Case Study on International Entrepreneur Assignment Sample

Pages: 21 Words: 5303

Introduction

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Mark Zuckerberg, Facebook’s CEO and co-founder, has accomplished what very few people could ever dream of in such a short period. A little more than a decade back, an USA based 19-year-old established “thefacebook.com” in a room at Harvard University’s Kirkland House. Today, he is 36 years of age and ranks among the world’s wealthiest people, with a net worth of 132 billion dollars, primarily due to the success of Facebook (Eyre, 2021). He did not leave it there. After a year of hard effort, Mark Zuckerberg constructed an artificial intelligence helper named “Jarvis” to help him turn his residence into a “smart home” (Rahman, N.D.). To let the world know about his accomplishments, he shared the video on his official Facebook page, which quickly became viral. Thus, the current case study examines Zuckerberg’s multiple facets as an international entrepreneur and attempts to critically evaluate the various elements that contributed to his success in the worldwide market.

Major Elements of the Entrepreneurial Orientation of Zuckerberg

Exploring thoroughly before committing to a venture

One of the most frequent errors made by novice entrepreneurs is mindlessly following every new trend. They adopt anything that is making headlines without conducting a thorough study. Mark Zuckerberg, on the other hand, has an entirely different perspective on this. He advises that young entrepreneurs must select their ventures wisely. “The greatest risk,” Zuckerburg asserts, “is not taking any risk” (Abdelhaey, 2019). While an entrepreneur should be willing to break glass ceilings and take calculated risks, they should be calculated. Making business commitments without conducting adequate due diligence is a sure way to catastrophic outcomes.

The capability of “Moving fast”

Facebook has always adhered to the slogan “Move Fast and Break Things,” which has aided in the company’s growth to become the world’s largest social network. Zuckerberg has always espoused the importance of moving quickly, even if it means breaking a few things. When Facebook introduced a new NewsFeed, they found themselves in a pickle. They acted quickly and gave consumers the choice of viewing both the new and old “NewsFeeds”, which remedied the issue. They also encountered blowback from users when they debuted their “Timeline” feature, but their proactive approach enabled them to resolve issues quickly and without instilling mistrust (Burlea, N.D.).

Setting high goals with a long-term relevance

Mark Zuckerberg has lived his entire life by the adage “Think big, start small,” and it has worked brilliantly for him. From modest beginnings to a massive empire, Mark Zuckerberg has always had long-term aspirations in mind. From the start, his vision was very clear. He turned down numerous rich offers by emphatically declaring that he was there to develop something for the longer term. Along with his unwavering commitment, he sets high standards for himself and his organisation, which is reflected in his work ethic (Hoffmann, Proferes and Zimmer, 2018). He is constantly striving to improve the user experience through innovation and state-of-the-art features.

Being Passionate about the set goal

When one looks examines the lives of some of the world’s most successful entrepreneurs, one is likely to detect a common tendency among them all. They are devoted to their work. The same drive has enabled Facebook to innovate at a breakneck pace and overcome every impediment in its path (Lim, 2020). That same devotion enabled the Facebook phenom to reject a barrage of buyout proposals, despite the difficulty.

Hiring the right kind of men

When it comes to hiring employees for his organisation, no one has a firmer hand than he does. His advice to aspiring entrepreneurs is to never skimp on recruiting the best workers. In the long run, a company can only improve if it hires someone truly exceptional, believes Zuckerberg.

Zuckerberg’s formula for selecting the finest individuals is- being upfront about what an entrepreneur stands for and employing the best talent to complement his/her existing abilities. Sheryl Sandberg (who used to work for Google) is the ideal of a proper hire (Hoffmann, Proferes and Zimmer, 2018). She was appointed COO of Facebook and is responsible for a sizable portion of the advertisements that Facebook receives, which account for a sizable portion of its turnover.

Being prepared to keep on learning

Facebook was founded on the willingness to learn new things. Mark Zuckerberg developed an early interest in computers and programming. At the juvenile age of 11, he even created a programme named “ZuckNet” to connect his father’s home and workplace computers. He created games using his friend’s pictures and picked up a variety of languages along the way (Abdelhaey, 2019). The list could go on indefinitely. Despite having reached the pinnacle of his field, he continues to enrol in courses to stay aware of the latest technological advancements.

Striving to improve the quality of product/service

According to Mark Zuckerberg, an entrepreneur cannot expect to succeed without first creating a fantastic product. Whatever his/her job, he/she must understand his/her product like the back of his/her hand. Despite his position as CEO, Zuckerberg works together with his staff to improve Facebook. According to Zuckerberg, as a young entrepreneur, one must focus on what clients want and develop the product accordingly.

