Assignment: Follow Up - Innovation Business Brief

Assignment: Follow Up - Innovation Busin" rel="nofollow">iness Brief Assignment: Follow Up - Innovation Busin" rel="nofollow">iness Brief Please, dear cover all the poin" rel="nofollow">ints in" rel="nofollow">in number (1-2-3-4-5) and especially in" rel="nofollow">in number (4) because is very important. Please dear, covers each poin" rel="nofollow">int in" rel="nofollow">in rubric because is very important to I get the high degree. Also, please dear look at pages 77 and 78 of the textbook in" rel="nofollow">in the end of these pages. Moreover, fin" rel="nofollow">ind attached. Purpose The purpose of this assignment is for you to thin" rel="nofollow">ink critically about the importance of in" rel="nofollow">innovation throughout busin" rel="nofollow">iness life on a global scale. Overview In week 2, you wrote a brief about in" rel="nofollow">innovation as it relates to the company you chose (Toyota). You were asked to make some specific statements and a proposal for in" rel="nofollow">innovation with your take on what implications that proposal would have. Now you have had a few weeks to learn more. Has your thin" rel="nofollow">inkin" rel="nofollow">ing changed or do you stand by what you wrote in" rel="nofollow">in week 2? You get the chance to answer this question in" rel="nofollow">in this assignment. Action Items 1.Review the gradin" rel="nofollow">ing rubric (below) for this assignment. 2.Review what Hill wrote about in" rel="nofollow">innovation on pages 77 and 78 of the textbook. 3. Review what you wrote in" rel="nofollow">in week 2 for your busin" rel="nofollow">iness brief about in" rel="nofollow">innovation, especially your proposal and the implications you predicted. I sent you my assignment. 4.Explain" rel="nofollow">in whether or not you main" rel="nofollow">intain" rel="nofollow">in what you wrote in" rel="nofollow">in week 2. More specifically, knowin" rel="nofollow">ing what you know now, would you still make the proposal for in" rel="nofollow">innovation that you made in" rel="nofollow">in your origin" rel="nofollow">inal brief? Do you still feel that the implications you suggested are accurate? Use what you have learned in" rel="nofollow">in the course to explain" rel="nofollow">in any changes you would or would not make and your rationale for your choice. 5. Keep your Brief Update to one page. Innovation Busin" rel="nofollow">iness Brief Follow-Up Rubric Total 25 poin" rel="nofollow">ints Criteria Defends Innovative Proposition or Alteration of Proposition. Proficient Succin" rel="nofollow">inctly but thoroughly defends the origin" rel="nofollow">inal proposal or presents a strong case for a new one; explain" rel="nofollow">ins his/her rationale for either choice. (10 poin" rel="nofollow">ints) Criteria Description of Implications: the student Proficient Clearly explain" rel="nofollow">ins why the in" rel="nofollow">international implications of the proposed in" rel="nofollow">innovation origin" rel="nofollow">inally given still hold OR what implications he/she now sees with origin" rel="nofollow">inal proposal OR what implications would be associated with a new proposal. (5 poin" rel="nofollow">ints) Criteria Integrates established in" rel="nofollow">international busin" rel="nofollow">iness prin" rel="nofollow">inciples in" rel="nofollow">into the discussion. Proficient Consistently does a good job of in" rel="nofollow">integratin" rel="nofollow">ing established in" rel="nofollow">international busin" rel="nofollow">iness prin" rel="nofollow">inciples in" rel="nofollow">into the discussion. Criteria Synthesizes relevant in" rel="nofollow">information and materials to provide evidence of critical thought. (5 poin" rel="nofollow">ints) Proficient Consistently and effectively synthesizes in" rel="nofollow">information, which provides strong support to main" rel="nofollow">in ideas. (5 poin" rel="nofollow">ints) pages 77 and 78 of the textbook INNOVATION AND ENTREPRENEURSHIP ARE THE ENGINES OF GROWTH There is substantial agreement among economists that in" rel="nofollow">innovation and entrepreneurial activity are the engin" rel="nofollow">ines of long-run economic growth.5 Those who make this argument defin" rel="nofollow">ine in" rel="nofollow">innovation broadly to in" rel="nofollow">include not just new products but also new processes, new organizations, new management practices, and new strategies. Thus, the Toys “R” Us strategy of establishin" rel="nofollow">ing large warehouse-style toy stores and then engagin" rel="nofollow">ing in" rel="nofollow">in heavy advertisin" rel="nofollow">ing and price discountin" rel="nofollow">ing to sell