Construction Entrepreneurship at Ajax Construction Company - Case Study Example

Construction entrepreneurship Name: Institution: Date: Question one Ajax Construction Company displays entrepreneurial orientation. Entrepreneurial orientation refers to processes of developing strategy that offer companies a basis of making entrepreneurial actions and decisions. In simple terms, entrepreneurial orientation can be described as the practices, processes and decision-making activities that result into new entry. Lumpkin and Dess (1996) suggest that entrepreneurial orientation normally develops from a strategic-choice view point, which claims that new-entry options can be done well by intentional enactment. This therefore implies that entrepreneurial orientation entails actions and intentions of main players operating within a dynamic reproductive process that aims at developing new ventures (Wiklund, 2006). The main measures that feature entrepreneurial orientation incorporate a tendency to act independently, desire to take risks and to innovate and a propensity to be aggressive against competitors. It also entails a tendency to be proactive in relation to marketplace opportunities (Boehm, 2008). Ajax construction Company has a tendency to act independently, desire to take risks and to innovate and a propensity to compete with other rivals firms in the market. It also has a tendency to be proactive in taking marketplace opportunities. These features therefore make Ajax Construction Company to display entrepreneurial orientation. Ajax Construction Company, since 1970’s, has been having a tendency to compete with other rivals firms in the market. It has, for along time, managed to fight several arising problems, which made some competitors to be wiped out of the market as it survive and prosper. In early 1980’s, despite the currency problems that arose during this period, Ajax Construction Company managed to compete favorably in the market, thus making some firms unable to survive and advance under the prevailing market condition. Ajax Construction Company has a tendency of taking market place opportunities. With its strong leadership, skilled staff and a strong financial management record, Ajax Construction Company has an ability of taking risky ventures, being innovative and being proactive in taking market place opportunities. The need to invest in new technology makes Ajax Construction Company display entrepreneurial orientation. David, an employee, at Ajax Construction Company, is intending to present his proposal of innovative ideas to Allan, the owner of the company. Allan on the other hand is ready to invest on the new idea, as long as it can take the company to the next level. It is believed that factors such as innovativeness, proactiveness, risk taking, competitive aggressiveness and autonomy do always prevail when a company involves in new entry. However, successful new ideas can also be attained when some of these factors are working. In today’s business environment, it is more important for companies to consider supporting the development of an entrepreneurial focus. Entrepreneurial focus is very essential in today’s business environment since it assist in developing new products and services that satisfies customers’ needs. Many entrepreneurs normally find it hard to discover goods and services that are needed by customers. Therefore, by supporting the development of entrepreneur focus, entrepreneurs can easily discover new goods and services that satisfy customers’ requirements. Entrepreneurial focus also makes entrepreneurs to be disciplined and to always stay on track. Being focused therefore assist entrepreneurs to exert their energy efficiently, instead of placing them in different directions (Thornberry, 2006). Question two David Dawson, an employee at Ajax Construction Company, has some entrepreneurial traits. He is a person who perseveres and works hard in any activity he engages himself in. David Dawson perseverance trait is displayed when he takes his time to prepare another proposal for presentation after the first presentation was turned down by the board. His perseverance trait can also be seen when he patiently prepare himself for another presentation even though he is uneasy about discussing the proposal to the board. He is a hardworking person. He worked so hard in completing his bachelor degree in Construction Management at Newcastle University. David Dawson, through hard work, has managed to maintain contact with some of his old classmates at Newcastle University. Ward (2008) argues that perseverance and hard work are the most essential entrepreneurial traits. In today’s business world, real success is greatly determined by the level of perseverance and hard work. David Dowson is a creative person. His creativity trait is displayed when he support and proposes for appropriate approach that will enable Ajax Construction Company to invest in new technology. David believes that the prevailing financial controls and management prevent Ajax from advancing or investing in new technology. Through his creativity, David Dowson proposes for new ways of doing business so as to expand the company. It is believed that with creativity a person or a company can compete well in any business venture. According to Proctor (2010), today’s business world requires creative and complacent entrepreneur who can keep up with the prevailing stiff competition and prosper. To be an entrepreneur, a person should be able to develop new ideas and find new ways of solving problems. This therefore can assist him or her to be a head of competition. Creative individuals are