Corporate Entrepreneurship and Myer's Strategy

This assignment requires an analysis of Myer Pty Ltd.'s approach to corporate entrepreneurship. Students are tasked with examining Myer's stated vision and values, as well as their annual reports, to assess how effectively they implement corporate entrepreneurship strategies. The focus is on understanding Myer's commitment to innovation and its impact on the company's overall performance within the retail industry.

Corporate Strategy Entrepreneurship

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Contents
1 Introduction and Overview of the Myer...............................................................................................2
1.1 Myer............................................................................................................................................2
1.2 Mission........................................................................................................................................3
1.3 Vision..........................................................................................................................................3
1.4 Values..........................................................................................................................................3
2 Theoretical concepts............................................................................................................................4
2.1 Corporate Entrepreneurship.........................................................................................................4
2.2 Strategic Management.................................................................................................................6
3 Situation analysis.................................................................................................................................8
3.1 External Environment..................................................................................................................8
3.2 Entrepreneurial health assessment.............................................................................................11
4 Conclusion.........................................................................................................................................13
5 References.........................................................................................................................................14
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1 Introduction and Overview of the Myer
This report is all about the corporate entrepreneurship strategy of the company to gain the
competitive advantage. The organizations need to adopt these strategies because they have to
deal with external environment which is changing continuously. The external factors that
influence the competitive situation are the political, social, economic, legal and environmental
and all these factors need to analyze before creating any strategy. This report is going to be
focused on the retail company Myers to understand the theoretical concepts of the corporate
entrepreneurship. The companies need to bring a lot of creativity and innovative skills in order to
gain the competitive advantage. The need to develop the corporate entrepreneurship strategy
arises because of the existence of the innovation in the economy. Therefore, this report talks
about the strategy of corporate entrepreneurship in the retail company named as Myers(Myer Pty
Ltd, 2017).
1.1 Myer
Myer is the largest retail store in Australia and it was established in the year 1899 by the Sydney
Myer. However, the company is serving in the field of the style and fashion for the last 100
years. There were around 67 stores available in Australia at different locations. Moreover, the
company is working with the 12,500 people and with 54000 shareholders and with the global
suppliers approximately 1200. Talking about the products offered by the Myer group are as
below:
 Women wear
 Men wear
 Kids wear
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 Beauty products
 Homewares
 Footwear
 Handbags and accessories
The main sources to gain the competitive advantage are knowledge, technology, the skills of the
employees. There are two main activities, like individual as well as the organizational
entrepreneurial tasks are helpful in developing the strategy as to just for the survival of the
company in the competitive world.
1.2 Mission
The mission of the Myer retail company is to provide the different offers with an intent to attract
the maximum customers by offering them the different styles and various brands of the fashion.
1.3 Vision
The vision of the company is to bring a love of shopping in the life of the human beings. At
Myer, it is possible by offering the wanted brands to the customers and by creating the customer
experiences. The Omni channel is the initiative took from the company in order to deliver a
world class shopping experience(Mcclintock, 2016).
1.4 Values
There are many values of the Myer group that focusing on the culture as well as the behavior of
the company.Some of the values are:
 Be passionate
 Delight your customers
 Challenge yourself
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 Be courageous
 Do whatever is right
2 Theoretical concepts
It is very important to understand the main theoretical concepts before creating any strategy for
the Myer company in order to gain the competitive advantage. The two main theoretical concepts
are corporate entrepreneurship and strategic management.
2.1 Corporate Entrepreneurship
The simple definition of the corporate entrepreneurship given by the Morris is that it is the
integration of the organizational venturing and the strategic entrepreneurship. There are four
main models of the corporate entrepreneurship, presented in the below image: Enabler, producer,
opportunist and Advocate(Ferreira, 2002).
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The process of the corporate restructuring involves the three main steps which are defined below:
 Strategic renewal: - This is the first step of the corporate entrepreneurship as it involves
the renewal of the key ideas of the company to transform the organization. However, it
includes the activities such as redefining the business concept, re-structuring of the
business, and making changes for innovation(Moriano, 2011).