the merchandise can be classified as an in" rel="nofollow">innovation because it was the first company to pursue this strategy. Innovation and entrepreneurial activity help to in" rel="nofollow">increase economic activity by creatin" rel="nofollow">ing new products and markets that did not previously exist. Moreover, in" rel="nofollow">innovations in" rel="nofollow">in production and busin" rel="nofollow">iness pro- cesses lead to an in" rel="nofollow">increase in" rel="nofollow">in the productivity of labor and capital, which further boosts economic growth rates.6 Innovation is also seen as the product of entrepreneurial activity. Often, entrepreneurs first commercialize in" rel="nofollow">innovative new products and processes, and entrepreneurial activity provides much of the dynamism in" rel="nofollow">in an economy. For example, the U.S. economy has benefited greatly from a high level of entrepreneurial activity, which has resulted in" rel="nofollow">in rapid in" rel="nofollow">innovation in" rel="nofollow">in products and process. Firms such as Google, Cisco Systems, Dell, Microsoft, and Oracle were all founded by entrepreneurial in" rel="nofollow">individuals to exploit new technology. All of these firms created significant economic value and boosted productivity by helpin" rel="nofollow">ing to commercialize in" rel="nofollow">innovations in" rel="nofollow">in products and processes. Thus, one can conclude that if a country’s economy is to sustain" rel="nofollow">in long-run economic growth, the busin" rel="nofollow">iness environment must be conducive to the consistent production of product and process in" rel="nofollow">innovations and to entrepreneurial activity. INNOVATION AND ENTREPRENEURSHIP REQUIRE A MARKET ECONOMY This leads logically to a further question: What is required for the busin" rel="nofollow">iness environment of a country to be conducive to in" rel="nofollow">innovation and entrepreneurial activity? Those who have considered this issue highlight the advantages of a market economy.7 It has been argued that the economic freedom associated with a market economy creates greater in" rel="nofollow">incentives for in" rel="nofollow">innovation and entrepreneurship than either a planned or a mixed econ- omy. In a market economy, any in" rel="nofollow">individual who has an in" rel="nofollow">innovative idea is free to try to make money out of that idea by startin" rel="nofollow">ing a busin" rel="nofollow">iness (by engagin" rel="nofollow">ing in" rel="nofollow">in entrepreneurial activity). Similarly, existin" rel="nofollow">ing busin" rel="nofollow">inesses are free to improve their operations through in" rel="nofollow">innovation. To the extent that they are successful, both in" rel="nofollow">individual entrepreneurs and established busin" rel="nofollow">inesses can reap rewards in" rel="nofollow">in the form of high profits. Thus, market economies contain" rel="nofollow">in enormous in" rel="nofollow">incentives to develop in" rel="nofollow">innovations. In a planned economy, the state owns all means of production. Consequently, entrepreneurial in" rel="nofollow">individuals have few economic in" rel="nofollow">incentives to develop valuable new in" rel="nofollow">innovations, because it is the state, rather than the in" rel="nofollow">individual, that captures most of the gain" rel="nofollow">ins. The lack of economic freedom and in" rel="nofollow">incentives for in" rel="nofollow">innovation was probably a main" rel="nofollow">in factor in" rel="nofollow">in the economic stagnation of many former communist states and led ultimately to their collapse at the end of the 1980s. Similar stagnation occurred in" rel="nofollow">in many mixed economies in" rel="nofollow">in those sectors where the state had a monopoly (such as coal min" rel="nofollow">inin" rel="nofollow">ing and telecommunications in" rel="nofollow">in Great Britain" rel="nofollow">in). This stagnation provided the impetus for the widespread privatization of state-owned enterprises that we witnessed in" rel="nofollow">in many mixed economies durin" rel="nofollow">ing the mid-1980s and that is still goin" rel="nofollow">ing on today (privatization refers to the process of sellin" rel="nofollow">ing state-owned enterprises to private in" rel="nofollow">investors). A study of 102 countries over a 20-year period provided evidence of a strong relation- ship between economic freedom (as provided by a market economy) and economic growth.8 The study found that the more economic freedom a country had between 1975 and 1995, the more economic growth it achieved and the richer its citizens became. The six countries that had persistently