Entrepreneurial strategies - Assignment

Entrepreneurial
strategies

Table of Contents
Table of Contents
Introduction..........................................................................................................................................3
1B. Critically evaluated entrepreneurial strategies and its relation with Kitchen Table..................3
2C. Analysis of organization strategic situations and development of its objectives......................6
3D. Approaches to attain objectives & Implementation of strategy................................................9
4E. Recommendation.....................................................................................................................10
Conclusion..........................................................................................................................................10
References...........................................................................................................................................11

Introduction
Strategy is defined as a play , pattern, position or an action which an individual take to
achieve their desired objective (Waddington 2014). For using the entrepreneurial strategy, an
entrepreneur develops and executes their new innovative idea in their product and services with the
aim and objective of to attaining the beneficial outcomes form sustainable market. The chosen small
medium enterprise performs their operation in service sector in the UK in the restaurant sector
named “ Kitchen Table” in London.
Entrepreneurial strategy are combination of practices and the polices with in the enterprise
used by entrepreneurs for establishing the business. In this report, various elements are going to be
covered which includes BCG matrix in order to examine the competitive position of the company
segments. Along with this, McKinsey's 7s which helps in determining soft as well as hard skills. At
last, it includes Porter's five force model which assist in analysing and identifying competitive
forces of industry.
In order to conduct and examine situational analysis, various factors or models are going to
explained in detail. Some of these models includes SWOT as well as TOWS analysis in an effective
manner. With the help of SWOT analysis managers will be able to know their internal strength and
weakness along with external opportunities and threats. Apart from this, Pestle analysis are going to
be discussed in this report which helps in examining all the factors which affects the overall
functionality of the company .
In this report the enterprises is choose is “Kitchen Table” restaurant situated in London.
Michelin started the kitchen table, with his innovative idea of daily changing menu of around 12
dishes and announcing the 19 the lucky dinners who all sit facing the kitchen. As it is a dinning
experience with the full of interaction with the chef and show casing the kitchen in a theatre. In this
restaurant the Reservations of table are taken from months in advance and its standards so high
and as entrepreneur put his creativity and innovation in this well as it is too costly as well. With the
help of this research, various organisational objectives are as going to be developed by the
management team of chosen organisation. Along with this, SMART techniques are also developed
by the managers in order to attain their organisational objectives.
1 B. Critically evaluated entrepreneurial strategies and its relation with Kitchen Table
The entrepreneur of “Kitchen Table” has used and adopt different various Entrepreneurial
strategies in their business for analysing the environment. Some strategies are BCG matrix, Porter's
5 Forces, Value chain model, McKinsey 7s and some of the strategy is described as below:

BCG Matrix:
BCG matrix has four dimensional in its framework where each and every dimension states its
effective and competitive position of the company segments (Spykman 2017).Its elements are star,
question mark, cash cow, dogs which are described as follow in context to the company.
Dogs: These are those products with low growth and the low market share. It can be
explained with the help of example, the restaurant plasma TV from Philips. should not produce and
serves those products which is not beneficial for the company and those product who are not
increasing the market share of the company. It is recommended to the company that the dogs
product can give negative affect and to improve this, they should focus on product development as well
as the market development of products so, product can survive in competitive market.
Cash Cows: These Products are those whose growth markets is low with the high market
share of company (Scholes 2015).In other words cash cows products are those segments which
provide effective financial stability in the business organization. In context to the kitchen table the
management should include and introduce the more profitable products into its menu, to attract and
target more effective and profitable segments while identifying the customer needs and focuses on
satisfying them accordingly.
Stars: These products have high growth in market with high growth in market share. These
products are very profitable to the company as they are the market leaders through ongoing
investment to sustain in market place. As they generate more effective return on investment
compare to other product.
Question marks: These Products have high growth markets with low market share. In
context to “Kitchen Table” the restaurant should formulate, and execute the market development
and product development strategy in their business for effective productivity as well as the profit
maximization. As they have to introduce the more franchises and outlets according to the needs and
requirement of customers which helps in garbing the competitive advantage form market. The
Companies are advised to do invest in question marks products, if the product has enough potential
for growth, or to sell if it does not.
Porter's 5 Forces:
This models helps in analysing and identifying competitive forces of industry. It focuses on the
competitors, suppliers, buyers, new entry and their substitutes of the business organization. These
element are described under as follow:
Industry rivalry: The competitive rivalry in fast food industry is very high as there are
numbers of restaurant available in market. Each will fight to improve their customer base. Some of