logically curious, bright, inquisitive and highly flexible when making decisions. They normally view their surrounding and keenly pay attention on new trends that might probably be business opportunities (Hall, 2010). Self-confidence is another entrepreneurial trait that David Dowson portrays. David is very confident with his proposal. He is ready to present it for the second time even if the first presentation was turned down by the board. He is confident that the new idea he is about to present to the board will transform the company and advance it to the next level. Even though, David understands that the two proposals he is about to present to the board have greater impact on Ajax Construction Company, he stays positive and focused on his task. David’s confidence is also seen when he stands up with a smile and head for the meeting while relaxed. Self-confidence is an essential trait for any entrepreneur. With self-confidence, entrepreneurs normally believe in their abilities and ensure that their best efforts are placed on a particular task. It is important to note that today’s business world is highly competitive and does not accommodate individuals with faint hearted. Believing in one’s abilities is very essential in attaining any goal, particularly in the entrepreneurship world (Etemad & Wright, 2003). Question three High level of entrepreneurial behavior can be identified in Ajax Construction Company. The company as whole has managed to maintain competitive advantage over other rivals organizations for along period of time. Since late 1970’s, Ajax Construction Company managed to compete favorably under bad market conditions. In early 1980’s, Ajax was able to cope up with currency problems that made Australian dollar to float. During this period, the sinking Australian dollar caused what were once cheap foreign currency loans to be expensive. This therefore wiped out few competitors in the market as Ajax continued to advance in its performance. Ajax also managed to survive the recession that was experienced in early 1990’s. In this period, business loans increased to 22.5% and home buyers were forced to pay a mortgage rate of 18.5%. Other bad market conditions included the 1989 earthquake and 2007 floods. Ajax managed to maintain competitive advantage under these market conditions, thus displaying a high level of entrepreneurial behavior. Ability to enhance innovation is also another measure of entrepreneurial behavior level. Ajax Construction Company as whole has the ability to enhance innovation. Strong leadership, skilled staff and a strong financial record makes Ajax Construction Company capable of enhancing innovation. Skilled and experienced staffs such as Bob Brown, Wendy Wasp and David Dawson can introduce new and effective way of doing business. David Dowson can easily utilize his creative ideas in establishing new business ventures. Wendy on the other hand can use her experience in controlling and managing the company’s finance, thus enhancing the company further. For along period of time Ajax Construction Company has grown to be successful and profitable company. Therefore, this strong financial background makes Ajax Construction Company able to enhance innovation. Improved social network is a measure that defines the high level of entrepreneurial behavior in Ajax Construction Company. It is clear from the case that Allan Armstrong, the owner of the company, normally socializes freely with staffs. Allan likes informing new staff about how he started the company. Employees in the company do always share information effectively. Alan, Wendy and Bob have for along time informed David about the problems that the company experienced. The company is well organized in such a way that specific information can only be delivered by certain individuals. Wendy is responsible for delivering the company’s financial information (Diefenbach, 2011). Activities such as maintaining of competitive advantage, enhancing innovation and social network improvement can be supported through concentrating on current practices and taking into consideration any new ideas or solutions raised by a member in an organization. It is also important for the company to promote effective communication and invest its resources and time in these activities. Effective communication within the company is very essential in ensuring that competitive advantage is maintained, innovation is enhanced and social network is improved. Eunson (2012) argues that effective communication is very essential to any organization that aims at improving its activities. Lack of effective communication in an organization can have a negative impact on its progress. References Boehm, J. (2008). Entrepreneurial Orientation in Academia. Berlin: Gabler Verlag. Diefenbach, E. F. (2011). Entrepreneurship in the Public Sector: When Middle Managers Create Public Value. New York: Springer. Eunson, B. (2012). Communication in the Workplace. New York: John Wiley & Sons. Hall, R. (2010). Brilliant Business Creativity: What the Best Business Creatives Know, Do and Say. New York: Prentice Hall. Lumpkin, T. G. (1996). Clarifying the entrepreneurial orientation construct and linking it to performance. Proctor, T. (2010). Creative Problem Solving for Managers: Developing Skills for Decision Making and Innovation. New York: Taylor & Francis. Thornberry, N. (2006). Lead like an Entrepreneur. London: McGraw-Hill Professional. Ward, M. (2008). Entrepreneurial Traits. Wiklund, J. (2006). Entrepreneurship: Frameworks and Empirical Investigations from Forthcoming Leaders of European Research. New York: Emerald Group Publishing. Read More