Entrepreneurial Audit
Entrepreneurial Audit

Entrepreneurial Audit

Available Only on StudyHippo
  • Pages: 10 (4789 words)
  • Published: October 7, 2017
Text preview

Bibliography Textbooks and literature 1)Corporate Entrepreneurship and Innovation, Entrepreneurial Development within Organisations, Second Edition, Thompson Southwestern, M.

Morris, D. Kuratko, and J. Govin. 2)Crafting and Executing Strategy, South African Edition. Text, Reading, and Cases.

J. Hough, A. Thompson, A. Strickland, and J.

Gamble McGraw Hill 3)Strategic Management of Technological Innovation Second Edition, 2008. M. Schilling McGraw Hill Websites 1)www. farmwise.

co. za 2)www. safex. co.

za 3)www. cbot. com 4)www. afgri. co. za Background Farmwise’s HistoryFarmwise is a company that buys and sells agricultural commodities such as white and yellow maize, Soya beans, sunflower seeds, and a variety of fruits and vegetables.

They have as their purpose the creation of value for customers and making the exchange of these commodities in an effective, efficient, and profitable way. The company was founded on the 16th May 1993 and consisted of 11 members who traded physical commodities. The company grew relatively quickly and the grains devision of Farmwise was started on the 11th February 1994. It was founded with the intention of providing a hysical trading system that would facilitate the transactions between farmers and their customers.

They served as middle-men that made the transaction much more efficient for both farmers and end users. Farmwise was one of the founding members of the AMD Devision of SAFEX, which illustrates that they have had a leading market position for a number of years. Ownership and Organisational Structure The following organisational chart illustrates the structuring of management and authority at Farmwise. Figure 1.

...

1 Farmwise is a private company with an internal board of directors that determine the long-term strategic decisions of the company.Daily board meetings help the top managers at Farmwise to deliberate the events of the day and discuss tactics that might improve performance. Although there are definite reporting relationships within the company, there is still a high level of employee participation in the decision making process. There are currently twelve directors at Farmwise and numerous shareholders in the company but these shares are not freely transferable.

Employees are encouraged to take responsibility for their own actions and are given a certain amount of freedom to pursue opportunities that they see as potentially viable.This has created a relaxed atmosphere in the workplace and employees are not constricted by policies and procedures that have to be adhered to. Mr. John Hammond, a director at Farmwise illustrated in an interview that they have moved away from an “or else” approach to a “what if? ” approach that allows employees to use their own initiatives.

Products and Services The following is a direct quotation from the Farmwise website and illustrates the diversity of the product and services offerings that Farmwise has. Farmwise offers a comprehensive brokerage service with a diverse client base which includes producers, consumers and speculators from a wide geographical area. This enables us to keep an “ear to the ground” at all times. We have a low client to broker ration, which ensures prompt and efficient service.

The company has developed and internet based trading system that enables our clients to monitor the market in real time, as well as placing electronic

View entire sample
Join StudyHippo to see entire essay
View entire sample
Join StudyHippo to see entire essay

orders. Financing of grain already in-silo, provides their clients with the financial flexibility to make considered marketing decisions.Cash flow constraints should not force a market participant into a marketing decision and Farmwise provides the wherewithal to ensure this. Swops, involving physical inventory, enable different participants to maximise potential or minimise transport costs. This exciting facet of the market is possibly the most difficult and challenging part of the delivery process. Swops require acute knowledge of the cyclical supply and demand factors inherent in the market, as well as a mutual relationship of trust between participants.

Our excellent relations in the industry provide precisely this. (www. farmwise. co. za) Farmwise: An Entrepreneurial Critique Farmwise’s Core Business Model “A company’s business model explains the rationale behind why its business approach and strategy will be a moneymaker.

Absent the ability to deliver good profitability, the strategy is not viable and the survival of the business is in doubt. ” (Crafting and Executing Strategy, Hough) This definition puts into perspective what Farmwise’s business model should look like and on the evidence given, it would seem that they have achieved this.Farmwise has made it clear that their strategy is to become the major private broker of agricultural commodities in Southern Africa. They are well on their way to achieving this and the profits that they have delivered in recent years would indicate the preliminary successes that they have had on the ay to achieving this long-term goal. Entrepreneurial Intensity at Farmwise Farmwise is a company that has been established and managed on the premise of providing a superior service to a diverse group of customers in an effective way. They have continually adapted their strategy according to the changes in the industry.

The commodity trading industry is not susceptible to constant incremental changes but they do occur and Farmwise has been relatively successful in adapting tom these changes. The level of entrepreneurship at Farmwise is relatively small but senior management has made it clear that entrepreneurial behavior is definitely encouraged in the company. When exploring the entrepreneurial intensity in a company such as Farmwise, one must consider three critical elements that influence this intensity. These include innovativeness, risk-taking, and proactiveness.One must then combine these elements to discover the concepts of degree and frequency of the entrepreneurial intensity that is evident in the company.

Innovativeness According to Morris, Kuratko, and Govin, (Corporate Entrepreneurship and Innovation, 2nd edition) innovativeness refers to “…the relative emphasis on concepts or activities that represent a departure from what is currently available. ” They also refer to it as the “…extent to which the company is doing things that are novel, unique, or different. ” (Morris, Kuratko, and Govin) From the evidenced gleaned, it would seem that Farmwise has some degree of innovativeness.They have a unique method of trading that can be accessed online from their website and this allows comprehensive access for their clients to commodity market with real-time information, graphics and statistical data.

They were the first South African company to use this method and have an affiliation with the Chicago Board Of Trade (CBOT) which is the largest agricultural commodity

View entire sample
Join StudyHippo to see entire essay