Entrepreneurial Strategy: Identification and Evaluation of Models

This article discusses the entrepreneurial strategy of Milton Sandford Wines, a company in the wine industry. It covers the identification and critical evaluation of models such as PESTLE analysis, Porter's Five Forces analysis, and SWOT analysis to analyze the company's strategic capabilities and position in the market.

ENTREPRENEURIAL
STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................1
IDENTIFICATION AND CRITICAL EVALUATION OF MODELS..........................................1
Company Overview................................................................................................................1
PESTLE Analysis...................................................................................................................1
Porter’s Five Forces Analysis.................................................................................................3
SWOT Analysis......................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Entrepreneurial Strategy refers to all the techniques, processes and procedures that are
adopted, as well as utilized by a small company in order to enhance its competitive edge in the
marketplace, as well as achieve effective success and sustainability in the market. It is an
essential and quite a crucial aspect that is associated with accomplishment of organization's
objectives appropriately (Garg and Eisenhardt, 2017). Hence, in this context, the presentation is
based on Milton Sandford Wines, which is an organization that deals in manufacturing and
distribution of boutique wines. The presentation undertakes identification and critically
evaluation of a range of models to analyze strategic capabilities and position of a company in
which it operates, along with reflection of organizing grouping skills.
IDENTIFICATION AND CRITICAL EVALUATION OF MODELS
Small and Medium Enterprises are the ones which operate at a fairly lower levels in
comparison to the other business organizations However, the aim of these organizations are
fairly based on profitability and productivity, however the scale of operations is quite limited.
Hence, ahead is the description about the organization, along with critical evaluation of a range
of models to analyses strategic capabilities and its position in the environment.
Company Overview
Milton Sandford Wines is an organisation headquartered in Reading, United Kingdom. The
company manufactures and distributes boutique wines that are grown and developed within the
firm's headquarters. The firm was incorporated in 2006 and since then it is dealing its product
within the region, as well as beyond the UK. Hence, the case study that is reflected below is
associated with the strategic position of the company, along with its capabilities that are critically
evaluated using a range of models (Zehir, Can and Karaboga, 2015).
PESTLE Analysis
This framework is associated with analysing the overall external environment of the
organisation that undertakes assessment of each and every factor that have a direct influence over
the company. Hence in context of Milton Sandford Wines, PESTLE analysis is applied below:
 Political Factors:
These factors are associated with all the political situations within a country that have a direct
impact on the organisation. As of United Kingdom, the country where this company operates,
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political uncertainty is highly prevalent due to Brexit and the nation is currently under a
transition period with its separation from the EU. The company, just like the others within the
sector is working under the EU laws. However, one disadvantage that could lead to challenges
are the trade laws that might change after the transition period. This would have an implication
on the company as it would be charged on dealing its wines beyond UK within the EU nations.
 Economical Factors:
These are the factors that are subjected towards the economic performance of the country.
Moreover, this also has a direct impact on the organization The UK is currently facing an
economic downfall due to high inflation and reduction in value of its currency. Moreover, the
suppliers of the company that are from the EU nations would also be quoting high prices due to
Brexit. Hence, this leads to two major challenges for the company. The first one is associated
with dealing their wines at a premium price due to its nature. The second challenge is related to
including the techniques and equipment which would lead to innovations within the offerings.
However, one factor that is associated towards making the industry attractive is that the food and
beverage sector is likely to support the individuals towards developing a better standard of living
and hence, it is enhances the attractiveness of the sector despite the challenges.
 Social Factors:
All the social trends, mindsets of customers and preferences are considered in this factor. For
Milton Sandford Wines, one major trend within the marketplace is associated with sustainable
wine development. Individuals seek wines that are more environmental friendly, as well as have
better durability with time. This trend is an opportunity for the company in order to modify and
innovate its wine making process to ensure that the trends and demands of customers are tended
to. Another prominent trend which makes this sector attractive is that wine is a drink which is
usually preferred on special occasions and celebrations. Therefore, the attractiveness of this
industry is most during festive seasons.
 Technological Factors:
Within this factor, all the technological advancements in the sector are taken into account.
Within the United Kingdom, technology is quite easily accessible. However, currently Brexit has
led to disruption in the existing supply chain management of the company. Milton Sandford
Wines is also facing the challenge of ineffective technological innovations due to ineffective
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supply chain management and traditional wine making methods (Ott, Eisenhardt and Bingham,
2017). However, the wine making techniques are transforming into being more sustainable and
technologies like Artificial Intelligence are being applied to optimally produce wine. Therefore,
inclusion of this technology would lead to better advantages and contribute towards making the
industry more attractive.
