Wednesday, December 28, 2011

Entrepreneurship Problem in the organization's adaptation process

In the last blog, we looked at the types of challenges an organization could face when it attempts to adapt to the environment around. In today's blog, we look at the first of these problems - "Entrepreneurial Problem".

The adapting cycle is most visible in the start-up organizations. These organizations are in a state of continuous flux, fighting for their survival with the environment in which they operate. They constantly grapple with the challenges at hand, with a lack of structure, processes etc. In a new organization, an idea (could also be called in the current context - "an entrepreneurial insight"), perhaps only vaguely defined at firs must be developed into an organizational domain: a specific good or service and a target market or market segment. 

When looked into from the context of an ongoing organization, the entrepreneurial problem has another dimension - this is since the organization would have already found a set of solutions to its "engineering" and "administrative" problems. The entrepreneurial energy doesn’t easily get transferred primarily as a result of the stability that the organization would have achieved. If we relate the context with reference to TV case the initial struggle when the company attempted to modify its products and market was constrained by the existing production process and the expertise of the general manager and his staff.

The entrepreneurial problem of adaptation cycle receives a logical end when the management accepts a particular product-market domain, and it become more evident when the organization commits resources to achieve the objectives relative to the domain. The commitment to entrepreneurial solution in the large ongoing businesses generally is sought through the development and projection of an organizational "image" that would define its market and the approach towards the market. GE's commitment to only compete in markets where it would be number one or two and leave the others is one such creation of an "image".


  1. I somehow did not get the link between the entrepreneurial problem and creation of image. are you saying that creation and maintenance of the image is a challenge/problem?

  2. The Entrepreneurial problem (in ongoing businesses) is generally used to explore an opportunity at hand - The choice that these business will finally make is based on the criteria it has... these criteria could also be based on the image it wants to portray to its end consumer.