Entrepreneurial Strategy - BCG matrix Assignment

Entrepreneurial
Strategy

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION...........................................................................................................................2
TASK...............................................................................................................................................2
B) Develop and critically evaluate a range of entrepreneurial strategies ..............................2
C. Analyse of Orion Group’s strategic situation, capability and position..............................6
D) Strategy executed in an organization ...............................................................................9
RECOMMENDATION.................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

EXECUTIVE SUMMARY
Entrepreneurial strategy is the process of creating new approaches and product in
competitive environment. It helps the business associates to become more innovative in creating
values in global world. In this report various models are used like, BCG matrix, 7ps of marketing
etc. are used so that market scenario can be examined effectively and efficiently. By doing so
effective tactics are used in order to meet the objectives of the firm. However, company has
carried out SWOT and PESTEL to identify the environment factors like, legal, ethical, social,
political, technological etc. and strengths, weaknesses, opportunity and threats which helps the
organization to examine each and every segment effectively in order to raise profitability.
Moreover, SMART objectives are framed so that company can be achieved accordingly with the
given time duration.
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INTRODUCTION
Entrepreneurial strategies can be stated as the process of framing or developing new
product in the market. It helps the business associates to create strategies on continuous basis so
that competitive advantages can be gained in the cut throat competitive world. A Cake Shop is a
retail business which is specialized in producing and selling of cupcakes, sponges, muffins and
so on. This report includes BCG matrix, 7ps of marketing etc. models in their organization so
that proper functioning of the business can be done accordingly. SWOT (strengths, weaknesses,
opportunities and threat) and PESTEL (political, economic, social, technological, environmental
and legal factors) are analysed so that present market scenario can be examined and accordingly
tactic can be framed. Here, Smart objectives are framed as well as certain models are used in
order to achieve them in systematic manner. Various justification and recommendation are given
to the Cake shop so that improvements can be done in future.
TASK
B) Develop and critically evaluate a range of entrepreneurial strategies
Entrepreneurial strategies refers to as designing or developing new approaches as well as
product or services in the international market. However, entrepreneurship can be termed as
creating commercial enterprise while scaling it to make profits in the competitive world. It can
be seen that small size business are more focusing on yielding profits.
There are numerous entrepreneurial strategies however BCG matrix is explained below:
BCG Matrix was designed by Boston Consulting Group's which help in long term
strategic planning so that business growth and expansion can be done accordingly in the
competitive world. This matrix is divided into four quadrants which are, stars, question marks,
cows and dogs. It is basically used by big or multinational organization who are working in
diversified sectors. It is a entrepreneurial strategy because it helps the organization to better
understand the quadrants in which they have to invest like, dogs, cows, question marks and stars.
It helps the company to examine properly in which quadrants they actually need top invest so
that growth and development can be done in cut throat competitive world.
Porter's five force model:
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Porter's Five Forces Model is a tool which is used to ascertain the intensity of
competition and its profitability level in an organization. Here, are five keys of competitive
forces which are affecting an industry are discussed as follows:
Source: (Evan Tylenda, 2014)
Bargaining power of supplier: Strong bargaining power of supplier has high power to
sell their product to the buyer. The degree is high when suppliers are few in the market, few
substitute raw material exist, cost of switching raw material is especially high. Organization can
have barraging power high if the supplier or distributor are less in number in the competitive
world. Due to which supplier can exploit the buyer by charging high prices from them.
Bargaining power of buyer: In this case buyer has high degree of power in the market.
The degree is high when switching costs to other supplier are low, many substitutes available,
only few buyer exist etc. customers can ask suppliers to charge the prices of the product. Due to
which no one can not charge high prices and can not exploit customers in the market.
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Illustration 1: Porter's Five Force Model

Rivalry among existing competitors: In this particular case degree of rivalry among
competitors is high when there are many competitors are prevailing in the market. However, in
this business associates has more exit barriers in the market. However low customers loyalty
can be seen towards business as well as new organization growth is slow in the cut throat
competitive world.
Threat of entry: In this case if new business is earning huge profits in the market then
there is no threat to enter into the competitive market but if the company is lacking behind in
monetary value then there is great threat in order to bit the present competitor in the cut throat
competitive world. However, degree of entrance is high if it is small business operating on small
scale in the market. Example: Company should make certain strategies so that gradually the
businesses associates can garbed huge market ratio and profits can be maximized.
