Entrepreneurial Strategy

This document discusses entrepreneurial strategies for SMEs, including market penetration, market development, product development, and diversification. It also covers strategic analysis, including SWOT and PESTLE analysis, and setting SMART objectives. The case study focuses on James Motors, a company in the motor parts market.

Entrepreneurial Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
b) Develop and critically evaluate a range of entrepreneurial strategies which SMEs can use to
develop, or consolidate, their situation, and critically appraise subsequent strategy
implementation in SMEs.............................................................................................................3
c) Analyse an organisation's strategic situation, its capability and position, and develop a set of
objectives.....................................................................................................................................5
d) Develop a strategy which will be consistent with an organisation's strategic situation and
design an approach to implementing a chosen strategy...............................................................8
f) Confidently present own judgement of received opinion in an essay/report...........................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Entrepreneurial strategy can be explained as the process which is needed to be adopted by
the business organisation for the purpose of performing better within the market so that goals can
be accomplished easily. To plan this types of strategy, there is the requirement of various
methods and approaches which are in the welfare of the organisation (Engelen and et. al., 2015).
It even gives the idea to business organisation that how they can maintain the healthy relation
with other organisation. Talking about the file, the organisation which has been selected is James
Motors which is one of the firm which deals in the market of motor parts which are prepared of
new concept. Several concepts will be explained in the file which will be related with
entrepreneurial strategy which is beneficial for SMSs. Proper analysis will be done on the
organisational strategy. At the end, recommendation will be given where major focus on all of
the points which are covered within the file.
MAIN BODY
b) Develop and critically evaluate a range of entrepreneurial strategies which SMEs can use to
develop, or consolidate, their situation, and critically appraise subsequent strategy
implementation in SMEs.
It is needed to be understand that entrepreneur is the one who has to bring new idea at the
time of conducting any of the business activity so that they can succeed in the market place.
They are needed to be aware about the decision and plans which are being planned on daily basis
by the rivalries organization. Even it can be said that proper evaluations are very important for
any of the entrepreneur. It will directly allow the organization to sustain within the market place
and even future can also be secured with this respective process. In context of James Motors, if
they are willing to perform better and give tough competition to rivalries then formation of
strategy and planning will play the crucial role for them (Hartsfield and et. al., 2017). Even it is
said that selection of appropriate strategies and method can play the crucial role as it can guide
that what are those decisions which is needed to be taken as per the demand of situation.
In present situation, several strategies can be used by the company for the purpose of
building the reputation in the market. By looking at this, James Motors can use Ansoff Matrix
which will allow take growth from the market. Talking about Ansoff Matrix, it is a business
model which organization can use for the purpose of finding that what can be the possible way

through company can grow their market position. There are segments in this model and they are
discussed below in detail.
Market Penetration: It is the primary strategy where it is necessary for the business
organisation that they are required expand their business by using the same product in the similar
market where they are performing since longer period of time. The main focus in this types of
marketing strategy is that major focus is on improving the quality of product or focusing on
effective marketing. In context of James Motors, it can be the strategy which can enhance and
improve their performance in the market (Jessop, 2019). Here, manager will have the option to
do marketing with the help of digitalisation to attract more customers. Performance can be
improved with the help of obtaining feedback too. The main thing which can be done just
because of obtaining feedback is that chances can be done accordingly which will allow to
improve the performance of a company. But, it is needed to understand that it is the strategy
which are updated according to the situation for taking the lead. But, it can be costly as well.
Market Development: It is also the effective strategy which can be used by the business
organisation. In this, the main focus is all about to enter into the new market with the help of
existing products. It is quite different strategy where they are needed to check about the
preferences and other business organisation which might prefer the products of a company. In
context of James Motors, they have the option to look for different business platform where
motors parts are mainly used as the source of innovative idea. For example: manager can try to
find the new and different ways which can allow the company to do dealing with those
organisations which deals in the market of automotive in UK. Here, it will be important to focus
on those areas where there is demand for the products of James Motors so that chances of
earning more profit will increase. Also, brand image of the organisation can be improved with
the help of market development. Some of the important thing which is required to be focus in
market development is that company might have to suffer is they are unable to do proper
planning and plotting before entering into the new market with existing product (Johnson and
Van de Ven, 2017). It can be the reason which may become challenging for the organisation.
Product Development: It is also the strategy which can be used by the business
organisation whenever they plan to perform better in the market. The main thing which is needed
to be focused is that how company can give some new product in that similar market where they

