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Critical evaluation of an Entrepreneurial (Small, Medium or Large) Australian business. Essay Example

  • Category:
    Management
  • Document type:
    Essay
  • Level:
    Undergraduate
  • Page:
    3
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    1843

Сritiсаl Еvаluаtiоn of an Еntrерrеnеuriаl-Аustrаliаn Business

Introduction

Global business expansion and the introduction of new opportunities in the foreign markets have increased the need for expansive market opportunities. In this case, markets have resulted to the encouragement and propagation of entrepreneurial market ventures. Changing societal cultures as well as technological changes that increase customers unsatisfied needs, leads to the economic rationale for the establishment and development of entrepreneurial market ventures. Entrepreneurship is the process through which entrepreneurs develop business ventures that are geared and propagated by an existing societal need. As such, they represent a new and unique approach towards resolving existing societal needs (Nabi and Holden, 2008, p.546). This characteristic represents s the distinguishing factor between entrepreneurship business ventures and small business enterprises. This is because, unlike entrepreneurship, small business replicates existing business ideas once a market gap is identified. In order to evaluate the key formulation and evaluation factors in entrepreneurship business ventures, in the Australian economy, this essay evaluates the Health.com.au Company venturing in the Australian health insurance industry.

Discussion

Social Contribution

The healthcare industry is an imperative and important social factor. In this case, the health well being in the society is imperative. Mühlbacher, Kovac, Novotny and Putnová (2013, p.175) conducted a study to evaluate the implications of good health to economic performance. In this regard, the study developed a hypothesis that health standards in an economy directly implicated on the overall economic performance. Indeed, in its analysis, the study established that health standards in an economy had direct implications on the workforce productivity. Consequently, economies with a healthy workforce registered increased economic productivity levels. In a further study, Barraclough and Gardner (2008, p.211) argued that a major challenge to accessible healthcare is the increased healthcare services costs. This is the situation in the Australian market.

The Australian government has invested heavily in the healthcare industry. In this regard, the government has established sufficient infrastructure in the industry. However, the high costs serve as a limiting factor to healthcare service access. As such, there exists a society need for healthcare access need gap in the market. The entrepreneurial Health.com.au Company serves as a remedy to this social challenge. The company provides an online platform through which the society can acquire health insurance covers to reduce the healthcare service costs in the market. Therefore, the business venture meets the social contribution formulation and evaluation criteria as its implementation enables a reduction in the existing healthcare costs, in the Australian market (“Health.com.au”, 2014).

Innovation and Invention

An additional entrepreneurship business venture evaluation criteria are the evaluation of innovative and inventive ideas application. Petti and Zhang (2011, p.453) conducted a study to evaluate the relevance of innovation and invention in business ventures. In its hypothesis, the study argued that the innovation formed a key concept for organizational development and success. In its analysis, the study established that ventures with increased innovation acquired increased success market rates. Bessant and Tidd (2008, p.5) discusses the concept of entrepreneurship and innovation. In this case, the authors argue that innovation and invention are key principles in entrepreneurial development and success. In this regard, it is argued that entrepreneurial ventures in the market are characterized by innovation and invention. As discussed, entrepreneurship ventures are based on the existence of a need gap. In this case, the ventures seek to establish alternative need satisfaction approaches (Oksanen and Rilla, 2009, p.37). Therefore, the innovation and inventive nature of the entrepreneurship ventures is the establishment of unique approaches to resolving societal challenges.

An analysis of the Health.co.au business model reveals an innovation measure in the healthcare industry. The organizational business model was geared towards enhancing increased healthcare services in the Australian market. Consequently, the organization developed an alternative cost mitigation strategy through online insurance covers. An analysis on the Australian healthcare industry had a number of insurance organizations venturing in the healthcare industry through health cover policies. Therefore, this establishes the fact that the organizational business model is not unique. However, the establishment of paperless insurance cover policies online was an improvement on the existing health insurance business model. In this case, the idea was innovative and enhanced increased efficiency in the system (“Health.com.au”, 2014). Consequently, although lacking a concise uniqueness towards the market through the establishment of a new cost reduction strategy, the organization developed a new business model in health insurance.

Securing Resources

Yang (2012, p.14) conducted a study to evaluate key performance features worth of consideration in the formulation and evaluation of entrepreneurship ventures. In this regard, the study sought to establish the nature and extent to which resource’s collection and securing. In this regard, resources in entrepreneurship organizations incorporate both the human resource, capital as well as the revenue resources. Grazier and Metzler (2006, p.486) argued that the nature and extent of securing organizational resources is an imperative business performance enhancement aspect. Thus, the study established that in order for entrepreneurship business ventures to develop strategic expansion and success aspects, they need strong resources securing strategies and techniques. On its part, the Health.com.au organization developed its business venture on the principles of healthcare professional availability. In this case, the Australian market is rich in healthcare and insurance professionals.

Therefore, the venture operates in a business venture onto which qualified human resource is readily available. Moreover, in order to reduce on its operational costs, increase profitability and reduce market challenges, the organization adopted the online platform for insurance covers issuance. In this regard, it increased on convenience as well as efficiency. Consequently, it was possible to raise enough investment capital as well as allowing for the utilization of a reduced working capital. In addition, the organization established an online payment system through which it could acquire the policy cover remittances, serving as the main organizational revenue stream. However, challenges in the online payment platform presents increased market challenges for the organization in regard to financial gains (“Health.com.au”, 2014).

