Entrepreneurship Theory Process And Practice-Myassignmenthelp.Com

Question: Discuss About The Entrepreneurship Theory Process And Practice? Answer: Introducation The founders of Cosworth Engineering were Mike Costin and Keith Duckworth. They both met with each other at the Lotus racing car Manufacturer Company. Mike Costing who had a strong enthusiasm about motor racing car joined Lotus in 1953. By the year 1956, he became the technical director of the Lotus. Keith Duckworth took a job in Lotus after graduating in mechanical engineering and both of them here decided to establish Cosworth. The main objective of setting up a racing car and engineering company were building up an exciting living with racing car and engines. However, both founders had passion and interest of racing cars and that worked as an inspiration for setting up this company. In earlier times Cosworth made racing cars for rich and affluent individuals however, the premises that were located at Shaftsbury Mews were temporary. Therefore, it was difficult to install a dynamometer on the racing cars at that premise. Ultimately, the company got the place for installing the dynamometer at Friern Barnet, which was an old coaching stable used by a wood merchant. Around 1959, an interest had been growing up across Europe regarding Formula Junior and Cosworth utilized this opportunity. Cosworth developed an engine, modified version of 105E engines and signed a contract with lotus to supply this engine to them for Lotuss 18 Formula Junior cars. However, after facing many problems Cosworth successfully built Cosworth-modified Ford 105E engines and supplied it to Lotus. Even, Cosworth made some modified parts of the racing cars for other engine builders to use. Isomorphism and its Implications in the Industry Isomorphism is a term used in business for indicating the similarities of the procedures or structures of any one organization and that to in other organizations by either imitating the structures or maintaining an independent development within similar constraints (Tan, Shao and Li 2013). In the racing car industry and from the case study, there are numbers of isomorphism that can be seen. In 1959, an interest regarding new racing car Formula Junior had been growing across Europe. This car was built for primary level racing drivers who wanted to have relatively low-cost machineries. The engine for the Formula Junior was built at the initial stage from Fiat 1100cc Millecento engine and modified afterwards that would be suitable for Formula Junior. At later stage, Cosworth business project had developed an appropriate engine from Fords 105E engine from Anglia model. In 1960, the Cosworth modified and developed Ford 105E engine as the most booming engine for the Formula Junior. This is an example of isomorphism as Cosworth started to modify from the Ford engine, imitating the structures of the engines Ford 105E. However, the Lotus Company bought the 105E engines from the Ford company and the Cosworth modified it and returned it to Lutus. Here the example of isomorphism is based on the similarities of structures of a product shared between different business organizations (Robson 2017). The basic components of the Ford 105E are fixed. Based on these components a modification was done by Cosworth. End-state Achievement for the Cosworth and its Implementation Strategies The end-state that the Cosworth wanted to achieve was its objective in the beginning of the business project. At the time of establishment, the objectives of the founders were making an interesting and exciting living from racing cars and its engines (Hagertyinsurance.co 2017). However, they did not have strict or specific purpose. The wanted to exploit some time behind their passion and utilized their money when needed. The founders followed a number of strategies for implementing their objectives. The first strategy after setting up the Cosworth was making an agreement with Lotus, which was also a manufacturer company of racing cars. The Cosworth provided 105E modified Ford engine to the Lotus for a fixed price. The second strategy was clearing money at right time of the suppliers and distributors and bought instrument on a self-financing basis. However, the strategies were followed by the earlier steps and implemented accordingly (Jenkins 2015). The third strategy was gathering enough money for new building. However, in 1964, the company moved to Northampton. The fourth strategy was developing Cosworth DFV engine and sell it. The success of making DFV engine had led them to fulfill its demand around late 1970s and early 1980s. However, cosworth had diversified activities although the racing car was the centre of its activity. It has other expertise areas such as aerospace, defense and other variou s mainstreams automotive (Jenkins, Ambrosini and Collier 2016). Strengths and Weaknesses of Cosworths various locations Cosworths first location was in Shaftsbury Mews, London W8, which was small workshop. This premise had weakness that created