 Innovation: - This part of the process is playing a very crucial role as the main focus is
given to the creativity and innovation in technology. This involves the innovation at the
time of the new product launch, new production methods and procedures. Innovation
always plays the crucial role in the companies in order to survive in the competitive
world(Garvin & Levesque, 2006).
 Corporate venturing: - This is the most effective feature of entrepreneurship as this
element of the process includes the business strategies to create the new venture, to
redefine the products and services and targeting new markets. For all organizations,
regardless of size, the new business-venturing dimension refers to the creation of new
business(Farinos & Latorre, 2011).
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2.2 Strategic Management
In the concept of the strategic management, there are five dimensions on the intensity, flexibility,
horizon, planning and control attributes. All these five dimensions are explained below:
1. Scanning intensity: - This is the first step of the making of strategy that involves into the
test and analyze the available opportunities for the company. Before creating any
strategy, it is very important to scan the threats of the company in its own environment.
The Myer company has the threat of high competition because of which company nee a
strategy for the survival of the company(Enginoglu & Arikan, 2016).
2. Planning flexibility: -This refers to the situation of the company to accept the changing
working conditions of the internal as well as the external environment. All the short term,
long term and medium term goals of the company need to restructure while making any
strategy for the company.
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3. Planning horizon: - Planning horizon refers to the time period for the creation as well as
implementation of the strategies in the company(Nkosi, 2011).
4. Locus of planning: - This dimension demonstrates the involvement of the team of the
employees within the organizations. However, it can be of two types, shallow as well as
deep. Shallow locus means the involvement of the top managers only in the planning,
whereas on the other side, deep locus includes the involvement of all levels of
employees(Sakhdari, 2016).
5. Control attributes: - This is the last and crucial dimension as it involves the controlling
techniques that check whether the goals and objectives are attained or not. There are two
types of control- strategic and financial control. Strategic control is useful to check the
performance in the market and financial control helps in measuring the financial status of
the company.
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3 Situation analysis
At Myer, the company needs to bring some more innovation in the styles and the different brands
and also expand their retail stores as their number is very less. For this company need to build
the strategy and implement that strategy to gain the competitive advantage. Before creating
strategies, Myer company needs to analyze the External environment. The strategy chosen to
deal with the competition is that the company should open up more retail stores in other
countries and bring and promote the innovation to make changes to the organization’s
structure(Bouchard, 2001).
3.1 External Environment
The analysis of the external environment is important for the expansion of the business or
opening of the more retail stores in the other countries. Myer company should analyze the
external environment before making any strategy. The company needs to create strategy because
it is facing a high competition. The retail Store, Myer, need to identify all the main business and
external factors that may affect the strategic management with the company. There are three
different levels of actors that taken into consideration while creating these strategies.
 To analyze the Environmental factorsthat are at the organizational level,
 To consider all the Organizational factorsspecifically related to the organization or
Myer and
 To evaluate the Individual level factorsthat include all the values and beliefs of the
people.
Environmental factors involve all the political, economical, competition, technological changes
and market conditions that have an influence on the organizational structure, resources,
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competence and the reward system. All these factors should be analyzed in order to bring a
change in the organization.
Political Environment: These factors are related to the government and the politics of the
Australia. It has been observed that the Myer company faced the low political because of the
stability in the economy. Myer can take the benefits from these factors as the government of the
Australia is offering free trade agreements with the emerging companies such as New Zealand,
China and Singapore. However, it is very easy for the Myer company to import the brands across
the globe by signing these agreements.
Economical: The economic environment of the Australia has the negative impact on the retail
industry because of the financial crisis in 2009. This environment is very unfavorable for the
Myer company (Myer Pty Ltd, 2017).
Technological: Technology opens up a lot of opportunities for the Myer to reach the wide range
of the customers by offering the online shopping and the online direct marketing techniques.
Labor environment: The employees of the company are the strength of the company as they are
the main representative of the company and the company is already offering the best services
and facilities to the employees with attractive wages.
Legal and regulatory: Myer already adopted the corporate governance to improve the
performance of the employees and managers. The Code of the Myer’s also offers some of the
legal guidelines relevant to the operations of the Myer such as occupational health and safety,
code of ethics, fair trading, employment practices.
