Discuss about the Entrepreneurship and Innovation of Snowy Hydro Limited.
Business context and management of an organization is referred to the coordination of activities of the business to achieve the objective of the organization. Snowy Hydro Limited Company mainly generates electricity and is famous as a retailer company of Australia. The company was set up in 1949. The owner of the company is Commonwealth Government (13%), Government of Victoria (29%) and Government of New South Wales (58%). The shareholders of Snowy Hydro Limited Company provide strategic direction to enterprise (Our Business | Snowy Hydro. 2017).
The focus of the assignment is to discuss about the entrepreneurship and innovation. The assignment discusses about the innovative nature of the company and the difference of disruptive innovation and sustaining innovation. The creativity promotion and innovation is also discussed. Necessary models and theories are applied to discuss the topic area. Another focus of the report is to utilise the entrepreneurship and innovation on the Snowy Hydro Limited Company.
The learning objectives of the Snowy Hydro Limited Company are discussed below:
For the last decades, the innovation became the driving force to shape the competition and the survival of Snowy Hydro Limited Company. However, innovation has three levels like revolution, renewal and resilience. Revolution is the way, in which the outsiders change the fundaments of Snowy Hydro Limited Company and use the creative destruction. Renewal is the changes of industrial incumbent and helps to rethink about existing business model of Snowy Hydro Limited Company. Chesbrough (2013) stated that resilience is a continue reconstruction of working environment on the behaviours, processes and values.
Snowy Hydro Limited Company showed all the three levels of innovation. Resilience can be come up with the new products for the consumers by providing various hydro electric power stations. The renewal has come up with the business model via renewable energy sources. However, Drucker (2014) suggested that the source of the renewable energy is saving the non renewable energy and the company is getting various chances to grow in the international energy supplying market. Revolution is come with the acts like Snowy Mountains Hydro Electric Power Act (1949). The revolution has changed the past core competence of energy supplying market. Due to revolution the company started to grow fast. However, the company started their snowy scheme modernisation projects to develop the company position in the international market.
In the energy source market the company has developed the trust of the customers that is utilised. Consumers in the most demanding levels of the market can never get satisfaction with the available products. To make the customers satisfy, Snowy Hydro Limited Company needs to develop their strategy and productivity. Customers want better quality of services. However, different companies have different perspective to make profit. The target of sustaining innovation is to demanding customers with the best performance than the previous one. Sustaining innovation suggests about the increment over the years and the development of the company. On the other hand, disruptive innovation does not attempt better production and quality (What is Disruptive Innovation. 2017). Therefore, Snowy Hydro Limited Company apply the sustaining innovation.
Chesbrough (2013) suggested that many companies stuck to the old models of innovation that is a closed system. However, successful innovation needs controls. Pal et al. (2014) said that Snowy Hydro Limited Company needs to generate the own innovative ideas for the development, manufacture, service, distribution and market. Snowy Hydro Limited Company should plan own innovation ideas to achieve success. The new model of open innovation shows that Snowy Hydro Limited Company is able to commercialise the external and internal ideas by the deployment. Mainly, Snowy Hydro Limited Company needs to commercialise the internal ideas via channels outside the recent business to generate the value of the organization.
In the new open innovation model, Snowy Hydro Limited Company commercialise the both ideas of own and other companies to develop the market place. However, Cheng and Huizingh (2014) suggested some principles of open innovation. Snowy Hydro Limited Company finds the new ideas to attract the employees as well as the customers. Management of Snowy Hydro Limited Company researched for new innovative ideas for the profit and reputation. In 2005, New South Wales government sold their 58% of share in the company to make profit up to A$ 1 billion (Felin & Zenger, 2014). The management of Snowy Hydro Limited Company applied a new idea to make profit from the other companies by using the IP of other companies and buying the IP of those companies in advance to make own business model.
Innovation includes inherently the risk taking, unconventional teamwork and non standard solutions that cannot be managed easily by the ordinary control system. It develop the organizational framework and efficient management of the culture, which become critical for mobilising the creativity and innovative in Snowy Hydro Limited Company. Karim and Sarfraz (2016) suggested that the organization needs to be ambitious and strategy to be successful. However, appropriate leadership is also necessary for the successful promotion of creativity. There are six norms of the innovative organizational cultures. The norms are focus on the idea generation, support a continuous learning culture, risk talking, mistake tolerance, change supporting and conflict handling. Many companies like Snowy Hydro Limited Company find the innovation difficult. There are various reasons for the difficulty. During considering the innovation, risks are also involved in the innovation plan. However, the risk managers should handle the risks to get the success. Dawson and Andriopoulos (2014) suggested that Snowy Hydro Limited Company should take different perspective to create an innovation culture and focus on the creativity to support the innovation.
