BMG936 INTERNATIONAL ENTREPRENEURSHIP Assignment Sample
BMG936 INTERNATIONAL ENTREPRENEURSHIP Assignment Sample
1. Introduction
International Entrepreneurship (IE) is defined as an approach of consideration of firms’ internationalisation to influence the International Entrepreneur to establish a strong network all over the world to maximise the business profit. According to Oviatt and McDougall, the definition of the IE is the process of discovering, evolving, enactment and exploiting the opportunities for achieving business success (Reuber et al., 2018).
International Entrepreneur also is defined as a global leader or entrepreneur who seeks the opportunity to implement innovation within the business activities that results in the international expansion of the business and both the entrepreneur and the business will get the advantages of success (Gcase.org, 2021). These business activities involve opening a sales office, licensing, exporting and acquiring the venture to meet the international business objectives positively and that has a positive impact on the business development in future.
In this study, Anand Mahindra will be chosen as the International Entrepreneur is the Chairman of Mahindra Group, India to analyse the effectiveness of Anand Mahindra’s entrepreneurial activities to achieve the Mahindra Group. Anand Mahindra is well known as an International Entrepreneur Anand Mahindra already expands its business internationally and domestically in the areas of industrial sectors of aerospace, agriculture, IT and automobiles (Techmahindra.com, 2023).
In terms of the International Entrepreneur definition, through innovations and dynamic capabilities, Mahindra Group achieved 21% revenue in the year 2022 which denotes Anand Mahindra’s characteristics as a global entrepreneur (Marklines.com, 2022). Considering the IE definition, all business leaders have a great knowledge intensity that helps to establish strong professional relationships and networks which in turn create effective performance of the company (Schwens et al., 2018).
From this context, Anand Mahindra influences the subordinates to effectively perform by maintaining the relationship with subordinates and a strong network to shareholders and international countries as the characteristic of IE to meet the organisational demands through performances.
Considering the type of IE, Anand Mahindra has been both a social and innovation entrepreneur, for instance, the Mahindra group has focused on innovation to embrace livelihood, empowering lives and increasing technological adaptation to create a better world. The reason behind choosing as a Social Entrepreneur Anand Mahindra is also Chairman of a Non-Governmental Organisation (NGO) named Naandi Foundation focuses on enhancing youth skills and educating girls (Mahindra.com, 2023).
2. Background of the entrepreneur
Anand Mahindra started career as an Executive Assistant at Mahindra Ugine Steel Company Ltd (MUSCO) and gradually became Deputy Manager and the President of this company which describes the starting point of entrepreneurial journey. In 1991, Anand Mahindra joined as Deputy Managing Director at Mahindra & Mahindra Limited which is only involved in the production of agricultural tractors and off-road vehicles in India.
Anand Mahindra joined the Top Executive position in Industrial houses in 1997 and after some years, Anand Mahindra took 16 years to become Finance Director at Mahindra Ugine Steel as Executive Assistant which evaluated the professional journey with its venture (Mahindra, 2018). Anand Mahindra gained the Chairman position of own venture Mahindra Group in 2012 after stepping down from Keshub Mahindra and for Anand Mahindra’s entrepreneurial capabilities helped to achieve Padma Bhushan Award in 2020 in the field of “Trade and Industry” (Mahindra.com, 2023).
From a personal perspective, Anand Mahindra was born in 1955 in Mumbai and completed schooling at Lawrence School, Lovedale which signifies that Anand Mahindra has disciplinary qualities from the schooling that influence it to create a better work culture. Anand Mahindra graduated from Harvard College in 1977 with a Master of Business Administration (MBA) from the Harvard Business School that supported Anand Mahindra as the first Indian recipient of the Harvard Alumni Association’s Harvard Medal in 2014.
3. Motivations and Drivers
Process of the opportunity recognition of Anand Mahindra and Mahindra Group as venture
Anand Mahindra is the third generation of the Industrialist Family which creates an opportunity for Anand Mahendra to promote own venture towards success and this is considered an opportunity recognition process. More specifically, commitment, dedication, knowledge and Perseverance from the Industrialist Family from childhood have generated the scope to expand Anand Mahendra’s business venture worldwide.
