CREATING AND LEADING ENTREPRENEURIAL ORGANIZATION

(PSDA)

AMITY SCHOOL OF BUSINESS

AMITY UNIVERSITY UTTAR PRADESH

SUBMITTED TO: SUBMITED BY:

DR. NIDHI GUPTA NAME –YASH MITTAL

(FACULTY SUPERVISOR ) ENROLLMENT NO.-A3923016021

AMITY SCHOOL OF BUSINESS PROGRAMME–BBA+MBA

BATCH -2016-2020
Q)’ To strengthen the understanding among founding members of the
venture and build trusting relations, it is very important to clearly set the
terms and conditions about sharing gains or losses. ‘What are the different
ways in which entrepreneurs attempt to transparently share the gains and
losses with their team members. Explain with examples

Ans) Different ways in which entrepreneurs attempt to transparently share the

gains and losses with their team members are-:
1 Build connection through swift and focused frequency.

Building trust isn’t just about intent, but also frequency and detail, shares
Buckingham. “Employees need to know that you have their back and that only
happens through regular check-ins or light touch, individualized communications.
If you meet with employees once a week for 10-15 minutes and simply ask, ‘what
are you working on and how can I help? , it goes a long way toward building
trust.”

Create a foundation of trust through regular communication and engagement.

“People want to know where they stand with you as a manager, and every
employee knows that’s a moveable feast,” notes Buckingham. “When you take
time to hear from each team member on their near-term priorities, while also
letting them know ‘we don’t need to solve everything this week’, you move the
relationship forward, and see stronger engagement and performance as a result.”

2.  Build transparency into culture.

Employees want to work for leaders who are authentic and transparent -- who
openly seek new solutions and ideas. However, many leaders struggle with
consistency in this area. Trust takes commitment. Embracing transparency requires
leaders to openly share both good and bad news. Effective communication,
listening, and clear and quality feedback go a long way in creating a positive and
open dialogue.

Many leaders hesitate to be transparent because they worry they’ll be viewed as

less authoritative or directional as a leader. This is completely false. People want to
connect with their leaders.

Leaders have to exhibit behavior they want their team to imitate, and openly share
problems they’re facing and lessons they’ve learned. They should take stock of
how the team is performing and what issues need to be addressed and what areas
will require change. When leaders do this in an open and constructive way with
their team, it builds trust.

3.  Activate experimentation.

Building a foundation of trust with employees requires leaders to create a positive

environment, where everyone on the team feels empowered to openly speak and
problem-solve. Great leaders give team members the space, autonomy and
feedback they need to be successful with specific projects they are owning.

Fear of failure prompts behaviors that can diminish the effectiveness of a team. In
absence of trust, employees are guarded, less engaged and less likely to stretch
themselves beyond their comfort zones. Empower employees to experiment. This
flexibility demonstrates your trust in your team and in turn their trust in their
leader.

4. Encourage and empower.

Enthusiasm is contagious and it’s a force multiplier. Negativity impacts energy and

optimism with decreases motivation and productivity by creating stress and
pressure.
Maximize every opportunity you can find to provide positive encouragement.
Doing so requires some effort, but the results are impactful. In my experience,
employees will find ways to deliver results beyond expectation, when leaders
express encouragement and sincere appreciation for their accomplishments.

EXAMPLE
Infosys was the first Indian company to offer stock options to employees in 1993,
the year it went public. A total of 16,237 employees benefited until ESOPs were
halted in July 2003. “Also, it was the first company in India, one of the very few in
the world to have used a model called Lev and Schwartz for valuing the human
resources in a company,” Murthy said. “We, at Infosys, believe that the most
critical resources of any corporation are the quality of human mind because a
human mind can innovate, invent, lead and bring about huge transformations.
Therefore, the objective of any corporation will have to be to acquire as many
smart and value-based professionals as possible and to create an environment of
fairness, justice, meritocracy, excellence and openness so that these professionals
can contribute effectively in the company,” he said. From its earliest start-up days,
Murthy created a team at Infosys.

 Infosys was the first Indian company to offer s

Q) A number of businesses die a natural death because of lack of values and
code of ethics and conduct. What is the significance of values and ethics for
growth of the business? Consider an example and explain the related values
that might have led the failure of a business.
Ans) Significance of values and ethics for growth of the business-:

Ethics are the principles that regulate the conduct of an activity and values are the
judgement of what is important in life. Businesses are often tempted to make
short-term gains by turning a blind eye to what’s right. Despite codes of conduct,
regulatory omission and ever-increasing public pressure, many firms routinely
ignore ethical considerations. Some even claim that a business simply needs to abide
by the law without concerning itself with broader ethical issues. Yet such disregard
can undermine the wider economy and, in time, cause irreversible destruction.
Lessons must be learned from the corporate disintegrations of the past decade: short-
sighted strategies can create lucrative companies, yet magnificent initial outcomes
may turn out to be unsustainable. There is a strong business case for running
companies in an ethically responsible way. A socially and environmentally ethical
approach ensures a company’s ability to thrive in the long-term by protecting its
reputation, its license to operate, its supply chain, its relationships with partners. It’s
about avoiding corporate collapse. While some firms consistently fail to consider
ethical factors, others have given themselves a competitive edge by establishing
strong credentials in this area .

Ethical behaviour and corporate social responsibility can bring significant benefits
to a business. For example, they may:

 Attract customers to the firm’s products, which means boosting sales and
profits
 Make employees want to stay with the business, reduce labour turnover and
therefore increase productivity
 Attract more employees wanting to work for the business, reduce
recruitment costs and enable the company to get the most talented employees
 Attract investors and keep the company’s share price high, thereby
protecting the business from takeover.