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Global Environment: The company has great opportunities to expand the business globally as
there are many emerging countries for the expansion of the business across the globe. The
countries like China, New Zealand has the potential to grow in the field of retail industry.
Competitive Environment: This is the most risky environment as there is a very high
competition for the Myer’s such as the David Jones, Kmart, and Big W.
Customer Environment: The company has the greatest customer value and the company is
targeting the niche market as these people never hesitate to pay high prices for the high quality
and famous brands.
Organizational factors are related to the business models that the Myer company is already using
and how it will be affected by the corporate entrepreneurship strategies. The individual factors
can have a great impact on the organization as a whole and even in the retail industry. All these
levels of the factors may affect the entrepreneurial mindset(Brizek, 2015).
 Entrepreneurial vision and mission,
 Entrepreneurial culture, and
 Entrepreneurial leadership.
However, the Mayer company should manage all its strategies to avoid the risks and
management of the strategies means to gain the competitive advantages by the Mayer by opening
up new stores with the use of the innovation and the latest technologies. The various models of
the corporate entrepreneurship strategy suggest that the competitive advantage of the Myer brand
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can be gained by enhancing the creation, development of the innovation and to promote the
brand in the niche market.
Therefore, the corporate entrepreneurship strategy for the Myer will help to gain the competitive
advantage by analyzing all the above factors. The company has the threat of high competition
and the negative point of the Myer is that it has very minimum number of stores across the
world. The company needs to focus on the niche markets outside the Australia. No doubt,
Company is offering the Omni channel and the customer Led offers to attract the people, but all
these offers of the Myer require more innovation to make love for shopping in the life of people.
Myer need to focus on the corporate innovation and venturing strategies just to give the
wonderful shopping experiences to the people(Armesh, Ghalandarzahie, & Shahnevazie, 2013).
3.2 Entrepreneurial health assessment
After analyzing the internal and external environmental factors, the next important thing is to
analyze the different activities and assessing them to achieve the goals of the company.
However, this is the assessment of the current situation of the company. The different categories
of the Entrepreneurial health assessment of the Myer company are given below:
1. Management support, for Corporate Entrepreneurship: The management of the Myer
company is supportive and always ready to bring some changes in the organizations.
However, the management of the Myer company always opens for the corporate
entrepreneurship(Piekarski, Zocche, & Francisco, 2013).
2. Climate: The working environment of the Myer Company is good and it has the high
entrepreneurial intensity.
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3. Organizational boundaries: The organizational boundaries are not may create problem in
making the strategies to gain the competitive advantage(Talukdar, 2016).
Except these factors, the SWOT analysis also conducted in order to assess the entrepreneurial
health of the Myer Company. The SWOT analysis is represented through the below table :
Therefore, the overall assessment of the Myer company and its entrepreneurial performance
demonstrates that the company has the greatest potential to grow in the niche markets and it has
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Strengths
Strong brand image
variety of the products
Customer focused services
Strong chains in Australia
Weaknesses
Distribution is only in Australia
High prices
No global presence
Opportunities
Expansion of the business globally
innovatieve promotional strategies
Threats
High competition
changing tastes and preferences of the
customers.
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a high intensity of the corporate venturing because of the good working climate in the
organization. Moving further, there are some of the dimensions shows the uncertainty and
disagreement such as organizational boundaries(Suárez-Alvarez & Pedrosa, 2016). Therefore,
the entrepreneurial health of the Myer company needs more improvements to gain the
competitive advantage.
4 Conclusion
This report mainly focused on the retail company Myers to understand the theoretical concepts of
the corporate entrepreneurship. The companies need to bring a lot of creativity and innovative
skills in order to gain the competitive advantage. The need to develop the corporate
entrepreneurship strategy arises because of the existence of the innovation in the economy.
Therefore, the corporate entrepreneurship strategy for the Myer will help to gain the competitive
advantage by analyzing all the above factors. The company has the threat of high competition
and the negative point of the Myer is that it has very minimum number of stores across the
world. The company needs to focus on the niche markets outside the Australia. However, the
Mayer company should manage all its strategies to avoid the risks and management of the
strategies means to gain the competitive advantages by the Mayer by opening up new stores with
the use of the innovation and the latest technologies.