The opportunity that Anand Mahendra has gained from worldwide popularity is not limited to India and supports the venture named Mahindra from 2009 in the areas of financial services, IT, automobile and agriculture. This popularity of Anand Mahendra as an International Entrepreneur has generated the opportunity to internationalise the Mahindra group operating in 100 countries.
Evaluation of the appropriate IE principle based on 5 principles of Effectuation principles
Effectuation is termed as the way of decision-making and thinking that depends on the entrepreneurs’ ideas to create a better future by taking action to solve issues with the help of resources. Effectuation has five principles that include “Bird In Hand”, “Crazy Quilt”, “Affordable Loss”, “Pilot In the Plane” and “Lemonade” that are linked with the characters and nature of all the business leaders (Effectuation.org, 2023).
Figure 1: 5 principles of Effectuation principles (Source: Effectuation.org, 2023)
Considering Anand Mahindra as an International entrepreneur, the principle of “Crazy Quilt”, “Pilot in the Plane” and “Lemonade” has been linked to the business process and activities by Anand Mahindra. The first one “Crazy Quilt” focuses on establishing a strong relationship through a partnership with companies rather than competitors and this is visible when Mahindra set the partnership with Google Cloud for digital transformation (Economictimes.indiatimes.com, 2023). Similarly, the second one “Pilot in the Plane” supports entrepreneurial development through strategic planning within the control and creates a better chance of bringing fruitful outcomes.
The characteristics of Anand Mahindra to follow diversified business in different sectors prove the application of this effectuation principle for venture growth for the future. “Lemonade” applies to the nature of Anand Mahindra which describes the ability to accept risk and convert it into profit. For example, Anand Mahindra faced the challenges of a joint venture with Ford and the Ford Escort Car failed while launching in the market. Anand Mahindra accepted this challenge instead of not losing hope and manufacturing the vehicles Scorpio and SUV without joint ventures which lead the automobile market (Insider.finology.in, 2023).
Entrepreneurial traits of Anand Mahindra
The entrepreneurial trait that Anand Mahindra has is a creative mindset as the leadership quality that influences others to motivate the work activities through innovation of product and service development. Effective communication is the greatest entrepreneurial trait of Anand Mahindra that helps to maintain a positive work culture in the workplace to create positive job satisfaction for the subordinates.
The role of effective communication of a leader in the 21st century is to exchange knowledge among the subordinates regarding the company vision and mission that creates a healthy workplace (Rocque, 2022). Product quality and sustainability maintained as a part of entrepreneurial traits during the manufacturing of the vehicles or others creates a huge benefit for the company by increasing sales and gaining competitive advantages.
Figure 2: Effective communication management (Source: Rocque, 2022)
Motivations to start the venture
In the case of Anand Mahindra, the motivation to start the venture is coming from the personal family background as the presence of the capital through which the venture may create its future globally. In addition to that, a strong educational background with a higher degree in MBA from Harvard University acts as the motivational factor for Anand Mahindra to make venture development in per own way.
Gradually raising the market competition against Mahindra Group acts as the socio-behavioural factors that influence this venture to adopt new business ideas regarding product development as well as sector enhancement. Motivation in the field of entrepreneurship drives the existing business growth that leads the company to achieve its business objectives perfectly, therefore, all leaders need to develop motivation skills to create a better future.
4. Enablers or Barriers
Identification of different barriers and enablers
Barriers
Anand Mahindra, a leading entrepreneur in the Indian market focused on enabling its company of Mahindra and Mahindra to achieve flying colours, however, some barriers have been faced by Anand Mahindra while upskilling the company. During the early stage, the automotive company of Mahindra Mahindra faced tough competition with the competitor of Suzuki Motors which has been dominating the Indian automotive Industry till now.
Apart from that, the rise of Tata of Motors in recent years increases the challenges for Mahindra in capturing the market share of automobiles and the company has its production in SUVs and commercial vehicles faced challenges in selling the newly launched EVs due to lack of innovation in the vehicles (Parmar et al., 2021). During the Covid-19 pandemic, the sales of automobiles in Mahindra and Mahindra usually decreased resulting in a 24% decrease in the growth rate and were able to sell 180244 automobiles during 2020 which was much lower than the previous year (Susairaj et al., 2021).
