Department of Business Administration
Assignment Template
Name Joshua Kenneth
Admission Number 231020130012
Programme of Study [Link] Administration
Department Business Administration
Course Code BUA313
Course Title Innovation Management
Semester Level 1st Semester
University Academic Semester Fall Semester
Date of Assignment Submission 21/10/25
Question:
How can having a clear understand of a company's goals and objectives help in creating an
effective innovation management strategy?
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Answer:
Having a clear understanding of a company’s goals and objectives is essential for creating an
effective innovation management strategy, because it ensures that innovation efforts are
purposeful, aligned, and value-driven. Here’s how it helps:
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1. Alignment of Innovation with Strategic Direction
When managers understand the company’s goals, they can direct innovation activities toward
achieving those specific outcomes.
For example, if a company’s goal is market expansion, innovation may focus on new product
development or entering new markets.
If the goal is cost leadership, innovation might emphasize process efficiency or automation.
Result: Innovation supports business growth rather than becoming a disconnected or wasteful
activity.
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2. Prioritization of Resources
A clear understanding of objectives helps managers allocate limited resources — time, talent,
and funds — to projects with the highest strategic impact.
This avoids spreading resources thin across unrelated ideas.
Result: Focused innovation investment leads to higher returns and successful implementation.
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3. Encouragement of Purposeful Creativity
Clear goals provide boundaries that guide creative thinking. Employees can generate ideas that
are both innovative and relevant to the company’s vision.
Result: Creativity becomes strategic rather than random, fostering meaningful innovation.
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4. Improved Decision-Making and Evaluation
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Understanding company objectives gives managers clear criteria for evaluating innovative ideas
— they can assess which ideas best support long-term goals.
Result: Decision-making becomes data-driven and aligned with organizational success
metrics.
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5. Strengthened Organizational Commitment
When employees see how innovation contributes to the company’s broader mission, they become
more motivated and engaged in the process.
Result: A stronger innovation culture and shared sense of purpose across departments.
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6. Enhanced Adaptability and Strategic Agility
Clear goals make it easier to identify gaps between current performance and desired outcomes.
This helps management focus innovation on areas needing transformation.
Result: The company can adapt more quickly to changing markets and technologies.
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Example
For instance, Tesla’s goal of accelerating the world’s transition to sustainable energy directly
shapes its innovation strategy — focusing R&D on electric vehicles, battery technology, and
renewable energy systems. Every innovation supports this overarching mission.
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References
Tidd, J., & Bessant, J. (2021). Managing Innovation: Integrating Technological, Market and
Organizational Change (7th ed.). Wiley.
Drucker, P. F. (1985). Innovation and Entrepreneurship: Practice and Principles. Harper & Row.
OECD (2018). Oslo Manual 2018: Guidelines for Collecting, Reporting and Using Data on
Innovation. OECD Publishing.
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