Ethics, innovation and entrepreneurship
Ethics, innovation and entrepreneurship
With reference to one or two organization that you have studied, discuss the influence of ethics and innovation on the role of entrepreneurship (entrepreneur) and intrapreneurship (intrapreneur). Conceptual approaches play a vital role in influencing the role of entrepreneurship and intrapreneurship in an organization. Innovation, which is one of the concepts, is the ability to think anew by developing new services or products. It is synonymous with risk taking as defined in the entrepreneurial behavior. Organizations that create innovative products take on the greatest risk because they create new markets. It is the act to carve a new niche in it, as deemed by most entrepreneurs.
Ethics, on the other hand is the basic concepts and fundamental principles of decent human conduct. Organizations that mobilize this conduct concerned with decisions and what and how to do it. For example, ethical considerations in the role of entrepreneurship and intrepreneurship are revolved around the ways of an organization approaches its customers by instilling good values throughout the conduct, and also through consideration in the branding of the products or services, based on morality as it portrays the image of the organization.
These two concepts influence the survival of an organization in the modern world to cater the society’s demands. One of the organizations that best fit these criterions is IKEA. IKEA has introduced various ethical conducts throughout the century. One of its most significance considerations is that IKEA introduced IWAY. It is an ethic code that had been introduced by the founder of the organization as a code of conduct between the organization and its suppliers since the year 2000. It encompasses guidelines concerning working conditions, prevention of child labour, the environment and responsible forestry management. This ethical conduct is to ensure that the suppliers won’t go overboard although things may seem inevitable as most suppliers don’t put that much of concern regarding the issues and most organizations seek for reduced cost. However, IKEA prioritizes morality, and dare to be venturesome, in starting their business with ofits from the quality.
This ethical conducts inhibit bribery and anything related to the impropriety andanother organization as it is to ensure that their products are top-notch and can initiate a much greater pr results in creating quality products for the customers, hence providing customers the best of what they should opt for from an organization. It will promote trust in business, and enhance in the growth of likely more organizations alike to adhere to the same code of conduct resulting a better lifestyle in a society. People benefits from getting to use quality products, while organization and suppliers gain profits as the business go viral from the trust embedded by the customers. However, this code of conduct, to a certain extent, won’t be able to stand a chance against the long run of the business. From time to time, organizations should revise on how they conduct their business as policies change overtime in order to adapt to the current demand of the world. IWAY can’t stay appropriate for organizations as benefits and importance would be totally different years after.
Hence suppliers will end up breaking the guidelines, resulting in contract breaches causing damages and loss to both organizations. Code of conduct, is about refinement in order to get it sustainably carried out, yielding its finest outcomes. In the innovative aspect, IKEA had been coming up with the concept of sustaining the price by introducing the ‘do-it-yourselves’ concept. Lowest price is the basis of IKEA’s concept. IKEA identify new customer needs for furniture from not just from those who can afford but also among the young and less wealthy. So the founder had came out with the idea of designing furniture in kit form, leaving the customer to put them together by themselves hence, reduce the cost of assembly. The furniture is put in flat-cardboard boxes, so that customers can access to the self-service warehouse without using any third-parties. This results in almost 80% of reduced cost for transportation.
This innovation, as deemed to be potently reducing most of the cost, comes from having the customers engage in the idea of ‘do-it-yourselves’. IKEA’s prices have been 30% below any other traditional furniture manufacturers. Its contemporary and innovative avant garde idea had garnered both the attention of customers and suppliers. This results in impactful effects on the society as more classes of people would be able to possess high quality products and furniture. IKEA’s ‘do-it-yourselves’ furniture not just exhibit the exquisite design and sophisticated image from the company but indicates their stand in providing quality products in affordable price. This will entirely improve the social standard of a society and cater the demand of the customers, to own furniture that suits their social living within the current globalization. However, this strategy is not foolproof. There have been numbers of debates on how customers comment that some IKEA’s products are complicated to assemble and in further action, require the need of an expert hence require more expenses.
This will get us back to square one where buyers would have to pay for assembling the products. The idea of ‘do-it-yourselves’ is vividly attracting attention of customers and suppliers however, it would be better if proper guidelines and further proposal is planned for this strategy to work. Entrepreneurs are gambling to the fact that they’re selling unfinished products to the customers hoping profits in return, however this won’t be likely to occur without proper planning and detailed reviews. As discussed in the passage above, IKEA is been putting priorities to both the suppliers and also the customers. Attention on the suppliers was to ensure that the raw materials used reach the standard of quality to yield the best products. Customers were given priorities in the aspect of wanting them to buy the products, by taking care their needs, and demands.
Exclusion of any of these two societies would leave a profound impact to IKEA itself. But in this aspect, it would be better if slight inclination of priorities were given to the suppliers instead of the customers. A great enforcement on how the expensive raw materials should have been taken into count by IKEA, is essential and should undergo ethical inspection, so that it gratifies the satisfaction of both the supplier and customers. Any organization should be aware that, if the materials are not off good quality, this will affect the selling process, as well as will hinder the profits gained.
It is for us to realize that even though entrepreneurship is about approaching the customers need, venturing to their demands, it is highly recommended that we should look back and reflect that without having proper supplies and the right suppliers, none of that would happen. To deduce, both the concepts, innovation and ethics influence the role of entrepreneurship and intrapreneurship in an organization. Without the actualization of these two concepts, IKEA won’t be able to achieve such influences in the modern world of furnishing.
University/College: University of Chicago
Type of paper: Thesis/Dissertation Chapter
Date: 26 September 2016
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