Enablers
Anand Mahindra on the other hand focused on the opportunities that act as enablers to improve the market share of Mahindra and Mahindra, and the company has been able to make its automobile fits for Indian roads satisfying the preferences of the Indian customers. Moreover, Mahindra having its existence in good research and development has been able to create EVS for reducing the rising population of diesel vehicles on Indian roads which reduces pollution and the rising price of petrol and diesel has been ignored by the consumers after buying EVs.
On a broader note, it has been stated that Mahindra has been able to satisfy the preferences of the farmers who are the strength of the country and provided highly enabled tractors for the production of crops which created opportunities for enabling competition in the tractor sector (VIJAYKUMAR, 2019). Mahindra and Mahindra increased their market share in the countries of Italy, the USA, South Africa, Brazil and Mexico satisfying the consumers of the global market that enabled Mahindra to earn total revenue of 6.99 Billion USD.
Analysing the ways Mahindra and Mahindra overcome the problems and evaluating barriers for subsequent ventures
The automotive manufacturing industry of Mahindra and Mahindra, having challenges during the early stages, adopted strategies to overcome the problems and barriers to get a favourable output in the competitive market. The company of Volkswagen played an important role during the bad times for Mahindra and Mahindra by helping the company to overcome the crisis by forming a strategic alliance with the company, however, both of the companies focused on the electrification of the Indian automobile market on a larger basis (Volkswagenag.com. 2023).
On a broader note, it has been stated that the challenges of lower sales during the pandemic of Mahindra and Mahindra have been reduced after the post-pandemic and the company improves its sales and revenue in automobiles by effective advertising and company branding. Mahindra motors, on the other hand, knowing research and development adopted innovative technologies to upgrade the automobiles and provided attractive features to attract customers and improve the safety features of every automobile.
IBM’s rational solution has been adopted by Mahindra and Mahindra to generate end-to-end collaborative lifecycle management that helps the company to reduce the delays of availing products from the market which further and as a result, the final requirements of the automobiles have been met during the deliver after creating links between the projects, teams and stakeholders.
Explaining entrepreneurial ecosystem by the Isenberg model
The model of the entrepreneurial ecosystem has been developed by Isenberg after observation of the six domains of the ecosystem among the entrepreneurs which creates a sense of economic development in the ecosystem. The six domains mainly include finance, culture, and supports, markets, human labour and capital, and supports that play an important role in observing the ecosystem of Mahindra and Mahindra
Finance
According to the current sources, the current debts of the company of Mahindra and Mahindra arise 45450 crores INR and the company and the company generated net current assets of 774.30 crores INR after extraction of the current liabilities (Economictimes.indiatimes.com. 2023).
Culture
A large number of millions of dollars have been invested by Mahindra for enabling the increment of high profile that helps the company to develop partnerships with a large number of commercial companies
Supports
The company of Mahindra and Mahindra has a diversified market and the company has several subsidiaries ranging from telecommunications logistics, legal contacts and entrepreneurial contracts that have been considered the support of Mahindra and Mahindra
Figure 3: Isenberg Model of Mahindra and Mahindra (Source: Economictimes.indiatimes.com. 2023)
Markets
The process of beta testing has been done by the company after the recruitment of in-house managers that perform the further activities of diaspora networks, however, the MNC of the company plays an important role in the markets.
Human labour and Capital
Mahindra and Mahindra developed successive colours in the global market after enabling the candidates to join the company and training has been provided to the skilled and unskilled candidates for better engagement.
Policy
Necessary infrastructure and the frameworks of startups have been provided to the automotive industry of Mahindra and Mahindra by the Government of India as support for improving the market share in India.
5. Internationalisation type
Evaluating the stages of the Uppsala model
The different stages of the Uppsala model have been explained by observing the strategies of internationalisation which have been used by Mahindra and Mahindra for improving the market share
Step 1: Mahindra and Mahindra focused on exporting their automobiles in the countries of Bangladesh, Sri Lanka and Kenya which have different nations following the sporadic mode of exporting that enables the company to internationalise without any risks.
