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Entrepreneurial audit

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par Ponce Kokou
University of Johannesburg - Master in Business Management 2011
  

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4.4. Marketing assessment of the business

The type of management prevailing within the organisation would not qualify it as a market-driven organisation simply because it does not use its market knowledge to determine the corporate strategy of the organization. The fact the latter organization does not possess a customer focus, together with awareness of competitors, and understanding of the market, simply corroborates this latter fact. Instead, the organisational type of management reflects a lack of instruments and tools for the effective accessibility of market advantages. And therefore relies on a conventional/ traditional type of management which does not secure the company a competitive advantage (Avila, Ramon, Raghu, and Tadepalli, 1999). Consequently, the implications that can be drawn from this latter situation are namely: the neglecting of major opportunities that have critical implications for strategy implementation. The role as well the relevance of marketing in today's organisations of whichever size is critical for enabling companies to partaking in markets and competitive advantages. Therefore, Shuller (1996) elaborated a linkage between market-driven companies and human resource management, the rationale of this linkage provides key managers with a basis for predicting, studying, refining, and modifying both strategies and practices in specific circumstances. Used together, market-driven and human resource strategies can be described under two major headings (1) Market-Driven strategies and Needed Role Behaviours and (2) Market-Driven strategies and integration.

The rationale utilised is based on what is needed form employees apart form specific technical skills, knowledges, and abilities required to preform a specific task. Based on a extensive review of the literature, several role behaviours are thought to be instrumental in the implementation of the competitive strategies. Table 1 shows numerous dimensions along which employees' role behaviours can vary. The dimensions shown are the ones for which there are likely to be major differences across strategies. This can be illustrated by describing the various Market-Driven strategy and their necessary organisational conditions in more detail along with the needed behaviours from the employees

Table 1. Employee role behaviours for Market-Driven strategies

1. Highly repetitive, predictable behaviour

2. Very short term focus

3. Highly cooperative, interdependent behaviour

4. Very low concern of quality

5. Very low concern of quantity

6. Very low risk taking

7. Very low concern of process

8. High preference to avoid responsibility

9. Very inflexible to change

10. Very comfortable with stability

11. Narrow skill application

12. Low job(firm) involvement

1. Highly creative. Innovative behaviour

2. Very long term behaviour

3. Highly independent, autonomous behaviour

4. Very high concern of quality

5. Very high concern of quantity

6. Very high risk taking

7. Very high concern of results

8. High preference to assume responsibility

9. Very flexible to change

10. Very tolerant of ambiguity and unpredictability

11. Broad skill application

12. High job(firm) involvement

Source: adapted from Schuler (1988)

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