IBU5COV - Corporate Entrepreneurial Health Assessment of J.B. Hi-Fi

This report provides a comprehensive analysis of J.B. Hi-Fi's corporate entrepreneurial health, focusing on its strategies, risk management, and market performance within the retail industry. It examines key theoretical concepts related to corporate entrepreneurship, including innovation, risk-taking, and proactive management. The research approach involves a literature review and data analysis to assess the company's entrepreneurial intensity and the climate for corporate entrepreneurship. The analysis includes sales growth, the impact of acquisitions, and the implementation of turnaround strategies. The report also delves into how J.B. Hi-Fi manages risks, fosters innovation, and promotes diversity within its organization. The findings highlight the importance of a strong corporate entrepreneurial climate for achieving sustainable competitive advantage. The report evaluates the company's efforts to balance market share with margin pressure, and its focus on employee productivity and customer service. Overall, the report offers a detailed evaluation of J.B. Hi-Fi's corporate entrepreneurial health, providing valuable insights into its business practices and future prospects.

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Table of Contents
Executive Summary...................................................................................................................2
1. Introduction.........................................................................................................................3
2. Theoretical Concepts..........................................................................................................4
3. Research Approach.............................................................................................................5
4. Data Analysis and Discussion.............................................................................................7
a. Entrepreneurial Intensity.................................................................................................7
b. Climate for Corporate Entrepreneurship.........................................................................8
5. Conclusion..........................................................................................................................8
6. References.........................................................................................................................10

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Executive Summary
The report mainly focuses on the leading retailer Australian company J.B. Hi-Fi. We will
discuss corporate entrepreneurial health of organization. The organizational health of every
organization needs to secure and well-structured that will help the company to carry on it's
operating and financing activities, thus gaining profitability for the business. In this case, we
have analyzed various risk factors and strategies that the corporate entrepreneurs undertake to
make innovations and profitable decisions for company. We have identified ways by which
the corporate entrepreneurs mitigate multiple risks that have arisen in the organization or
might arise in future. Lastly, in this report, we have used data analysis for identifying the
exiting climate of the corporate entrepreneurship and for knowing the involvement of
entrepreneurial intensity in an organization.

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1. Introduction
In this report, we are going to focus on corporate entrepreneurial health of J.B. Hi-Fi.
Corporate entrepreneurship (C.E.) assumes to be one of the significant parts of the company
that is responsible for maintaining a competitive, sustainable advantage in global market.
C.E. is greatest strength of business that motivates all members of the organization to
transform the business ideas and concepts into opportunities that ultimately leads to value
creation of the company (Burns 2016). The report will focus on various entrepreneurial
activities and will identify how the corporate entrepreneurial of the organization is working
towards the betterment of the company (Autio et al. 2014). Even the report will measure
specific risk that has been taken up by the corporate entrepreneurial body of the corporation
for creating innovation in the business that will result in maximum profitability. The
corporate entrepreneurial health of the company needs to be extremely strong and capable to
deal with various risk factors that are becoming an obstacle for the company objectives. It is
the responsibility of the C.E. of the company to grab each opportunity and to make
innovative value creation that will lead the company to profitable results and will attract more
brand recognition.
The report will mainly deal with the J.B. Hi-Fi Company that is an Australian retailer
public company. The company deals with various products such as small appliances, major
appliances, and consumer electronics. J.B. Hi-Fi assumes to be one of the fastest-growing
and expanding retailer company of Australia related to home entertainment (J.B. Hi-Fi,
2020). World's leading brand related to tablets, cameras, computers, speaker, home theatre,
and many more other appliances is offered by J.B. stores. The company ensures that J.B. Hi-
Fi deals with best brands and has lowest price that will be convenient for people. The
business provides excellent personal services to the customers, and the company has
excellent experienced specialist staff. The leading position of the company is because of the

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excellent products and services that are being offered by the business.it is evident that
company that implement value creation in its strategies gets great recognition in the market.
The corporate entrepreneurial health is the one that is responsible for taking a risk and
guiding the business members to achieve the ultimate goal. The report will discuss various
theoretical concepts and will evaluate the research analysis related to the corporate
entrepreneurial health of the company.
2. Theoretical Concepts
In the present competitive world, the global economy is creating substantial changes and
innovation in the business and industries all over the world. It has become extremely vital for
all business houses to adopt innovative strategies and implement excellent planning in the
organization that will help company to attain sustainable competitive advantage in global
economic market (Zahra and Wright 2016). Similarly, the corporate entrepreneurs of the J.B.
Hi-Fi are implementing innovative strategies and dealing with various risks that are arising in
the business. The company mainly deals with two leading retail brands J.B. Hi-Fi that focus
on consumer and technology electronics products and services. At the same time, the other
one is The Good Guys that deals with home appliances and consumer electronics. The
corporate entrepreneurial body of the organization ensures that the company is adopting best
theoretical approaches such as a low cost operating model, strong supplier partnership,
multichannel capabilities, quality store location, and many more other innovative approaches
that are making the business unique in the market and ensuring a competitive advantage
(Drucker 2014). All the success of the company is possible because of the healthy corporate
entrepreneurial that is existing in the business. If the corporate entrepreneurs of the business
are not able, to mitigate risks factors or cannot make innovative strategies, then it would not
have been possible for the organization to become one of the largest retailer company in
world (Urban 2014). Further in this report, we are going to conduct research analysis on