the competitors of “ Kitchen Table” in UK are Afghan Kitchen, Jin Kichi, Morito, Seven Park Place
and many more(Rugman and Verbeke 2017).
Bargaining Power of supplier: In the food industry the bargaining power of supplier is low
as there are numbers of restaurant are present in the market place. So, the restaurant “Kitchen
Table” can switch form one suppliers to another easily if suppliers do not agree with their offered
prices. It is recommended that, the company should maintain several suppliers and with good
relationship with them.
Bargaining Power of buyer: The bargaining power is low in food and restaurant industry
as because the customers are more as compare to the restaurant in that place. So the customer can
not switch easily with new place. As it is very beneficial for the restaurant for maximizing the
profit. The recommendation to company is that they should maintain they customer in a effective
way, so they retain for the maximum time.
Threat of substitute: The threat of substitute is very high as there are so many firms and
company in fast food industry with low switching cost and having the numbers of variety of with
similar products in market. Some of the substitutes are Afghan Kitchen, Jin Kichi, Morito, Seven
Park Place and many more restaurants.
Threat to new entry: The threat to new entry is very low, as for establishing the effective
and profitable business, it is typical for the owner and hard to compete as it needed the very high
cost for entering to the market, and also need funds for research & development and typical to
establish the distinct brand name.
McKinsey 7s: This strategy used by top level managers for evaluating and monitoring the changes
expecting with internal factors of the business environment of the organization (Luttwak 2016).It is
classified into two parts as hard elements and the soft elements. These strategy is implemented by
management authorities of “ kitchen Table” restaurant, which helps in examining the operations and
modifying the effective as well as essential improvements in productivity and the performances of
employees and organisation as whole. The strategy of McKinsey's 7s are strategy, structure,
system, skills, shared values, style, staff and these are described in brief under neath:
Hard elements:
Strategy: This elements helps the management of organization, for establishing and
developing the effective strategies and tactics for the business. In context to the restaurant the
manager can build the effective and profitable pricing strategies, motivation, structure, sales
strategies which is very beneficial for the organization for attracting the customers for the sustain
market place and retaining the employee for long period in the organization.
Structure: The structure is a hierarchy or the chain of the command and division of the

operations and functions of the organization. The kitchen Table enterprise has adopt the line
organisation structure in their restaurant for effective working as it is very effective for the
organization as well as the employees as they get the orders from the one boss only and the superior
has effective monitoring on each and every employee. By adopting structure strategy, the managers
of selected company can effectively communicate all necessary and important information without
any hurdles to every employees.
Systems: The restaurant should adopt the effective system in the organization which will
help the organization in achieving the successful outcome. The manager can use and adopt the
effective system in their organization such as proper recruitment system, customer relationship
management systems, transaction processing systems, MIS and many more as they increases the
productivity and the performance of each employee and the organisation (Le Grand 2018).
Soft elements:
Skills: Skill includes the ability, capability and the talent of the employees as well as the
management of the organisation, which helps in accomplishing and achieving the objective. Skills
are required for successful achieving the objective and skills are strong visualization skills,
interpersonal skills, honesty, work ethics, flexibility, sharp business sense skills, loyalty, problem
solving skills, communication skills and competitive business skills and many more. In context to
kitchen Table, employee should have specific skills and ability, such as management skills, cooking,
interpersonal skills, for the company.
Staff: The staff are the assets of the business and the staff of the Kitchen Table are highly
professional and skilled, experts in their field. As they are responsible for the operation, preparation
of food, serving & delivering of products and working of the business (Kono 2016).
Shared values: The shared value of the Kitchen Table Restaurant is based on the attitude,
believes as well as the core values of the business organization towards accomplishing and
achieving the desired objectives. The Kitchen Table Restaurant organization sets the aims to achieve
its core objective through becoming the leading restaurant in the market.
Style: The style is a way of doing and executing the work. The entrepreneur has adopt the
democratic leadership style in their business. As in this style the ideas, views, experiences as well as
the opinion are taken into the consideration and then action is implemented in their business
organization.
From the above elements, it could be recommended that manager of Kitchen Table should
focus on each factor of hard as well as soft element of McKinsey strategy as they as 7s and they are
very essential for the organization ot focuses on it effectively and efficiently. As by using the hard
elements in organization it helps in creating the effective structure, system and strategy which is
very helpful for the organization. Where asd it is talk about soft element it helps in internal

