Entrepreneurial Strategies and Growth Models

The assignment is based on research papers that discuss various aspects of entrepreneurial strategy, including its formulation, operational capabilities, and export-oriented SMEs. The document also touches upon the concept of corporate entrepreneurial culture, process theory of entrepreneurial ecosystems, and the relationship between executive compensation incentives and entrepreneurial strategic orientation.

ENTREPRENEURIAL
STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Background of the company...................................................................................................1
Current strategic issue faced by the concerned organisation..................................................1
Appropriate model for growth of entrepreneurial business ...................................................1
Growth strategies for business ...............................................................................................1
Key links between theory and practice of entrepreneurial strategy making..........................1
CONCLUSION ...............................................................................................................................1
REFERENCES................................................................................................................................2

INTRODUCTION
Entrepreneurial strategy is referred to the procedure of creating new products and
formulating approaches in constrained working environment. Entrepreneurs are those individuals
that take risks so that a unique and innovative product can be offered to customers that will allow
them to earn high profits (Buwule and Mutula, 2017). This assignment is prepared on ROLI
which is a UK based music technology, offering innovative musical instruments to their
customers, mainly seaboard. This firm is founded in 2009 and headquartered in London. This
assignment will mention about the current strategic issue faced by concerned company and
linkage between practice& theory of entrepreneurial strategy making.
MAIN BODY
Background of the company
ROLI is a medium sized musical instrument manufacturer, headquartered in London, UK.
This company is established in the year of 2009 and founded by Roland Lamb. Main product
manufactured by the company is seaboard. Instruments which are prepared by company are used
by high scale musicians like A.R. Rahman, Hans Zimmer etc. First prototype of Seaboard
instrument is designed by company to overcome the mechanical interface limitation of piano
keyboard. Products of company are sold in around 40 nations (Shan, Song and Ju, 2016). First
instrument of ROLI is a seaboard which is a synthesizer controller based upon piano keyboard.
Instrument posses surface made from pliable silicon due to which musicians are able to play in
between keys of a standard keyboard of piano. Other products of company is BLOCKS which is
a customer-oriented control system able to connect with Bluetooth. Company has also developed
some software like NOISE app and the Equator software synthesizer. All of these products are
innovative and new for common customers due to their innovative features (Fadda and Sørensen,
2017).
Current strategic issue faced by the concerned organisation
ROLI offers innovative musical instrument such as Seaboard and Blocks to their
customers along with software like Equator software synthesizer and Noise app. Other services
associated with company are social music sharing platform named Blend and virtual instrument
developed Fxpansaion. Products of company are very innovative and overcome the limitations in
existing musical instruments. In this context, company has also received some awards like
1

designer of the year, 2015 product of the year etc. But still, company is not gaining wide
popularity in marketplace. There are different business issues which are faced by the company
like working in premature market, limited business growth etc. Main strategic issue faced by the
company are “Running business in a premature market where problem of low demand is severe”.
This issue takes place because people do not have much knowledge about the products offered
by company (Garg and Eisenhardt, 2017). Also, these products are expensive due to their
innovative aspects. This is the reason demand for innovative products of ROLI is quite less in
comparison with the traditional music instrument. Due to this, company is not able to earn high
profits and revenues in market place and growth of company is very limited. This issue has
impacted the popularity of company in a negative manner (Salama, 2016).
Key links between theory and practice of entrepreneurial strategy making and appropriate theory
for growth of entrepreneurial business
There are different theories and models which can be used by the business owner of
concerned company to manage growth of company (Omotosho and Anyigba, 2019). This is
because at present company is performing their business operations in a Pre-mature market and
the best way to sustain in market is to attain growth. In this context, a theory is applied below so
that current business issue at ROLI can be resolved in a proper manner:
Stages for small business growth
Maintaining the issues and growth patterns in a small business helps entrepreneurs in
attaining expected outcomes. Stages of growth for small business will help the business owner of
ROLI in resolving their current business issues. Along with this, it will help the company in
formulating further strategies so that high revenues can be earned in small scale business.
Different stages for growth achievement are mentioned below:
Existence: In this phase, main problem faced by a small company is lack of customer
base due to which sales of a company became less. This further results in reduced revenues and
profits (Johnson, 2016). ROLI also faced this problem when they start their business, this is
because products of company are advanced and innovative due to which customers do not have
much knowledge of using them. This is the reason demand of products was low along with
revenues of company. During this time, company was barely existing in marketplace in the
minds of customers.
2

Survival: This is the second stage for a small business to gain wide popularity. At this
stage, products of a company became somewhat popular and potential customers starts
acknowledging about the merits of these products. Main issues in this stage that can be faced by
a company are related with capital and cash flow. ROLI which is a musical instrument company
has initiated their business in 2009 and company also faces lack of capital and assets to manage
their business operations. To overcome this situation, business owner at ROLI has raised funds in
2014, 2016 and 2017. Total funds raised by company in 2014 and 2016 are around 39.8 million
dollars. These funds have allowed the company to perform their business activities without
shortage of money (Johnson and Van de Ven, 2017).
Success: This is the most critical stage for a business where an entrepreneur has two
options i.e. whether to expand the business of company by exploiting their accomplishments or
to maintain stable sales and profits. In context with ROLI, company is at present facing this
situation. This is because company has won several awards due to their innovative and unique
products but they do not have high growth in their sales and revenues. Low growth has limited
the profitability of company. Hence, Owner in ROLI is going to use the platform of company for
growth. Here, business owner of ROLI will consolidate the firm and marshals the resources for
business growth.
Current business issue of company is “Running business in a premature market where
problem of low demand is severe”. To increase the demand of their product, ROLI is needed to
initiate business campaigns and workshops where customers will be allowed to use the products
of company for free. By this, they will be able to acknowledge the innovative features of product
and this will attract them to buy those products. Also, concerned firm can advertise their
products and software to the musicians or other people which are interested in music. This will
increase the interest of music oriented people in the products of ROLI. This will help the
company in gaining expected growth in business so that high revenues and profits can be
attained (Karami, 2016).
Take-off: After implementing some strategies to achieve growth, this stage is related
with growth at fast pace. At this stage, main issue faced by the owner of a small or medium sized
company is to attain rapid growth in business so that high advantage over rivals and other
business persons can be gained properly. At this stage, an entrepreneur is required to delegate
some important responsibilities of business to other key employees so that complex tasks can be
3