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entrepreneurial intensity of the company and the existing climate of the corporate
entrepreneurial health of the business so that we can get a better understanding about the risks
and innovations of the organization.
3. Research Approach
The main objective of this research is to conduct a corporate entrepreneurial health audit
of the J.B. Hi-Fi Limited Company. We are going to formulate various secondary objectives
of the company related to corporate health of the company and trying to identify how the
company is managing all its business activities in an efficient manner that is resulting in
maximum profitability and even attracting positive brand recognition for the company (Wu
and Huarng 2015). It is an evident fact that corporate entrepreneurs are the main people who
are behind the great success of the company as they are the one who suggests innovative
ideas and strategies thus, leading the business to great success. In this part, we are going to
conduct a literature study that will reflect the importance and value of the corporate
entrepreneurial and will determine what the developments that the company is planning to
achieve in coming future. Even empirical research can be conducted to gain more clarity on
the corporate entrepreneurial health of the business and to determine the level of risk that has
been undertaken by corporate body of the organization to attain sustainable competitive
advantage (Brizek 2014).
The Board of the company is well-aware about the fact that to maintain accountability
and profitability throughout the organization there must be strong and adequate corporate
governance related to environmental and social matters that will be beneficial for the overall
organization. Even it is the responsibility of the Board to maintain clear communication with
all levels of the management so that all the members of the organization can work together
towards achieving the objectives of the business (Real, Roldán and Leal 2014). The Board
always try to encourage innovation and diversification with new products, technology,

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advertising, and property locations. The corporate entrepreneurial of the company tries to
grab each opportunity that comes in their way and identify various risk that might be
associated with the new project. Thus, ensuring that the company must invest in a particular
project that will prove to be beneficial for the company (Bierwerth et al. 2015). Adopting
various approaches provides entrepreneurs to increase revenues, margin, and productivity.
Even the shareholders of the company ensure full support to the corporate entrepreneurs.
Thus, assuring that entrepreneurs will work towards the benefits of the organization. The
corporate entrepreneurs of the business ensure that the company offers biggest range and
lowest prices by taking help of the talented and enthusiastic team (Yildiz 2014). The
employees are the greatest strength and assets of the company, and this is well-known by the
entrepreneurs that all employees need to be productive and knowledgeable as they are
ultimate means by which the entrepreneurship transform their innovative ideas and concepts
into reality.
The corporate entrepreneur body of the organization gives assurance to the shareholders
that they are framing strategies that will protect and enhance the long-term sustainability of
shareholders' value. They are responsible for performance of company and monitors all
business activities, as at end of the day they are answerable to all the stakeholders if any risk
arises in the business activities. In an organization, there are multiples of departments that
deals with numerous activities such as marketing, financing, managerial activities, and many
more other activities that are associated with the business (Turner and Pennington 2015).
However, the corporate entrepreneurs are mainly concerned about the risk management
expertise and experience as before heading towards any new investment or strategy the risk
factors must be analyzed so that proper strategies can be made that could mitigate the risk and
give profitable results. The corporate entrepreneurial health of the company can deal with
various risk that arises in the company. Even the corporate body recognizes the needs of

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cultural diversity in the company. It identifies that diverse range of skills, experience, and
gender at all levels of the organization will raise competitive advantage of the company. The
diversity policy has been encouraged by the corporate entrepreneurs, and it states that
different perspectives from different diversity will encourage innovative, responsive,
competitive business, and will create value for the customers and shareholders (Kuratko and
Morris 2018). If the objectives are taken into consideration, the company has improved the
percentage of female to male commission store sales staff in 2019; the percentage was 32%
whereas in 2018 it was 29%. Even there is an increase in the percentage of female to male
store managers from 15% to 16%. Even though corporate entrepreneurs are mainly engaged
with the technology innovation and launching new products; however, they work towards
improving the existing strategies and policies of the business that is profitable for overall
organization.
4. Data Analysis and Discussion
In this part, we will discuss mainly specific data analysis that will reflect what the degree
of entrepreneurial intensity and existing climatic condition of the corporate entrepreneurship
of company is.
a. Entrepreneurial Intensity
The entrepreneurial intensity of the company is directly related to performance of
business. If one needs to measure the corporate entrepreneurial health of the company,
then sales growth is one of the significant factors that must be taken into consideration.
The total sales of the J.B. Hi-Fi Australia business were 4.1% in July 2019, where it was
2.95 in 2018, this reflects that new strategies have been implemented that is generating
more revenues (Investors.jbhifi.com.au, 2020). However, the decision to acquire the
Good Guys business does not seems profitable for entrepreneurs, as they did not receive
expected growth outcomes and it was decided by the corporate body that they would