high ratin" rel="nofollow">ings of economic freedom from 1975 to 1995 (Hong Kong, Switzerland, Sin" rel="nofollow">ingapore, the United States, Canada, and Germany) were also all in" rel="nofollow">in the top 10 in" rel="nofollow">in terms of economic growth rates. In contrast, no country with persistently low economic freedom achieved a respectable growth rate. In the 16 countries for which the in" rel="nofollow">index of economic freedom declin" rel="nofollow">ined the most durin" rel="nofollow">ing 1975 to 1995, gross domestic product fell at an annual rate of 0.6 percent. INNOVATION AND ENTREPRENEURSHIP REQUIRE STRONG PROPERTY RIGHTS Strong legal protection of property rights is another requirement for a busin" rel="nofollow">iness environment to be conducive to in" rel="nofollow">innovation, entrepreneurial activity, and hence eco- nomicgrowth.9 Both in" rel="nofollow">individuals and busin" rel="nofollow">inesses must be given the opportunity to profit from in" rel="nofollow">innovative ideas. Without strong property rights protection, busin" rel="nofollow">inesses and in" rel="nofollow">individuals run the risk that the profits from their in" rel="nofollow">innovative efforts will be expropriated, either by crimin" rel="nofollow">inal elements or by the state. The state can expropriate the profits from in" rel="nofollow">innovation through legal means, such as excessive taxation, or through illegal means, such as demands from state bureaucrats for kickbacks in" rel="nofollow">in return for grantin" rel="nofollow">ing an in" rel="nofollow">individual or firm a license to do busin" rel="nofollow">iness in" rel="nofollow">in a certain" rel="nofollow">in area (i.e., cor- ruption). Accordin" rel="nofollow">ing to the Nobel Prize-win" rel="nofollow">innin" rel="nofollow">ing economist Douglass North, through- out history many governments have displayed a tendency to engage in" rel="nofollow">in such behaviour. Inadequately enforced property rights reduce the in" rel="nofollow">incentives for in" rel="nofollow">innovation and entrepreneurial activity—because the profits from such activity are “stolen”—and hence reduce the rate of economic growth. The in" rel="nofollow">influential Peruvian development economist Hernando de Soto has argued that much of the developin" rel="nofollow">ing world will fail to reap the benefits of capitalism until property rights are better defin" rel="nofollow">ined and protected.10 De Soto’s arguments are in" rel="nofollow">interestin" rel="nofollow">ing because he says the key problem is not the risk of expropriation but the chronic in" rel="nofollow">inability of prop- erty owners to establish legal title to the property they own. As an example of the scale of the problem, he cites the situation in" rel="nofollow">in Haiti, where in" rel="nofollow">individuals must take 176 steps over 19 years to own land legally. Because most property in" rel="nofollow">in poor countries is in" rel="nofollow">informally “owned,” the absence of legal proof of ownership means that property holders cannot convert their assets in" rel="nofollow">into capital, which could then be used to fin" rel="nofollow">inance busin" rel="nofollow">iness ventures. Banks will not lend money to the poor to start busin" rel="nofollow">inesses because the poor possess no proof that they own property, such as farmland, that can be used as collateral for a loan. By de Soto’s calculations, the total value of real estate held by the poor in" rel="nofollow">in Third World and former communist states amounted to more than $9.3 trillion in" rel="nofollow">in 2000. If those as- sets could be converted in" rel="nofollow">into capital, the result could be an economic revolution that would allow the poor to bootstrap their way out of poverty. Interestin" rel="nofollow">ingly enough, the Chin" rel="nofollow">inese seem to have taken de Soto’s arguments to heart. Despite still bein" rel="nofollow">ing nomin" rel="nofollow">inally a communist country, in" rel="nofollow">in October 2007 the government passed a law that gave private property owners the same rights as the state, and significantly improved the rights of urban and rural landowners to the land that they use (see the accompanyin" rel="nofollow">ing Country Focus for details). Assignment Innovation Busin" rel="nofollow">iness Brief Introduction In busin" rel="nofollow">iness, in" rel="nofollow">innovation refers to the concept of in" rel="nofollow">introducin" rel="nofollow">ing new ideas and translatin" rel="nofollow">ing them in" rel="nofollow">into goods or services that create value for the customers (Frenkel & Maital, 2014). For global busin" rel="nofollow">inesses, the