Enterprise Development Management
Definition
:1. Introduction
2. Selected Models of Enterprise Development
2.1. Models of Phase Development of Organization
2.2. Integrated and Systemic Approaches to Enterprise Development
- A success concept that motivates employees to act according to competitive principles (similar to vision);
- A concept that defines the company’s future market position, allowing customers to associate the company with a specific competitive edge;
- A concept focused on acquiring new competencies aligned with the company’s vision and providing employees with a sense of stability.
3. Modern Approaches to Managing Enterprise Development
3.1. Combinatorial Model of Artificial Intelligence for Decision Making about the Organizational Development
- Netflix: utilizes AI-driven algorithms to analyze viewer preferences and behavior, allowing it to make informed decisions about content creation and distribution. By employing a combinatorial approach that integrates AI insights with traditional market research, Netflix creates tailored content that aligns with audience demand. This strategy has led to significant audience growth and engagement, showcasing how AI can identify opportunities for organizational development based on data analysis while considering qualitative aspects of viewer preferences [21].
- Zara: the fashion retailer employs AI in its supply chain and inventory management processes. By collecting real-time data from sales and integrating AI algorithms, Zara can respond swiftly to fashion trends while optimizing its inventory levels. This combinatorial model allows Zara to blend traditional business insights with AI predictions, enhancing its responsiveness to market changes and consumer preferences, ultimately driving organizational development [22].
- Coca-Cola has integrated AI in its marketing strategies and consumer engagement efforts. By utilizing AI to analyze social media data, customer feedback, and market trends, Coca-Cola can refine its marketing campaigns and product offerings. This approach provides a more nuanced understanding of consumer preferences, allowing the company to adjust strategies in alignment with emerging trends and survey data, thus fostering organizational development [23].
3.2. Managing Enterprise Development by Improving Competitiveness
- Tesla, Inc. has continuously modernized its product offerings and engineering processes to enhance competitiveness in the electric vehicle market. A crucial part of Tesla’s strategy involves benchmarking its performance against traditional automotive leaders like General Motors and Ford. By leveraging cutting-edge technology and innovative manufacturing practices, Tesla has maintained a significant lead in electric vehicle production efficiency. Their incorporation of advanced data analytics for real-time performance monitoring allows Tesla to identify potential operational weaknesses early, adapt quickly, and implement best practices. This competitive advantage fuels Tesla’s ongoing growth and leadership in the renewable energy sector [32].
- Amazon takes the approach to maintaining its competitive edge using data-driven decision making and innovative logistics solutions. By continuously assessing its supply chain performance against industry benchmarks, Amazon refines its processes, such as implementing AI for warehouse management and delivery route optimization. Furthermore, Amazon routinely innovates its service offerings in response to customer demand, enhancing its e-commerce platform’s competitiveness. This dynamism enables early identification of market trends and consumer needs, allowing for proactive management of development factors across various operational areas [33].
- Nike has implemented an innovative business model known as “direct-to-consumer” (DTC) to improve its competitiveness in the athletic apparel and footwear market. By direct engagement with consumers through its website and mobile apps, Nike collects valuable data that influence product design and marketing strategies. The company constantly benchmarks its performance against rivals like Adidas and Under Armour, using insights from competitors to refine its approach. Nike’s focus on sustainability and innovation in materials has further set it apart as a market leader [34].
3.3. Development of Enterprises Based on the Organization Culture
- Google is often cited as a prime example of an organization that has successfully developed a strong corporate culture centered around innovation, transparency, and inclusivity. The company emphasizes values such as collaboration, creativity, and employee well-being, which are integral to its organizational culture. Google’s innovation initiatives, like the “20% time” policy that allows employees to spend a portion of their work hours on projects they are passionate about, have fostered an environment where creativity thrives, leading to the development of successful products like Gmail and Google Maps [37].
- Microsoft: Under the leadership of CEO Satya Nadella, Microsoft has undergone a significant cultural transformation aimed at fostering inclusivity and collaboration. The company adopts a “growth mindset” culture, which encourages continuous learning and adaptation among its employees. This cultural shift has led to improved employee engagement, innovation, and productivity, allowing Microsoft to regain its competitive edge and continue to thrive in the tech industry. Nadella’s focus on empathy and collaboration in leadership has reshaped Microsoft’s corporate identity and performance [38].
- Patagonia: The outdoor apparel company is deeply committed to environmental sustainability and social responsibility, which are key components of its corporate culture. The company encourages employees to participate in environmental initiatives and empowers them to act as advocates for sustainability both within the company and in broader society. By aligning corporate culture with its commitment to the environment, Patagonia not only retains passionate and motivated employees, but also attracts consumers who value corporate responsibility, driving sustainable growth [39].
3.4. Development of Enterprises Based on Analytical Support of Strategic Management
- It has a flexible hierarchical structure of indicators, which allows the task of multi-criteria evaluation of alternatives to be reduced one criterion or uses a vector of indicators for selection. This allows for a fuzzy representation of compliance metrics and relationships, allowing for the implementation of a variety of relationships. It supports both forward and backward fuzzy evaluation methods.
- It takes into account the different importances of individual indicators by assigning appropriate weights to them.