obstacles to install a dynamometer. In addition to that, this place was temporary and not suitable for testing the engine, by which noise and fumes were exhausted. However, one of the founders, Duchworth had found the right place, which had capacity for installing the dynamometer. The new place was an old coaching stables and a wood merchant used the place. The new location was Friern Barnet in north London. The cosworths third location was in Kenningdale Road, Edmonton. The advantages were the Cosworth tied up with Lotus for supplying engines and original equipment fittings for Lotus. The Lotus Elite cars were built in Kenningdale Road, Edmonton, which became the third location for Cosworth. The fourth location of the Cosworth was Northampton, which was 50 miles away from north of London. In 1963 the company ware able to gather enough cash to shift. They wanted a place, which were huge and had capacity to hold 50 employees. The former office was capable of holding 28 employees and quite feasible for the company. Competitive Nature of the Industry: Earlier in 1980s, there was the introduction to the Formula 1 availing a new technology of engines-turbo charging. As per the regulation from 1966, the engine either operated at 3000cc normally or 1500cc turbo-charging. The market situations prevailing then indicated 1500cc turbo charge would prove to be uncompetitive. Renault, however, accepted Formula 1, applied this formulation to their own car, and successfully witnessed the potential of the same. Following this, the other teams too landed up to the idea of 1500cc turbo-charging. Cosworth developed a newer version of DFV-the turbo charged DFX in 1975. During the 1970s, however, Cosworth began to develop for the betterment and introduced a rally engine, the BDA, which had the potential to beat the Ford Escort rally engines. They successfully innovated the high-performance road engines. All the innovative measures didnt bear fruit as designs to motor-cycle engines and automatic transmissions needed an abortion (Jenkins 2015). Utilizing Competitive Forces for Competitive Advantages: In 1965, Colin Chapman, the owner and the CEO to Lotus, approached Keith Duckworth to examine the innovative measure surrounding Formula 1 engine, which had to face the challenge regarding the regulatory accessory, oriented to perform at 1500cc or 3000cc, the former being turbo-charged. Lotus have been well performing at 1500cc while in contrast to this, Coventry Climax made an announcement to invest for a 3000cc engine, he being the supplier, this became a hindrance for Chapmans production, who then decided to approach other suppliers, potential enough to deliver the support for grand pix and world Championships (Robson 2017). Chapman in the next attempt approached Walter Hayes of Ford, who seemed interested in Formula 1 with an estimation of 100,000 Euros also with an investment towards Formula 2 termed as Four-Value Series-A. This got well constructed in 1966 with its initial appearance on 1967. In contrast to the success enjoyed by Ford, Walter was witnessed to offer misgivings towards the potential of Lotus. Ford made an agreement to develop the access to Formula 1 by the other teams as well. Next evolution by the Cosworth DFV surrounded the change of power earlier linked with the vertically integrated teams likely, Ferrari, BRM and Honda to the companions who were willing to build chassis and purchase engines from Cosworth. Cosworth was now potential to sell engines freely to any buyer. The success of Formula 1 during 1970s fetched a larger customer base. Competition and Cooperation with the Rivals: The cooperation of Cosworth with the Ford company witnessed its success in 1967, which initially when proposed the later with Formula 1 bonded an agreement to develop a four-cylinder Formula 2 engine emerging the FVA in market, to eventually create, double four value that DFV. However, on receiving misgivings, the Cosworth DFV changed the power balance from the companies focusing on the built of their own engines to the ones interested in constructing chassis and was proved to be a customer to Cosworth, including various teams. Initially, Ford with the potential use of DFV had a promising customer base while, in 1970s, Cosworth made the DFV available to any buyer as it became important for Hayes to strengthen Cosworth rather than the financial gain for Ford. Cosworths and Fords Strategies towards Motor-Racing Industry: Most of the innovative measures including the high-performance road going engines, which were in use for maximum of Ford cars. Formula 1 was also proposed to be used as a methodology for motor cycle engines. This innovative measure utilizing the same formulation for cars did not hold much potential for the motorcycle configuration. This was a failed measure from the innovative perspective and required to be aborted (Sriram, Gopalarathnam and Misenheimer 2012). Witnessing Cosworths sucesss in 1970s, the United Engineering Industries (UEI) unit purchased the same providing a separate