operation of the organization such as creating effective culture, management style, staff welfare &
management, values & ethics.
2 C. Analysis of organization strategic situations and development of its objectives.
Situation analysis of an organisation includes the different diversified methods for analysing
the internal as well as the external environment of enterprises which helps in analysing and
understanding the capabilities, and positions, business environment and the customers in their
business. Some of the strategies for situational analysis are described as follows:
SWOT analysis: This strategies focuses on analysing the strength & weakness of the
business as well as the opportunities & threats for the business.
Analysis of Strength Analysis of Weakness
 Good brand image, gives profitable
customers to Kitchen Table.
 services style is new and effective and it
has Business exterior is clean & tidy.
 Proper Maintenance and less Hygiene
problem in restaurant and they are
providing products & services in cheaper
prices compare to competitors.
 Effective product port folio as this helps
in attracting the customer with the helps
of numbers of new products.
 Low market coverage area as it has
limited funds available for reducing this
weakness they have to expand their
business and covers all area of profitable
market.
 Product offer which is already existing in
marketplace.
 No refurbishment done properly &
yearly.
 The Menu choice is stale and boring to
the customer sometimes.
 Customer have to travel further to get
into restaurant and it has low coverage of
poor international market.
Analysis of Opportunities Analysis of Threats
 New office is opening nearby as this
increase their customer.
 Housing and education sector is
developing nearby the kitchen Table.
This leads to the expansion of their
business.
 Increase in operating cost it leads to
increase in the expense of Kitchen Table.
 Good and high brand restaurants are
available as customer prefer them as it
they are valuable and has good brand
image.
 Numbers of competitors are available
and Entry of new restaurant nearby is a

 The Kitchen Table is established early
and it is old so, it has captured the
effective and profitable market.
threat to the kitchen Table. As it
distribute the customer among the
various competitors , for retaining
customer they have to adopt effective
marketing stargate in their organisation.
PESTLE Analysis: This strategies helps the management in analysing the external
environment of business organization.
Political: The political factor includes the food and safety guidelines, labelling transparency
control, employment law, environment regulations, political stability as well. The restaurant should
considered the all elements of this factor and the management and workers of Kitchen Table should
handle the responsibility of their food products which help in making the effective decision and
leads to the high productivity of employee and the profit to the enterprise.
Economical: The impact of financial crises, cost of labour, currency rate risk, Changes on
interest rate, economic growth, exchange rates, as well as in the business cycle, this results and
give a negative impact on the restaurant which shows effects in taking the high interest loans which
will decrease the profit margin of the restaurant Kitchen Table.
Social: The social factor , affects the restaurant services as the management of kitchen table
focuses on the food safety as well as deals with all guidance of public opinion for satisfaction of
customers & the society as they are king of market and as they are more profitable for the
enterprises growth & success.
Technological: This factor of external environment helps the restaurant in research and
development, dilemma of new technique food as well as marketing and promotion with the help of
technology as social media, digital marketing, ads on web sites & online videos, as this attracts and
influence the audience effectively and leads to more profit for an enterprises.
Legal: In this the management deals and focuses on the packaging, distribution of food
products and the waste management. The restaurant should focuses on the food quality law
effectively in their restaurant.
Environmental: The management of Kitchen Table focuses on reducing the wastage as well
as adopting the greener methods of resource while preparing the dishes or the product which is very
helps is full utilization of available resources.
For the above factors of external environment, it is recommended that organization should
adopt technological changes & up-gradation in their business organization as well as should focuses
on political changes such as Brexit that might impact upon the business in future.