performed in a simplified manner. In case of ROLI, after implementing growth and success
strategies for business, business owner is required to share some burden of business with other
talented individuals. If business work will be divided and given to people as per their expertise,
this will help them in getting high outcomes irrespective of complexities. Also, owner of ROLI
will be required to manage their managerial and financial aspects in a systematic manner so that
expected acceleration in growth can be acquired (Spigel and Harrison, 2018). This will benefits
the concerned company in high selling of their seaboard and other products that will results in
wide recognition and revenue making. If company fails to gain rapid growth, owner can still
continue successfully with the present growth of company. Failing at this stage will not leads to
failure of entire business.
Resource maturity: This is the last stage that will be faced by an entrepreneur during
growth of a business. At this stage, a business gained desired success and sales due to which
growth percentage of company is good. But at this stage, products of a company are already
brought by customers do to which market became saturated. To further gain growth in such
situation, business owner of ROLI will be required to check and monitor the features of their
product so that inefficiencies can be removed and new aspects can be added as per latest trend.
By this high growth can be gained in saturated market as new features will force customers to
buy the product and services of company (Linton and Kask, 2017).
Five stages mentioned above is a theoretical concept which is used by the business owner
of ROLI to solve their issue related with less business growth. This issue takes place because
products of company are based on new technology and people have no idea how to use it. This is
the reason demand for products of ROLI is less. With the help of these stages, a practical
solution and strategies have been identified by owner so that high growth in concerned medium
scale business can be gained.
Other growth strategies for business
There are some other growth strategies that can be adopted by the entrepreneur of a small
or medium sized business like ROLI so that strategic business issues related with growth can be
overcome. Some of these strategies are listed below:
 Expanding business at other locations: Business owner of ROLI can expand their
business at different locations rather than expanding work operations at a single place.
Opening of business at different places will help the company in promoting their products
4

to maximum customers due to which high sales and revenues can be earned. This will
allow the company to gain desired success (Mosey and Kirkham, 2017).
 Online promotion of business: Music is a profession which is adopted by limited
people. Hence, customer base of company is diversified and less in number. To gain the
attention of potential customers, owner at ROLI can promote their business via online
and digital media. By promoting and advertising through social platforms company can
reach up to millions of customers in shortest time without spending much money. This is
the best way by which ROLI can achieve expected growth (Miocevic and Morgan, 2018).
CONCLUSION
As per above given project, this can be comprehended that to achieve good outcomes, an
entrepreneur is required to adopt certain concepts and measures. Each small scale business is
needed to adopt different growth strategies so that business can be expand in a considerable
manner. With the help of different models and theories related with growth, an entrepreneur can
acquire desired growth in business.
5

REFERENCES
Books and Journals
Buwule, R. S. and Mutula, S. M., 2017. Research support services to small and medium
enterprises by university libraries in Uganda: An entrepreneurial and innovation
strategy. South African Journal of Information Management. 19(1). pp.1-8.
Fadda, N. and Sørensen, J. F. L., 2017. The importance of destination attractiveness and
entrepreneurial orientation in explaining firm performance in the Sardinian
accommodation sector. International Journal of Contemporary Hospitality
Management. 29(6). pp.1684-1702.
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.
Johnson, G., 2016. Exploring strategy: text and cases. Pearson Education.
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.
Miocevic, D. and Morgan, R. E., 2018. Operational capabilities and entrepreneurial opportunities
in emerging market firms: Explaining exporting SME growth. International Marketing
Review. 35(2). pp.320-341.
Mosey, S. and Kirkham, P., 2017. Entrepreneurial strategy. In Building an Entrepreneurial
Organisation (pp. 21-35). Routledge.
Omotosho, S. I. and Anyigba, H., 2019. Conceptualising corporate entrepreneurial strategy: A
contingency and agency collaborative approach. Journal of Strategy and Management.
12(2). pp.256-274.
Salama, A., 2016. Creating and Re-Creating Corporate Entrepreneurial Culture. Routledge.
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.
Spigel, B. and Harrison, R., 2018. Toward a process theory of entrepreneurial ecosystems.
Strategic Entrepreneurship Journal. 12(1). pp.151-168.
Zhu, Z. and Matsuno, K., 2016. Entrepreneurial proclivity: its environmental conditions and
growth consequences. Journal of Strategic Marketing. 24(1). pp.20-33.
Zhui, L. and Meng, L., 2017. Study on the Relationships among Executive Compensation
Incentive and Entrepreneurial Strategic Orientation and Entrepreneurial Enterprise
Growth. Journal of Industrial Technological & Economics. (4). p.12.
6