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5 References
Armesh, H., Ghalandarzahie, K., & Shahnevazie, Y. (2013). Emerging Issues in Corporate
Entrepreneurship and Development of Firm Performance: Exploring of literature. Journal
of Basic and Applied Scientific Research, 3(12), 235-244. Retrieved from
https://www.textroad.com/pdf/JBASR/J.%20Basic.%20Appl.%20Sci.%20Res.,
%203(12)235-244,%202013.pdf
Bouchard, V. (2001). Exploring Corporate Entrepreneurship : A Corporate Strategy
Perspective. Retrieved from http://www.hajarian.com/esterategic/tarjomeh/balideh1.pdf
Brizek, M. (2015). Explaining corporate entrepreneurship: A contemporary literature
investigation. Journal of Management and Marketing Research, 1-13. Retrieved from
http://www.aabri.com/manuscripts/131617.pdf
Enginoglu, D., & Arikan, C. (2016). Creating a corporate entrepreneurship strategy for
competitive advantage. International reviews of economics and management, 4(1), 14-28.
Retrieved from http://dergipark.gov.tr/download/article-file/286540
Farinos, J., & Latorre, A. (2011, September). Corporate entrepreneurship and acquisitions:
creating firm wealth. International Entrepreneurship and Management Journal, 7(325).
Retrieved from https://rd.springer.com/article/10.1007/s11365-011-0201-4
Ferreira, J. (2002). Corporate Entrepreneurship: a Strategic and Structural Perspective.
Retrieved from
http://citeseerx.ist.psu.edu/viewdoc/download;jsessionid=FEC79A2EB344CF72BB1CE6
0229E1A194?doi=10.1.1.124.7201&rep=rep1&type=pdf
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Garvin, D., & Levesque, L. (2006). Meeting the Challenge of Corporate Entrepreneurship.
Retrieved from https://hbr.org/2006/10/meeting-the-challenge-of-corporate-
entrepreneurship
Mcclintock, N. (2016). Myer Annual Report. Retrieved from
http://investor.myer.com.au/FormBuilder/_Resource/_module/dGngnzELxUikQxL5gb1c
gA/file/Myer_Annual_Report_2016.pdf
Moriano, J. (2011). Corporate Entrepreneurship. Retrieved from http://kmps.vse.cz/poe/wp-
content/uploads/2011/07/IP-Corporate-Entrepreneurship.pdf
Myer Pty Ltd. (2017). Our vision & values: Myer. Retrieved from www.myer.com.au:
https://www.myer.com.au/c/about-myer/careers/working-myer/our-vision-and-
values.html
Nkosi, T. (2011). Corporate Entrepreneurship and Organisational Performance in the
Information and Communications Technology Industry. Retrieved from
http://wiredspace.wits.ac.za/bitstream/handle/10539/11983/Corporate
%20Entrepreneurship%20and%20Company%20Performance%20-%20ICT%20sec.pdf?
sequence=1
Piekarski, C., Zocche, L., & Francisco, A. (2013). Life Cycle Assessment as Entrepreneurial
Tool for Business Management and Green Innovations. Journal of technology
management and innovation, 8(1), 1-10. Retrieved from
http://www.scielo.cl/pdf/jotmi/v8n1/art05.pdf
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Sakhdari, K. (2016). Corporate Entrepreneurship: A Review and Future Research Agenda.
Technology Innovation Management Review, 6(8), 5-18. Retrieved from
https://timreview.ca/sites/default/files/article_PDF/Sakhdari_TIMReview_August2016.p
df
Suárez-Alvarez, J., & Pedrosa, I. (2016, January). The assessment of entrepreneurial personality:
The current situation and future directions. Retrieved from
https://www.researchgate.net/publication/295673460_The_assessment_of_entrepreneuria
l_personality_The_current_situation_and_future_directions
Talukdar, R. (2016, September). Situation analysis and personality. Retrieved from
https://www.slideshare.net/DrRupaTalukdar/situation-analysis-and-personality
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