Reallocating capital, or making budget adjustments Essay
Order ID:89JHGSJE83839 Style:APA/MLA/Harvard/Chicago Pages:5-10 Instructions:
Reallocating capital, or making budget adjustments Essay
A minimum of 100 words each question and References Response #1 – 6) KEEP RESPONSE WITH ANSWER
Make sure the Responses includes the Following: (a) an understanding of the weekly content as supported by a scholarly resource, (b) the provision of a probing question. (c) stay on topic
- You mentioned in your post that flexibility would make the risk of innovation go down. I also believe that this is a great way to reduce risk. Being able to check and recheck ideas makes it able to be modified early on. You also mentioned that speed was another great idea, I do struggle a little bit with speed only because I worry about something Being rushed through. What are your thoughts?
- I am so glad that you mentioned flexibility. It is so important that team members and managers are flexible when trying new ideas and techniques to implement a change in a product or a service. I can imagine that the initial idea may not always work at first and that calls for something different. We have talked before in the previous weeks in this class that sometimes chaos can come about. You have to be able to make quick decisions and with that there is a need for flexibility. I also like how you mentioned control. The management team does have to have control of what they are doing. Financially, its important because you can’t normally launch new things if you can fund them.
- One way is to ensure you have enough resources to support innovation, one most remove obstacles, or barriers that may prevent, or slow the process down. Reallocating capital, or making budget adjustments can open doorways to implementation. Making decisions can be based on performance of different areas, or divisions. If a division is consistently profitable it may be wise to allocate capital, labor or other resources so they are able to continue forward, One must avoid investing in innovation based on wants, or even needs, sometimes, it may be better just to improve certain areas while making plans for others. In my organization they normally invest in areas that generate revenue before they even consider the cost centers. However, you end up with a group of innovators, and a group of agitators who feel they are not being considered. The conflict can affect innovation; however, it is important that management finds a way to engage the groups, or individual so they are included in the process. The manager, or person must take a holistic point a view to help validate the innovation, as well as determine the opportunities they may exist, or be created. There must be some sort of format, “in the context of structured risk assessment, predictive validity refers to the ability of an instrument to predict the likelihood of an adverse outcome” (Singh,2014).Research, planning , communication, coaching ,inclusion, follow through , and accountability is the best way to handle risks of innovation.
- Organizational alliances can impact a company in a positive way. Alliances are when a company sees something in another company that it needs and also has something to offer so it benefits all of them. It could be a product, distribution channel, manufacturing capability, or even funding (Martyak, 2014). It is wise to find a company that has a similar vision, mission, and strategy (Segil, 2002). Alliances allow companies to put their resources together and attract customers. The purpose of an alliance is so that companies can increase the value of each other that is not possible when either acts alone (Martyak, 2014). This gives companies the ability to increase speed to market, reduce operational complexity, and increase cost efficiency (Martyak, 2014). Each company needs to have clear goals, compatability and have the ability to meet expectations of one another. Some business owners may be hesitant to form alliances in fear of losing executive control or losing ownershop. Alliances is another way of innovation. Finding new ideas incorporating different and popular items that can increase sales for each partner. It gives each partner the opportunity to enter different markets it may not have been able to reach standing alone. There was an example given using Starbucks. Starbucks is now sold in Walmart, gas stations, ice cream shops, etc. Starbucks had to partner with these places to reach a different target market. Walmart and other places agreed because it increases sales for them (Segil, 2002). It is appealing for customers to go into their favorite store and also get their favorite items. There is nothing like going to Target and being able to grab a Starbucks coffee.
- There will always be risks with innovation, in order to move past them and be successful one must know how to address them and manage. One of the best ways to address innovation is by using an innovation model. As we have learned within the previous weeks in our class innovational models are very important, not only do they help map out business ideas but they can also help you notice problems or road bumps that you might come across. When using an innovation model one is able to see some of the risk within the concept and be able to manage it accordingly. Another way to address risks is to acknowledge some of the models limitations. This means that you need to understand what your budget is (plan within it), you need to know the functions (what it can and can’t do). When we are able to understand our limitations we are also looking to expect what might be unexpected. Another idea to help managing the risk is to ensure that you understand the use and the user of the product. Not only do you want to build a product that your customers feel a need to use but also you want to ensure that the users can use it and that it is user friendly. It is important to note that as humans we will not be able to forsee all challenges that could arise with an innovation, but it truly is important that we know how to minimize it and also manage it when it arises.
- First, in order to understand how risk can be addressed or managed, one has to know what defines risk. Actual risk is determined by four factors: the unrecoverable financial commitment, the degree to which the new opportunity veers from the company’s existing base, the level of uncertainty about customer demand and technical capabilities, and the time frame. The best way to manage risks it to understand the difference between actual risk and perceived risk, focus on learning rather than investment in new endeavors, learn faster cheaper and better, experiment, and share risk with partners (Gibson & Skarzynski, 2008). Most innovations are truly not sprints and companies feel the need to rush products and their success and they ultimate fail because they were not ready. Companies who put out products and perfect timing for demand and level of technology are the ones that do the best. Companies can best address risks of innovation by understanding more about the product will truly influence the consumers.
RUBRIC
Excellent Quality
95-100%
Introduction 45-41 points
The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.
Literature Support
91-84 points
The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.
Methodology
58-53 points
Content is well-organized with headings for each slide and bulleted lists to group related material as needed. Use of font, color, graphics, effects, etc. to enhance readability and presentation content is excellent. Length requirements of 10 slides/pages or less is met.
Average Score
50-85%
40-38 points
More depth/detail for the background and significance is needed, or the research detail is not clear. No search history information is provided.
83-76 points
Review of relevant theoretical literature is evident, but there is little integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are included. Summary of information presented is included. Conclusion may not contain a biblical integration.
52-49 points
Content is somewhat organized, but no structure is apparent. The use of font, color, graphics, effects, etc. is occasionally detracting to the presentation content. Length requirements may not be met.
Poor Quality
0-45%
37-1 points
The background and/or significance are missing. No search history information is provided.
75-1 points
Review of relevant theoretical literature is evident, but there is no integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are not included in the summary of information presented. Conclusion does not contain a biblical integration.
48-1 points
There is no clear or logical organizational structure. No logical sequence is apparent. The use of font, color, graphics, effects etc. is often detracting to the presentation content. Length requirements may not be met
You Can Also Place the Order at www.collegepaper.us/orders/ordernow or www.crucialessay.com/orders/ordernow Reallocating capital, or making budget adjustments Essay