Recommendations

Based on the above formulation and evaluation factors analysis on Health.com.au organization, it is apparent that the organization is a key strong performing entrepreneurial organization. As such, the organization has increased market success potential providing for strategic success. However, in the business analysis, this review establishes a number of weaknesses. On one hand, the organization relies on the online platform alone to conduct business. Although the online platform is an ideal and convenient business model platform, its overreliance leads to the seclusion of key customer bases. In this case, the organization misses out on a large customer base in the Australian market that is technologically ignorant. Moreover, the organizational business idea is an improvement of existing insurance covers ideas. As such, with the lack of market idea uniqueness, the organizational idea faces increased an imitation risking industry competition.

Based on the above weaknesses, this analysis develops two strategic recommendations for execution by the organization CEO. On one hand, it recommends the institution of the traditional marketing and operational platform. The organization should develop and institute a business model through which manual process can be enhanced. In this case, it should diversify its presence through increased promotional and marketing strategies. Key among the ideal presence enhancement strategies is the development of physical premises at which the customers can visit and seek services although such services would subsequently be offered online. Through establishing offices across the Australian market, the organization will boast the customer base confidence. Currie, Wang, Weerakkody (2004, p.336) argued that a major demerit for the adoption of pure online business model is the case of reduced customer confidence and trust due to increased theft and fake business ventures. Therefore, establishment of physical offices, through an expensive venture, would pay off in the long run with increased customer trust and subsequent loyalty.

On the other hand, his review recommends to the CEO the development of a new sustainable business idea. Despite the fact that the idea is currently applicable in the Australian market context, the idea is easily replicable. In this case, it is most likely that, in the next five years, the Australian healthcare industry will be saturated by similar ventures. Therefore, this will lead to increased market competition and reduced profitability for the venture. In this case, the review recommends the adoption of new business ideas such as strategic alliances in the healthcare industry (Fearon, Ballantine and George, 2010, p.546). In this case, the organization should establish business alternatives through alliances with the industry employers in the market. Through these alliances, the employers would subscribe onto the health insurance covers. As such, it would increase the overall organizational customer base and financial status in the market.

Conclusion

In summary, this review evaluates the concept of entrepreneurship in the economy. In this case, the essay reviews the practical application of the business formulation and evaluation concepts in entrepreneurship ventures. As such, the essay evaluates the Health.com.au organization operations in the Australian healthcare industry. In this case, the essay evaluates the social contribution, innovation and invention and securing of resources. In its analysis, the review establishes that the organization has increased market competitiveness due to its social contribution and adoption of an online market platform. However, the review establishes that the pure adoption of an online platform and the lack of a unique business idea in the organization. Consequently, the review recommends the adoption of physical premises establishment as well as the establishment of strategic alliances with employers in the Australian economy. Conclusively, this essay argues that, with the inclusion of the recommendations, the Health.com.au organization is bound to strategically expand in the future.

References

Barraclough, S., & Gardner, H 2008, Analysing health policy: A problem-oriented approach, Churchill Livingstone/Elsevier, Sydney.

Bessant, J. R., & Tidd, J 2008, Innovation and entrepreneurship, Wiley Publishers, Chichester England.

Currie, W.L., Wang, X. & Weerakkody, V. 2004, «Developing Web services using the Microsoft.Net platform: technical and business challenges», Journal of Enterprise Information Management, vol. 17, no. 5, pp. 335-350.

Fearon, C., Ballantine, J. & George, P. 2010, «Understanding the role of electronic trading and inter-organisational cooperation and coordination», Internet Research, vol. 20, no. 5, pp. 545-562.

Grazier, K.L. & Metzler, B. 2006, «Health Care Entrepreneurship: Financing Innovation», Journal of health and human services administration, vol. 28, no. 3, pp. 485-503.

Health.com.au, 2014, Organisational overview, [Online] Available at <http://health.com.au/ >[Accessed April 21, 2014].

Mühlbacher, J., Kovac, J., Novotny, A. & Putnová, A. 2013, «Competency Management in Central Europe: A Comparison of Czech, Hungarian and Slovenian Competency Needs», Organizacija, vol. 46, no. 5, pp. 175.

Nabi, G. & Holden, R. 2008, «Graduate entrepreneurship: intentions, education and training», Education & Training, vol. 50, no. 7, pp. 545-551.

Oksanen, J. & Rilla, N. 2009, «Innovation And Entrepreneurship: New Innovations As Source For Competitiveness In Finnish SMEs», International Journal of Entrepreneurship, vol. 13, pp. 35-48.

Petti, C. & Zhang, S. 2011, «Explaining technological innovation in Chinese enterprises: Insights from technological entrepreneurship», Frontiers of Business Research in China, vol. 5, no. 3, pp. 452-471.

Yang, N. 2012, «Small Businesses and International Entrepreneurship In The Economic Hard Time: A Global Strategic Perspective», International Journal of Entrepreneurship, vol. 16, pp. 113-131.