Entrepreneurial Strategy: Comprehensive Situational Analysis and Strategic Choices

This document discusses entrepreneurial strategy, comprehensive situational analysis, SWOT analysis, PESTLE analysis, and critical review of strategic choices. It provides recommendations for improving business performance.

Entrepreneurial Strategy
AS2 : Strategic Consultancy
Report

Table of Contents
INTRODUCTION...........................................................................................................................1
COMPREHENSIVE SITUATIONAL ANALYSIS.......................................................................1
SWOT Analysis..........................................................................................................................2
PESTLE Analysis.......................................................................................................................3
CRITICAL REVIEW OF STRATEGIC CHOICES.......................................................................3
Entrepreneurial Strategies...........................................................................................................4
Intrapreneurial Strategies............................................................................................................4
Organisational Objectives...........................................................................................................4
RECOMMENDATIONS.................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Entrepreneurial strategy is determined as method or strategy that an organization
develops as well as re-established its basic set of relationship among its surrounding or
environment (Gans and et. al., 2020). This is also considered as strategy featured by which
change can adopt for the taking more effective decision in respect of organization management.
By implementing respective type of strategy in proper way a company management is able to
attain their predetermined goal successfully. The company selected for conducting this project is
“Drink, Shop & Do”. The respective project includes the evaluation of comprehensive situation
and reviewing the strategic ideas. Moreover it will also include the different recommendations
for the improvement.
COMPREHENSIVE SITUATIONAL ANALYSIS
Comprehensive situation evaluation is determined as the method or strategy by which an
organization management can conduct critical evaluation of each and every strategy by that they
can achieve their predetermined target and aim successfully. Moreover by conducting the
comprehensive situational analysis, a firm's manager can evaluate the strengths and weaknesses
related to business; accordingly they need to develop objectives which they want to attain for
growth properly (Moumenihelali and et. al., 2020).
In context of Drink, Shop & Do, it has been identified that this organisation is an
integration of bar, cafe and design store. The operations of this entity are in London. It started its
business operations during 2010 initially as a pop up shop that offered snacks, coffee and other
different kinds of beverages with a pleasant ambiance for guests to cherish and enjoy with their
friends, family members and acquaintances. However, with the passage of time, the 2
entrepreneurs named Kristie Bishop and Coralie Sleap thought of transforming the organisation
into an integrated cafe, bar and design outlet that can gain the attention of large number of
individuals and thereby expand the profit margins substantially. It is operating in cafe industry
(food and beverage sector) and for that it is conducting evaluation of market's current situation.
This is done so that they will develop proper strategies and plans for the business growth
effectively. In respect of this they need to do numbers of analyses that are mentioned as well as
explained below:-
1

SWOT Analysis
This is a strategic management tool that is used by companies with the aim of gaining an
insight into the external and internal aspects of a business (Dyduch, 2019). In this relation, it has
been identified that the management of Drink, Shop & Do is carrying out this analysis for doing
the micro environmental analysis in an effective manner.
Strengths:
Provision of high quality offerings: Drink, Shop & Do has been renowned among people
pertinent to London, UK only because of its superior quality offerings. The entity benefits
majorly from word of mouth publicity which happens because of the satisfaction derived by
people who visit the organisational premises of this cafe and bar even once (Direction, 2019).
The cafe and bar does not add any kind of additive to the snacks or other items offered to the
customers. Owing to this, the entity has a large base of loyal customers who are not ready to shift
to alternate brands in any case.
Weaknesses:
Negligible new product / service development: Over the course of time, it has been
identified that the concerned organisation has not come up with anything new in market place.
This has left a negative impression over some of the loyal customers along with the potential
leads. As a result of this, people have somehow begun disassociating with the brand. Thus,
ineffective or negligible initiative taken on the part of Drink, Shop & Do for launch of new
products or services in market acts as a weakness.
Opportunities:
Diversification: With the presence of large number of companies in the food and
beverage sector, the competition within the industry is constantly inflating. To deal with this,
Drink, Shop & Do has the opportunity to leverage the strategy of diversification (Luu and Ngo,
2019). This will allow the organisation to enter new markets with new products or services. As a
result of this, entity will be able to successfully expand its reach and subsequently its profits also.
Threats:
Competition: Threat of rivalry is prominent for Drink, Shop & Do as there are a large
number of entities which are operating in the same industry as this company. This poses direct
risk of substitution for the organisation (Nightingale and Sethna, 2020). It may even result in
complete wiping out of the business. Costa Coffee, Antipode, CCD, 39 Steps Coffee Haus, Cafe
2