division, which again in 1988 passed in the hands of Cartlon Communications and following the pass on to Vickers plc for about 163.5 million Euros. The Vickers plc also had the ownership of rolls-Royce, which along with Cosworth was sold to Audi group. Finally, the racing side of Cosworth was sold to Ford, the analysis prove it to be the rightful owner paying a worth of 50 million Euros. VRIN Sources of Cosworth: The formula 1 introduced was valuable for Lotus as Cosworth provided the formulation, which again Ford supported to increase its profile at that point of time with a formulation F2 to build a DFV. This formed an integral part of the engines and many cars using this formulation were potential to win in the world championships (Ellram, Tate and Feitzinger 2013). In context to rarity, at that point of time 1500cc was considered to be uncompetitive in the market. Introducing such a formulation with valuable collaborations proved to be beneficial in the turbo charging concept. The success of the formula 1 concerned with the DVF potentially increased its customer base and was available for any affording party. This success rate led the competitors to develop a more potential system of 12-cylinder engine, this included V12 Eagle Weslake tried by Brabham BRM teams. This imitable approach drastically was a failure. So it can be deduced as an imperfect imitation (Dey 2016). This formulation was substitutable as the Brabham group approached Alfa Romeo to provide them the 12-cylinder engine. The other groups looked for better performance utilizing the improvised road holdings through innovative measures that just used the shape of DFV to improve the streamlined effect to increase the speed (Gu et al. 2017). Implication of Changes in Ownership: The purchase of the racing department of Cosworth to Ford was an important change of ownership, orienting which Neil Ressler, the Fords vice president of the department of research revolving around the vehicle technology became the chairman as the cosworth racing got incorporated into Fords Premier Performance sector. Then, Nick Hayes was promoted to concentrate on the technical side of the business. Again a change in hand was to the owners of the US champ cars in 2004. Around 2006, Cosworth was announced to lay 40% of its375 employees in the UK. The major reasons surrounded around the change of formulations in formula 1. This resulted in freezing of engine designs. Another reason for the same was that one of its customers switched to Toyota Formula 1. The year 2013 witnessed a return of Cosworth, supplying F1 to Marussia Team but this was a short-term effect due to regulation developments that was only supported by major automotives (Tallman, S. and Jenkins, M., 2015). However, Cosworth has diversified into activities surrounding mainstream automotives, aerospace and defense with the core ethos in racing. Keith Duckworths Cognitive Map and Unnoticed Threats and Opportunities The cognitive maps are the psychology of the Keith Duckworth that would help him to run the Cosworth. The psychological elements are the building blocks that have worked as a motivation for building the company and utilized the founders passion for racing cars and engines (MacKay 2012). Keith Duckworth had to take the initiatives to run the business earlier as the other partner Mike Costin had a three-year service agreement with Lotus. Initially Duckworth had taken unofficial help from Costin and used his own funds to run the business. The cognitive map behind this idea was developing a business and taking the initiates. Here the unnoticed threats for Duckworth were that his initiatives were ran into completely different direction what he had thought. Here he took a number of risks. He arranged all the funds and if the business would not succeed, his sole funds would be destroyed due to unplanned initiatives. The second initiative was searching a new premise for installing the dynamometer in the racing cars. However, the first premise was temporary and he needed a permanent premise. Duckworth invested his money and saw it as an essential investment, keeping in mind that this investment is for the future of the Cosworth. The other firms at that time were not using dynamometer in the racing cars, however, if Cosworth would incorporate it that would be an extra marking point for the company. Duckworth ultimately found the place and took it as companys new business spot. The cognitive map behind this is to grow business and identify those areas that could be companys specialty. This were the great decision from Duckworth, however, it contained some threats as he invested the whole money. It could be as if the idea of dynamometer would not click and resulted in loss of investment. Gathering Knowledge about Cosworths Situation In business term, gather knowledge identifies with through and in depth understanding of the business functions (Holsapple 2013). This is an integral part of the successful business and an analytical process in the business. The problems faced