Develop organisational objectives and implementation:
Through this research, I developed some organisational objectives, which are:
 The main objective of the Kitchen Table restaurant is to provide a wide range of food at
reasonable prices.
 To increases sales by 10% within the next 3 months,
 To increases the market share of the enterprise by 12% within 6 months.
 To help in financial contribution with the continual re-investment.
 Within 2 years the restaurant became popular and famous in different palaces, so
entrepreneur can expand their business and open new branches in other places (Hill 2017).
Above mentioned objectives are applied using SMART technique:
 To increase sales by 10% and in order to achieve this objective the manager can adopt the
market development as well as product development strategies.
 To provide a wide range of food at reasonable prices, for accomplishing this objective the
manager can go through with growth strategy as this helps introducing the new products or
new product lines in existing market, as well as this helps in improvising the existing
product and selling them beyond current geographical area.
 For increasing the sales of the business organization. In order to gain this objective the
organization can adopt many strategies such as master sales strategy, market penetration,
Growth strategy in their organization.
 For increases market share of business enterprise the Market development strategy can be
very helpful and useful for achieving this objective.
 For creating the brand name and restaurant popular in different areas, for expansion of their
business the manager can adopt Ansoff Matrix Strategy in their organization effectively and
efficiently.
3 D. Approaches to attain objectives & Implementation of strategy.
There are some approaches and techniques by which the desired organisation goals can be
achieve effectively and efficiently and the proper execution of strategies is also very help full in
analysing the market. The implementation of strategies should be proper and effective, as this leads
to the high productivity and the profitability.
Smart approaches and techniques for achieving the objective:
In order to build effective and profitable brand name of the organisation and increasing the
sales, the management should focus on providing the best quality food and services to customer and
for increasing awareness and attracting the customer through the various marketing tool such as

direct marketing, social media marketing techniques, digital marketing, advertisement, sales
promotions. As this results in increasing the customer and brand awareness among the audience this
will result in the increase in the market share of the organization indirectly. To attain and increasing
the market share of an organisation the management have to focuses on new innovation and some
innovative techniques (Hamel and Prahalad2017).
For increasing the customer satisfaction the management of the restaurant “kitchen Table” ,
should focuses on building the effective customer relationship and management techniques for
understanding the requirements of customer and than delivers the products and services to them
effectively within minimum time. To expand the business in many places and for opening the many
more branches for restaurant the management should focuses on making more profit by delivering
the best product and services to customers as this will helps in capturing the profitable market and
increase the brand value and the brand image of the business. With good brand image and value,it is
very helpful for expanding the business anywhere.
From the above discussed different various entrepreneurial strategy, the management of
Kitchen Table should implement and execute their formulated strategies in a effective and different
innovative way. The management should implement BCG matrix in their business organization. As
this is very helpful for the organization and helps in analysing the level and state of their different
product in one place.
Dog strategy: In this entrepreneur of Kitchen Table will focuses on the communication and
building the relationship strategy which helps in increasing the awareness of the products.
Cash cow strategy: In this element, the managers of Kitchen Table will implement the
effective strategies related with diversification of product which helps to expand as well as
increases the demand of products (food dishes) they are serving to their customers.
Star strategy: The managers of selected company will effectively and efficiently implement
the investment strategy, as to increase and expand demand of their product and services.
Question mark strategy: The marketers will implement diversification and investment
strategy for short products which will very helpful to increase the sales of the products.
4 E. Recommendation
To build the effective brand image and enhancing the sales as well as profitability of the
restaurant “Kitchen Table”, it is recommended that the management can uses and adopt the BCG
matrix strategy in their business which helps in analysing and determining the growth of the
business organisation as well as helps in solving basic issues and problems to attaining and
increasing the market share effectively. By adopting such techniques management of Kitchen Table
, get the proper support in analysing as well as monitoring the performance of different product.

Such entrepreneurial strategy will help management as well as the company to categorise and
differentiate the products as per the standards and target and performance as this will result in
achieving and attaining beneficiary and profitability results (Escobar 2018).
Conclusion
From the above report it has been concluded that entrepreneurial strategies plays important
and vital role in small medium enterprise which helps in achieving the organizational goals. The
entrepreneur uses the different strategies in his Kitchen Table restaurant for achieving the desired
objectives. Some of the strategies are BCG matrix strategy, McKinsey's 7S strategy, value chain
Strategy and porter's five forces model. The entrepreneur do the situational analysis of the
enterprise with the help of SWOT analysis as well as PESTLE analysis and it is recommended to
the entrepreneur that he should adopt the BCG matrix strategy in business as it helps in
differentiating products and analysis the relative market share accordance to the market growth rate
with the help of different techniques.

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