Making the best use of Time

Another feature that the majority of successful businesses have is that they all place a premium on time. Mark Zuckerberg is not an outlier in this regard. Age is only a number to him. He aspires to greater things in life, and that is the reason he values his time so highly (Lim, 2020). He realizes that once something is lost, it cannot be recovered, even if millions of dollars are spent. That is where his philosophy of “move fast and break things” emerged: to make the best use of time while it is still possible.

Conclusion

It is evident from the above discussion that Zuckerberg has succeeded as an international entrepreneur by the virtue of the mentioned characteristic features, which set him and his company apart from the rest of the crowd. Zuckerberg, through his success, demonstrates that with the necessary vision, focus, and commitment, it is possible to reach the zenith of success in the sphere of entrepreneurship, that too, in the global context.

Part B

Technology Entrepreneurship

“Technology entrepreneurship” is a complex concept that requires not just many disciplines and levels of analysis to be examined from a variety of viewpoints, but also a “case-by-case” strategy to be relevant. Technological entrepreneurship encompasses four distinct sets of activities: i) developing new technologies or identifying existing ones, (ii) identifying and matching emerging market opportunities associated with the application of these technologies, (iii) development/application of technology, and (iv) creation of business (Giones and Brem, 2017).

Mark Zuckerberg has stated that even though Facebook hosts and generates content, he does not consider Facebook to be a “media firm.” He refers to Facebook as a “technology company” since the corporation’s principal function is to employ engineers who develop code and create products and services for other people (Duval-Couetil, Ladisch and Yi, 2021). This technology firm founded by Zuckerberg meets all of the requirements for being classified as a technical enterprise; the following elements illustrate this assertion:

It establishes a Fan Page for the Product/Service: Individuals may build a brand by amassing a sizable following on Facebook. Fan Pages are critical since they enable direct communication between consumers and the firm and/or other consumers. If a firm has recently launched a new product, its fan page might provide invaluable input, as supporters are likely to initiate discussions on the page. Additionally, these pages empower customers by allowing them to submit images and videos.
It significantly improves advertising: Facebook derives all of its revenue from advertising and has built an outstanding advertising infrastructure. Depending on the size of the business, the owner can select from a variety of advertising options (Bahcecik, Akay and Akdemir, 2019). Anyone can purchase advertisements at any moment based on the number of clicks or impressions. Social actions are narratives about a user’s friends that are associated with and shown alongside the advertising.
An effective platform for research: Along with the improved advertising platform, Facebook has built a robust research tool for tracking the success of ads. Businesses have access to information about an activity, fan demographics, advertising performance, and trends. With this data, a business can optimise its personalised content on Facebook and fine-tune its ad-targeting (Giones and Brem, 2017). Their extensive collection of real demographic data enables a company to have a thorough knowledge of who is connecting with business and how. The best part is that this service is entirely free.
Creation and development of application: Another excellent method of promoting a business is to create a robust application. With the Facebook Platform, one can develop apps that are tightly integrated with Facebook, make use of the social graph’s strength, and open up new prospects for business (Duval-Couetil, Ladisch and Yi, 2021). The platform includes all of the tools necessary to easily develop customised interactions for people with a business.

As a result of these characteristics, Zuckerberg meets the definition of a true technology entrepreneur. It is one of the most powerful “web 2.0” platforms now available on the market, and all firms should apply at least some of the procedures outlined. Social networks are no longer simply for casual social connections, which is why corporations like “Ernst & Young”, “Apple”, and “Nike” all have significant Facebook presences.

Part C

Course Work 2: Literature Review on “Psychology of the International Entrepreneur”

The psychological theory of Entrepreneurship

Steinbrink, Berger and Kuckertz (2020) states that entrepreneurial psychological theories place a premium on the person and the mental or emotional factors that motivate entrepreneurs. According to a notion advanced by psychologist David McClelland, an emeritus professor at Harvard, entrepreneurs are motivated by a desire for accomplishment. Professor emeritus Julian Rotter of the “University of Connecticut” proposed a locus of control theory. According to Rotter’s theory, individuals with a strong internal locus of control think their actions can impact the external environment, and research indicates that the majority of entrepreneurs share this feature, opine Li et al. (2020).

Numerous studies have been conducted on the psychological traits that entrepreneurs frequently exhibit. As per the views of Shir, Nikolaev and Wincent (2019), there is no such thing as an “entrepreneurial personality,” and the psychological makeup of successful entrepreneurs varies significantly. These are the motivations behind traits such as a desire to be their boss, as well as a reluctance, at times, to seek expert counsel from others (Chadwick and Raver, 2020).

