Entrepreneurial Strategy: Evaluation of Strategic Capabilities and Position of South Business Technologies

This document discusses the evaluation of strategic capabilities and position of South Business Technologies using various strategic management tools like SWOT analysis, VRIO framework, Pestle analysis, and Porter's five force model. It covers topics such as the model for evaluation of organization strategic capabilities, VRIO framework, Pestle analysis, and change management.

Entrepreneurial
Strategy

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Model for evaluation of organisation strategic capabilities and position of organisation...........3
VRIO Framework........................................................................................................................4
Pestle analysis..............................................................................................................................5
Porter five force model................................................................................................................7
Change management....................................................................................................................9
Ansoff Matrix............................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
Appendix....................................................................................................................................13
Reflection...................................................................................................................................13

INTRODUCTION
Entrepreneurial is a person that has ability to bring new innovation and creativity through
planning to start a new enterprise and bearing sufficient amount of risk. Entrepreneur is an
Individual that planned various strategies for effective operation of business and achievements of
specific goals. It has critical thinking and effective time management skills that helped
entrepreneur to gain competitive advantages in particular industry. There are various strategic
model that are used by entrepreneurial to known about various internal and external factors that
affects operation of business. The report is about south business technologies is a small scale
business that operates in Dummer and was established in 1965 and having employees more than
70 people to deliver best services to customers. The report has covered various strategic
management tools that are used to analysis organisation strategic capabilities and competitive
position in market.
Model for evaluation of organisation strategic capabilities and position of organisation
There are various strategic management tools that can be used to analysis internal and
external capabilities and strength of organisation that helps in achieving particular objectives.
SWOT, Pestle, VRIO and pestle analysis are some of the tool that can be used to analysis
capabilities of South business technologies (Di Muro and Turner, 2018). SWOT analysis is a
model that is used to indentify internal strength and weakness of firm that can be used to make
effective utilisation of available opportunities. It also helps in identification of external factors
such as threats and opportunities that are present in external environment so that overall goals
can be achieved.
Strength: It state about strength of company that can be used to make optimum utilisation of
available opportunities so that it can earn more profitability, sales volume and market share.
South business technologies strength lies in its quality of technology and services that it render to
target customers in order to earn sufficient amount of profitability (Shirokova and et.al., 2016).
Company in order to maximum customer’s satisfaction always adapt to new technologies so that
unsatisfied needs of people can be fulfilled.
Weakness: Limited resource such as human and physical is one of disadvantages of south
business technologies therefore manager have planned to identify various sources form where
resources can be arranged for growth and expansion of business across worldwide. Manager
3

have also planned to trained employees so that they can make optimum utilisation of available
resource and reduce amount of wastage of efforts, time and resources.
Threats: Increasing competition and continuous changes in digital technologies, customer’s
needs and demand is one of the important threats for south business technologies that need to be
removed (Yin, Zhang and Zhang, 2017). Company need to invest more and more in innovative
technologies so that end users can provide best experienced and it can gain competitive
advantages form other competitors.
Opportunities: South business technologies have opportunities to expand its business across
worldwide through fulfilling needs of different individual that are staying across worldwide.
Company can use digital media to market its various products and services as it will helps in
attracting maximum number of customers within limited time frame and cost.
VRIO Framework
It is model that is used by entrepreneur to identify internal resources and capabilities of
organisation that company can uses to gain competitive advantages. Organisational, culture,
policies and structure and type of management are some of the key areas where company may
excel thus it contribute in increasing overall profitability and market share of firm (Vaznyte and
Andries, 2019). Therefore for components of VRIO Framework can be used to evaluation
organisation strategic capabilities and market position of Southern business technologies such as:
Valuable Rare Imitable Organisation
Management
system
Yes No Yes Yes
Human resource Yes No Yes Yes
Technologies Yes Yes Yes Yes
Organisational
structure
Yes No Yes Yes
Valuable: Southern business technologies have valuable management system that helps in
effective utilisation of available resources so that wants of customers can be fulfilled in better
manner. It has highly skilled, qualified and experienced employees that are working together for
accomplishment of specific task so that company can earn maximum profit margin. Southern
business technologies have used innovative and creative technologies for providing quick and
4