McKinsey 7s
McKinsey 7s model refers to as tool which helps in examining internal elements like,
systems, shared values, staff, structure and skills. It is an entrepreneurial strategy in an business
as it helps the firm to better understand internal elements which directly helps in growth and
development in the competitive world. It helps in identifying weather they are effectively aligned
to achieve the desired goals on time. It contains 7 areas which are divided into hard and soft area.
Here, strategy, structure are hard elements whereas, rest like, staff, skills, style, shared value are
soft elements. It is easy to identify hard elements as compared to soft elements. The model is
explained as follows:
7s factors
Hard (H) Soft (S)
Strategy Style
Structure Staff
Systems Skills
Shared values
Strategy: Strategy is a plan in order to achieve competitive advantages in the cut throat
competitive world. Inn this A Cake Shop uses low pricing policy so that more customer base can
be raised accordingly. Moreover, firm is using digital marketing tool for promoting their
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products of cakes like, muffins, cupcakes etc. Effective strategy helps in gaining more profits
whereas, ineffective strategy ends up in closing of the product or business. To be successful in
the market effective tactics should be used to be tough competitor for other.
Structure: To be successful in the market Cake Shop organisational structure should
function properly so that best outcomes can be seen in short time duration. Structure plays a vital
role in an organization as it helps the firm to retain effective staff for longer time duration. In
Cake shop individuals are assigned different roles and responsibilities according to their job
profile.
Systems: Here systems means processes of the organization. In this case all the activities
are examined daily so that errors can be eliminated in terms of taste or flavours. In Cake Shop
system of working is very simple in nature and are evaluated on continuous basis so that
productivity level does not hamper.
Skills: In Cake Shop employees are assigned their roles and responsibilities according to
their skills, capabilities and abilities so that productive results can be achieved accordingly. The
the work is done according to the skills then firm is benefited in positive way. In this case
organization uses all skills and talents of employees in order to raise customer base.
Staff: Cake Shop should have effective employees so that desired goals can be achieved
accordingly. They should hire efficient and skilled staff members so that they work effectively
and efficiently in order to grow the bakery store in the market. To retain employees for longer
time duration proper training, motivation and rewards should be given to the people.
Style: There are different style which is used by company in the market. In Cake shop
they use leadership style so that business can be operated smoothly in the cut throat competitive
world. It is bakery store serving products like, cupcakes, muffins etc. this style helps the
organization in motivating employees on continuous basis so that new creative can be generated.
Shared value: It is the main part of every organization as it helps the business associates
to build healthy relations with customers. It indirectly helps to raise goodwill in the market. As
well as shared values are the foundation of every business.
Cake Shop has used Mckinbsey 7s as it helped the business to grow at a rapid scale. This
entrepreneurial strategy helped the organization to raise customer base for the cupcakes, muffins
etc. as well as profitability ratio. Due to which organization is raising gradually in the United
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Kingdom and is able to meet the merging needs of the customers regarding cakes with different
flavours and taste.
C. Analyse of Orion Group’s strategic situation, capability and position
A Cake shop is a small business which is dealing in cupcakes, muffins etc. In present era
bakery requires permanent and contract employees in an firm across the globe so that productive
results can be achieved. Here, Strategic situation is a complete process, in which any company
needs to put focus on situation analysis. Due to which firm operates their operation of business
concern in order to establish various taste in cupcakes in order ton raise business performance as
well as customer base for the cake in the competitive world.
However, in this placement organization strategic situational investigation is categorised in two
concepts which are PESTEL and SWOT & TOWS.
On this matter, critical analysis will be taken top know how this business entity can converts
their weakness into opportunities and understanding of a challenge such as political, economic
etc. An analysis of a strategic situational analysis is as follows:
Strength Weakness
Cake Shop have major strengths such as wide
variety of flavours in cake, providing services
into a multiple segment like, cupcakes,
muffins, etc. and having a wide network to
offer's customers at a fullest.
Also, Cake Shop focuses on people-oriented
services. Due to which loyal customers can be
raised respectively.
A Cake Shop has limited resources due to
which they are facing work shutdown in
muffins. Whereas, organization are facing lack
of commitment from their clients n the market.
Also, business have lack of funds or money to
carry out operation.
