Evidence From Deregulated Trucking Industry -Myassignmenthelp.Com

Question: Discuss About The Evidence From Deregulated Trucking Industry? Answer: Introduction The entrepreneurial growth is a necessary aspect for survival of any start-up firms. There are multiple dimensions of assessing growth. Entrepreneurial growth can be assessed in context of customers, liquidity, employees, profit, geographic location and various other dimensions (Naldi Davidsson, 2014). The paper reflects my view and experience regarding entrepreneurial growth with help of well-documented theory in this field. Before entering into detail discussion of entrepreneurial growth, it is necessary to understand the concept of growth in context of different enterprises with reference to measures of growth. From managers point of view, entrepreneurship is associated with terms such as innovation, flexibility, risk taking behavior, creativity and orientation towards growth. Others viewed entrepreneurship as operating and starting new ventures. The view is further reinforced with success of enterprises such as Apple computer, Lotus Development and Dominos Pizza (Stevenson Gumpert, 1985). We find heterogeneity in growth patterns of different firms addressing different motive of entrepreneurial growth. The first pattern I found while studying different sized enterprises is the motives of growth (Voss Voss, 2013). This explains the reasons of growth for the entrepreneurial firms. The high ambition and risk taking behavior push firms toward achieving a higher growth rate. The decision regarding growth is driven from characteristics of enterprises (Davidsson, Achtenhagen Naldi, 2006). Other factors, which I think important for growth pattern,are environmental factors, resources, need for ac hievement, and structure of the organization, resource availability and contextual framework of the industry Stevens and Gumpert pursue the view that identification of favorable circumstances is not enough to ensure entrepreneurial growth. Promoters are able to identify quickly the available opportunity. In contrast, commitment from trustees side is time consuming and is made for long time. Trustees make very slow movement and hence, promoters are believed to grow faster as compared to trustees (Stevenson Gumpert, 1985). Penrose provided a simplistic view of organization growth. Growth is explained in reference to growth of any living organism. No organism can grow without proper environment, resource and sometimes-external factors are needed for proper growth. The same argument holds for growth of enterprise (Garnsey, Stam Heffernan, 2006). The entrepreneurial growth is subject to availability of resources, capacity of growth and design of suitable strategy. Additionally, entrepreneurs should be motivated to expand its operation and grow bigger. This is how Wiklund modify growth definiti on provided by Penrose. I think the aspects on which Wiklund has drawn attention is a useful concept of growth (Wiklund, 1998). After gathering theoretical knowledge about entrepreneurial growth, now I am going to discuss entrepreneurial growth in context of organic or internal growth strategies. In the ecosystem, growth of plant requires micronutrients in soil, water, sunlight and air (DeAngelis, 2018). In context of business organization, organic or internal growth implies firms growth within the organization. Different strategies for internal growth of organizations include development of new range of products, introduction of new products to the international market, expanding operation to new location and exploring capacity of business with investment in new technology or making capital investment (Deresky, 2017). As plants requires proper resources or environment for its growth, enterprises require supply of inputs and competitive environment for its growth. I have found some companies that are experiencing an internal growth successfully. Examples include Dominos, Costa coffee and Apple (Stevenson Gum pert, 1985). Intensive studies of entrepreneurial growth reveals that innovation is one important aspect of entrepreneurial growth. I have come across the concept of resource-based approach in this field. The Resource based approach evaluates how firms can attain and sustain their competitive advantage by exploring resources (Hitt, Xu Carnes, 2016). We can relate the resource based view with development of social capital and theories of innovation and in the evaluation of enterprise growth as well as strength of the organization (Pettus, 2001). The idea points towards need for resources to attain a sustainable growth of enterprises. Innovation that prepares a smooth path of growth requires investment in forms of capital investment and investment in human resources. Investment in human resource and human resource management is important for stimulating innovation. Human resource containing a skilled workforce influences creativity. When knowledge is shared among workers in the organization, productivity automatically enhanced (Snell, Morris Bohlander, 2015). During my internship in IKEA, one of the leading companies in Sweden I came across Human Resource Management practice of the company. The company out heavy weightage on empowerment of employees. A survey conducted on IKEA employees shows that almost all workers are committed towards their working culture (Stadtler, 2015). A well-designed systematic HRM practice is one factor that has brought success for the company. Penrose (1995) in his paper had discussed factors causing limit to growth. The paper developed by Penrose scrutinized causes and limits of organization growth. Some of the relevant factors are present within the company while some are external factors. The internal factors inhibiting firms growth include lack of access to capital or unfavorable condition of demand. Change in firms technology is one of internal factor affecting growth (Fernndez-Olmos Ramrez-Alesn, 2017). There are external factors as well that limits growth. The need to conduct research and planning prior to expansion limit the extent of expansion. The limited availability of management service in another factor limiting growth (Penrose, 1955). This actually refers to presence of experienced personnel in the enterprise. Firms even when have perfectly elastic supply of all other important factors of production only grow up to a limit because of lack of efficient management service (Buckley Casson, 2016). Growth in the business organization can be recognized through two channels- channel of internal or organic growth and channel of external growth. Organic or internal growth depends on firms internal resource and is a relatively slow process (Favaro, Meer Sharma, 2012). External growth on the other hand depends on others companies resources. The internal growth strategy includes market penetration strategy, product development and diversification strategy to mitigate risk. Mergers and joint ventures are part of external growth strategy. A business can merge with another business in two ways- takeovers or acquisition and amalgamation (Gerpott Neubauer, 2016). In acquisition one company buys major shares of another and take control of the firm. While amalgamation is when two or more than two firms join and operate as a single entity (Kreutzer, 2012). The strategy of joint venture refers to decision of two or more firms to jointly set up a new business firm in order to explore greater opportunity. The organism growth like for a tree or any living organism a visible growth is indicated from change in amount or size. Similarly, growth of enterprise is reflected from measures like growth of employment, profit margin, volume of sales, financial performance indicators such as return on equity and return on assets (Achtenhagen, Naldi Melin, 2010). The performance tool in most companies now evaluated using balance score card. The company which I worked for uses this tool for performance analysis. However, there is little concern regarding particular growth measures and it is always suggested adapt multiple growth measures to assess the overall level of growth (Delmar, Davidsson Gartner, 2003). I completely agree with the proposition that growth of enterprise leads to development and brings creativity in the organization, which is discussed during this course. While researching on entrepreneurial growth, I have found that heterogeneity exists in firms productivity and performance and there are different ways of attaining growth. What individual company can do is to identify their strength and explore that strength to attain growth. One way is to invest in research and development to improve quality of their product or attain a wider variety as suggested in the endogenous growth model (Agnor Montiel, 2015). Enterprises should focus on raising access to factors of production and should efficiently allocate of these resources. Finally, I found several similarities between growth of enterprises and that of organism in the ecosystem. The growth of an organism is limited by its genes or environment. Similarly, the growth of organization limited because of some internal and external factors. Sometime managers with their own choice decides to stop firms growth due to personal cause like issues related to ethic or normative practice or their own lifestyles. Intervention by government and economic shocks are examples are external factors influencing entrepreneurial growth. 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