better services to various individual (Yin, Zhang and Zhang, 2017) . It is small organisation with
limited resources, capital with flexible organisation structure that helps in adaptation of various
external changes.
Rare: Technologies of Southern business technologies is rare as it have used innovative and
differentiate techniques to deliver qualitative services to customers. On the other hand
management, human resource and organisation structure is not rare as any other organisation can
also have similar types of structure. Therefore, entrepreneur needs to find innovative method to
have talent employees and differentiate organisational structure so that firm can be gain
competitive advantages.
Imitable: Organisational structure and management system can be easily imitable by other
competitors in the market. Whereas it have patent and copyright its technologies so that other
firms cannot uses similar method to influence or attract maximum number of customers
(Kuratko, 2018). There are many large firm in telecommunication industry that have highly
skilled and talented employees as compared to Southern business technologies.
Organisation: Southern business technologies have effective organised types of management
that need to be used so that best outcome can be gained within limited time frame. Company
have flexible organisation structure due to limited employees so it can easily connect with
different individual and satisfy their wants (Dzogbenuku and Keelson, 2019). Roles and
responsibilities of each employees are clearly defined that helps in better coordination and
cooperation among individual for completion of specific task. Resource are effective organised
and various technologies are available so that customers can be provided better quality services
within minimum cost and time.
Pestle analysis
It is another model that is used to analysis various external factors that adversely impact on
performance and operation of organisation. Pestle helps in evaluation of five factors such as
policies or rules and regulation of government, economic condition of particular country, social
preference and technological changes or environment factors (Hisrich and Ramadani, 2017).
These all are most essential factors that influence business strategy therefore entrepreneur
analysis each and every aspects before implementing new ideas to get maximum market share.
Therefore, Pestle analysis of Southern business technologies can be illustrated as:
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Political Factors: Brexit was one of the policies of UK government that have impacted
adversely on various small and large business operations. It had lead to decrease in export and
import of large organisation as UK was main trading partner of European Union so exist of UK
from such agreement has impacted upon overall sales volume of firm. Southern business
technologies is a small enterprise that helps in better connection between people that are staying
away from each other therefore Brexit have not adversely impacted on company. It can easily
provide various services to people that live in UK and across different parts of world so that
easily share information with one another.
Economic Factor: Brexit is one of the factors that have lead to economic slowdown in UK such
as decrease in income of customers, high unemployment rates and interest rate within economic.
Therefore individual are less interested to make invested or purchase different or non essential
products and services because of less purchasing power (Srećković, 2018). Therefore
entrepreneur of southern business technologies through identified economic condition of UK
have set affordable prices for various services to attract maximum number of customers and
enhance profitability.
Social Factor: Taste and preference of customers keeps on changing due to various factors such
as price, quality, recent trend and social- culture factors therefore company need to identify
needs of individual in order to effectively influence them to make purchased of particular
company products and service over another firms. Most of the people or younger generation
spend their time watching voids or playing games on social sites or media such as Facebook,
Twitter and Instragram. They likes to share information or exchange ideas, view through use of
such social medium therefore southern business technologies through providing
telecommunication services helps in satisfaction of their needs beyond their expectancy
(Kilenthong, Hultman and Hills, 2016). Company has used innovative technologies to provide
better network connection so that various individual can easily share their information within
limited time frame.
Technological Factor: Due to globalisation and digitalisation there are continuous development
and changes in technologies that need to be adapted by firm in order to sustain and grow in
competitive market condition. Southern business technologies have continuously worked to
improve or modify its technologies so that qualitative and better services can be delivered to
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customers. Entrepreneur has planned to uses innovative techniques and software so that people
can communicate with each other in minimum time, cost and efforts. Therefore all such
innovative ideas and technologies helps in growth and expansion of business at fast pace and
increase overall sales volume and profitability of organisation.
Environment Factor: It is another factor that has adversely impacted on overall cost,
profitability and market share of southern business technologies. People and government of UK
are becoming more and more aware about conservation of natural resource and environment for
better living for future generation. Therefore environment factors have forced company to take
various steps to reduce amount of wastage that have resulted in increase in cost of Southern
business technologies. It has taken various steps for optimum utilisation of resources, reduction
of total amount of wastages so that resource in the environment can be preserved for health and
wellbeing of individual (Stojceska, Serafimova and Gjorgjioska, 2019). So, it can be stated that
environmental factors helps in building strong brand image of enterprise and enhancement of
customer satisfaction for long term growth and survival of firm in competitive market.
Legal factor: Business needs to be considered various legal laws, rules and regulation for
effective operation of business and achievement of common goals. Entrepreneur for
establishment of Southern business technologies has abide to all legal rules in order to avoid
penalty or extra charges. Various legal laws are followed by company such as health and safety
law, discriminative and equality law for smooth operation of different function and build strong
brand image. Therefore legal factors helped in satisfaction of needs of customers, employees
and contributed in less intervention of government in activities of company.
Porter five force model
It is model that is used to indentify level of competition within particular industry so that
entrepreneur can formulated effective strategies to gain competitive advantages and earn
sufficient amount of profitability. Power of consumer, supplier and threat of new entrance and
substitute products or competition level within specific market are some of the factors that is
evaluated by entrepreneurs for effective operation and sustainability of organisation. Such as:
Level of competition: Southern business technologies operate in industry that has more
competition as there are numerous firms with varied resources and capital. They offer different
and qualitative services so that people can easily connect with each other and share their feelings.
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So, continuous increase in competition level of business is one of the threats that need is avoided
by company through making innovation in technologies.
Threat of new substitute: There are various companies that try to imitate various services
provided by Southern business technologies therefore it have patent and copyright its
technologies to gain differentiate position in particular industry. Company through making
continuous changes in method of delivering services is able to fulfil needs of customers in most
effective manner (Murni, 2017). Thus, it can be illustrated that threat of substitute is medium
that is analysed by entrepreneur while formulating different strategies to gain competitive
advantages.
Power of consumers: There are number of people and various organisations in UK that offers
telecommunication services so that requirements of varied individual can be fulfilled and it can
earn maximum profit margin. So, it can be stated that consumer have more power to choose
another company in case of Southern business technologies. Therefore entrepreneur in order to
maintain customer’s loyalty and satisfaction have made appropriate changes and provide 24
hours services to end users for long term growth and survival of enterprise.
Power of suppliers: There are various individual that supplies material to Southern business
technologies so that it can delivered qualitative services within limited time. Company through
maintaining strong relationship with supplier and making timely payment for products and
services have contributed in overall growth of enterprise (Horst, Järventie-Thesleff and Perez-
Latre, 2020). Thus, it can be stated that power of supplier is low so company can easily bargain
and get products at affordable prices to give maximum benefits
Threat of new competition level: It is difficult for new competitor to enter into
telecommunication industry as there are large numbers of firm with strong brand image and
market share. Southern business technologies also have patent its technologies and differentiate
its services in order to gain competitive advantages and create more barrier for new companies to
enter into market condition. Therefore threats of new competition are low as company
continuously innovates its technology to grow and survive its operation in competitive market.
8