Step 2: Mahindra and Mahindra adopted the strategy of having a large number of local offices and assembly plants in several countries to export its automobiles in the international markets however the strategy has been successful and there has been an increment in exporting the automobiles of the company (Financialexpress.com. 2023).
Figure 4: Uppsala Model of Internationalisation (Source: Financialexpress.com. 2023)
Step 3:
The subsidiaries of the automobile industry of Mahindra and Mahindra play an important role for the company to generate a market share in the foreign countries of the USA, the Middle East and the countries of the European continent and the processes of internationalisation have been successfully performed by Anand Mahindra
Step 4:
The core information of IT technologies has been extracted by Mahindra and Mahindra after the adaptation of foreign manufacturers that helps the company to explore the model of GenZe of the USA.
Born Global approach
The approach of Born global has been one of the successful steps of Mahindra and Mahindra for adopting the modes of internationalisation that have been able to generate competitive advantage after getting the accessibility of resources and technologies for operations (Paul and Rosado, 2019). Anand Mahindra acting as a born global observer adopted the new market trends of international markets developing opportunities for early internationalisation.
The company usually developed relationships with its internal partners in individual countries to expand its market share in the niche markets, creating unique demand and then slowly improving the market base. Furthermore, the successful implementation of the Born Global approach by Anand Mahindra in its company of Mahindra and Mahindra increases the procedures of rapid globalisation without any long-term period.
The reasons for choosing this route of internationalisation
The procedures of innovation and market dynamics for expansion in the international markets have been done by Mahindra and Mahindra following the approach of Born global thus Mahindra and Mahindra may be considered as Born Global. Furthermore, the creation of subsidiaries and manufacturing plants has been done effectively in the international countries after being born global as it has been one of the best approaches that reduce the long-term processes of internationalisation.
On the other hand, the model of Uppsala Internalisation has been adopted by Mahindra and Mahindra helps the company to reduce the challenges while entering a foreign country and performs the processes with speed and determinants after focusing on the aspects of assumptions, influential factors and competitive strategies (Igwe et al., 2021).
On a broader note it has been stated that Mahindra with the help of external export agents, dealers and merchants export the products to international countries quickly after using a low amount of expenses that reduce the risks of exploring the automobiles directly.
Analysing the internationalisation routes for subsequent ventures
After analysing the above models and approaches it may be observed that the subsequent ventures may floor the above-mentioned modes of internationalisation for improving the market share in the international countries. However, there have been other alternative modes of internationalisation that may be successfully adopted by subsequent ventures. The alternative modes mainly include the modes of franchising or strategic alliance that may be more appropriate for subsequent ventures to reduce the risks and expenses while internationalizing.
Good collaboration with the companies of individual countries after forming a strategic alliance with the subsequent ventures creates knowledge about the structure and on the other hand, providing ownership rights and trademarks to the local companies of individual countries initialises the procedures of franchising (Cui et al., 2018).
6. Conclusion
From the above discussion, Mahindra Group has occupied a better position in the Indian as well as global market due to its IE characteristics of Anand Mahindra that have influenced the economic development of the country and company. Through creativity and innovation management for product development in different sectors from automobile to IT and Agricultural to aerospace, high market share that this company has occupied. From the above analysis, it has been derived that Anand Mahindra and its venture will grow better in the upcoming time which helps the business to achieve global success.
Additionally, as an individual, an entrepreneurial lesson that has been developed from this study is the effectiveness of communication and leadership qualities to accept continuous organisational change and gain success. Apart from that, through Upsala and Born Global theory, the way of doing business internationally has been derived from this IE and Anand Mahindra’s venture journey.
From this study, the business owners and the enterprise gained the knowledge of using the principles of effectuation to build an opportunity for IE and its venture to expand the business successfully. Therefore, it has been concluded that the success story of Anand Mahindra and its venture is significant to motivate the business owners to use the resources and talents that IE have and introduce the venture as a global business.
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