are already dealing. This types of concept always help the company because they are very sure
about the market and their requirement from company’s side. In context of James Motors, their
manager is required to ensure that they will perform all of the work as per the required of
customers but for the purpose of expanding the profit, company will have to introduce new
product but that too in existing market. It is one of the way which can allow the organisation to
enhance their strength because it is said that company will give them the opportunity to come up
with variety of products. But, the things can become tough for the company in those situation
where market doesn’t react as per the requirement of market (Karami, 2016). So, by looking at
this, it will be important for James Motors to focus more on introducing those products in the
market which can allow to accomplish the target of a firm.
Diversification: The most typical form of marketing strategy is diversification where it
becomes important for the business organisation to understand that they must tick all of the
boxes of marketing to attain the success. It is just because business is required to be done in new
market with new market. In context of James Motors, they are needed to be ensure that they will
work in new market with new strategy which create lots of problem if customers are not
satisfied. But, entrepreneurial strategy can be helpful for the business organisation to accomplish
the target because they will be allowed to target the new customers which might enhance the
business profit.
Critical analysis: It will be important for the organisation like James Motors to take the
help of market penetration for performing the business activity. It is because it will give the idea
to organisation that what are those areas where they are required to work and how they are
required to work for attaining the goals of a company (Linton and Kask, 2017). In addition, they
will be able to work on their products which will allow them to do improvement through which
goals can be achieved easily.
c) Analyse an organisation's strategic situation, its capability and position, and develop a set of
objectives.
Talking about the project whole of the assessment is indicating about the analysing the
market as well and situation of company. It is all about the capabilities and current situation of
the company, SWOT analysis can be done which can guide the company to work as per their
strength and weaknesses. Both, strength and weakness are the part of internal capabilities, on the

other hand opportunities and threats are the part of external capabilities of the company. If an
entrepreneurial want to perform better, then they must see that they are not just allowed to focus
upon the SWOT analysis because PESTLE analysis can be the option to develop to the SMART
objective in more fluent manner. Below, detail explanation has been mentioned which will allow
the organisation to perform better.
SWOT analysis: It is one of the internal analysis where company will try to find their
internal capabilities through which improvement can be done if it is necessary(Lumpkin and et.
al., 2015). This can be one of the most important analysis for business organization like James
Motors. Some of the strength and weaknesses of company is explained below.
Strength Weakness
The best thing about James Motors is that they
are good at providing better quality of product
which is their major strength. Even they are
good at providing the product as per the
requirement of customer which makes them
different in the market.
In present scenario, the competition is
increasing day by day where are unable to take
quick decision which is one of the main
problem of the company. It is one of the reason
that they are able to manage the working
environment of an organisation.
Opportunities Threats
They have the opportunity to expand their
business at a greater platform as demand and
supply in automotive sector is increasing day
by day where company can get the chance to
earn the profit.
There are number of other business
organisation which are giving tough
competition to the company like James Motors
which can create problem to accomplish the
goals (Morris, 2015).
Pestle analysis: It is the business tool which is required to be performed in order to find
that what are those external factor which can create issues for the business organization. It is also
helpful because performance can be improved in that particular situation. Even, it can guide the
company that how they can enter into the new market from where firm can earn the profit. On
the basis of PESTLE analysis, entrepreneurial strategy can be formed. Below, PESTLE analysis
has been explained on James Motors.

Political: It is one of the factor which simply explains about the decisions taken by
government that have a direct influence on the business decision. In present scenario, the
political conditions are changing day by day due to which operating activities are being affected.
As political situation is not stable, it is needed to be understood that price of motor vehicles and
parts are increasing which is creating issue for the organization. It will be better for the
organization to take suitable decision as per the situation.
Economical: This is one of the external factor which can affect the business organization.
It includes some of the factors and they are exchange rates, inflation rate and many more. As
economic condition is improving day by day due to which it can become easy for the company
like James Motors to perform better in the market (Ott, and et. al., 2017). In short, it can be one
of the factor which will have the positive impact on the business organization.
Social: It is needed to be understand that culture, demand and wants of the people are
always different from each other. It is one of the reason that wants and demand of the people
changes on a daily basis for the organization. It is one of the reason that company like James
Motors needs to forcefully change the policies which bring major changes to the result.
Technological: It is needed to be understood that technologies are changing day by day
where people wants that better technologies must be used so that effective results can be
obtained. By looking at this respective factors, it is important for the company like James Motors
that they must bring changes related to the technologies. Latest technologies in motor parts of the
vehicles will allow the organization to accomplish their goals (Shan and et. al., 2016). Also,
profit margin will automatically increase.
Environmental: The people are UK are very conservative towards the protection of
environment because of its tourism places. It can easily create pressure for the company like
James Motors that they will not be able to sales those motor products which may create issues
for the society. Also, they must ensure that environmental certificate has been obtained so that
target can be accomplished easily.
Legal Factor: There are number of situation where organization has to suffer just
because of the legal laws which are needed to be followed by the James Motors. It is the factor
which will create more pressure to the firm in order to work in a systematic manner.