Opportunities Threats
A Cake Shop have an opportunity to diversify
their bakery store in various segments as well
as in flavours. However, they have potential
growth in cupcakes with distinguished
flavours. A Cake Shop has huge opportunity in
bakery and can build economy of nation.
A Cake Shop slowdown in flavours as well as
in taste as many new stores are opening as well
as existing bakery shop are adopting various
tactics in order to pull customers for longer
time duration. Whereas, raising level of neck to
neck competition is the main threat for A Cake
Shop bakery store.
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TOWS model:
External/internal factors Strengths Weaknesses
Opportunities A Cake Shop have great
opportunities to convert their
strengths into complete
outcomes in order to
accomplish targets customers.
Here, Cake Shop also have
priority to rise strength with a
strategy to led development of
business functioning for a
longer period of time
For Cake Shop it will be an
opportunity for Cake Shop to
overcome their weakness such
as limited resources which
can be overcome by allocating
resources and utilizing them in
effective manner. .
Threats Cake shop with the help of
strengths such as wide variety
of cakes in multiple segments
etc. Cake Shop has an
opportunity to overcome their
threats such as slowdown of
A Cake Shop have an choice to
change over their weakness
into their positive side so that
resource can be optimised in
an effective manner to increase
level of business suitability.
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Illustration 2: SWOT analysis
Source: (Rachel Blakely-Gray, 2018)

flavoured cup cakes
increasing threats from
rivalries etc. in this evaluation
will aid Cake Shop to become
market leader in cup cakes.
who makes favoured cakes to satisfy customers emerging needs in the competitive world. This
business associates uses PESTEL so that internal and external; environment factors can be ex-
aimed accordingly. Which can be discussed as follows:
Political factor: In this particular factor, influence of a political regulations such as
regulation of political ups-downs, political crisis and legal regulation, which directly impact A
Cake shop in order to understand regulation of customer related to cakes.
Economical factor: Here, increase into client acquisition pricing, changing into the
exchange rates has impacts A cake Shop go for development of a policies or rules and
procedure to realise negative impacts to Cake Shop in order to converts it in positive ones.
Moreover, regulation of price and financial is important to retain pricing for longer time
duration.
Social Factor: A Cake Shop needs to look on such as awareness of a people, client
choices and also their taste or preferences while go for getting engaged with Cake Shop to uplift
their satisfaction level for longer period of time. However, in Cake Shop , societal culture is
highly necessary to increase regulation and client acquisition to enhances business regulation at
optimised stage.
Technological factor: A cake Shop in technological factor will be prominent to check
out the role of technology for ordering cakes online. In technological advancement it is pro-
active in nature. However, it is required to examine the usage of technological in odering cakes
through online.
Environmental factor: This is one most important factors of a pestle analysis, in which
effects of the environmental measurements such as course of business sustainability, use of a
legal protection such as environmental awareness in order to protect the regulation of business in
an effective manner or way.
Legal factor: Legal factors such as use of an intellectual property such as Trademarks,
patent, copyrights etc., are some of legal or legislation-based regulation which are necessary for
Cake shop to build and retain brand image in the cut throat competitive world.
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Strategic Objectives:
In Cakes Shop, it is suitable to set SMART objectives based on group such as, realistic,
achievable, specific and timely.
Cakes Shop is to raise sales by 5% it's objective is particular as it clearly defines to increase
sales in the market. The objectives can be measured by Cake Shop because it has mentioned that
sales will be raised by 5% and can be achieved by the help of BCG matrix strategy. The set
objectives are realistic in nature as they are based on percentage and data figures. Hence,
SMART techniques is used to clearly define the set goals in the market.
BCG matrix strategy is executed in the organization so that it helps in identifying what
product should be made, what are the areas etc. it can be examined with the help of this matrix.
In the first 4 month 5% sales can be increased by focusing and investing on STAR product. So,
If Orion Group adopt this strategy sales can be raised by 5% in the competitive market.
These objectives are as follows:
1. Increment in client acquisition by 5 % for Quarter period of 2019.
2. Build revenue market by 4 % in a coming three years (Zaridis and Mousiolis, 2014) ).
3. Acquire customer's market by 3 percent in two years
D) Strategy executed in an organization
The various Steps need to implement in marketing strategy in Cakes Shop by using
market diversification strategy is explained as follows:
Reviewing strategy: In this Orion group uses export review strategy so that product and services
can be exported outside foreign countries. It helps the business associates to get an idea of what
to product or services can be sold in various market. The company have been opting for market
diversification strategy to reach their objective of enhancing market share.