Change management
Entrepreneur has an ability to easily adapt to various external changes or bring innovation
within firm so that wants of people can be satisfied within limited time frame. It plans various
ideas in order to implement external changes so that company can earl more profitability and
customer’s satisfaction. Therefore Lewin ‘s change management model can be used to evaluated
various changes that are brought in organisation overtime for achievement of common
objectives. Such as:
Unfreeze: There are various changes in external environment such as preference and needs of
customers, income of customer and technological development that need to be adapted by firm
for fulfilling needs of maximum number of customers. Entrepreneur has planned to provide more
respect and importance to each employee of Southern business technologies so that they can
easily adapt various changes of external environments (Pastwa, Verwaal and Saly, 2017). It
continuously motivates individual to adapt to recent technologies or trends so that company can
rapidly grow its business across UK and worldwide.
Changes: Employees of Southern business technologies can easily accept different change of
environments as manager motivated and inspire individual to adapt changes for growth and
expansion of business. It is small firm that have limited resource like physical and human and
satisfy needs of few individual so it can easily bring new changes in technologies very easily and
meet requirement of people in most effective manner. Therefore innovative technology and
effective change management strategies planned by entrepreneur have contributed in
sustainability of firm. Entrepreneur or owner of Southern business technologies communicate
with employees so that they can be aware about changes.
Refreeze: Manager of Southern business technologies encourages employees to share their
feedback or problem that they might face while handling different customers. It has effectively
monitor various change management strategies have been implemented and requirements of
people can be fulfilled. It helps in planning various strategies that can be used to correct errors
and various keys areas in which company lacks so that it can achieve its objectives. Therefore it
is a stage where entrepreneur ensure that need changes is accepted and implemented with firm so
that customers are provided best services.
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Ansoff Matrix
It is model that can be used by entrepreneur of Southern business technologies to
develop appropriate strategies in order to gain maximum market share and customers satisfaction
for long term growth and success of enterprise. There are four methods that can be used by
entrepreneur to earn profit such as:
Market Penetration: It is one of the simplest and most common strategies that is used by
entrepreneur to earn more profitability. Entrepreneur planned to enter into similar market
segment with existing products and services to attract new as well as existing individual to make
purchase of particular company. Therefore it is not effective and less risky strategy that can be
used by Southern business technologies to grow and expand its business operation.
Product Development: In this strategy company plans to attract various individual through
introducing new products range for existing customers. Southern business technologies by
making investment in research and development can launch new products or services that help in
effective connectivity of people and increase in overall sales volume and profitability of
organisation (Omisakin and et.al. 2016). Therefore some amount of risk related to financial or
capital is involved as it is small enterprise having limited revenue or capital to operate business
in meet need of customers.
Market Development: It is another strategy can also used by entrepreneur to achieve its goals
and expand operation of enterprise across worldwide. Southern business technologies by entering
into new market segment or expansion of business in various countries can earn more amount of
profitability. It need to effectively evaluates market condition, preference of individual and
economic condition in order to decided specific products or services that need to be offered so
that they can influenced to make purchase. Therefore market development helps in adding more
customers and enhancement in performance of organisation in industry.
Diversification: It is last Entrepreneur strategy that involves huge amount of risk and capital that
need to be invested as it is planning to enter into new market with innovative products and
services. This strategy can be adopted by entrepreneur of Southern business technologies at time
when it have strong brand image and wide varieties of products or resource and capital to
fulfilled needs of diverse individual. It is most risky strategy therefore proper market research
