Entrepreneurship
The main aim of this task is to evaluate the significance of operation management and entrepreneurship. Entrepreneurship and operation management are two important concepts that increase revenue and minimize the risk of the firm. OM helps to develop and build entrepreneurship theories. Entrepreneurship provides several long-term benefits to the organization. On the other hand, operation management is an important function of the organization which is responsible for managing and handling the process of creation of products and services. The employees have been able to maintain coordination and control through operation management. Further details of the task have been discussed below.
Drucker (2014) said that entrepreneurship is the process of launching; designing and running a new and innovative business which is often initially a small business and the people who generate these businesses are called entrepreneurs. Kirzner (2015) defines that entrepreneurship as the willingness and capacity to organize, manage and develop a business and venture with any of its risks in order to gain profits and revenue. It plays a significant role to attain long-term goals and objectives. It also helps to increase and maximize the revenue and returns. Entrepreneurship has transformed many entrepreneurs into powerful business individuals and generated revenue for rural communities (Szirmai, Naudé & Goedhuys, 2011). It is observed that entrepreneurship can be used in a different sense by researchers from India and other countries. In the middle age, the term entrepreneur was used to explain both individual and an actor who handled and managed several production projects. Abrams (2017) defines that entrepreneur operates and organizes a business and enterprise for personal gains and profits. He pays current prices and costs for the material used in the venture and business, for the consumption of the land, for the personal and individual services he employs and for the capital he requires. He uses his own skills, initiative, capabilities, ingenuity, and potential in planning, administering and organizing the business and enterprise. Also, he estimates the chance of gain and loss to uncontrollable and unforeseen situations and circumstances. The newness and innovation is an essential part of the entrepreneurship (Kirzner, 2015). Entrepreneurship is not limited to any one country, specific industry, group of persons, it exists in everyone however it depends on individuals needs, requirements, and desires. Enterprising behavior is found in all communities and in all types of economic situations. An entrepreneur is a person who drives the process economic growth and mediates outputs and inputs of the economic system. In the wider sense, an entrepreneur may be defined as an individual and person who has the ability to expand the environment, analyze the opportunities for development and improvement, organize resources and execute actions and steps to capitalize on those opportunities. Entrepreneurs provide a wide range of opportunities and profits. Entrepreneurs also called risk takers because they bring about new products and services and certainly, add colors to a community (Schaper, 2016).
Operation Management
On the other hand, operation management plays a significant role in entrepreneurship. Operation management is an integral part of every business and enterprise. The firm cannot attain success and growth without effective and dynamic operation management (Heizer, 2016). Farahani, Rezapour & Kardar (2011) define that operation management is the administration and management of business practices to create the highest level of efficiency and effectiveness within an organization. It is concerned with converting raw material and labor into finished products and services to maximize and increase the profit and revenue of the firm. Entrepreneurs and managers are responsible for critical activities such as quality management, purchasing, capacity planning, material management and scheduling. In today’s era, the significance of operation management is increasing day by day. It also helps to beat the competitors and to stand out against competitors in the global market (Subramanian & Ramanathan, 2012). The main aim of the operation management is to understand the potential and future requirements, desires, needs, and expectations of the customers and to work closely with customers, partners, and suppliers to attain the quality objectives. In addition, operation management also helps to deliver the high quality of work and products to the customers in the international market. It also measures and identifies customer satisfaction and service performance at an appropriate level. Operation management also helps to improve and enhance the performance and effectiveness of the employees as well as organization. After the various researchers, it has been analyzed and emphasized that operations management has a quite different nature compared with other areas in management research, as it addresses both human and physical components of the firm (Farahani, Rezapour & Kardar, 2011).
Let’s talk about an example, Maxis is a good example of operation management who manage and maintain effective supply chain, logistics and operation management to run the business activities and operations effectively and successfully. Maxis Berhad is a communications service provider in Malaysia with its headquartered is located in Kuala Lumpur, Malaysia. The company provides a wide range of communication products and services. It is only possible through the effective and dynamic operation and supply chain management. The firm handles and manages the business and operational processes to provide support the business teams for rendering products and services to the customers in the global market. The organization also provides support to the workers, manage documents and systematize several office and equipment needs and requirements. Along with this, the firm promotes and enhances safe and secure working environment by using effective and unique operation management. Now it is assumed that operation management plays a vital role in every company in order to increase profitability and returns in the competitive market (Peng & Lai, 2012).
