Entrepreneurial Behaviours

Question 1

Explain the challenges and opportunities created by globalisation for individuals and organisations

Answer 1

Globalisation refers to business activity conducted on a worldwide scale. This business activity is not restricted by geographical borders, and increases as a result of increases in transport and digital technologies.

Organisations:
- Globalisation provides access to new markets, meaning more resources and a wider labour pool, potentially increasing profits
- However, they may face high investment costs and a need to adapt goods/services to a local market (like McDonald’s India)

Individuals:
- Individuals may have more promotional and international job opportunities
- However, the market grows very competitive (with outsourcing) and more skilled workers become required

Question 2

Explain the concept and stages of a culture of continuous improvement.

Answer 2

A culture of continuous improvement relates to seeking never-ending improvements through all processes within a company. The key to continuous improvement is not to focus on end-results, but rather to improve all processes throughout production. The continuous improvement cycle is as follows:

Plan:
- An organisation undertakes planning and sets its objectives (from short to long-term)

Do:
- Organisations address their problems by executing the plans from the first stage

Check:
- Organisations check and monitor to see if the expected improvements are occurring, and if any improvements could be made in the change

Act:
- The organisation changes its objectives and/or implements new strategies to improve on shortcomings of the change

Question 3

Explain how a culture of continuous improvement contributes to the competitiveness of a business in the global marketplace

Answer 3

• Innovation and Adaptability
• Efficiency and Productivity
• Quality Enhancement
• Employee Engagement and Skill Development
• Customer Focus
• Building a Strong Brand Reputation
• Global Standards Compliance

Question 4

Explain the impact of organisational restructuring on the human, physical and financial resources of a business

Answer 4

Human Resource Management Examples:
- Hiring new managers (regional and/or state, marketing)
- Hiring new crew/employees (for new stores)
- Training will need to be provided for staff
- Possibility of redeployment for some staff (e.g. Moving from one state to another)

Financial Resource Management Examples:
- Departments in different states may have different budgets
- The cost of materials may vary per state
- Costs like rent and utilities may be higher in certain areas
- The cost of equipment and ‘fit-outs’ must be considered

Physical Resource Management Examples:
- New suppliers to be sourced
- Design and layout of new stores needs to be considered
- Location of new stores needs to maximise sales
- Laws surrounding sustainable packaging differ by state
Utilities (water, energy, etc) are state-provided services