Enterprise in action Essay Example | Topics and Well Written Essays - 3250 words

Enterprise in action - Essay Example The specific process needs to be developed in a series of phases, aiming to limit the chances of failures. However, in extremely turbulent market conditions, like the current ones, it is quite difficult for business opportunities to be identified and developed. The use of the effectual approach in the decision making process could help to manage such projects more effectively. Current paper presents the phases of the identification and the development of a business opportunity. Suggestions are made regarding the processes through which a business opportunity can be identified and developed. Appropriately literature has been also used for explaining the requirements and the challenges of the particular process. It is concluded that the use of appropriate techniques for identifying and developing the particular business opportunity can reduce the risks involved. However, it is necessary that all phases of the process are continuously monitored so that the chances for major losses to be eliminated. 2. Describing and processing the opportunity In order to identify and develop a business opportunity it is necessary to follow certain processes. These processes are analytically described below. At a first level, it is necessary to choose the approach on which the processes will be based. The effectual approach of decision-making has been chosen under the terms that the future conditions of the market involved cannot be precisely defined in advance – taking into consideration the strong market turbulences because of the global recession. Each of the phases of the processes is justified using relevant literature; additional literature is analytically presented in a separate section. 2.1 Effectual approach The effectual approach of the decision making process is based on the proposition that since certain elements of the future are known, there are measures that can be taken for controlling it, even if its precise characteristics are not known. In the terms of the business environment, the above approach means that the future performance of business plans can be guaranteed – at an important level - by taking measures which are appropriate in terms of the common market conditions. The above approach is not based on the perspective that the exact future conditions of the market can be known, a perspective accepted in the causal approach of decision making. For this reason, the effectual approach has been chosen as most appropriate for checking a business opportunity, since this approach has the following benefits: a) it does not require accurate decisions but just effective plans; emphasis is given on the construction of the business projects and not on the development of a series of decisions; this fact can help to save time in realizing the projects, b) it does not require precise goals or stable market environment; this fact is an advantage of the effectual approach taking into consideration the turbulences in the global market, c) i t does not require extensive market research, a fact that could also save time/ resources in the completion of the business project involved(Doke et al. 2007). The principles and the rules of the effectual approach have been critically examined in order to decide on their use in the identification/ development of a business opportunity. The effectual principles that have been proved more effective in the identific