concept of in" rel="nofollow">innovation is important as it gives them a competitive edge and it enables them to consistently transform and remain" rel="nofollow">in relevant in" rel="nofollow">in busin" rel="nofollow">iness. The idea of startin" rel="nofollow">ing the busin" rel="nofollow">iness at the begin" rel="nofollow">innin" rel="nofollow">ing might be an in" rel="nofollow">innovation by itself and for growth and profitability, it is important for a firm to keep on in" rel="nofollow">innovatin" rel="nofollow">ing in" rel="nofollow">in lin" rel="nofollow">ine with its services or goods of trade. Toyota Company and its Innovations The history of the Toyota Company can be reflected back to the 1930s when the company began as a division of Toyoda automatic loom works in" rel="nofollow">in Japan. It produced its first passenger car in" rel="nofollow">in 1936 a model called AA. In 1937, it was launched under its own name as Toyota. The company has grown for over 75 years due to its in" rel="nofollow">innovations in" rel="nofollow">in terms of car models, safety aspects, reducin" rel="nofollow">ing consumptions, reducin" rel="nofollow">ing emFissions of harmful gasses such as carbon monoxide and even creatin" rel="nofollow">ing automated vehicles that can be operated easily even by the handicapped people. The company has brought in" rel="nofollow">in electric cars and even those that use hydrogen in" rel="nofollow">in efforts to create value for their customers worldwide. The company was first to lead by the son to Toyoda. The ambitions entrepreneur had good entrepreneurial skills and he was able to harness in" rel="nofollow">innovativeness through the workforce and the busin" rel="nofollow">iness environment as the competition shaped the situations. Today, the company manufactures Toyota brand and also the Lexus brand as the luxury vehicle division for diversity to enhance creatin" rel="nofollow">ing value for its customers (Toyota, 2016). Accordin" rel="nofollow">ing to Hills, in" rel="nofollow">innovation and entrepreneurship are the engin" rel="nofollow">ines of growth. As an automobile company, the Toyota Company has consistently differentiated its automobile products in" rel="nofollow">in efforts to grow and capture a wider market in" rel="nofollow">internationally. In this case, the Toyota Company is favoured by the market economy as it takes part in" rel="nofollow">in the global automobile busin" rel="nofollow">iness that is accepted and appreciated worldwide. Hill, Richardson, & McKaig (2006) argue that this economic freedom enables companies to remain" rel="nofollow">in in" rel="nofollow">innovative for many years. The contin" rel="nofollow">inued stability enables the firms to venture in" rel="nofollow">into new in" rel="nofollow">innovations and even do better in" rel="nofollow">in the future. With capitalism, the Toyota Company has gain" rel="nofollow">ined property rights which promote in" rel="nofollow">innovation at global perspective and the favourable market conditions enables the firm to consistently grow through in" rel="nofollow">innovations. Innovation Proposal for Toyota Company With the current trends in" rel="nofollow">in the car manufacturin" rel="nofollow">ing in" rel="nofollow">industries, the Toyota Company has to consistently grow in" rel="nofollow">in in" rel="nofollow">innovations to remain" rel="nofollow">in competitive in" rel="nofollow">in the automobile busin" rel="nofollow">iness world. A great shift of the mechanical in" rel="nofollow">industries has seen the companies in" rel="nofollow">incorporate smart technology to use robots that partially substitute humans in" rel="nofollow">in drivin" rel="nofollow">ing and lin" rel="nofollow">inkin" rel="nofollow">ing it with smart roads to facilitate safety. Accordin" rel="nofollow">ing to Dixon ( 2013), an in" rel="nofollow">innovation along this lin" rel="nofollow">ine of in" rel="nofollow">interest will go a long way in" rel="nofollow">in fetchin" rel="nofollow">ing newer and wider markets in" rel="nofollow">in the car manufacturin" rel="nofollow">ing in" rel="nofollow">industries. Toyota needs to create new vehicles with the ability to self-drive in" rel="nofollow">in both smart roads and outside smart roads and with the ability to fully substitute human drivers on the roads. These vehicles should have the ability to self-drive outside smart roads by the help of satellites or other pre-set programs that will make them safe for the use in" rel="nofollow">in markets where smart roads have not yet been developed. In addition, this in" rel="nofollow">innovation should seek to break barriers that other companies have not managed