Critical analysis: It is needed to be understood that if company wants to perform better in
the market then they must focus upon taking corrective measure. They must ensure that each and
every decision are being taken in a corrective manner, mainly at the time of formation of action
plan. This will directly help to sell the products of entrepreneurial venture.
SMART objectives: It stands for Specific, Measurable, Attainable, Relevant and Time
oriented goals. It helps to uplift the standards that gives the idea that when and how any of the
work is needed to be done so that desirable goals can be accomplished (Shirokova and et. al.,
2016). Below, there is the discussion about the SMART objective of James Motors.
Rise sales by 8 percent within 8 months: It is the SMART objective which is based on the
time period. It is one of the difficult work for the company but it orders to meet out the target,
company has the option to take the help of market penetration. It will be the strategy which will
give idea that how any of the work is needed to be done in in specific time period by doing
attractive marketing.
Development of a channel sales to reach customer within 2 months: Here, the manager
of the organization has done the planning that how they are required to work just to meet out
more number of customers. It can be easily by including the number of member in sales team,
increasing their incentives, bonus and any more. It will help the company to develop their
channel within the time period of two months.
d) Develop a strategy which will be consistent with an organisation's strategic situation and
design an approach to implementing a chosen strategy.
It is needed to be understand that implementation of strategy plays the crucial role where
it is necessary to decide the goals so that target can be achieved. Whenever, any of the firm
develop the objective or goals they must ensure the time and afterword it becomes important that
planning must be done so that effective result can be achieved. As the above set AMART
objective, it will be important for the organization to understand that they must take the help of
Ansoff Matrix.
Market Penetration: As company like James Motors is planning to expand their sale by 8
percent in upcoming 8 months (Wales, 2016). By looking at the requirement of the organization,

it will be important for the organization to do effective marketing where price of the products
must be reduced so that goals can be accomplished.
Market development: As organization is planning to develop their sales channel, they can
take the help of market development where organisation like James Motors will get different
benefits. Here, existing product will be sold in the new market for effective results.
STP: It simply stands for Segmentation, targeting and positioning. It simply tells that how
organisation can work to attain the target.
Segmentation: Here, firm like James Motors are segmenting their customers on the basis
of demographic and geographic aspects. The customers of the organisation are mainly from the
different part of UK.
Target: In this, company like James Motors can target their customers on their status and
way of living and even their level of income (Wu, 2015). James Motors deals in expensive
motors vehicles parts which are totally different from other seller or organisation which are
expensive too.
Position: For the purpose of positioning in the market, organisation is planning to
increase the channel of doing effective marketing which can attract the customers.
f) Confidently present own judgement of received opinion in an essay/report.
By looking at all of the point in above discussion, it is very clear that if company wants to
attain their goals and target in specific time period then in that particular situation it will be
important for the company to understand that they must focus upon market penetration as well as
development. It will uplift the standard of a company (Zehir and et. al., 2015). Also, the main
thing which is needed to be focused is that how company can work according to their capabilities
for effective result.

CONCLUSION
It is concluded from the above report that entrepreneurs are the one who come up the new
idea and plans. They prepare the strategy and according to that they are needed to take their
decision which helps to obtain effective result. It can be said that Ansoff Matrix can be one of
the way which can be used as marketing strategy through which sales of a company can be
enhanced. To understand the market, it is necessary for the company that they must work
according to the plans and policies.

REFERENCES
Books & Journals
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role of transformational leadership behaviors. Journal of Management. 41(4). pp.1069-
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Hartsfield, S., and et. al., 2017. Entrepreneurial orientation, strategy, and marketing capabilities
in the performance of born global firms. International Business: Research, Teaching,
and Practice. 2(1). pp.12-38.
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.
Karami, A., 2016. Strategy formulation in entrepreneurial firms. Routledge.
Linton, G. and Kask, J., 2017. Configurations of entrepreneurial orientation and competitive
strategy for high performance. Journal of Business Research. 70. pp.168-176.
Lumpkin, G. T. and et. al., 2015. Entrepreneurial orientation. Wiley Encyclopedia of
Management, pp.1-4.
Morris, M. H., 2015. Entrepreneurial intensity. Wiley Encyclopedia of Management, pp.1-5.
Ott, T. E., and et. al., 2017. Strategy formation in entrepreneurial settings: Past insights and
future directions. Strategic Entrepreneurship Journal. 11(3). pp.306-325.
Shan, P., and et. al., 2016. Entrepreneurial orientation and performance: Is innovation speed a
missing link?. Journal of Business Research. 69(2). pp.683-690.
Shirokova, G., and et. al., 2016. Entrepreneurial orientation and firm performance in different
environmental settings: contingency and configurational approaches. Journal of Small
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Wales, W. J., 2016. Entrepreneurial orientation: A review and synthesis of promising research
directions. International Small Business Journal. 34(1). pp.3-15.
Wu, C. W., 2015. Antecedents of franchise strategy and performance. Journal of Business
Research. 68(7). pp.1581-1588.
Zehir, C., and et. al., 2015. Linking entrepreneurial orientation to firm performance: the role of
differentiation strategy and innovation performance. Procedia-Social and Behavioral
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