An Analysis of Entrepreneurial Strategy for Roland Mouret Report

This report provides an analysis of entrepreneurial strategy, focusing on the fashion company Roland Mouret. It begins with an executive summary and an introduction to entrepreneurial strategy, defining its role in business planning and goal achievement. The report then delves into the development and evaluation of entrepreneurial strategies, including the application of the BCG matrix to assess product portfolio growth, and Porter's Five Forces to analyze the competitive environment. It also explores the McKinsey 7-S model and the value chain model to identify opportunities for business expansion. The report concludes with a discussion of strategic recommendations for Roland Mouret, supported by references to relevant academic literature.

Entrepreneurial
Strategy

Table of Contents
Executive summary..........................................................................................................................3
INTRODUCTION...........................................................................................................................1
B.) Development and critically evaluation of entrepreneurial strategy .....................................1
C.) Analyse an organization's strategic situation its capability and position..............................6
D.) Development of strategy which is consistent with company's strategic situation................8
F) as a conclusion........................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

Executive summary
From the report it has been summarises that entrepreneurial strategy refers planning that
helps to understand desire of business concern and make efforts to complete them. There are
different types of business which fulfil customer needs and provide satisfaction to their
customers.
The present report is about Roland Mouret that is small organization of fashion, offers
different types of products. BCG matrix helps to define growth and market share of company.
Porter five forces defines competitive environment and benefits to expand business.
This report emphasis on different concept such as different types of strategy, macro and
micro environment analysis and recommendation about strategy which is consistent for chosen
company.

INTRODUCTION
Entrepreneurial strategy means a planning which is used by organization to set their
business in different market. Strategies are formulated by manager of company who analysis
market and get needs and wants of people. The main aim of strategy is set the goals and
implement in organization in order to achieve goals and objectives. Entrepreneurial means to
start a business by innovating ideas and make strategy how it can be developed for the purpose
of completing goals (Abidin, Othman and Bakar, 2015). To understand about entrepreneurial
strategy Roland Mouret has been taken that is small company and dealing in fashion industry.
This report discusses about range of entrepreneurial strategies, situation of organization and its
capability, strategy which is consistent for organization and judgement about above information
that helps to complete objectives.
B.) Development and critically evaluation of entrepreneurial strategy
Entrepreneurial strategy is the process of developing new products and services in
competitive environment. Entrepreneur is a person who uses own skills and introduce from new
products by using new technology. It manage and operate its business by making business
strategy. This strategy helps small and medium size of enterprises to identify needs of business
and build various strategy and implement one for the purpose of running a business. Therefore,
entrepreneurial strategy is important for organization which helps in development by satisfying
customers. Roland Mouret that is a small company has adopted various strategies that are
defined as:
BCG matrix: This means Boston Consulting group that is designed to help with long
term strategic planning in order to consider growth opportunities. It shows portfolio of products
to decide where need to invest, discontinue and develop of products. It is also known as growth
matrix that helps to decide growth opportunities of business enterprise. It mainly relates with
combination of market growth and market share (BCG Matrix, 2019). Roland Mouret apply
BCG matrix to know the growth of business and develop its products such as:
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Illustration 1: BCG Matrix, 2019
Source: BCG Matrix
Dogs: This means products of company are consider in low growth or market share. In
this Dog strategy companies holds low market share as compare to competitors. In Roland
Mouret the sale of accessories like jewellery and shape wear are going slow due to high prices
than competitors. So that, customers are purchasing products from other company. In this
situation Roland Mouret apply dog strategy that generate low or negative cash returns that create
cost disadvantages for company.
Question marks: This shows products of company are in high growth with low market
share. In this strategy products are required to push in star quadrant due to having high growth
and low market share of products. The Roland Mouret is a fashion industry has developed
various products like fragrance, shoes, shape wear, jewellery, clothing, bags etc. which are
generating high growth and low market share of such company. If Roland Mouret apply then it
has to face high growth with low market share of UK due to fall in question mark section (Arora,
Arora and Sivakumar, 2016).
