Enterprise Capability and Stakeholders

Enterprise Capability

• Essential attributes that enable individuals or organizations to effectively manage and grow a business.
• Key components:
  • Risk-taking
  • Decision-making
  • Innovation
  • Maintaining a positive attitude
• Risk-taking:
  • Entrepreneurs identify and manage potential risks.
  • Calculated risks: assess potential losses against expected gains.
• Decision-making:
  • Wise use of resources based on informed decisions.
  • Decisions: carry inherent risks, impacting production factors and resource allocation.
• Innovation:
  • Creating new products/services or improving existing ones.
  • Rebranding or repositioning in different markets.
• Positive Attitude:
  • Drives entrepreneurs to take risks and overcome challenges.
  • Crucial for resilience in facing business obstacles.

Stakeholders in an Enterprise

• Individuals or groups with an interest in the business's activities.
• Internal Stakeholders:
  • Employees: Require fair wages, job security, and good working conditions.
  • Owners/Shareholders: Seek growth and profitability for reinvestment of dividends.
• External Stakeholders:
  • Customers/Consumers: Generate revenue; businesses need to meet their needs for loyalty.
  • Government: Enforces laws and collects taxes; interested in employment generated.
  • Local Community: Affected by business operations; benefits from jobs and infrastructure.
  • Suppliers: Provide necessary materials; timely payments ensure continuous supply.
  • Lenders: Financial institutions requiring timely repayment to maintain future borrowing capacity.
  • Competition: Other businesses in the same market; strategies must consider competitive actions.

Types of Enterprises

• Business Enterprises: Aim primarily for profit generation, with profits reinvested or distributed.
• Social Enterprises: Focus on societal improvement rather than profit, any profits support community benefits.

Purpose of Enterprise

• Utilizing resources: land, labor, capital to effectively produce goods/services.
• Fostering: innovation, initiative, and calculated risk-taking in business management.

Employee Relations

• Maintaining a positive work environment enhances productivity and satisfaction.

Customer Satisfaction

• Critical for sustaining revenue, involves understanding and meeting customer needs effectively.

Government Regulations

• Compliance with tax, labor, and environmental laws is essential for legal operation and potential benefits.

Local Community Impact

• Businesses should consider their effects on local traffic, pollution, and community welfare.

Supplier Relationships

• Strong partnerships with suppliers are vital for operational efficiency and reliability.

Lender Obligations

• Maintaining good relationships with lenders ensures access to capital when needed.

Competition

• Understanding competitive dynamics helps businesses strategize effectively to capture market share.

Business Strategy

• Identifying needs, conducting market research, assessing risks, and recognizing skills to create a plan that guides an enterprise towards achieving its goals.
• Essential for making informed decisions and ensuring the long-term success of a business.

Identifying Needs

• Use group discussions, brainstorming, and individual reflection.
• Collect ideas from stakeholders to understand various aspects of the opportunity.
• Ensure clarity in the problem or need being addressed.

Market Research

• Conduct thorough research on market needs to support the identification of business opportunities.
• Helps establish clear aims and vision for the enterprise.

Risk Assessment

• Evaluate potential risks before starting any enterprise activity.
• Understand the balance between risk-taking and expected returns.

Skills Recognition

• Reflect on the skills required for successful entrepreneurship.
• Assess whether the entrepreneur and associates possess these skills.

Enterprise Capability (Business Strategy)

• Key attributes:
  • Risk-taking: Entrepreneurs take calculated risks expecting high returns.
  • Decision-making: Wise use of resources while considering associated risks.
  • Innovation: Ability to spot opportunities in existing products/services.
  • Positive Attitude: Drives entrepreneurs to face challenges.

Stakeholders (Business Strategy)

• Internal Stakeholders: Employees, owners/shareholders who are directly involved.
• External Stakeholders: Customers, suppliers, lenders, government, local community, and competition.
• Importance of considering stakeholder interests in decision-making.

Types of Enterprise (Business Strategy)

• Business Enterprises: Aim to make profits; reinvest profits for growth or distribute to owners.
• Social Enterprises: Focus on social causes; profits sustain operations but are not the main aim.

Main Stakeholder Interests

• Customers: Require quality products/services at fair prices.
• Employees: Need fair wages, job security, and good working conditions.
• Lenders: Expect timely repayment to facilitate future borrowing.
• Government: Interested in tax compliance and employment generation.