Introduction
It is important to be creative and innovative to start a new business in an industry market owing to the extreme competition in the modern day businesses. Innovation is the key behind successful entrepreneurship that can provide competitive advantage to the particular organization against its rival companies (Drucker, 2014). The innovative ideas cast an influence over the entire business of an entrepreneur including the development of the decisions and strategies of the business. The following essay will depict an overview of the concepts of innovation and entrepreneurship. It will also reflect the extent to which innovation and entrepreneurship can affect the strategies and structures of a business. Moreover it will explain their impact on the process of business decision making as well.
Analysis
Overview of the contextual factors
Every business organization needs to have something new to offer to the customers in order to gain control over the market within a short span of time. Owing to the excessive competition in the industry markets of hospitality service, food and beverages, etc. the new start up businesses should introduce something innovative to the customers that can provide a competitive edge to their businesses. But in order to understand the relation of innovation and business, it is mandate to clarify the meaning of the concepts of innovation and entrepreneurship that will be provided in this particular section of the essay.
Innovation can be explained to be the process of transforming an original idea into a sustainable product or service that can create value for the consumers (Teece, 2010). In order to create value for the customers, an innovation must be replicable at an affordable cost and satiate the definite need of the customers. According to Onetti et al, (2012), innovative products or services can be created by the brainstorming of different ways of utilising the imagination, information and available resources to develop values for the customers. In other words, innovation can provide ideas which if applied by the business organization can be useful for satiating the needs and expectations of the consumers. Therefore in order to start a new start-up multi-cuisine restaurant in Melbourne, innovative ideas and concepts can help the organization to create an appeal to the customers than the already established restaurants or eateries. This can be well interpreted through the theory of disruptive innovation that explains that small organizations can disturb the market acquisition of the large companies simply by providing a more appealing version of the same business to the customers (Christensen, 2011).
On the other hand entrepreneurship can be explained to be the procedure of designing, initiating and conducting the operations of a sustainable new enterprise (Barringer, 2012). The initiators of the new businesses are called the entrepreneurs who remain willing to create, organize and control the business ventures, being aware of the various risks that can be encountered on their journey, with an intention to make profit (Baron and Tang, 2011). The entrepreneurs remain focus towards their objective or goals and their need for achievement triggers their activities, which is suggested by the psychological theories of entrepreneurship. Moreover the opportunity based theory suggests that successful entrepreneurs can identify the opportunities provided by the social, cultural and technological changes and utilise them for initiating their start-up businesses (Short et al, 2010). Therefore the demand for food and beverages among the Australian customers and their love for a fashionable venue can be sited as a great opportunity for starting a new multi-cuisine restaurant in Melbourne.
Explaining the impact of innovation and entrepreneurship on business structures and strategy
The innovative ideas and concepts can be helpful for creating new methods of developing alliance, joint ventures and developing new strategies for making greater profits by combating the risks of businesses. The success of an organization depends highly on the creativity and commitment of its employees (Belenzon and Berkovitz, 2010). Therefore the start-up multi-cuisine restaurant can be successful in the restaurant business of Australia by incorporating innovative people into its structure. Since the restaurant has been developed on a partnership structure, the joint owners of the business should be devoted enough to brainstorm innovative ideas for the growth of its business. The innovation can be witnesses in the designing the interiors or menus, selecting the raw materials for food preparation and various other fields of the business. Moreover the strategy of conducting the business should also have a touch of innovation (Naidoo, 2010). For instance the strategy of informing the customers about the special offers or festive menus through mails or text messages can be an innovative process of connecting with them and develop the brand recognition of the restaurant among the customers.
Entrepreneurship on the other hand necessitates the owners of the businesses to have the courage of encountering certain risks and overcoming them with an intention of earning greater profits. Therefore the joint venture of three owners behind developing a successful multi-cuisine restaurant in Melbourne can only be successful if all of them have the appetite of achieving greater profits and are confident enough to handle several risks of the businesses. In addition to this the partners of the business should also be observant of the opportunities that can help them to grow their business in other parts of Australia as well. Maintaining quality within the services of the restaurant being the main strategy of gaining customer satisfaction, the entrepreneurs should keep a keen eye to all the level of business and ensure the maintenance of quality in them. Moreover the entrepreneurs should also be concerned about the maintenance of the hygiene and cleanliness in various processes of the restaurant including food preparation, inventory management, table service, etc. in order to satisfy the customers and enhance the reputation of the company.
Explaining the impact of innovation and entrepreneurship on business decision making
The business of a start-up organization depends greatly on the innovative ideas that help it to grow considerably and earn recognition among the consumers. However as Chesbrough, (2010), states, innovation should not only be witnessed among the innovative business idea or product development, but also in the decision making process of an organization. According to Ford and Richardson, (2013), decision-making is an essential component behind the success of the start-up organization and is rooted on the knowledge and reasoning of the management or leaders of the company. Therefore the owners of the new restaurant should be able to make sound and reasonable decisions that should have touch of innovation in them. An instance of innovative decision making can be witnessed in the selection of the raw materials for preparing the food items. The restaurant has decided to utilise organic materials as the ingredients of its food in order to please the health and environment conscious customers. Moreover this will also enhance the quality of the food and beverages, therefore complying to the strategy of maintaining quality.
An extensive body of research depicts that few entrepreneurs are not able to convert business opportunities into success and this has been a long time central issue in entrepreneurship (Bergh et al, 2011). Very few are proven as a successful entrepreneur because it is difficult for them to resolve issues. This research work portrays initial effort to understand personal and potential traits of an entrepreneur should have in order to attain modest success. For making a rational decision, the entrepreneur should have leadership qualities that will facilitate to realize market opportunities. It is the sole responsibility of successful leadership to accumulate market information, evaluate the problems critically, and coordinate with others (Short et al, 2010).
This paper presents the business idea of three friends from Australia to start up a multi-cuisine restaurant in Melbourne. In order to be market leaders, entrepreneurs have to understand the food consumption rate among Australian people. Australian Bureau of Statistics depicts that in 2009-10, people spend almost 16.5% of their total income in buying food and non-alcoholic items. For long-term boom, it is necessary to determine that Australian spend the bulk amount of money on eating out.
Another major factor that is necessary to be determined the strong economic condition of Australia. Australia is the 13th largest economy and ninth highest per capita income in the world. The job market is sustainable, salaries are high, and $18.22 AUD is the minimum wage. The most extraordinary factor is Australian has not seen a recession for 26 years. Therefore, Australian people can able to spend ample amount of money in consuming foods. This will be the right decision for an entrepreneur to open a multi-cuisine restaurant at Melbourne because homeownership rate is higher than others are.
Along with that, the entrepreneur should have time management skills and opportunity recognition skills (D’Este et al, 2012). Time management skill enables them to be highly productive entrepreneurs from just wishful thinkers. Additionally, they should not drive intuitive ideas because it does not add any additional value in making a decision. An innovative entrepreneur should conduct a market research, utilized gained experience from existing organizations and communicate with industry experts to predict market condition.
Conclusion
From the above discussion it can be understood that innovation and entrepreneurship are related to one another, with innovation influencing the success of an entrepreneur. The entrepreneurs of the start-up business should be creative and encourage new thoughts in order to make innovative decisions. Moreover the essay also divulges that innovation and entrepreneurship also impact the partnership structure of the new restaurant and its strategies of expanding its business further.
Reference
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