Task: Drawing from the work from Eisenhardt that will be discussed, your job is to create a set of your own personal principles. These can be related to a particular business idea, your future career, or more generally how you work. Kathy Einsenhardt describes that when trying to achieve a particular outcome, the world is too complex to plan for every scenario. As a result traditional plans either fall into two categories: 1. They either don’t cover things that eventually happen. Or they try and cover all scenarios, which makes them unusable. Instead she suggests an alternative system: create a set of simple principles. These principles give you a reference for how to act in the face of uncertainty, emotional response, negativity, etc. She describes how having a set of principles, can be enough to achieve great outcomes even in the face of dramatic uncertainty. And she has given a number of lectures on the concept as well: https://www.youtube.com/watch?v=c-pujS_7OHM&t=33s https://www.youtube.com/watch?v=mXoi0vcDf4s&t=21s https://www.youtube.com/watch?v=FxrR1g7ShUw Scope: This will be a short assignment, but it will require you to demonstrate familarity with theory of the course, and apply it to your own context. Length and Presentation: Maximum 1,000 words Criteria by which your assessment will be marked: the ability to operate effectively within a new body of knowledge by addressing relevant areas covered in the course material and relating these to the issues at hand students demonstrating an awareness, a clear understanding, and can correctly apply the underpinning concepts, frameworks, models, etc of the contemporary issues in entrepreneurship the level of originality and insight clarity of expression and good use of language logical planning, structure, and sequence of presenting your thoughts overall presentation including correct grammar, spelling, and punctuation, use of the Harvard referencing system, and use of resources in formulating your assignments including proper acknowledgment and appropriate use of references.

SIMPLE RULES FOR A COMPLEX WORLD

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Simple Rules for a Complex World

Most times people are confronted with dilemmas in life between making decisions that will benefit them in one way but on the other side other people may not get hurt, or the consequences of the decisions might be so dire. In other instances irrespective of the choice made, the consequences are unavoidable and might have injurious effects. It is important therefore, to have certain rules or values which will be critical to assist in decision making. Such principles are vital in guiding people to make quick and rational decisions, assist in flexible capture of opportunities and communicate effectively and remember easily issues set to be achieved (Sull, and Eisenhardt, 2015). Most importantly is the fact that such simple set of rules assist people to define their objectives and set a clear path to achieve such objectives. In setting the rules concerning my business enterprise, the rules I have are principles influenced by my religious background, class, national values and life experiences that motivates the hard work in me as will be discussed herein.

Sull and Einsenhardt, 2015 posits that setting simple rules helps in making better decisions quickly and in the long run, the rules assist make informed opinion about actions to take from the consequences of the decision. Simple rules that are informed by an objective to do a particular work will help in better decision making since it defines the scope of operations that will help meet the objective (Sull, and Eisenhardt, 2015). For instance, in running a barber shop to help in stylish haircut, it is by a rule that all prices are hanged for the customers to see before shaving. The styles and various design options are also available for them to choose from. These rules are stated as price notification and design selection. It means that once a client has selected the preferred design, the price is adjacent to it. As such, many customers are only able to take a haircut of their worth. The rules have seen a reduction of discrimination amongst the clients on the labelling side lie the executive barbershop associated with the rich people only and regular barbershops for the low income earners.

In as much as profit maximization is a motivating factor for the business, extreme profit from consumer exploitation is not part of the principles from the religious influence. A simple rule set on that is that fair price for a fair work done. It means for any haircut or air treatment done, the market forces of demand and supply will determine the prices but not an extortionist approach of raising the prices with an increase in demand (Ferrell, and Fraedrich, 2015). From such, better decisions are made which helps in customer retention by igniting their loyalty. They come with an assurance of quality service delivery to them, and fair pricing which they are informed on before any service done to them.

Rules are very critical in the business for they set the capacity level. The rules are imperative in helping individuals sets the limits and boundary or the scope of their operations (Ferrell, and Fraedrich, 2015). When boundaries are set, one needs not to operate in other sovereignties that conflicts with the set rules. For instance, in the barbershop haircuts, there are certain hair styles that are advanced beyond the capability of the staff to handle. Some designs are advertised with specifics meaning that any work beyond the scope is not taking by the business enterprise. Therefore conflict with clients over spoiled hairstyles and law suits are avoidable. Boundaries set scope to an extent that one will be comfortable within the sphere of operations. When the boundaries needs evaluation, new concerns must be evaluated like to what extent is the scope and or boundary increased or reduced.

Stopping rules and priority setting is a critical aspect of rule setting which has also been advanced by Sull and Einsenhardt, 2015 as it helps people to reach their potential. For example, the rule of how to know when to stop is important in any business enterprise. Thus, when a business needs to expand, the owner will explore new markets and all factors analyzed (Sull, and Eisenhardt, 2015). When the new branch be it expansion through internationalization, is not doing good, the owner can merger, and partner or consider the business being acquired by another to minimize damages. Simple rules are also imperative in assisting to meet priority targets in life and business. There are certain issues that comes first. Like a business owner who has a family and is going to school, priorities are vital as on when to study, work and take care of the family.

In summary, it is advisable to set up their small rules based on their value systems, targets or objectives in such a way they their ambitions will be realized. Setting rules helps in making decisions, setting priorities on what to solve first and what comes last. It also helps a person to have boundaries and scope of operations. Per se, a person will be an individual will have a specific field of operations to an extent that when reduction or increment of such scope is needed, a personal monitoring and evaluation will inform such a decision. Overall, better decisions and quick sound judgment are reached through simple rule sitting.

Bibliography

Ferrell, O.C. and Fraedrich, J., 2015. Business ethics: Ethical decision making & cases. Nelson Education.

Sull, D. and Eisenhardt, K.M., 2015. Simple rules: How to thrive in a complex world. Houghton Mifflin Harcourt.