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need to be made by entrepreneur for long term growth and survival of enterprise in competitive
or new market condition.
CONCLUSION
It can be concluded that entrepreneurs prepared various strategies in advance so that
business can face various challenges and make effective utilisation of available opportunities so
that objectives can be achieved. It effectively analysis market condition and recent trends so that
need of customers can be fulfilled and company can earn maximum amount of profitability.
Entrepreneur changes its strategies as per situation and motivated individual to adapt various
changes so that people can get maximum benefits. It can also be concluded that entrepreneur
search new and innovative ideas to delivered services or products so that more and more
customers can be attracted to make purchased and contributed towards overall growth of
enterprise.
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REFERENCES
Books and Journals
Di Muro, P. and Turner, J. R., 2018. Entrepreneurial opportunity pursuit through business model
transformation: a project perspective. International Journal of Project
Management, 36(7). pp.968-979.
Dzogbenuku, R. K. and Keelson, S .A., 2019. Marketing and entrepreneurial success in emerging
markets: the nexus. Asia Pacific Journal of Innovation and Entrepreneurship.
Hisrich, R. D. and Ramadani, V., 2017. Entrepreneurial Businesses Growth. In Effective
Entrepreneurial Management (pp. 135-157). Springer, Cham.
Kilenthong, P., Hultman, C. M. and Hills, G. E., 2016. Entrepreneurial orientation as the
determinant of entrepreneurial marketing behaviors. Journal of Small Business
Strategy, 26(2). pp.1-22.
Kuratko, D. F., 2018. The challenge of corporate entrepreneurial leadership. In Research
Handbook on Entrepreneurship and Leadership. Edward Elgar Publishing.
Murni, T., 2017. The Effect of Entrepreneurial Orientation to Low Cost Strategy, Differentiation
Strategy, Sustainable Innovation and Performance of Small and Medium Enterprises
(Studies at Batik Small and Medium Enterprises in East Java Province,
Indonesia). European Journal of Business and Management, 9(20). pp.137-53.
Shirokova, G and et.al., 2016. Entrepreneurial orientation and firm performance in different
environmental settings. Journal of Small Business and Enterprise Development.
Srećković, M., 2018. The performance effect of network and managerial capabilities of
entrepreneurial firms. Small Business Economics, 50(4), pp.807-824.
Stojceska, G., Serafimova, M. and Gjorgjioska, E., 2019. Entrepreneurial education as strategy
for economic development.
Vaznyte, E. and Andries, P., 2019. Entrepreneurial orientation and start-ups' external
financing. Journal of Business Venturing, 34(3). pp.439-458.
Yin, H., Zhang, L. and Zhang, Y., 2017. The effect of ownership concentration and related
diversification strategy of entrepreneurial enterprises on enterprise
performance. Eurasia J. Math. Sci. Technol. Educ, 13(12). pp.8073-8087.
Yin, H., Zhang, L. and Zhang, Y., 2017. The effect of ownership concentration and related
diversification strategy of entrepreneurial enterprises on enterprise
performance. Eurasia J. Math. Sci. Technol. Educ, 13(12). pp.8073-8087.
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Appendix
Reflection
Pre seminar activities
Our lecture have given a task to make report on entrepreneur strategy to four group
member therefore we have chosen case study of small business in order to effective analysis
various strategy that are useful for growth and success of business. One of the individual was
happy and existed whereas other were nervous and tension as does not have knowledge about
activities that need to be performed. We were unable to coordinate with each other that lead to
delay in completion of task but at last by managing situation we have completed report on time.
Before conducting research on entrepreneurs strategy all group member were worried and
confused that what may be the strategy that can be used by entrepreneurs to establish and run
business smoothly. Each member has little knowledge about entrepreneur strategy and model
that can be used by it to make crucial decision for growth and success of organisation. We all
group member have decided to make presentation on case study of entrepreneurs of small scale
business that is Southern business technologies. Therefore next time we before starting task have
to divided activities that will be performed by each member and who will be final responsible for
completion of project so that best result can be get.
2 During seminar
Time Topic Resources Delivered person
and key point to
cover
Activities
13-00-13:05 Skill and
capabilities of
entrepreneur
There are various
resources are
required for
development of
skills and
capabilities as
entrepreneur
through use of
case study of
It has explained
the way
entrepreneur uses
their skills and
capabilities to
formulate
effective
strategies so that
firm can grow
Question asked
to audience about
their key strength
and weakness.
13