Example of Operation Management
There is a close relationship between operation management and entrepreneurship. There are several variables and components affect the success and growth of new ventures and businesses. Thus, entrepreneurship plays an integral role to start a new venture in the international market. Entrepreneur evaluates and analyzes the external environment to capture the entire market. Successful and powerful entrepreneurs are called societal heroes and role models. They are able to take various types of market risks and challenges. Entrepreneurs are involved in the operations and activities of the firm and they make dynamic decisions to accomplish long-term objectives and goals. They evaluate and identify the plans, policies, and strategies of the competitors to gain competitive advantages in the global market. The production and operations management should also help to develop and build a better understanding of the information-intensive contexts in which technology and innovation commercialization occurs. The company also ensures whether the supply chains and warehouse are properly working with great and high efficiency and effectiveness or not. Furthermore, they also provide support to fulfill the operational and business needs, desires and requirements. Along with this, SWOT analysis, porter five forces analysis, and Pestle analysis are done by the company to analyze and identify the strengths and weaknesses of the competitors.
Goodale, Kuratko, Hornsby, and Covin (2011) said that operation management plays a significant role in the development and expansion of theory in entrepreneurship. The operational excellence is one of the important competitive weapons for the organization. There are several elements that can lead to operational excellence such as human resource management, operations strategy, leadership, and culture. In large firms, operation management acquires the biggest portion of the workers and assets, reflecting the significant impact on the quality of goods, products, services, product delivery, customer service and customer interaction efficiency and effectiveness (Crook, Todd, Combs, Woehr & Ketchen Jr, 2011). The organizations believe that if they want to capture the market and compete, they should continuously improve and enhance their operational efficiency and effectiveness. In today’s modern world, operation managers are facing enormous challenges and barriers for improving and enhancing quality while reducing costs and yet maintaining sustainability and social responsibility. The corporate entrepreneurship and operation management are interconnected with each other. Innovative and new technologies are used by the entrepreneurs to gain long-term advantages globally (Kim, Kumar & Kumar, 2012). All the activities of the market and competitors can be evaluated and measured by entrepreneurs, thus it helps to attract more customers in the market. On the other hand, optimum utilization of resources can be possible through operation management and total quality management. Operation management also improves and enhances the system and process that produce or deliver products and services of social and economic value while entrepreneurship monitors on creating new systems, goods, services, and processes. It also manages and handles the problems of entrepreneurs. None of the company can attain profitability without operation management and entrepreneur (Kickul, Griffiths, Jayaram & Wagner, 2011).
On the above-mentioned event, it is analyzed that operational entrepreneurship is an integral part of the business and organization. Furthermore, operation management plays an important role to develop and improve the theory of entrepreneurship. An entrepreneur is one who performs the task effectively and handles entire market risks and hurdles. It helps to fulfill mission and vision of the firm. Entrepreneurship and operation management are two important factors in every firm. These factors also help in planning and organizing several activities and operations. In addition, TQM provides useful insights that can lead to new and innovative theoretical structure and framework in entrepreneurship.
References
Abrams, R. M. (2017). Entrepreneurship: A Real-World Approach. Planning Shop.
Crook, T. R., Todd, S. Y., Combs, J. G., Woehr, D. J., & Ketchen Jr, D. J. (2011). Does human capital matter? A meta-analysis of the relationship between human capital and firm performance.
Drucker, P. (2014). Innovation and entrepreneurship. Routledge.
Farahani, R., Rezapour, S., & Kardar, L. (Eds.). (2011). Logistics operations and management: concepts and models. Elsevier.
Goodale, J. C., Kuratko, D. F., Hornsby, J. S., & Covin, J. G. (2011). Operations management and corporate entrepreneurship: The moderating effect of operations control on the antecedents of corporate entrepreneurial activity in relation to innovation performance. Journal of operations management, 29(1), 116-127.
Heizer, J. (2016). Operations Management, 11/e. Pearson Education India.
Kickul, J. R., Griffiths, M. D., Jayaram, J., & Wagner, S. M. (2011). Operations management, entrepreneurship, and value creation: Emerging opportunities in a cross-disciplinary context.
Kim, D. Y., Kumar, V., & Kumar, U. (2012). Relationship between quality management practices and innovation. Journal of operations management, 30(4), 295-315.
Kirzner, I. M. (2015). Competition and entrepreneurship. University of Chicago press.
Peng, D. X., & Lai, F. (2012). Using partial least squares in operations management research: A practical guideline and summary of past research. Journal of Operations Management, 30(6), 467-480.
Schaper, M. (Ed.). (2016). Making ecopreneurs: developing sustainable entrepreneurship. CRC Press.
Subramanian, N., & Ramanathan, R. (2012). A review of applications of Analytic Hierarchy Process in operations management. International Journal of Production Economics, 138(2), 215-241.
Szirmai, A., Naudé, W., & Goedhuys, M. (Eds.). (2011). Entrepreneurship, innovation, and economic development. Oxford University Press.
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