What makes a ‘Great Entrepreneur?
is referred to as an industrialist who has achieved a significant popularity status for his prowess in management. Going back in history, his company became one of the world’s leading producers of electronic goods. And together with this was also the start of the booming number of revenues he and his companies such as Panasonic and JVC earned for more than 20 years.
didn’t really make an immediate impact on the electronics industry as a budding entrepreneur. Instead, he engaged in activities that gradually propelled him towards the high level of popularity and excellence. These activities include the numerous innovations in the field of electronics like his light socket and continued to pursue the development of this product for the benefit of his countrymen.
However, the role that Matsushita played was not limited to the pursuit of technological innovations. Activities such as educating the public and other social responsibilities were also often related with him. A great deal of emphasis lied on the efficiency and effectiveness of these roles. Therefore, understanding what made a “great entrepreneur” includes the analysis and management of his significant roles.
It is interesting to know the basic innate characteristics of which contributed towards the development of his “great entrepreneur” image.
· Mental Stability
Mental stability was crucial especially in pursuit of the correct decision as well as the management and development of the processes accompanying it. It was important for to remain updated with the latest developments in the electronics industry to be able to stay aware and knowledgeable in all issues.
· Performance and Credibility
The production of Panasonic and JVC’s best electronic outputs came as a result of well-funded research management and development activities pioneered by himself. The strong performance of their products and outputs in the market could also be linked to the effective strategic planning and human resource mobilization of . Thus, his credibility increased as his company’s performance became better.
· Planning and Strategy Formation Capabilities
Planning and strategy formation created the need for to become aggressive especially in the area of marketing their products. This was because the access to strong distribution channels was critical for his company’s continued popularity.
· Decision-making abilities.
Upon arriving at the correct decision or choice, gained confidence in his ability to make critical decisions or choices especially when his integrity was on the line. Thus, searched for even more challenges and opportunities where he could further enhance his decision-making abilities regarding current issues.
· Holistic Mindset of Issues
Through the exposure to various puzzling issues, along the process was able to develop a holistic mindset regarding the issues surrounding him. He became a keen observer of the truths and lies surrounding the issue being tackled, instead of relying on mere hearsays. The continuous pursuit of the truth behind the puzzling issues enabled to consistently practice a healthy and holistic mindset which made it difficult for detractors to give influence. Because of this holistic approach, was able to effectively select the right choice and continued to maximize this potential for future use.
Why do some businesses grow and others remain ‘small firms’?
Businesses that grew, such as Panasonic, aimed for sustainable growth as a broad market leader in electronics as well as for segment leadership. In both cases, the Panasonic and JVC brands played a crucial part. Therefore, these businesses were able to establish their broad leadership usually by acquiring other strong electronics companies and their products, which were then combined into a new, larger company. Offering training to its employees, improving the company operations, and the introduction of new technologies then reinforced the positions of the various products innovated by and his companies. This practically resulted in economies of scale that was able to create a distribution network for both the local and international Panasonic and JVC products. If a market was already in the control of other electronics companies, devoted his attention towards the development of a premium segment with his various products.
In the case of , while the mission of her studio was to secure the growth of her business, she didn’t have a clear plan on how to do this in a sustainable manner. Had she done so, it would have resulted into the constant improvement of her studio’s profitability. This was the reason why business remained a “small firm”. Basically, failed to strategize in achieving these four essential elements:
What lessons are there for you personally?
Deriving from the analysis between operations management and capabilities of the companies involved, many strategic options and lessons become imperative for me. It is therefore essential for me to evaluate these lessons as to whether they are appropriate to the issues addressed, whether they are feasible enough to be implemented and their acceptability to key stakeholders.
First of all, I learned that there is definitely a need to reconcile both the inside-out and outside-in capabilities. While operations management involved focusing on his companies’ core competencies with market position following their resource base, they will be put into a disadvantageous position should they choose to neglect both the macro as well as the electronics industry environment. Therefore, I learned that as an entrepreneur one has to be aware of the latest operations management changes, as well as changes in political, economic, legal and even demographic trends in order to develop the outside-in capabilities, such as market sensing, customer linking, channel bonding and technology monitoring.