- It contains the necessary formalization tools for software implementation and minimizes the influence of a person (expert) on the strategic assessment process.
- It enables the assessment of a situation (object) and the relationship between them.
- It allows for the processing of heterogeneous quantitative and qualitative data and offers unlimited model dimensions.
- It enables the description of an object and its relationships, which simplifies decision making in conditions of uncertainty.
- IBM Watson: IBM has successfully integrated its Watson AI capabilities to assist organizations in making strategic decisions. Using fuzzy logic and machine learning, Watson analyzes vast amounts of unstructured data to provide insights that guide decision making. Companies like the American Express and Walmart use Watson to evaluate customer data and market trends, enabling them to make informed strategic choices based on comprehensive analytical reports. This approach enhances the effectiveness of their organizational strategies, allowing them to adapt swiftly to changing market conditions [41].
- Ford Motor Company implemented a fuzzy logic model to improve its supply chain efficiency and resilience. By analyzing multiple criteria such as supplier reliability, cost, and delivery time, the fuzzy model allowed Ford to better assess supplier performance and make informed decisions regarding partnerships and resource allocation. The implementation of this model resulted in increased supplier performance recognition and better management of risks associated with supply chain disruptions [42].
- Walmart employed a fuzzy logic-based decision support system to enhance its inventory management capabilities. The model helped to assess factors such as demand variability, stock levels, and supplier performance while allowing for uncertainty in sales forecasting. This approach improved stock availability and reduced excess inventory, thereby optimizing operational costs and increasing customer satisfaction. These are the questions that stimulate opportunities for development [43].
4. Conclusions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
References
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Author (Date) | Model Characteristics | Phases | Key Development Factors |
---|---|---|---|
McGuire, 1963 | Growth from a traditionally small organization to mass production with the transition to professional management. | 1. Small organization 2. Growth planning 3. Start of growth, or departure from the current ones conditions 4. Professional introduction management 5. Mass production | Not specified |
Thiane, 1972 | Each stage of development is characterized not only by different goals pursued by managers, but also by different problems to be solved in the management process, types of organizational structures, and principles of functioning. | 1. Fight for survival 2. Dynamic youth 3. Expansion | Position of the owner, organizational structure, principles of operation. |
Mitzberg, 1979 | The life cycle of enterprises is divided into several stages. At the beginning of the cycle, the organization has a very simple structure. Then, it goes through the stage of classic, mechanical bureaucracy, which in turn transforms into professional bifurcation with the dominant role of specialists and analysts. | 1. Simple structure 2. Mechanical bureaucracy 3. Professional Bureaucracy | Degree of complexity organizational structure. |
Greinr, 1972 | The company develops until a crisis occurs, corresponding to the development phase. Successful resolution of this crisis, involving changes in the organization, leads to further growth. How the crisis is resolved determines the next phase and the next crisis. | 1. Product and market creation 2. Leadership 3. Delegation 4. Coordination 5. Cooperation | Age and size of the enterprise, phase of evolution and revolution, coefficient industry growth |
Churchill i Lewis, 1983 | The company grows by going through five phases. | 1. Existence 2. Survival 3. Success 4. Start of growth 5. Resource maturity | Factors related to the organization: financial, human and system resources (information and planning advancement and control), business (relations with customers and suppliers, market share, production and distribution processes). Owner-related factors: unity of business and personal goals, owner’s skills in marketing, invention, production, distribution, managerial skills and owner’s willingness to delegate, strategic skills. |
Adizes, 1989 | The model describes organizational growth through the prism of formalization of policies and procedures. It characterizes leadership needs in individual phases and the essence of management. | 1. Pre-founding 2. Infancy 3. Growth 4. Puberty 5. Flourishing 6. Stability 7. Aristocratic 8. Early bureaucracy 9. Bureaucracy 10. Death | Entrepreneurship, maintaining flexibility and integrating employees with the enterprise. |
Dodge, Robbins, 1992 | Life cycle phases developed based on empirical research on a sample of 645 organizations from small- and medium-sized enterprises. | 1. Formation 2. Early growth 3. Late growth 4. Stabilization | Key development factors are perceived as activities aimed at overcoming organizational problems, such as difficulties in contact with customers, marketing planning, and market knowledge. |
Smith, Mitchell, Summer, 1995 | As part of the study, the authors identified three top management priorities combined with suggestions for the identified three stages of the organizational life cycle. | 1. Establishing a company 2. Growth 3. Maturity | The authors indicated development priorities in each phase of the life cycle. |
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Brzeziński, Ł. Enterprise Development Management. Encyclopedia 2024, 4, 1396-1410. https://doi.org/10.3390/encyclopedia4040091
Brzeziński Ł. Enterprise Development Management. Encyclopedia. 2024; 4(4):1396-1410. https://doi.org/10.3390/encyclopedia4040091
Chicago/Turabian StyleBrzeziński, Łukasz. 2024. "Enterprise Development Management" Encyclopedia 4, no. 4: 1396-1410. https://doi.org/10.3390/encyclopedia4040091
APA StyleBrzeziński, Ł. (2024). Enterprise Development Management. Encyclopedia, 4(4), 1396-1410. https://doi.org/10.3390/encyclopedia4040091