Stars: It states products are in high growth market with high market share. Roland
Mouret provides different types of dresses such as jump suits, top, skirts, designing jeans, gown,
trousers , jackets and many more which influences customers. It provides these products at
reasonable prices than customers which helps to gain high growth of such company with high
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market share. It is effective strategy which can be apply by Roland Mouret such as it is known as
the place for ladies wear in small environment that help to capture more market share with high
growth of organization.
Cash cows: This means products are in low growth market with high market share. As
Roland Mouret is small industry due to which people are not aware about its products that create
a situation of low growth. If Roland Mouret apply this strategy then it need to expand its
business in large area and also need to introduce more attractive products in fashion industry that
can influence customers which is difficult of company. So that it has low growth and high
market share (Fayolle and Gailly, 2015).
Porter five forces analysis of Roland Mouret:
This is consider as a framework which is used by company to analysis competitive
environment and helps to reach globally. By using this model company can determine its
strength and weakness by making corporate strategy. Roland Mouret apply this model in their
fashion organization to measure the competition, attractiveness, intensity, and profitability of
such industry. The application of such model in selected company are as given below:
Competition rivalry: There are many competitors of Roland Mouret such as Le Kilt,
Martine Rose and Margaret Howell that also provides different types of products for the purpose
of influencing customers. So that the competitive rivalry of Roland Mouret is high in which it
charge low prices of products from customers in order to achieve higher sales and profits.
Threat of new entrants: In UK, government is stable who formulated some restrictions
to enter in to new market that helps existing firm to run their business continuously. It is not easy
for other organization to launch new product and enter in to new market because there is need to
have high amount to invest for entering in to market. Roland Mouret can increase its business
activities due to not entering in to new market. Therefore, it can charge high cost from customer
that can help to make more profits (Lai and Lin, 2015).
Power of suppliers: The purchasing power of supplier in UK is low due to this Roland
Mouret can purchase product at what prices which they want. There are number of suppliers who
sales their product at different price, if one supplier is selling its products at high prices then it
can switch the supplier that can help Roland Mouret to purchase products at low prices and make
more profits as compare to others.
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Power of buyers: There are many suppliers and lack of customers in which customer has
power to reduce the prices of products. In Roland Mouret the purchasing power of buyer is high
because there are small amount of customers and high number of suppliers who want to sale their
products at high prices. Due to having low number of customer Roland Mouret sale its products
at low cost as customer wants. To cope with this situation organization need to introduce from
better quality of products which can influences customers and not available anywhere
(Langevang and et.al, 2015).
Threat of substitutes: This means substitute of goods and services that can be use in
place of company's products or services. There are substitutes of Roland Mouret's products that
reduces its power to sale the products in market. As result low productivity and low profitability.
To cope up with this situation company need to manufacture unique and better quality of
products and also should make available at reasonable prices that helps to influences customers
and make make profits within organization.
Mc Kinsey model: This model is related with seven area of organization which are
divided in to soft and hard skills such as strategy, structure, systems, style, staff, skills and shared
values. This model is used to create opportunities by expanding business in large area and
different market. Roland Mouret apply this model to create opportunities by expansing business
and comply with changing with customer's demands and needs. For expanding business Roland
Mouret apply soft and hard skills such as:
Hard elements
Strategy: This means a planning that can be used by company to expand its business by
adopting different strategy. There are many strategy such as market penetration, product
development, pricing strategy, marketing and etc. that can affect organization to sale their
products in large number. Roland Mouret wanted to convert its small business in to large size of
business by adopting product development and economy pricing strategy in which it will provide
different types of clothing and accessories at affordable price in order to increase sale and create
growth opportunity for business.
Structure: This means a structure that defines how activities like task allocation,
supervision, direction, coordination and communication of organization helps to achieve goals.
Companies adopts different types of organizational structure such as horizontal, matrix, vertical,
hierarchical, divisional and network structure for sharing information and making right business
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decision. Roland Mouret has adopted horizontal structure for running its business. For expanding
its business in large size it will apply network structure in which it can communicate easily with
all employees and divide task accordingly that will help to increase sale of business industry.