 Legal Factors:
These factors are related towards the legislation and relevant laws that are prevalent in the
industry and are obligated for the firm to follow. Currently the laws within wine industry are
fluctuating and the sector is working in adherence to the legislation served under the EU law.
However, to safeguard itself from any threats, firms like Milton Sandford Wines must adopt
flexible structures and short term strategies which protects them from future uncertainties
 Environmental Factors:
All the elements related to protection of environment and natural resources within the
country. In relation to this, the UK government has been very much prominent in context of
taking initiatives and forming legislation that protect the environment of the nation.
Environmental Protection Act, 1990 is one of the key legislation that has been prevalent for the
wine industry. As per this act, it is necessary for the company to use techniques, processes and
methods that are protective towards the environment. This presents an opportunity for the
company to adhere to this legislation to protect the environment.
Critical Evaluation of PESTLE Analysis
Hence, as per the analysis above, it is very much evident that the strategic capability of
the company as per the external environment is quite vague, seeing the current conditions of the
market in which it operates. One key issue which emerged from this analysis is associated with
Corporate Innovation that is associated with utilising its technical and investment abilities to
incorporate innovative processes and techniques to ensure a competitive position in such an
uncertain political environment. Moreover, as for the model, it is very effective when it comes to
assessing the external environment of the company. However, it only determines the implication
on its strategic capabilities, rather than the capabilities itself (Shan, Song and Ju, 2016).
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Porter’s Five Forces Analysis
After PESTLE analysis, this model is quite effective towards understanding several
forces pertaining within the industry, as well as their power against an organization. Moreover,
this model helps companies in realizing their corporate positions within the industry. It takes into
consideration five essentials that provide an insight in relation to its industrial attractiveness
within the market. For Milton Sandford Wines, this analysis is performed as below:
 Suppliers' Bargaining Power:
These are the individuals or organizations that supply the organization with raw
materials, equipment and techniques which are used by the company to develop their
products. For the overall wine industry including its business like Milton Sandford Wines,
this power is high due to Brexit and uncertainty prevailing within the marketplace.
 Buyer's Bargaining Power:
Buyers are individuals that buy the offerings of the company and are a reason for their
existence. In this context, the switching cost within the marketplace is quite low, considering that
the companies adopt competitive pricing, which makes the bargaining power high in relation to
the firm. In order to deal with the same, Milton Sandford Wines must bring exclusivity in their
products in order to bring down this power within the market.
 Substitutes' Threat:
These are the products that could be used in place of the firm's existing ones. There are
several juices and beverages which are used by the UK households as a substitute of wine within
consumption as well as cooking, which makes the threat high for Milton Sandford Wines.
Hence, the firm must ensure effective innovation in their products so that customers do not opt
other offerings but theirs. For instance, it could innovate and fuse in new flavours within wine to
make it exclusive such as Coffee, which would encourage customers to buy the wines developed
by the company (Gans, Stern and Wu, 2019).
 Threat from New Entrants:
Within the UK market, the wine industry is quite big and has several players within the
market. However, the cost of setting up an organization in the sector requires a huge investment,
which brings down this threat for businesses like Milton Sandford Wines. However, the new
entrants are emphasizing upon effective and sustainable innovation so that they sustain in the
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sector. Hence, this threat is moderate for the company for which, better technological inputs and
innovative outputs are required by the firm.
 Existing Rivalry:
The wine industry is very complex as there ate several organizations such as Wine &
Spirit International that have an appropriate market share, along with effective products that are
inclusive of innovation. Hence, this power is high in context of Milton Sandford Wines, which
requires the need of technological advancements and better investment of the company.
Critical Evaluation of Porter's Five Forces Analysis:
This model provides appropriate information and analysis of the current market position of
Milton Sandford Wines within the wine sector and how best the company could use its current
capabilities in context of enhancing its corporate position within the marketplace. This
framework is very effective in relation to determining the current competence of the company in
relation to several forces within the sector in which it operates. Moreover, the framework also
enhances the scope of utilizing a firm's capabilities in a channelized manner to stay ahead in the
marketplace (Johnson and Van de Ven, 2017).
SWOT Analysis
This model is related to determination of internal capabilities and external opportunities
that are available with the organisation. This is one of the key models which provide an insight
associated with the Strengths, Weaknesses, Opportunities and Threats associated with the
organisation. Hence, in relation to Milton Sandford Wines, this framework is applied below:
Strengths Weaknesses
 One of the key strengths of the
company is its Brand Image. The firm
is known to be a decent place to buy
quality wine within the country.