Entrepreneurship is not easy like innovation. Entrepreneurs mainly use the innovation to create new changes or exploit opportunities to make the profit. The main purpose of the entrepreneurs is to make profit by the innovation. Entrepreneurship is the first and main mindset to identify a single opportunity to pursue the order and produce new product for the economic success. Entrepreneurship of Snowy Hydro Limited Company has five key elements. Those are creating climate support to continue opportunity searching, framing, and stocking the opportunity, focus and promotion of execution (Wu & Huarng, 2015).
The purpose of creating new climate to support the opportunity search is to find high potentiality for the business and exploit those opportunities with the confidence and speed. The entrepreneurship leaders are different from other managers by personal practice. The necessity of framing the opportunity is to count the profit amount that the company is making from the productivity.
The board of Snowy Hydro Limited Company set up a sub-committee for assisting in the meeting the risk management duties and responsibilities. These involve compliance subcommittee and aforementioned audit, operations and environment risk, portfolio risk sub-committee and culture subcommittee (Sadgrove, 2016).
Audit and compliance subcommittee: the function of the committee is to give advice to Board on the risks that are related to the audit, financial report, business risk management and corporate management structure.
Portfolio risk subcommittee: the function of the subcommittee is to give advice on pertaining risks to the energy trading function of Snowy Hydro Limited Company, treasury functions, corporate and strategic function and trading operation.
Safety, environmental and operations risk sub-committee: this committee advice on pertaining risks to operations of generation, communication and hydraulic assets of company, health of the workplace and environmental safety practice involving the water release responsibility (Our Business | Snowy Hydro. 2017).
People and culture sub-committee: these committee advices to Board on the risks and duties of the human resources of the company. Particularly, the committee gives advice on remuneration and measure policy, successful planning and organizational improvement practices of Chief Executive Officer.
Conclusion
On the basis of the above discussion, it can be concluded that Snowy Hydro Limited Company is a renewable company and has various market risks. These risks can affect the market of the company. Snowy Hydro Limited Company uses the innovative entrepreneurship that helps the company to make more profit and maintain the customer satisfaction. Snowy Hydro Limited Company generates own innovative idea to develop, manufacture, distribution, service and market position. Snowy Hydro Limited Company plans own innovation ideas to gain the success. Moreover, the organization has risk management department that manage the raising risks and suggest new ideas to the Board so that new goals can e set and more profit can be achieved. It is hopeful that the company will develop more in future.
References
Cheng, C. C., & Huizingh, E. K. (2014). When is open innovation beneficial? The role of strategic orientation. Journal of product innovation management, 31(6), 1235-1253.
Chesbrough, H. (2013). Open business models: How to thrive in the new innovation landscape. Harvard Business Press.
Chesbrough, H. (2013). Open business models: How to thrive in the new innovation landscape. Harvard Business Press.
Dawson, P. &Andriopoulos, C. (2014).Managing Change and Innovation, Sage Publishing, London, U.K.
Drucker, P. (2014). Innovation and entrepreneurship. Routledge.
Felin, T., & Zenger, T. R. (2014). Closed or open innovation? Problem solving and the governance choice. Research Policy, 43(5), 914-925.
Karim, S. A., & Sarfraz, S. U. (2016). CREATIVITY IS EVERYONE’S BUSINESS: HOW TO ENHANCE EMPLOYEE CREATIVITY IN TELECOMMUNICATION SECTOR. Annals of the University of Oradea, Economic Science Series, 25(1).
Our Business | Snowy Hydro. (2017). Snowyhydro.com.au. Retrieved 15 January 2017, from https://www.snowyhydro.com.au/our-business
Pal, R., Aneja, A. P., Antlova, K., & Militky, J. (2014). Open Innovation Business Models in Ambidextrous Clusters: A Multiple Case Analysis. In 26th NOFOMA annual conference, Competitiveness through Supply Chain Management and Global Logistics, 11-13 June, Copenhagen Business School, Copenhagen, Denmark. Department of Operations Management, Copenhagen Business School.
Sadgrove, K. (2016). The complete guide to business risk management. Routledge.
What is Disruptive Innovation. (2017). hbr.org/2015. Retrieved 15 January 2017, from https://hbr.org/2015/12/what-is-disruptive-innovation
Wu, C. W., & Huarng, K. H. (2015). Global entrepreneurship and innovation in management. Journal of Business Research, 68(4), 743-747.
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