Hi! In this series of posts, I will share with you a compilation of concepts, theories, models, books, and anything that’s related to Innovation and Entrepreneurship. The compilation will be useful to CMAT aspirants and MBA aspirants in general. Innovation and Entrepreneurship is a new section that’s been introduced in CMAT this year. I hope this series saves some crucial time and helps in last minute push-ups! 🙂
101. The P-O-L-C framework – It provides useful guidance into what the ideal job of a manager should look like. The principles of management can be distilled down to four critical functions. These functions are planning, organizing, leading, and controlling.
102. Innovative Entrepreneur – An Individual who has the ability to undertake to create innovative products according to the changing demands of the market.
103. Adoptive Entrepreneur – An entrepreneur who simply adopts successful innovation introduced by other innovators. These entrepreneurs imitate the existing entrepreneurs and setup their enterprise in the same manner.
104. Fabian Entrepreneur – An individual who does not show initiative in visualizing and implementing new ideas and innovations wait for some development which would motivate them to initiate unless there is an imminent threat to their very existence.
105. Drone Entrepreneur – These entrepreneurs are reluctant to change since they are very conservative and do not want to make any changes in the organization. They are happy with their present mode of business and do not want to change even if they are suffering the losses.
106. Small Industries Development Bank of India (SIDBI) – A development financial institution in India, under the jurisdiction of Ministry of Finance, Government of India headquartered at Lucknow. Its purpose is to provide refinance facilities and short-term lending to industries, and serves as the principal financial institution in the Micro, Small and Medium Enterprises (MSME) sector.
107. The three-sector model – It divides economies into three sectors of activity: extraction of raw materials (primary), manufacturing (secondary), and service industries which exist to facilitate the transport, distribution and sale of goods produced in the secondary sector (tertiary). The model was developed by Allan Fisher, Colin Clark, and Jean Fourastié.
108. A vision statement – It focuses on the potential inherent in the company’s future; it’s about what they intend to be. While a vision statement might contain references to how the company intends to make that future into a reality, the “how” is really part of a mission statement.
109. A mission statement – A short statement of why an organization exists, what its overall goal is, identifying the goal of its operations: what kind of product or service it provides, its primary customers or market, and its geographical region of operation.
110. The Organization for Economic Co-operation and Development (OECD) – An intergovernmental economic organization with 37 member countries, founded in 1961 to stimulate economic progress and world trade. It is headquartered in Paris, France.
111. The Entrepreneurship Development Institute of India – An autonomous body and not-for-profit institute located Ahmedabad, Gujarat, India. Established in 1983, the institute offers master’s degree in Entrepreneurship, a fellowship program and a number of entrepreneurship training programs.
112. Scientific Management – A theory of management that analyzes and synthesizes workflows. Its main objective is improving economic efficiency, especially labor productivity. It was one of the earliest attempts to apply science to the engineering of processes to management. Scientific management is sometimes known as Taylorism after its pioneer, Frederick Winslow Taylor.
113. Concentric Diversification – A growth strategy in which a company seeks to grow and develop by adding new products to its existing product lines to attract new customers; also called convergent diversification.
114. Conglomerate Diversification – A growth strategy that involves adding new products or services that are significantly different from the organization’s present products or services. Conglomerate diversification occurs when the firm diversifies into an area(s) totally unrelated to the organization current business.
115. Backward Integration – A form of vertical integration in which a company expands its role to fulfill tasks formerly completed by businesses up the supply chain. In other words, backward integration is when a company buys another company that supplies the products or services needed for production.
116. Forward Integration – A business strategy that involves a form of downstream vertical integration whereby the company owns and controls business activities that are ahead in the value chain of its industry, this might include among others direct distribution or supply of the company’s products.
117. Ethical codes – These are adopted by organizations to assist members in understanding the difference between right and wrong and in applying that understanding to their decisions. An ethical code generally implies documents at three levels: codes of business ethics, codes of conduct for employees, and codes of professional practice.
118. 5S of good housekeeping – It involves the principle of waste elimination through workplace organization. 5S was derived from the Japanese words seiri, seiton, seiso, seiketsu, and shitsuke. In English, they can be roughly translated as sort, set in order, clean, standardize, and sustain.
119. DMAIC – It refers to a data-driven improvement cycle used for improving, optimizing and stabilizing business processes and designs. The DMAIC improvement cycle is the core tool used to drive Six Sigma projects. However, DMAIC is not exclusive to Six Sigma and can be used as the framework for other improvement applications. It stands for Define, Measure, Analyze, Improve and Control.
120. The All India Organization of Employers (AIOE) – An allied body of the Federation of Indian Chambers of Commerce and Industry (FICCI), is the oldest and apex national employers organization of India. It is the platform for Indian Employers to raise their voice in formulating labor and social policies to promote business, trade and economy in the country.
121. Rightsizing – The process of making a company or organization a more effective size, especially by reducing the number of people working for it is called rightsizing. Rightsizing is a process of bringing an organization to an optimal size. The main purpose of rightsizing is to minimize the company’s cost to optimize its profits.
122. Business Model Canvas – A strategic management template used for developing new business models and documenting existing ones. It offers a visual chart with elements describing a firm’s or product’s value proposition, infrastructure, customers, and finances, assisting businesses to align their activities by illustrating potential trade-offs. The nine “building blocks” of the business model design template that came to be called the Business Model Canvas were initially proposed in 2005 by Alexander Osterwalder.
123. A minimum viable product (MVP) – A version of a product with just enough features to be usable by early customers who can then provide feedback for future product development.
124. Bootstrapping – It refers to a self-starting process that is supposed to continue without external input. Bootstrapping in business means starting a business without external help or working capital. Entrepreneurs in the startup development phase of their company, survive through internal cash flow and are very cautious with their expenses.
125. Unicorn – In business, a unicorn is a privately held startup company valued at over $1 billion. The term was coined in 2013 by venture capitalist Aileen Lee, choosing the mythical animal to represent the statistical rarity of such successful ventures.
Hope this helps! I had initially thought of putting up six posts but I was able to put together five. This was the last post in the series. Please give your feedback in the comments section. Do share with your friends and co-aspirants. Happy prepping! 🙂