are fully covered with high-level uncertainties and risk factors. Organizations want to earn more and more profit for which they underlined their different ES and MS strategies. But due to high risk and uncertainties in the formulation of these strategies, it may be possible that the organization face huge damage in future. This will reduce the overall productivity of the organization and it also lost its existing designation (Rothaermel, 2015). Thus, it can be said that both management disciplines play an efficient role in the success of an organization. Formulating these strategies brings various positive and negative outcomes for the organization. Apart of all these, there are various domains where similarities between MS and ES exist, like Growth, governance, growth, teams and networks.
Differences
With the similarity, both disciplines of management also have significant differences. MS is considered highly differentiate with the entrepreneurial strategies. One of the main difference between the management strategy and entrepreneurial strategy is that entrepreneurial strategy includes discussion making, planning and decision-making steps for enforcing strategic plan and goals. On the other hand management strategy utilize all these steps to executing its strategic plans. These steps help the management strategy in implementing their strategic plans efficiently with which they can position an organization in a potential market (Lechner, 2014). Furthermore, the entrepreneurial strategies focusing on establishing a new venture for personal gratifications of the entrepreneur, but the management strategies of an organization render its benefits and facilities to the overall department of an enterprise. This can bring high success for the organization. With the help of management strategy, an organization can target overall organization (Dess, 2014). It works well than entrepreneurial strategies.
In addition, entrepreneurial strategies of an organization bear all uncertainty and risks involved in performing day to day task functions. It is because the strategy doesn't want that the organizations need to suffer more with available risk and uncertainties in business. It is developing strategies which cover the overall risk and uncertainties. On the other hand, the management strategy of the organizations does not bear any type of risk involved within the business or outside the business. It only provides strategies and ways to implement these strategies efficiently. Management of the organizations is self-responsible for any mistake in implementing these management strategies because it brings various harmful influences for the business enterprises. The entrepreneurial strategy provides rewards in the form of high profit which can make the organizations very successful than their existing competitors. But, management strategy mainly provides the rewards in the form of salary which cannot provide huge motivation to the staff of the organizations.
Entrepreneurial strategies are enforced by a single person who is known as an entrepreneur. He himself thinks about the success and usefulness of a strategy and how it can implement in a business organization (Gans, 2016). On the other hand, management strategy enforced with the help of overall management team of the organizations. A single person cannot enforce and implement them. Apart from it, entrepreneurial strategies are considered more beneficial because these are enforced without any participation. On the other hand, management strategies of an organization sometimes lost their productivity due to the involvement of a large number of decision makers. Furthermore, entrepreneurial strategies mainly concentrating on bringing uniqueness in ideas and strategies. Meanwhile, the management strategies mainly focus only on bringing efficiency that work in sync to formulate an articulate rhythm of action for the organization such as it can be said that management strategy is about the process and the entrepreneurial strategy is about effectiveness.
Thus, it can be said that both strategies have significant different in their working and different business aspects (Helfat, 2014). Instead of all these, there are lots of domains where differences between management strategies and entrepreneurial strategies exist such as entrepreneurial strategies requires coordination between few individuals, meanwhile the management strategies requires coordination among a large number of individuals.
Conclusion
After studying all this, it can be concluded that there are high-level interactions between both of these field of management disciplines. The success of an organization highly depends on its ability to formulate an adequate strategy for its different business operations. Mostly it is argued that the strategic management is not comfortable for dealing with the dynamic environment because it requires high flexibility and different opinion. The main objective behind writing this paper is to understand the differences and similarities of SM and EM in a high context (Ching, 2014). The paper clearly represents that there are similarities and differences in these two aspects of management discipline and it is vital for an organization to develop sustainable strategies to deal with dynamic business situations. Therefore, it is desired by old organizations as well as the new organizations to gain different future and present a competitive advantage. This can be efficiently done by integrating management strategies and entrepreneurial strategies and implement them in required manner.
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Feldman, M.P., 2014. The character of innovative places: entrepreneurial strategy, economic development, and prosperity. Small Business Economics, 43(1), pp.9-20.
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Dess, G.G., Lumpkin, G.T. and Eisner, A.B., 2014. Strategic Management: Text and Cases.
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Gans, J.S., Stern, S. and Wu, J., 2016. Foundations of entrepreneurial strategy.
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Ching, K.H.S., 2014. Essays on entrepreneurial strategy and performance(Doctoral dissertation, Massachusetts Institute of Technology).
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Huang, X.Y., 2012. The Relationship between Entrepreneurship Resource and Entrepreneurship performance: The Moderating Effects of Entrepreneurial Orientation and Entrepreneurial Strategy.
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Rothaermel, F.T., 2015. Strategic management. McGraw-Hill.
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Gibson, P.R. and Shepherd, S.J., 2012. Food choice as a key management strategy for functional gastrointestinal symptoms. The American journal of gastroenterology, 107(5), pp.657-666.
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Byeon, G., Yoon, T., Oh, S. and Jang, G., 2013. Energy management strategy of the DC distribution system in buildings using the EV service model. IEEE transactions on power electronics, 28(4), pp.1544-1554.
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Lechner, C. and Gudmundsson, S.V., 2014. Entrepreneurial orientation, firm strategy and small firm performance. International Small Business Journal, 32(1), pp.36-60.
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Dobbin, F. and Baum, J.A., 2014. Introduction: Economics meets sociology in strategic management. Advances in strategic management, 17.
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Helfat, C.E. and Martin, J.A., 2014. Dynamic managerial capabilities review and assessment of managerial impact on strategic change. Journal of Management, p.0149206314561301.
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Priem, R.L., Li, S. and Carr, J.C., 2012. Insights and new directions from demand-side approaches to technology innovation, entrepreneurship, and strategic management research. Journal of management, 38(1), pp.346-374.
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