The advantages enjoyed by companies may come in the form of increased revenues. I realized that knowing what the market demands and the latest trends could help me as an entrepreneur fully exploit my research and development capabilities to come out with products which are not only cost-effective but also high in quality. I believe that this strategic option can even be used as marketing tool where the focus is on staying close to the customers and listening to their feedbacks. On the flip side of the coin, I understand that there will be huge mobilization of resources involved, and the associated risks bestowed on me as an entrepreneur.
Nevertheless, the lessons that I learned and mentioned seemed practical in the wake of globalization, since there is a sudden shift towards a more integrated and independent world economy. On the other hand, the key stakeholders too should not have any objections so long as the entrepreneur’s core business is not threatened. By virtue of a centralized control of business, it is my understanding that major barriers should not exist in carrying out such options except additional time may be required given the scope and span of business operations.
Understanding the strategic importance of operations management is something that I still have to be familiar with. As an entrepreneur, I normally practice a centralized and globally scaled configuration of operations and capabilities. I think this allows information dissemination to be retained easily.
There are other essential lessons that I learned upon the analysis of Matsushita and Emma’s cases.
Upon the careful examination of business strategies, I finally realized that a tie-up or merger with various local businesses can offer tremendous benefits in terms of access to their operations management policies, infrastructure and even their resources. However, I still know that as an entrepreneur I must not lose sight of my core competencies while pursuing these tie-ups. Otherwise, my image as an entrepreneur might be put in jeopardy.
Meanwhile, I also learned that the collaboration of a business enterprise with its major competitors can be seen as a ridiculous move at first. However, upon close examination of business strategies, this move could pave the way for any business entity to improve even more its operations management. The bottom line is both sides would be able significantly gain in such an alliance. For instance, a business’ strengths in product development combined with the operations management capabilities of their competitors can transform them suddenly into an unbeatable force to reckon with. One possible setback that I noticed, however, is the possible differences in the cultures of the business entities involved. Another possible setback could be whether any of the business’s competitors has the need to form alliances.
The third valuable lesson I learned also focuses on the need to form alliances, but this time with either one of the suppliers specializing in products. I learned that the benefits of these alliances will eventually outweigh the costs in the long run.
In terms of appropriateness, all the lessons that I learned are able to directly address my needs for improvement as an entrepreneur. However, the question remains whether I could be able to implement and actualize any of these lessons, and whether these lessons that learned can be acceptable to the key stakeholders. I learned that any merger or alliances may also involve the sharing of expertise. As an entrepreneur, I have traditionally relied on the inside-out approach. It is important for me to always remember that any merger transactions would have many implications on the values and culture as well as the resources of the business entities involved. The key stakeholders definitely would be concerned with such options and need to be convinced of the positive aspects. Somehow, I will be able to overcome this barrier in managing strategic changes in the process of implementing any of the above mentioned lessons that I learned.
CONCLUSION
The results of my analysis carried out on the operations management of the and businesses indicated very significant effects for me, even amidst the threats of unrest. Therefore, I could conclude that the operations management of these business entities could still be expected to improve faster than average.
The review of their operations management capabilities and resources revealed very little inconsistencies regarding their strategies. This is coherent with their traditional inside-out approach. However, I learned the importance to reconcile both the inside-out and outside-in approaches, and it has become imperative now for me.
My analysis among the business environment as well as the operations management and capabilities of Matsushita and Emma’s businesses revealed certain gaps, most of which are biased towards the environment. However, these gaps paved the way towards me determining a number of lessons to secure my own competitiveness as an entrepreneur.
Also, I learned that one has to find a balance between adherence to internal forces within the management and to the changing forces of the environment in order to implement such strategic options.
Credit:ivythesis.typepad.com
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