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continue to invest in theses business and support their continued growth (Pinho, Rodrigue
and Dibb 2014). Even the corporate entrepreneurs evaluated that the New Zealand
business is not performing as per the expectations, so the body has decided that a new
process will be implemented in the organization that is the turnaround strategy that is
expected to bring improvement in the business. New Zealand business of the company
needs to deliver expected growth; otherwise, it will negatively affect the operating and
financial performance of company. J.B. Hi-Fi and the Good Guys business are involved
in continuous expansion of products categories and introducing new brands, and this is
one of the significant advantages of the company to remain competitive in the market and
to give tough competition to its competitors.
b. Climate for Corporate Entrepreneurship
In the present global competitive scenario, each company must try to ensure a strong
climatic condition for corporate entrepreneurship. Ensuring a better climatic condition will
lead to the process of enhancing innovative abilities of the employees and will ultimately
increase corporate success of the company (Zehir, Can and Karaboga 2015). The market in
which the company operates is extremely competitive that leads to price deflation; however,
the corporate strategy of entrepreneurs focus on the market share and absorbs margin
pressure ensuring competitive advantage. Even the company ensures a high level of loyalty
with the customers. The company decided to mitigate risk that is associated with the
competitors pricing and market share data. The corporate entrepreneurs asked the senior
management of the company to monitor customer complaints and use customer service
engagement analytics. There is a mitigation of risk by investing in I.T. security services, and
even the corporate entrepreneurs of the company ensure that proper training has been given to
all employees related to legislative rules and regulations and asked the management team to
monitor the regulatory requirements so that there is no breach of any law.

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5. Conclusion
Lastly, the report concludes that the corporate entrepreneurial health of the company can
deal with any risk factors that are arising in the organization. Even the group is working as
per the needs and demands of the customers by analyzing the market demand. As it is a retail
business, inventory management plays a significant role in business activities. The group of
corporate entrepreneurs tries to keep continuous monitoring on the inventory level to mitigate
risks. The group believes that establishing store networks will be beneficial for the company
as it can provide after-sale service to customers that will attract positive brand reputation for
business. We can say that the overall corporate entrepreneurial health of the company is
competitive enough to sustain in the market for an extended period.

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6. References
Autio, E., Kenney, M., Mustar, P., Siegel, D. and Wright, M., 2014. Entrepreneurial
innovation: The importance of context. Research policy, 43(7), pp.1097-1108.
Bierwerth, M., Schwens, C., Isidor, R. and Kabst, R., 2015. Corporate entrepreneurship and
performance: A meta-analysis. Small business economics, 45(2), pp.255-278.
Brizek, M.G., 2014. Explaining corporate entrepreneurship: A contemporary literature
investigation. Journal of management and marketing research, 14, p.1.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Investors.jbhifi.com.au, 2020. [online] Investors.jbhifi.com.au. Available at:
<https://investors.jbhifi.com.au/wp-content/uploads/2019/10/Annual-Report-2019-with-
Chairmans-CEOs-Report.pdf> [Accessed 17 April 2020].
JB Hi-Fi, 2020. J.B. Hi-Fi - Australia's Largest Home Entertainment Retailer. [online] J.B.
Hi-Fi. Available at: <https://www.jbhifi.com.au/> [Accessed 17 April 2020].
Kuratko, D.F. and Morris, M.H., 2018. Corporate entrepreneurship: A critical challenge for
educators and researchers. Entrepreneurship Education and Pedagogy, 1(1), pp.42-60.
Pinho, J.C., Rodrigues, A.P. and Dibb, S., 2014. The role of corporate culture, market
orientation and organizational commitment in organizational performance. Journal of
Management Development.
Real, J.C., Roldán, J.L. and Leal, A., 2014. From entrepreneurial orientation and learning
orientation to business performance: analyzing the mediating role of organizational learning

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and the moderating effects of organizational size. British Journal of Management, 25(2),
pp.186-208.
Turner, T. and Pennington, W.W., 2015. Organizational networks and the process of
corporate entrepreneurship: how the motivation, opportunity, and ability to act affect firm
knowledge, learning, and innovation. Small Business Economics, 45(2), pp.447-463.
Urban, B., 2014. The importance of attributes in entrepreneurial opportunity evaluations: An
emerging market study. Managerial and Decision Economics, 35(8), pp.523-539.
Wu, C.W. and Huarng, K.H., 2015. Global entrepreneurship and innovation in management.
Yildiz, M.L., 2014. The effects of organizational culture on corporate
entrepreneurship. International journal of business and social science, 5(5).
Zahra, S.A. and Wright, M., 2016. Understanding the social role of entrepreneurship. Journal
of Management Studies, 53(4), pp.610-629.
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.