System: This means a processes and procedure of company that reveal daily activities of
company and also defines how decisions are made. Roland Mouret is depend on customer needs
and new trend that help to develop different types of products in new market. It apply new
performance evaluation system and reward in which it can analysis employee's performance and
can improve accordingly that help to achieve goals.
Soft elements:
Style: This means leadership style which is adopted by company for managing operation
and business activities within organization. Roland Mouret adopted autocratic leadership style
for running its business, in which it make decision independently. The top management make
business decision for increasing sales. As company is planning to expand its business in large
market so that it has decided to apply democratic leadership style that will helps to make
business decision with the concern of all employees.
Staff: This means person who understand organization needs and make efforts to
complete task are consider as staff. It involves human resources and its competencies within
Roland Mouret that analysis market and get new trend that helps to sale products accordingly.
For expanding business by Roland Mouret it will apply this element and recruit, selection,
training and motivate people in order to grow business by introducing better quality of products.
Skills: This means different competencies and capabilities in organization. There is need
to have good skills in both organization as well as employees that make efforts to achieve goals.
In Roland Mouret employees have artistic skills, visualisation, technical, new trend
understanding, drawing abilities, interpersonal skill, sharp business skills and communication
skills that helps to attain objectives successfully. By applying such skill strategy top management
of Roland Mouret can understand new trend, technology and operation of business organization
that will help to increase business in other areas.
Shared values: This means norms and standards that can be used to guide employees
behaviour and company's action. Roland Mouret provide a great work environment and treat all
with respect and dignity strategy that helps to maintain high standard and high sale. Moreover,
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by applying such strategy it can expand its business as it also develop enthusiastically and
positively work environment which solve problems.
Value chain model:
Value chain is a set of activities that a company operate in specific industry to deliver
valuable products and services for market. This model is introduced by Michael E. Porter for the
purpose of introduce of concept of value chain. This model consider business activities that helps
to expand business in wider market. Roland Mouret apply this strategy by following primary and
supportive activities which are defined below:
Primary activities:
 Inbound logistic: By applying this strategy Roland Mouret analysis the market
trend, receive information, store and distribute products.
 Operations: In this process Roland Mouret turn raw material in to final designing
products.
 Outbound logistic: in this process Roland Mouret distribute designing products
to consumers (Mat, Maat and Mohd, 2015).
 Marketing and sales: Roland Mouret adopts advertising, distributional channel,
pricing and managing final products that targets people.
 Services: Roland Mouret adopts product performance after designing and
decorating the products in fashion industry that influences customers.
Supportive activities:
 Technology development: This activity helps Roland Mouret to develop new
trending product and increase sales.
 Human resource management: This activity helps Roland Mouret to hire and
retain employees for long term and make attractive products.
C.) Analyse an organization's strategic situation its capability and position
Roland Mouret is a fashion industry that provides different types of products. It analysis
its strategic situation by focusing on external factors. The PESTLE analysis of Roland Mouret
that helps to analysis, evaluate and track macroeconomic factor.
Political: Changes in government of UK can impacts on Roland Mouret business such as
it has to follow new trading policy and new rules and regulation which can reduce the profit
margin of selected company (Roundy and et.al, 2018).
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Economical: Stability in interest rate and inflation rate can impacts negatively Roland
Mouret's business such as management of such company has to purchase products at high prices.
And also has to pay high interest rate at loan amount which is taken by management for running
a business.
Social: As people are changing their demand and fashion in which organization need to
focus on changing needs of customers. It impacts positively on Roland Mouret's business as
incremental in sales because such company highly aware about dynamic fashion and introduce
products accordingly (McDonald and et.al, 2015).
Technological: This factor is very effective which is needed in all organization in order
to influences customers by using new technology. Roland Mouret uses new technology in which
it analysis market trend and manufacture better designing products which impacts positively that
helps to increase sales and growth of business industry (Moses, Olokundun and Mosunmola,
2014).