Common Psychological Traits of Entrepreneurs

To begin with, entrepreneurs have an innate desire for accomplishment. This refers to the necessity of pursuing success aggressively to attain a sense of personal accomplishment. Ndofirepi (2020) is of the opinion that entrepreneurs have a proclivity for selecting and pursuing commercial endeavours that offer a reasonable probability of success or a high potential for personal achievement and pleasure but without an overwhelming risk of failure. Entrepreneurs, want challenges but typically avoid firms with limited potential for development and success. They have little possibility of developing a sense of personal accomplishment.

Entrepreneurs frequently struggle to comprehend why people in their organisation aren’t motivated by the same desire for success as they are. It is critical for a successful entrepreneurial organisation that key personnel share the same values, vision, and business objectives, believe Palmer et al (2019).

The second trait in common is the presence of an internal centre of control. The term “locus of control” relates to an individual’s perspective of the reasons for life occurrences. Internal locus of control refers to an individual’s belief that their environment, in this case, the performance of their business, is within their control. That is, chance and fate have no bearing on what occurs, and an entrepreneur’s success or failure is determined by his or her talents and expertise. This might help an entrepreneur feel more secure while making business decisions (Singh, 2020). It can, however, occasionally result in a sense of failure if things take longer or cost more than anticipated, even if there are valid reasons for this.

The third feature in common is a proclivity towards ambiguity and uncertainty. This is a term that relates to an individual’s aptitude and comfort level with partial or unclear information. Incomplete knowledge about markets, cash flows, rivals, and intellectual property creation is frequently a characteristic of an entrepreneurial firm. From the comments of Singh (2020), it is apparent that entrepreneurs may find an uncertain business position attractive, even pleasant, and this may appear uninteresting if a business is simply ticking over. However, López-Núñez et al. (2020) believe that during some stages of a firm’s growth, a time of consolidation may be beneficial to the business, if not particularly difficult for the entrepreneur.

A fourth frequent trait is what is referred to as a risk-taking proclivity. That is, the entrepreneur actively seeks out hazardous enterprises or assignments and has a higher proclivity for risk-taking. However, a critical notion here is taking measured risks rather than making rash or spur-of-the-moment judgments. Kerr, Kerr and Xu (2017) argue that there is a distinction between taking a calculated risk and taking a risk. Entrepreneurs are risk-takers, but they are unlikely to view themselves as severe risk-takers, even if others do. They have a more optimistic outlook on life than others.

Some Major Psychological Theories of Entrepreneurship

Psychological theories of entrepreneurship emphasized the emotional and mental aspects of the individuals that drive their entrepreneurial activities. Four of the most popular psychological theories of entrepreneurship today include:

“Action regulation theory”
“Passion theory”
“Rotter’s locus of control theory” and,
“McClelland’s theory”

Action regulation theory

Michael Frese outlines the application of “Action regulation theory” with relation to entrepreneurship. It is elaborated as the meta-theory which regulates goal-directed behaviour (Bylund and McCaffrey, 2017). This theory explains how individuals control their cognitive behaviour with the help of cognitive processes which consist of selection and development, orientation, monitoring and planning and processing feedbacks.

To examine human action according to this theory there are three dimensions:

sequence highlights the path taken from goals to feedback.
the focus extends from activities to self and,
structure outlines the level of actions that are often regulated

(O’Shea, Buckley and Halbesleben, 2017)

Fischer, D., Mauer, R. and Brettel, M., (2018) opine that the basic application of this theory to entrepreneurship is seen in terms of planning. To describe entrepreneurial planning behaviour, four action processes have been suggested; opportunistic, complete planning and review. Based on Frese’s theory, early-stage entrepreneurs are likely to observe a new task. Also, this occurs repeatedly and this occurrence of the action is likely to feature in the coming few years. Furthermore, it highlights the fact cognitive ability is much more crucial to entrepreneurs. Compared to the other two theories, this theory is significantly less criticized, claim O’Shea, Buckley and Halbesleben (2017).

Passion Theory

Over the last couple of decades, entrepreneurship experts have begun to deconstruct the idea of entrepreneurial passion, which has long been a cornerstone of entrepreneurial motivating rhetoric. “Passion” motivates us to work harder and more effectively, state Obschonka, Moeller and Goethner (2019). Perhaps entrepreneurs regard their enterprises as their infants and nurture them with the same zeal that parents do with their human offspring. Perhaps entrepreneurship scholars should place a greater emphasis on emotions when attempting to understand entrepreneurial behaviour.

There are two primary classifications of passion:

“Obsessive passion (OP)” is a term that refers to the deliberate integration of an activity into one’s personality, creating an internal demand to engage in the activity that the individual enjoys, according to Gielnik et al. (2017).

“Harmonious passion (HP)” is a term that refers to an independent internalisation that motivates individuals to pursue activities they like. HP fosters healthy adaptation, whereas OP stymies it through negative affect and inflexible persistence.”These principles have lately been applied in a number of empirical investigations.