to go through. They need to make them sophisticated enough to completely substitute human drivers with high levels of robot abilities that facilitate safety on the roads. These vehicles should be enhanced with the ability to self-command in" rel="nofollow">in different occasions for safety along the roads. They need to have in" rel="nofollow">integrated mechanisms that enable them to cooperate with other human driven vehicles and road safety systems such as traffic lights, roundabouts amongst others. For examples, this in" rel="nofollow">innovation will enable the use of tracks that are self-driven to make pick-ups and drop-offs in" rel="nofollow">in the area they are meant to operate. These vehicles should be built with the ability to adapt to new environments even where they are not familiar or pre-set to travel. This will in" rel="nofollow">increase their use beyond the normal routin" rel="nofollow">ine travels hence makin" rel="nofollow">ing them more appealin" rel="nofollow">ing to different markets all over the world. The International Implications of the Proposal The ability of the vehicles to fully self-drive and fully substitute the human drivers in" rel="nofollow">in both smart and non-smart roads will have great implications for the in" rel="nofollow">international automobile demand. The purpose of this in" rel="nofollow">innovation is to in" rel="nofollow">increase sales and contribute to the in" rel="nofollow">increasin" rel="nofollow">ing needs to enhance safety on the roads. In addition, these will in" rel="nofollow">increase output as the robots can drive longer hours than the human drivers. The successful use of this technological in" rel="nofollow">innovation will greatly shift the demand for human drivers in" rel="nofollow">in the transportation sector (Ford, 2015). The in" rel="nofollow">increase in" rel="nofollow">in its adaption in" rel="nofollow">in the in" rel="nofollow">intentional markets will in" rel="nofollow">increase road safety as these robots are created with high abilities and they are not prone to distractions that the human drivers are exposed to such as sleep, bein" rel="nofollow">ing under in" rel="nofollow">influences or normal carelessness that results in" rel="nofollow">in to accidents along the roads. There will be in" rel="nofollow">increased productivity as these vehicles can be able to work full-time without sufferin" rel="nofollow">ing from fatigue or other human-related weaknesses (Pela´ez, 2013). They will be in" rel="nofollow">in a position to go beyond the normal workin" rel="nofollow">ing hours thus growin" rel="nofollow">ing economies of the various countries worldwide. The smart systems used will help to reduce road jams that waste huge volumes of fuel and time for the humans. This way, people can spend more time workin" rel="nofollow">ing in" rel="nofollow">in other areas while vehicles carry out other roles. However, these fully self-driven vehicles will have a great impact on the human driver’s jobs. Massive loss of jobs will be experienced as their adaption grows worldwide. The level of adoption and acceptance might also be slow dependin" rel="nofollow">ing on the way people from different parts of the world perceive this technological in" rel="nofollow">innovation. In addition, some human activities such as safari rallies will not be able to adopt the technology in" rel="nofollow">in their sport as human drivers are their greatest asset and focus in" rel="nofollow">in this sport (Zhang, Liu, Chen, & Wang, 2014). Conclusion Toyota has consistently grown through in" rel="nofollow">innovation as it seeks to identify and fill gaps in" rel="nofollow">in the automobile sector thus creatin" rel="nofollow">ing value for its customers worldwide. With the high level of competition in" rel="nofollow">in this sector, the firm needs to contin" rel="nofollow">inue growin" rel="nofollow">ing new ideas and translatin" rel="nofollow">ing them in" rel="nofollow">into value for their customers. The concept of fully robot-driven vehicles is a green idea that the company can seek to execute. By developin" rel="nofollow">ing fully robot-driven vehicles that are able to operate in" rel="nofollow">in both smart and non-smart roads, the firm will be able to capture wide markets in" rel="nofollow">internationally hence growin" rel="nofollow">ing its market share and total profitability of the firm. Although the might be difficulties in" rel="nofollow">in adaption in" rel="nofollow">in some markets, contin" rel="nofollow">inued sales in" rel="nofollow">in the loyal markets will promote the idea to newer markets hence in" rel="nofollow">increasin" rel="nofollow">ing sales ultimately.