by the Cosworth had resolved by its founders and in this process they gathered some knowledge. For an example, when Duckworth decided to shift its first business premise to its second one it had some aims and targets to fulfill, which were related to installing dynamometer. The funds that were invested had utilized on its fullest potentials and in this process, the founders could gather some knowledge. Their knowledge was think right ways at right times. Installing dynamometer and investing funds were an incident that helped the firm and business to grow. It was an good investment and one of the founders could think it at the right time when there were no other companies that were used dynamometer in their racing cars. As the Duckworth had invested the initial funds for the business purpose of Cosworth, he could gather knowledge from this also. The knowledge was as similar with entrepreneurship theory. The entrepreneurs invest money in return with risks or rewards (Kuratko 2016). Here, Duckworth also invested money with number of risks or rewards, however, he got the rewards and his business grew as a most successful one. Awareness Concerning the Knowledge Awareness can be created from the gathered knowledge about the business strategies. This type of awareness can be employed into various other ways in future for gathering more knowledge in a diversified manner (Hill, Jones and Schilling 2014). However, in this case study, the awareness created from the knowledge is that managing things in a right manners. Every founder should keep in mind that he or she has to manage things in a right manners and do things at right times. From the case study, there are number of instances for this where mostly Duckworth had doing things at right time. He decided to invest money whenever he urgently felt for it. However, it could create some risks for him. Knowing the risk factors, he took it and utilized the money in a right manner. The initial official investment was from Duckforths part. However, the other business enthusiasts can be aware from Duckworths situation and initiatives. Creation of New Value from the Relationships with other Organizations New value creation could be developed from the relationship that a company has with other companies and the primary company is taking helps from other companies to grow its business (Amit and Zott 2012). The company in the case study, that is Cosworth had good business terms with Lotus Company, which were a car manufacture company. The Cosworth had an agreement with Lotus to provide Modified 105E engines for the Lotuss 18 formula junior cars. However, the Cosworth company supplied in total 125 engines for the formula junior cars to the Lotus. The agreement was like this: the Lotus bought the 105E engines from the Ford and sent it to Cosworth. The Cosworth Striped down the engines and developed a modified version that would be called modified 105E engine and returned it to Lotus again. The dealing happened in terms of fixed price and that would help the Cosworth, when they needed money. However, at that time, every other company tried to make the modified version but that did not happ en. In this case, the agreement between Lotus and Cosworth worked as a magic for serving the need. However, in 1959, there was an interest about racing formula junior cars across Europe. The agreement successfully could fulfill the need and helped both the companies to grow. The profit was shared between the companies and the relationship added some values that are the Cosworth got some financial benefits from the relationship with Lotus. Emergent and integrating perspectives The strategies, which are implemented by Cosworth, while supplying their engine to the other companies. The DFV of Cosworth transformed the balance of power which is different from integrated vertically teams, who indulged themselves in building their own engines such as BRM, Honda, Ferrari to the ones who concentrated on constructing the engines from the company Cosworth, which includes the team Lotus, Brahbam and Williams (Cosworth.com 2017). These organizations are focusing on the designing of cars, aerodynamics and systems of suspensions and other important aspects of handling the performances, this is based on the principle that if they have DVF engines, they would be competitive enough (Hitt, Ireland and Hoskisson 2012). In the year 1965, the CEO of Lotus name Colin Chapman approached to discover the company who could build a Formula 1 for Lotus. Therefore, that time, the Corsworth Company helped Lotus to build a new Lotus Formula 1 car which is having an engine forming an important part of the car. However, the DVF engine was publicly known as Ford DVF engine. This DVF engine won its first appearance for the first time at Grand Pix of Dutch at Zandvoort; Hitt, Ireland and Hoskisson 2012). Later in the year 1968, the Ford decided to make the engine available to the Formula 1 teams. With the creation of this DVF engine, the main strategy has been done by attracting people