How law affects value creation
Identify how law affects value creation theories that are critical for entrepreneurs to know.
Theories can be applied to manifest a decision making process that will produce the outcome of generating value creation through a successfully operating organization. An objective approach to employing a theory or combination thereof is to have knowledge of pertinent systems. The Stakeholder theory places management with the responsibility of making decisions on behalf of all stakeholders. The Balanced Scorecard theory is tantamount to the supervisory version of the Stakeholder theory. The Enlightened Stakeholder theory considers long-term objectives as the archetype for decision making. The Stockholder vs. Shareholder theory demands a concise and unparallelled objective to diffuse (Jensen, 2001).
Identify how law affects value creation skills that are critical for entrepreneurs to develop.
Law, determined by societal compromises and motivated opinions, is established as a result of a reaction to a social announcement. Consumers interest in stock and investments drive the creation of value and are similarly bound by civil declarations. The proficiency to support the community through resources, skills, and labor reflect the conflict management prowess of an organization and advance and improve its performance. The four C’s- capture, codify, communicate and create, and finally coach critical skills can ultimately dictate the success of an entrepreneur in the 21st century (Kale, Dyer, & Singh, 2001).
Identify how law affects value creation abilities that are critical for entrepreneurs to develop.
The ability to perceive beyond the Mancean vista and evaluate the governing social implications that determine law and affect value creation is a invaluable characteristic of a successful entrepreneur. Businesses are associated with civil, economic, and environmental actions that have consequences upon the community. These ramifications result in the loss of trust for businesses resounding in the establishment of new laws and policies to protect the consumer. The ability for an organization to create value by considering the wellbeing of the consumer, the long-term environmental and social impacts of the business, and internalize social sacrifices by creating a shared value between the economy and society (Porter, & Kramer, 2011).
Identify how law affects value creation behaviors that are critical for entrepreneurs to develop.
Payne, & Joyner transcribe the relationship between law and value creation behaviors by articulating that, “government creates value through laws and regulations and through services that provide structure and stability and assurances of quality, lawful behavior, and national support.” The behaviors of an organization reflect upon the business’s veneration for social responsibility as enforced by law; these responses affect value creation and determine the success of the entrepreneur (Payne, & Joyner, 2006)