Southern
business
technologies
and expand its
business
operation.
13:06-13:10 Communication
skill
Written
communication
has been
improved by
enhancing
vocabulary so
that word that
has similar
meaning can be
avoided.
Words that need
not have to be
used while
communicating
so that other
individual cannot
get confused.
Ask every to
share their
feeling and views
to know about
their existing
communication
skills.
13:11-13:15 Decision making
skill
Various
alternative option
that can be useful
in growth of
enterprise so that
decision making
ability can be
enhanced.
Different method
that can be used
to improve
decision making
ability for
becoming
successful
entrepreneur in
future career.
Case study was
given to take
appropriate and
timely decision.
13:16-13:20 Risk taking
ability
Various danger
or challenges
games were used
to develop risk
taking ability.
Important of risk
taking and the
way it can
contributed in
success of
organisation has
been explained.
Games and
various questions
were asked or
presentation was
made on case
study to know
about different
risk involved in
14

business.
13:26-13:30 Innovative and
creative
Various
resources are
given to
participants to
make innovative
or creative things
that can beyond
expectantion of
individuals.
How innovative
and creative skill
can be developed
and contributed
in sustainability
of organisation.
Different task
were given to
individual so that
innovative and
creative skills
can be
developed.
13:31-13:35 Problem solving
abilities
Case study or
problem was
given to find
effective solution
for smooth
operation of
business.
Important or
benefits of
problem solving
abilities.
Case of Southern
business
technologies was
given to know
the way
entrepreneur find
solution for
effective
operation of
business.
13:36-13:40 ICT skills Computer,
internet connects
and power point
presentation was
used to explained
different model.
The way model
helps
entrepreneur to
frame strategies
so objectives can
be achieved.
Activities such as
search various
model that can be
used to plan
strategies were
used.
13:41-13:45 Team building Various member
were need so that
different task can
be performed and
Seminar has
explained that
way team
developed and
Games were
played in team so
that individual
can work
15

common
objectives can be
achieved.
work together for
completion of
task.
together as team
for common
objectives.
13:46-13:50 Leadership skill Case study of
Southern
business
technologies was
used to explained
about what
qualities leader
or entrepreneur
have to run
business.
Different types
of leadership
styles that can be
used by
entrepreneur to
managed diverse
employees.
Task was given
to become
leaders and
effective
influenced to
perform
particular task in
specific manner.
13:51-13:56 Key points about
formulation of
entrepreneurial
strategy
Power point
slides were used
to explained
main point or
overall
conclusion of
seminar.
It has described
all crucial point
from case study
of Southern
business
technologies.
No activities
have been taken.
In initial stage of group presentation we have decided task that need to be performed by each
member so that no confusion can be created in future regarding activities that need to be
accomplished for effective presentation. I as group leaders have distributed task that need to be
performed by each individual and effectively coordinated so that desired result can be gained.
During making presentation I and group member have learnt about different model such as
Pestle, SWOT, Anfross matrix and change management that is used by entrepreneurs while
taking crucial decision for growth and success of enterprise. We have get to know about detailed
information about each model their use and how they helped entrepreneur in framing strategy for
achievement of goals.
16

Post seminar activities
Seminars have been completed with limited time frame so that no attendees can be get bored and
tired of it and feedback have been taken from attendees after seminar in order to evaluate actual
seminar and key areas that need to be improved. After seminar I and group member realised that
various skills and knowledge were developed by presentation such as research skill, creativity
and innovation skills. We all have learned to work in team and the way to coordinated towards
common goals so that best result can be gathered. So, it can be stated that presentation and report
has helped a lot by providing a crucial information that can be used in future career or in specific
profession.
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