 Strength of the company is that the
company has competent human
resources for strategic purposes (Linton
 Currently the firm's supply chain
management is low, which refrains the
firm from buying innovative techniques
and technologies at desirable rates.
Moreover, as mentioned above, their
bargaining power is quite high, which
introduces further challenges within its
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and Kask, 2017). management.
 A weakness that is related to the issue
presented above is that it uses
traditional methods for wine making,
which leads to lagging behind from
other companies in the sector. This is
because, existing rivalry is quite high
within the industry which is shown
earlier in the analysis above.
Opportunities Threats
 Social trends are one of the key
opportunities for the firm in order to
include innovation within its processes,
as well as products in an appropriate
manner.
 Another opportunity for the company is
related to environmental protection
through including equipment that
promotes sustainability.
 One of the key threats faced by the
company is associated with the current
Political and Economical condition of
the country, which are refraining the
company in investing, as well as
managing its supply chain
 Another threat for the firm is
competition from other organisations of
the same sector, which are using high
end techniques for production and
distribution of wine.
Critical Evaluation of SWOT Analysis
The SWOT analysis gave a clear insight to the capabilities of Milton Sandford Wines in
relation to its effective and talented workforce, along with appropriate brand image. These
strengths could be used by the firm as its strategies in order to cease the opportunities and
overcoming its weaknesses and threats. For instance, the firm could use its brand image in the
market to enhance its supply chain, which would allow the company to dominate the
marketplace by including better and more technologically advanced ways in bringing innovation
(Jessop, 2019). Moreover, the same could be contributed by its human resources, which would
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contribute towards bringing creativity within the processes and procedures of the company in an
appropriate manner. However, as for its current market position, this model gives a very brief
insight and not the bigger picture that is actually required to fully analyse its strategic
capabilities.
Therefore, it becomes necessary that this limitation of the above model is overcame
through a detailed analysis of the future action of the organisation through maximising its
strengths and opportunities and reducing its threats and enhances. This could be done by the
company in a variety of manner. For instance, the company could leverage its strength of brand
image to ensure that effective and certified suppliers are approached by the firm to ensure that no
political pressure could cause issues within the company’s acquisition of raw materials and
quality technology. Furthermore, to reduce the threat of competition, the firm could use
innovation as its key to the future, with which it could create sustainable, high quality and purer
wine. Moreover, the same could be the key to provide a new range of wines which could be sold
at cheaper prices despite compromising on the quality. This would ensure that the threats related
to economic and political disturbances could be minimised. Moreover, it would also pave way
for the company to align itself better with the trends within the market.
CONCLUSION
Thus, it could be concluded from the information above that entrepreneurial strategies are
very important for companies to formulate, manage and sustain their business organisation.
Moreover, critical evaluation of a range of models and theories helps in determining the link
between theory and practice of a range of models effectively. In addition, it is crucial that several
team working skills are inclusive to achieve tasks and activities in an appropriate and effective
manner.
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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.
Garg, S. and Eisenhardt, K.M., 2017. Unpacking the CEO–board relationship: How strategy
making happens in entrepreneurial firms. Academy of Management Journal. 60(5).
pp.1828-1858.
Jessop, B., 2019. Entrepreneurial City. The Wiley Blackwell Encyclopedia of Urban and
Regional Studies. pp.1-10.
Johnson, S. and Van de Ven, A.H., 2017. A framework for entrepreneurial strategy. Strategic
entrepreneurship: Creating a new mindset. pp.66-85.
Linton, G. and Kask, J., 2017. Configurations of entrepreneurial orientation and competitive
strategy for high performance. Journal of Business Research. 70. pp.168-176.
Ott, T.E., Eisenhardt, K.M. and Bingham, C.B., 2017. Strategy formation in entrepreneurial
settings: Past insights and future directions. Strategic Entrepreneurship Journal. 11(3).
pp.306-325.
Shan, P., Song, M. and Ju, X., 2016. Entrepreneurial orientation and performance: Is innovation
speed a missing link?. Journal of Business Research. 69(2). pp.683-690.
Zehir, C., Can, E. and Karaboga, T., 2015. Linking entrepreneurial orientation to firm
performance: the role of differentiation strategy and innovation performance. Procedia-
Social and Behavioral Sciences. 210. pp.358-367.
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