Performance Measures for Innovation and Entrepreneurship (Essay Sample)

Performance Measures for Innovation and Entrepreneurship
Name
Institution
Financial Measures
Return on investment
Return on investment is a performance measure used mostly to determine and evaluate the efficiency of an investment in or to compare the efficiency of a various financial investments in a company. It entails a comparison of the money invested in the company and the profits realized on the amount of money invested. Rate of investment can be used on several aspects such as investment on capital equipment or the prices offered.
A case is when an investment is made on new medical equipment that is manufactured in the company then sold, it must be made sure that the receipt from sales are more than the amount of money invested. If the receipt is more than the amount of money invested, the investment is then worth. If the receipt is lower compared to investment then the investment should not be considered thus rate of investment is considered a financial performance measure.( Garvey, 2007)
Growth in market share
Market share is the percentage of the market that a particular company takes or holds among several competing companies. The market share hold of a company may be either in terms of the number of customers or the amount of sales. It mainly dwells on the control of the market sales and services. It defines how the firm is doing among its various competitors. This is a tool mostly used by the managers to make decisions and improve on the performance of the business.
The quality medical equipments produced by the company will determine the percentage of the market share it will slice from the overall market. Customers tend to be attracted by the products that are efficient and of higher quality. For the company to gain a large market share then the manager needs to be keen on quality. With higher gain on market share sales increases, then profits and finally employees get motivated.
Profitability
Profitability is the ability of the business to generate revenues continuously over a long period of time. Profit is the excess of the money invested and the total cost incurred in a company. A company that continuously generates profits encourages innovations. In order to increase the innovation and entrepreneurial culture in the medical equipment company, there is need to make sure that there is flow of income and regular innovations. (Markus, 2007)
Consistent profits from the sale of invented medical equipments would enable the company to invent and come up with products of higher technological levels. This is possible only when new skills of manufacturing are invented and a higher technology implemented. Both technical skills and appropriate technology requires capital investment. When the new invented products become attractive to the customers and fetch higher profits to the company then it’s a go ahead to the company to continue with innovations.
Non-financial Measures
Employee loyalty and commitment
Employee loyalty and commitment precedes a company’s market and financial success. When the company spends a lot of capital in motivating the employees there are a numerous benefits that the company get. The employees work willingly without being pushed and produce quality results. In building an organization of committed and loyal employees there is need to show the employees that the company is loyal to them or deserves their loyalty. (Aksoy, 2009)
Total employee commitment enable them improve their skills. In the medical equipment company the managers and the employee’s entrepreneurial behavior will only succeed if they are committed to work and coming up with new inventions that will steer the company growth and development. In addition to that, managers should practice a unique management style though.
Breadth of employee participation
A company’s success is widely witnessed when employees participate in undertaking the affairs of the company. Employee’s participation involves team working and high involvement in decision making this process have a positive income to the company because of the change of attitude and motivation.
Participation leads to changed attitude that leads to the increased connection and attraction of the employees to their company. The management for the medical equipment company will have to change the employee’s mindset for them to succeed.
Employee retention
The ability of the company to retain employees for a long period of time will definitely work best to produce the best results. Changing the employees frequently will have cost implication to the medical equipment company.
As the employees stay for a long period of time in the company, they become experts on the fielded they are working on. As the technology also improves they are able to come up with innovations. This enables the company to advance to the next level of growth. Older employees also give guidelines and mentor younger employees thus ensure continuity of the business. (Aksoy, 2009)
Employee willingness to change
Change is inevitable. As the technology change the methods of production change thus the employees must embrace change in order for them to come up with new inventions and innovations of medical equipments. The company would be able to attain its competitive edge and embrace the new management methods.
In management change increases the success of company’s workability and project initiatives by applying an organized framework of production models, tools and processes managing and initiating the change from a current state to a future state of a company. (Keiningham, 2009)
Strategic repositioning
Positioning enables the company to be recognized easily by the customers. Medical equipment Company can reposition itself in terms of the location, the unique type of products it produces and its market share and the price.
When there is a best repositioning strategy of the company, it is able to enjoy a complete separation with its customers in terms of competition. The availability of medical equipments is communicated to consumers easily.
Competitive capab...