Lex et al. (2020) have discovered that serial entrepreneurs had a higher level of entrepreneurial enthusiasm than first-time entrepreneurs. They discover that portfolio entrepreneurs (those who hold numerous company interests concurrently) exhibit the greatest levels of harmonious passion.

Rotter’s locus of control theory

Rotter’s “locus of control” has garnered prominent attention amongst personality theories of entrepreneurship. This theory was formulated in 1954 by Julian Rotter. Furthermore, Locus of Control offers people the belief that control resides within them i.e. internally or can be created externally, believes Kovach (2018).

High internal locus of control: In this case, people believe that they are in charge of their actions and fortune, according to Iles-Caven et al. (2020). Events would be determined based on their qualities and conduct.

High external locus of control: In this scenario, individuals believe that outcomes are out of their control and it completely depends on external factors such as fate, change etc.

Individuals who have a high tendency towards risks are more likely to become an entrepreneur. Furthermore, risk-taking is the most elementary action that entrepreneurs do to achieve high-level performance and success, remark Carton, Ries and Nowicki Jr (2021). Therefore, this theory manages to explain that entrepreneurs with internal locus believe that emergence of success is due to their capabilities and actions. While entrepreneurs with external locus assume chances of success or survival are driven by institutional and external forces.

David McClelland’s theory

David McClelland, a Harvard psychologist formulated the “Theory of Achievement Motivation” in 1967. As per the opinions of Mourão and Schneider Locatelli (2020), McClelland through his theory had tried to outline why few communities are more economically booming as compared to others. Furthermore, according to him, entrepreneurs are classified based on their need for achievement which is the driving factor for their economic growth. According to McClelland, an entrepreneur works in a structured and creative way which eventually leads to better decision making in predicaments.

As seen from McClelland’s need-based theory on motivation, three motivators or needs have been prioritized for:

affiliation,
achievement and,
power

(Woodside et al., 220)

Furthermore, individuals possess these three dominant motivators irrespective of their age, gender or culture. These three motivators are directly proportional to life experiences and culture experienced by individuals, hold Lloyd (2019). Entrepreneurs use these motivators to influence the performance of employees by setting goals for them, offering motivation and rewards. Individuals who are encouraged by the sense of achievement often seek challenges and they like to thrive on them. They like to evaluate and act on feedback to perform better. On the contrary, individuals who are motivated by affiliation are comfortable in a group and do not prefer taking risks and uncertainty in their tasks, asserts Lloyd (2019). They prefer to take limited feedbacks and most likely will not act on it.

From the study research conducted by Mourão and Schneider Locatelli (2020) it is understandable that individuals with a strong want for power perform at optimum conditions when they are put in charge. Competition motivates them and they perform well in goal-oriented tasks. Finally, McClelland concluded that individuals with a need to succeed are more likely to become entrepreneurs as they are not motivated by money or other benefits and profits are just other sources to highlight their success.

Psychological Issues faced by Entrepreneurs

While entrepreneurship can be incredibly rewarding, it’s never a smooth road. And the strain of building and running one’s own business can lead to serious consequences. The experts with the “Gallup-Healthways Well-Being Index” found that 34% of entrepreneurs report experiencing anxiety, point out Bockorny and Youssef-Morgan (2019). And nearly half of them admit to feeling stressed. In both cases, this is about 4% higher than what other workers reported. Another study has suggested that mental health challenges affect more than 70% of entrepreneurs, reveal Nikolaev, Boudreaux and Wood (2020). These individuals were found to be more likely than the general population to deal with “depression”, “ADHD’, “bipolar diagnosis”, and “addiction”.

Digan et al. (2019) state that though unfortunate, these statistics should not be particularly surprising. After all, about 75% of venture-backed startups fail. And less than 5% live up to their original projections.The very nature of entrepreneurship often means that people end up neglecting their health. Mealtimes become sporadic and of low quality. Sleep and exercise fall to the wayside. This is because their endocrine system is taking a “fight or flight” approach to chronic stress, overriding anything the brain deems non-critical, such as sleep and digestion.

For some, the pressures of entrepreneurship lead to a loss of quality of life. Other times, it becomes more traumatic. According to the views of Mourão and Schneider Locatelli (2020), as reported in an article titled “The Psychological Price of Entrepreneurship”, the suicides of well-known entrepreneurs like Ilya Zhitomirskiy and Jody Sherman have brought new attention to mental health challenges. More recently, the deaths of Kate Spade and Anthony Bourdain have made national news.

Experts agree that the best defences and remedies for mental health challenges come from resisting the “fight or flight” mode that can lead one to neglect himself/herself and his/her health. This starts with spending time with loved ones. One of the key benefits of family time is that it helps an individual to deepen his/her identity outside of business, which can pay dividends when his/her business struggles, suggest Shir, Nikolaev and Wincent (2019)

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