Bar are some of its direct rivals in the global market place. Extensive competition poses direct
risk to the market positioning as well as brand value of Drink, Shop & Do.
PESTLE Analysis
This model is applied for external screening of the business environment within which
Drink, Shop & Do carries out its operations.
Political: The stable political situations of United Kingdom present an opportunity to
Drink, Shop & Do to expand its revenues and profits by a fair margin.
Economical: BREXIT is the most prominent economic threat for Drink, Shop & Do as
over the course of time this has resulted into decline in the value of pound.
Social: The constant changes taking place in the demands and needs of customers
increase the research cost for Drink, Shop & Do. Thus, this acts as a threat. However, if the
research leads the organisation to launch a profitable product or service segment in market, it
becomes an opportunity for the respective cafe and bar.
Technological: The evolution of technology with the efflux of time and the
technologically aware customers tend to present an opportunity for Drink, Shop & Do to
implement technologies which can increase business efficiency.
Legal: There are various laws which need to be adhered to by Drink, Shop & Do. An
instance whereby the entity breaches any provision of any of the legislation or laws like health
and safety norms, Food Hygiene Certifications, Food Safety Regulations will act as a threat for
the goodwill and the customer base for the entity.
Environmental: The customers prevailing within UK prefer to be associated with those
organisations that undertake eco friendly measures. This presents opportunity for Drink, Shop &
Do to adopt environmental friendly techniques for producing food and beverage items and
ensuring least carbon emissions.
CRITICAL REVIEW OF STRATEGIC CHOICES
It is important for any company to review its strategic choices in accordance with the
current market conditions so as to identify the need for alteration or improvement (Marom,
Lussier and Sonfield, 2019). As a result of execution of comprehensive situational analysis, the
entrepreneurs of Drink, Shop & Do have decided to implement entrepreneurial and
3

intrapreneurial strategies that will assist the enterprise to attain a high market share. These are
defined beneath:-
Entrepreneurial Strategies
Below mentioned are the entrepreneurial strategies which will be executed by Drink,
Shop & Do for the betterment of business performance and brand image:-
Effective Market Analysis: This is considered as the most prominent entrepreneurial
strategy which is being implemented by Drink, Shop & Do with the intention of gaining
knowledge of latest customer lifestyles and trends that may affect the business practices as well
as operations (Khan and et. al., 2019). Several tools and techniques can be applied for this
purpose which will help the organisation in identifying the market gap and thereby offering the
services accordingly.
Customer centric approach: It is another effective strategy that is being implemented by
Drink, Shop & Do with the purpose of deriving maximum satisfaction from the customers (Elert,
Henrekson and Sanders, 2019). This strategy is being applied with the intent of effectively
appealing to the customer base and thereby retaining them for a long period of time in future
context.
Intrapreneurial Strategies
Following is the intrapreneurial strategy which is being applied by Drink, Shop & Do to
achieve business excellence:-
Innovation: This is an effective intrapreneurial strategy which is being implemented by
Drink, Shop & Do with the aim of gaining the attention of public at large. With the help of this,
entity is able to build a distinct image of itself in the market place. It is aimed at increment of
loyal customer base for the respective cafe and bar, thereby implying increment in revenue
figures (Gans, Stern and Wu, 2019).
Organisational Objectives
The objectives which are laid down by Drink, Shop & Do are below:-
 To carry out regular market research and introduce a new product/service by the end of
next 6 months.
 To increase the customers by a total of 8% before the end of this year.
4

