Introduction To Business Activities Commerce Essay Example

means to achieve predetermined goals (Question 1).The organization motivates its members to work towards goals by providing incentives and rewards. The organizational structure is designed to support the dominance of the technology-push model of innovation. Bakhresa Group follows a traditional management approach.

This type of direction is based on traditional direction constructs, incorporating bureaucratic theory ( Weber, 1964 ) and scientific direction ( Taylor, 1974 ). These theories propose that:

• The combination of people and machines generates an orderly end product.
• The administration serves as a tool to achieve established goals, with administration members working towards these objectives.
• Wages are provided as a means of motivation.
• All tasks can be rationalized, resulting in a predictable workflow.
• Innovation involves a series of rational decisions, often linked to departmental stages of invention (Trott, 2005).

This theory aligns with the technological-push model of innovation. The communication channel is highly structured, information flow is restricted, and operating styles are uniform and limited. Decision-making authority is based on formal line management positions, and the management is resistant to adapting to changing circumstances. The Bakhresa company utilizes a Mechanistic organization structure.

The text examines the impact of organizational structure on creativity and innovation, highlighting that it can either impede or facilitate these processes. It emphasizes that organizational structure is influenced by a range of factors including history, growth patterns, strategy, operational design, product diversity, logistics, marketing, customer base, supplier base, and more. The central argument posits that rather than striving for complete structural overhaul, managers should concentrate on comprehending the characteristics of structures that promote adaptability within the existing framework. The theorists propose that organizations require different types of

structures to effectively manage their operations and respond to environmental changes and uncertainties.

Companies operating in a dynamic and uncertain environment may find it necessary to adopt an organic organizational structure, while those in a stable environment may benefit from a mechanistic structure. The reason behind this is that organic structures enable faster processing and distribution of information and knowledge within the organization, enhancing the ability to respond to environmental changes. Conversely, mechanistic structures are effective for companies operating in stable environments where quick decision-making is not essential. In such cases, daily decisions and procedures are often formalized and centralized since constant change or innovation is not required. However, mechanistic organizations are less conducive to managing creativity and the innovation process.

According to T. Burns and G.M. Stalker (1961), it is useful to compare and analyze preferred organizational structures against less preferable ones. There are various definitions of different types of organizational structure, but an example shows that these definitions can be deceiving. For instance, flat organizations are generally preferred while hierarchical ones are not, yet even flat organizations are actually hierarchical.

Importantly, if we have a mechanistic construction, what factors allow us to travel in the right way without sweeping alteration? Some replies include:

• Direct communicating links to determination shapers.
• Communication and information flow between sections.
• Tangible patterned advance of thoughts from job to solution, merchandise development to commercialization.
• Creative squads working outside but linked into the organisation, whose civilization, processes etc diffuse into the bing construction.

The Bakhresa companies

employ a technological push approach to innovation. By adopting this approach to product innovation, a company can target and control premium market segments, establish its technology as the industry standard, build a favorable market reputation, determine the industry's future development, and achieve high profits. It can become the centerpiece in a company strategy for market leadership. However, it is costly and risky. This approach requires a company to develop and commercialize an emerging technology in pursuit of growth and profits.

To ensure success, a company must prioritize the integration of its engineering into its competitive strategy (Trot 4th ed., pg 499).

Question 2

The Bakhresa Group faces a dilemma in balancing stability and routine for efficient daily tasks, while also fostering an environment that encourages creativity and innovation to stay ahead in the future.

The Dilemma of Innovation Management

Organizations experience a fundamental tension between the need for stability and the drive for creativity. Companies rely on stable routines to efficiently complete daily tasks.

To maintain competitiveness in the present, organizations handle large volumes of checks for banks daily. However, to stay competitive in the future, companies must also prioritize innovation and product development. This necessitates creating an environment that encourages creativity and allows for testing and developing ideas. Trott (2008) identifies this as a major challenge faced by management today, particularly when observing the operations of medium to large-sized companies.

Ensuring accurate manufacturing and punctual delivery of products is crucial for every company. In a fast-paced, demanding, and well-structured environment, it is vital to eliminate inefficiencies in order to maintain cost competitiveness. However, the ability to improve products and manufacturing processes is key for long-term economic growth. Companies should foster creativity

and innovation while maintaining system flexibility.

The challenge involves finding a balance between reducing costs and improving efficiency, while also focusing on innovation and product development. The solution includes separating production from research and development (R), but it's important to note that improvements and innovations can still arise from the organization's operations.


Question 3


The management of the Bakhresa Group prioritizes long-term growth over short-term profit, and they are willing to invest in technology development. They are aware of both the threats and opportunities associated with this approach.