having enough went to Cosworth to buy the engines and the engine would be better to winning the races for many years. This is the main reason there are many British Formula 1 teams because due to the availability of engines. The implication of this strategy is that in the year 1971 and 1973, every Grand Pix in the series of World Championship who has won the car which was fitted to the Cosworth DFV engine. In the beginning, Ford has vetted the important customers for the DVF engine but in the early 1970s was free to make their engines sell to the people they want. In the eyes of Hayes, this was about strengthening the capacity of Cosworth rather than making money for Ford itself (Cosworth.com 2017; Hitt, Ireland and Hoskisson 2012). Implications of taking the critical perspective of Cosworth The implications of the strategy, is that in the year 1970s where Cosworth attracted more customers that the company can bring satisfaction. It has more number of customers and they make sure that every DFV should perform well and there must be standardized and personalized. The success of the eight cylinder of DFV led numerous competitors to move to more powerful engines of 12 cylinders such as the V12 Eagle Weslake, which was tried by another team; however this engine has proved to be unsuccessful. Hence, the abandonment of the project was done in the year 1974 which was really costly to develop. However, Ferrari has proved to be an effective concept with the boxer name Flat 12 engine, which demonstrates a greater performance in the middle of 1970,s as described by Gordon Murray who is the designer of Brabham teams. With the failure of the 12 cylinder engines, Gordon Murray has come to the conclusion that, with the development of the DVF engine to the 12 cylinder, the latter would leave a bad effect on the former which would lead to the end of the journey of DVF engine. This further lead to the explorations of other important potential suppliers such as Porsche and also contacted with the other groups such as Alfa Romeo in order to supply them with 12 cylinder engines which was similar to that of Ferari. The implications, in order to look it from a critical perspective, it could be stated that strategies followed by Cosworth in terms of selling DFV engine to the contractors having good money, can be stated that, the engine improved the importance of the companys prestige and lead to more successes. However, the engines were made in the name of the Ford, where it is needless to say, that Ford earned the reputation on behalf of the Cosworth, where this can regarded as the negative implications for the strategy to perform. The companies such as Lotus for themselves seek competitive advantages through the innovation of aerodynamics and allowing the DFV two tunnels, which created an area of low pressure under the car. Diversification and interconnectivity In the early of 1980, it saw the implementation of the new technologies in the Formula 1 engine. Since the year 1966, the regulations implemented where an engine either be 3000cc which is normally aspirated to 1500cc. The technology was back in the year 1966. However, in the year in the year 1977, Renault also entered the Formula 1 where they would be able to practice and demonstrate the capacity of turbo charging and firms such as Honda, Ferrari and Porsche. Cosworth developed the turbo charged engines which would generate the power levels in excess. Cosworth spread also began to spread their branches in the different areas (Cosworth.com 2017; Hills, Jones and Schilling 2013). With this diversification, it becomes a competition for the Cosworth to prove their worth in the midst of the competition. With the selling of their parts and technologies, it has built the capacity to improve its infrastructures. This diversification produced a really which was successful which was utilized in the world, which is beating the rally cars of Escort which produces a higher level of performances and this was used in a number of Ford cars. The success of Cosworth during the year 1970 led to the purchasing by the UEI. In the year 1988, the UEI was further taken over by the Carlton. In the month of August, 2006, Cosworth would be dispatching 40% of the employees in the end of the year in the United Kingdom. There are more than fifty staffs at the US operation of the company. Like this way, Cosworth managed to diversify the activities through the racing and it has also expertise which areas from mainstream, aerospace, defense and automotive (Cosworth.com 2017; Raynham 2014). References: Ambrosini, V. and Jenkins, M., 2015. 17 Conclusion: Can Multiple Perspectives on Strategic Management Inform Practice?.Advanced Strategic Management: A Multi-Perspective Approach, p.335. Amit, R. and Zott, C., 2012. Creating value through business model innovation.MIT Sloan Management Review,53(3), p.41. Dey, K., 2016. The fast food industry in the UK. Analysis of McDonalds with PESTEL, VRIN and Porter's Five Forces. 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