EXAMPLE

1. Failure to deliver real value.

At the heart of any business is value. The world's most successful businesses
deliver the most value. Plain and simple. Find a way that you can under-promise
but over-deliver. Always over-deliver. No matter what the situation. If you're
looking for a fast buck or to get rich quick, you'll quickly find yourself at a dead
end. Instead, focus on the real value proposition. If you're not adding as much (if
not more) value as your competitors, then you need to rethink your approach.

Why add value? For starters, it creates buzz. Just think about it. You receive a
service that simply blows your mind. Don't you want to tell all your friends about
it? And if you didn't have to pay an arm and a leg for it, you're definitely going to
be singing that company's praises from the mountain tops. Why? Because, then
you become the value-deliverer. Again, it's all about value. It might cost you more
at the outset, but it will pay off in spades.

2. Failure to connect with the target audience.

If you can't connect with your target audience, your business will fail. An inability
to connect with your demographic means that not only are you unaware of your
potential consumer's wants and needs, but you're also oblivious to how you can
best help them. What do they want? Not just what they need. But who are they and
what do they really want? Is it to invoke a certain emotion? To attain a certain
status? How is your product or service going to help them solve their problems?

Really and truly, if you're not addressing the consumer's pain points, you probably
don't understand the consumer very much. And if that's the case, then you have no
business selling until you do really do understand them. Use focus groups, market
surveys, email ask-campaigns, or straight-up phone calls, to understand and
connect with your target audience better. Discover who they are right down to the
most minute detail. That's one way you'll avoid business failure.

3. Failure to optimize conversions.

Most entrepreneurs have so much that they need to deal with that they forget to
address the absolute heart of any business. Without, no matter what a business
does, especially if it raises money and has a high burn rate, it'll be futile trying to
survive when the money runs dry. Address the conversions early on to ensure that
there's a positive ROI on any ad spends. Then you know you have a sustainable
business.

You can't solely rely on organic traffic methods like conversion optimization, any
business is wasting their time. Even long-shot unicorns need to focus on income-
producing, conversion-optimizing activities, even while building up a customer
base. Without it, it's merely a matter of time until the money runs out and
executives are scrambling to keep the doors open.

4. Failure to create an effective sales funnel.

Building an effective should be one of the primary goals of any founder. These
automated selling machines help to reduce friction in making the sale and help to
put many of the functions of running a business on autopilot, allowing founders to
grow things like traffic sources or to educate consumers through and so on. Sales
funnels also help to build a relationship with the consumer through email
warming campaigns.

The truth is that it's hard to sell anything to straight cold traffic. Sure, you can.
You'll definitely need some pre-existing proof and customer testimonials to do it.
But bigger brands that have been around and are trusted will achieve that much
easier than newcomers will. The sales funnel will create that relationship with the
consumer, relate your story and journey, while also pitching the product or service.
It's more of a soft-sell that's veiled in real value-added prose.

5. Lack of authenticity and transparency.

Businesses that lack authenticity and transparency will fail. Maybe not today or
tomorrow, but one day soon. Without the customer's needs in sight, and a focus on
the wrong things, businesses could easily lose the consumer's trust. Rather than
risk that from happening, focus on being authentic, transparent, and finding ways
that you can give more rather than take. It's a rare commodity in business, but one
necessary if it's going to survive for the long term.

6. Unable to compete against market leaders.

Staying afloat is exponentially harder when competition is fierce and smaller

businesses have a bull’s eye on their backs, especially true in lucrative markets
where the stakes are high. If smaller businesses can't compete against their larger
counterparts, they need to find ways to pivot and stay in business. To do that takes
a keen business sense and true guts.

Q) There are different types of organizational structures suited to different

types and stages of the growth of an organization. Consider a company and its
objectives and goals and nature of business, and analyze whether the
organizational structure operated by it is suitable for it or not. If not, suggest
the changes you would like to introduce.

Ans) Company- TATA MOTORS

Objective- Tata Motor set survival as their major objective. To keep a plant going
they set a low price on Nano considering that survival is more important than
profit. As long as their variable cost and some of the fixed costs are recovered from
the price they will stay in business.

Goal- To build the safest portfolio of cars built in India, in an endeavor to do its bit
to reduce road fatalities in the country.

Nature of business- Tata Group entered the commercial vehicle sector in 1954 after
forming a joint venture with Daimler-Benz of Germany. After years of dominating
the commercial vehicle market in India, Tata Motors entered the passenger vehicle
market in 1991 by launching the Tata Sierra, a sport utility vehicle based on the
Tata Mobile platform. Tata subsequently launched the Tata Estate (1992; a station
wagon design based on the earlier Tata Mobile), the Tata Sumo (1994, a 5-door
SUV) and the Tata Safari (1998).

Organizational Structure- The structure of an organization has to do with the

organizational climate along with knowledge management. In the case of Tata
Motors, the organization has understood the importance of interactions between
employers and workers. The process could be both formal and informal and the
objective is to make employees feel more bound to the organization. Gathering and
sharing knowledge is another way. Tata Motors has a relatively flat structure; thus,
it facilitates easy interaction between the different levels in the organization.

The organizational structure operated by tata motors is absolutely apt for the
organization as it deals with interrelation between employees of the organization. It
works on the modern technology such as knowledge management. The
organization particularly was easy on the way people communicate say it is formal
or informal communication.