Strategy development: Export strategy development is adopted by Orion group so that
Orion group can build an export plan as well as export marketing plan. It helps the business
associates to increase sales, better profits etc. in the market place. This business will be looking
to identify various approaches through which market share of the business could be enhanced.
Post consideration to all the sections, it has been identified that venturing into Human resource
services can be one of the crucial diversification strategy for this organisation.
Market identification: Through this step Cake shop can search out targeted market in
order to raise their sales in the marketplace. It helps the organization to attract potential
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customers for the product in order to raise profits. It is a trend in the market that organisations
are mostly outsourcing their human resource activities which pose as an opportunity for business
to offer HR services to organisations.
Facilitation: This is the last stage in the implementation process which focuses on
facilitation the strategy in the business (Blackburn, 2016). A Cake Shop should join hands with
those who can share loss and profits in the marketplace and can participate alongside in this
endeavour. It also helps the business associates to create goodwill in the market. Due to which
customer base is increased and profitability ratio raised.
RECOMMENDATION
A Cake Shop bakery store is recommended that organisation should adopt various models
like, BCG matrix, 7ps of marketing and Porter's five force model all this help the firm deeply
examine the market scenario. It helps the firm to make tactics in order to meet the set objectives
in time. Market diversification strategy is used so that huge market ratio can be achieved as
profitability can be achieved accordingly. SWOT and PESTEL analysis is used so that internal
and external environment can be examined in systematic manner and productivity ratio can be
raised.
CONCLUSION
It has been concluded from the above report that it is important for the management of an
organisation to make suitable and profitable strategies with the help of taking support from
various marketing theories such as PESTLE, SWOT, Porter five forces etc. For this, SMART
objective should be framed which brings motivation among employees to work hard and
contribute their efforts in achievement of desired goals and objectives.
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REFERENCES
Books and Journals
Kazanjian, R.K., Drazin, R. and Glynn, M.A., 2017. Implementing strategies for corporate
entrepreneurship: a knowledge‐based perspective. Strategic entrepreneurship: Creating
a new mindset, pp.173-199.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Rogers, S. and Makonnen, R., 2014. Entrepreneurial finance: Finance and business strategies
for the serious entrepreneur. New York: McGraw-Hill Education.
Ahlstrom, D. and Ding, Z., 2014. Entrepreneurship in China: an overview. Internati(Blackburn,
2016) onal Small Business Journal, 32(6), pp.610-618.
Kickul, J. and Lyons, T.S., 2016. Understanding social entrepreneurship: The relentless pursuit
of mission in an ever changing world. Routledge.
Chatterji, A., Glaeser, E. and Kerr, W., 2014. Clusters of entrepreneurship and
innovation. Innovation Policy and the Economy, 14(1), pp.129-166.
Kuratko, D.F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
Ateljevic, J. and Page, S.J. eds., 2017. Tourism and entrepreneurship. Routledge.
Blackburn, R.A., 2016. Government, S(Zaridis and Mousiolis, 2014) MEs and entrepreneurship
development: Policy, practice and challenges. Routledge.
Fortunato, M.W.P., 2014. Supporting rural entrepreneurship: a review of conceptual
developments from research to practice. Community development, 45(4), pp.387-408.
Link, A.N., Siegel, D.S. and Wright, M. eds., 2015. The Chicago handbook of university
technology transfer and academic entrepreneurship. University of Chicago Press.
Yang, K., 2016. Entrepreneurship in China. Routledge.
Hayhurst, L.M., 2014. The ‘girl effect’and martial arts: Social entrepreneurship and sport, gender
and development in Uganda. Gender, place & culture, 21(3), pp.297-315.
Zaridis, A.D. and Mousiolis, D.T., 2014. Entrepreneurship and SME's organizational structure.
Elements of a successful business. Procedia-Social and Behavioral Sciences, 148,
pp.463-467.
Reichborn-Kjennerud, K. and Svare, H., 2014. Entrepreneurial growth strategies: the female
touch. International Journal of Gender and Entrepreneurship, 6(2), pp.181-199.
Online
Porters five force model. 2018. [Online]. Available through:
<https://www.sasb.org/blog/five-forces/>
Swot analysis. 2018. [Online]. Available through:
<https://smallbusiness.patriotsoftware.com/swot-analysis/>
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