Organizational Features that Facilitate the Innovation Process

are characterized by a commitment to long-term growth rather than short-term profit.

Not all companies have the same goal of growth. Some companies exist solely to seize short-term opportunities, while others prefer to maintain their current size. Advanced companies, on the other hand, strive to actively plan for long-term success. This involves being aware of both threats and opportunities. Awareness requires ongoing external scanning, such as conducting market research and competitor analysis within the marketing department. While collecting valuable information is important, it is equally crucial to disseminate it to the right individuals and take necessary actions based on it.

Committedness to Technology: Advanced houses demonstrate commitment to technology by dedicating efforts to long-term engineering development. This commitment is reflected in their patience to allow ideas to duplicate and evolve over time. To attract skilled scientists, the company must also dedicate resources in terms of intellectual input.

Credence of Hazards: The willingness to include risky opportunities in a balanced portfolio characterizes credence of hazards.

Cross-functional Cooperation is the term used to describe the willingness to carefully consider risky opportunities and incorporate them into a balanced portfolio of projects. This

concept emphasizes mutual respect and collaboration across different functions. It is widely recognized that inter-departmental conflict, especially between marketing and R departments, can impede innovation due to their divergent interests.

Receptiveness: The ability to recognize, utilize, and benefit from externally developed engineering is what characterizes receptiveness. Engineering-based inventions often involve a combination of various engineerings, making it uncommon for all the engineering to be developed in-house. This is why businesses are increasingly observing the formation of joint ventures and alliances.

Slack: It is characterized by the ability to foster creativity and allow individuals space to think, experiment, discuss ideas, and be innovative, even as organizations emphasize the need for efficiency.
Adaptability: It is characterized by a willingness to embrace change. The development of new product innovations often disrupts existing organizational activities. Major or radical innovations may result in significant changes, although the two concepts are not necessarily linked. The organization must be open to altering its internal management practices to accommodate proposed innovations and learn new techniques.

Diverse Range of Skills: Organizations require individuals with a diverse range of knowledge, skills, and specialization. It is crucial to have employees who possess both specialized expertise and a comprehensive understanding of various technical subjects. This combination enables effective knowledge transfer within the company, which plays a vital role in driving innovation (Trott, 2008).

Question 4: In the Bakhresa Group, the Innovation group consists of individuals who fulfill several roles including commercial scanner, gatekeeper, project leader, and sponsor. These roles are instrumental in

facilitating the innovation process.

Above statement demonstrates that Bakhresa group is implementing them in different fields.

The Role of the person in the invention Procedure

Innovation procedure is essentially a people procedure, meaning that organizational structure, formal decision-making processes, delegation of authority, and other formal aspects of a reputedly well-run company are not necessary for successful technological innovation. Rubenstein's study has shown that certain individuals have fulfilled various roles that have contributed to successful technological innovation.

Technical Pioneer:

This person is an expert in one or two fields.

The 'mad scientist' is someone who generates new thoughts and sees new ways of doing things. The Technical/Commercial Scanner acquires a lot of information from outside the organization, often through networking, which may include market and technical data. The Gatekeeper stays informed about external developments through journals, conferences, colleagues, and other company details.

Sharing information with others enhances communication and makes it easier for them to collaborate with co-workers. It also establishes individuals as knowledgeable resources within the organization.

Merchandise title-holder: This individual is responsible for selling new ideas and acquiring resources within the organization. They are self-assured in advocating for their cause and willing to take risks.

Project Leader: The project leader is in charge of guiding and motivating the team, planning and coordinating the project, and addressing administrative requirements. They offer support to team members, ensure smooth project advancement, and find a balance between project objectives and organizational demands.

Patron: The patron is a senior figure within the organization who holds influence and power.

Buffers the Project squad from unnecessary organizational restraints and helps the undertaking squad too acquire what it needs from other parts of the organization. It provides legitimacy and organizational assurance

in the undertaking. ( Trott, 2008 )


Question 5


The Bakhresa Group, recognizing the importance of innovation, has invested significant amounts of money in order to create an environment that fosters innovation. The Bakhresa Group is aware of the need to establish a reputation for innovation, which in turn helps to strengthen the Group's abilities.

The text highlights that the Bakhresa Group is supportive of innovation, leading them to establish various companies both within and outside the group. Additionally, they aim to maintain a good reputation for innovation in order to ensure the stability of the group. The organization's structure involves dividing labor into distinct tasks and coordinating them. Acknowledging that different groups within an organization behave differently and interact with different parts of the external environment is an important aspect. Numerous studies have explored the relationship between organizational structure and innovative performance.

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