RECOMMENDATIONS
On the basis of discussion carried out above, it has been identified that food and beverage
is a rapidly evolving sector. This happens because of the technological trends that tend to shape
the phase of the respective sector. Owing to this, the companies operating within the bounds of
this sector have to take ardent measures which can make them gain an edge over the rival firms
prevailing in the global market place. Drink, Shop & Do is a renowned name within food and
beverage sector. To maintain its brand image and market place, certain suggestions have been
provided to the management of this organisation as follows:-
Regular market research:
It is well known that the demands and desires of customers keep on changing with the
efflux of time. This put pressure over the companies operating within an economy to carry out
constant market research with the help of which it can launch products and services that are
aligned to the current market trends. In this relation, it is advised that the management of Drink,
Shop & Do should conduct regular market research which can help in identification of latest
customer trends and lifestyles. Thus, the cafe and bar will be able to come up with attractive
service package that can gain the attention of public and thereby result into augmentation of
financial performance of the company.
Leveraging the latest technological trends:
The evolution of time leads to introduction of new technological trends at rapid intervals
of time. These trends are aimed at boosting the operational efficiency of a company. It is
suggested that the top management of Drink, Shop & Do should implement the latest and
emergent technologies into the operational and marketing processes. This will inflate the
productivity levels of the company and duly assist the organisation to grab the attention of public
at large, thereby retaining them in the long run. As a result of this, the cafe and bar is able to
facilitate increment of its revenues and profits.
CONCLUSION
Through the evaluation of above discussed points, entrepreneur is determined as an
individual who have new ideas and strategies for establishing a business for resolving the issues
of the society as well as they also develop strategies for the improvement of business. In order to
become an entrepreneur, a person needs to have new and innovative strategies, plan and
thoughts. Further, it is summarized that in order to become an entrepreneur an individual need to
5

consider a number of aspects that aid in development of strategies as well as decision in more
effective manner. In context of this they adopt strategies, methods, models as that will help them
in developing more effective decision and strategies according to situation. In context of this a
company may implement different types of models like SWOT analysis for internal evaluation,
PESTLE analysis for external evaluation. In addition to this they also need to determine market
position as well as implement the best strategies. Through all these evaluation an organization is
able to develop proper decision which helps in attaining desire goal or growth.
6

REFERENCES
Books and Journals
Gans, J.S., Stern, S. and Wu, J., 2019. Foundations of entrepreneurial strategy. Strategic
Management Journal, 40(5), pp.736-756.
Khan, N.U., Li, S., Safdar, M.N. and Khan, Z.U., 2019. The role of entrepreneurial strategy,
network ties, human and financial capital in new venture performance. Journal of Risk
and Financial Management, 12(1), p.41.
Marom, S., Lussier, R.N. and Sonfield, M., 2019. Entrepreneurial strategy: The relationship
between firm size and levels of innovation and risk in small businesses. Journal of Small
Business Strategy, 29(3), pp.33-45.
Dyduch, W., 2019. Entrepreneurial Strategy Stimulating Value Creation: Conceptual Findings
and Some Empirical Tests. Entrepreneurial Business and Economics Review, 7(3), pp.65-
82.
Direction, S., 2019. Broad background leadership teams and entrepreneurial strategy: A study
from Iran.
Elert, N., Henrekson, M. and Sanders, M., 2019. The entrepreneurial society: a reform strategy
for the European Union (p. 173). Springer Nature.
Luu, N. and Ngo, L.V., 2019. Entrepreneurial orientation and social ties in transitional
economies. Long Range Planning, 52(1), pp.103-116.
Nightingale, K. and Sethna, Z., 2020. Entrepreneurial marketing and the 4S model: strategy,
serendipity, storytelling, software. In Handbook of Entrepreneurship and Marketing.
Edward Elgar Publishing.
Gans, J.S., Kearney, M., Scott, E.L. and Stern, S., 2020. Choosing Technology: An
Entrepreneurial Strategy Approach (No. w27489). National Bureau of Economic
Research.
Moumenihelali, H., Sadighi, H., Chizari, M. and Abbasi, E., 2020. Pluriactivity: An
Entrepreneurial Strategy for Smallholder Farmers. Journal of Entreneurship and
Agriculture, 6(12), pp.112-124.
7