Legal: Roland Mouret follows minimum wages act in which it pay equal wages which is
decided by government. It helps to retain employees for long term and improve productivity.
Environmental: Roland Mouret also focus on such factor and uses waste material in
order to give better design of products. This factor helps to save environment and provide safety
in challenging situation (Obschonka and Fisch, 2018).
SWOT analysis of Roland Mouret
Strength Weakness
 Futuristic design of products.
 Quality of textile fabric and product
designing.
 Variety of products.
 Automation of designing and
production process.
 Reasonable prices of products.
 High market share and focus on new
trend.
 Small size market.
 Very fast changes that require more
money.
 Bad covering of foreign market.
 Products are available in small area.
Opportunities Threat
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 Fill customer's wishes for particular
products.
 Entering in to new market by
expanding business.
 Value of labour and employees.
 Online as well as offline stores.
 Affordable prices of products.
 High competitors in market.
 Competitors have better distribution
channel that reduces profit margin.
 Fluctuation in prices.
 Changing in trend and fashion
(Rasmussen, Mosey and Wright, 2015)
.
Objectives of Roland Mouret:
 Understanding customer desire and responding with appropriate products.
 To continue the review of academic events in fashion and textile industry.
 To increase 5% sale in next 3 month.
 To become an area of excellent in fashion and textile education and research about
international development.
 To use new technology and innovate new products in order to sustain in competitive
market.
D.) Development of strategy which is consistent with company's strategic situation
Smart techniques for each of them
There are different smart techniques which can be used by Roland Mouret to achieve its
objectives. Such as communication technique helps to know the what customer wants, research
techniques is apply to know the academic events of fashion industry that helps to show new
fashion designing dresses and accessories through events. To conduct fashion show, ramp walk
and celebrity advertisement technique that will help to increase sale of chosen company. Energy
power technique is used to become an area of excellent in fashion industry. Moreover, building
relationship techniques can be used to understand problems and get solution of them (Prajogo,
2016).
Recommendation
From the above mentioned strategy it has been recommended that Roland Mouret should
apply communication, research, event show techniques and energy power techniques that helps
to increase sale of Roland Mouret. All techniques are consistent because it is feasible and
acceptable by organization. By applying theses techniques manager can introduce from new
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products with attractive design. B Moreover, it will use magazine, you tube, social media etc for
promoting its products. As result it can focus on productivity and profitability. Building
effective relationship technique can apply on Value chain model strategy in which it focus on
primary and supportive activities for the purpose of expanding business (Rahman and et.al,
2015).
F) as a conclusion
CONCLUSION
From the above report it can be concluded that strategy are important for organization as
it helps to decide goals and shows path to achieve them. Management of business innovates new
ideas and make efforts to introduce from new products in order to influence customers. Porter
five model helps to show competition in market where as BCG matrix defines growth and
market reputation of company. SWOT analysis helps to defines the strength and weakness of
organization.
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REFERENCES
Books and Journals
Abidin, R. Z. U., Othman, A. R. B. and Bakar, L. J. A., 2015. Evaluating the effect of
entrepreneurial orientation on SME's performance: A study of sports industry
Pakistan. Paradigms. 9(1). pp.63-78.
Arora, A., Arora, A. S. and Sivakumar, K., 2016. Relationships among supply chain strategies,
organizational performance, and technological and market turbulences. The
International Journal of Logistics Management. 27(1). pp.206-232.
Fayolle, A. and Gailly, B., 2015. The impact of entrepreneurship education on entrepreneurial
attitudes and intention: Hysteresis and persistence. Journal of small business
management. 53(1). pp.75-93.
Lai, W. H. and Lin, C. C., 2015. Constructing business incubation service capabilities for tenants
at post-entrepreneurial phase. Journal of Business Research. 68(11). pp.2285-2289.
Langevang, T. and et.al, 2015. Bounded entrepreneurial vitality: The mixed embeddedness of
female entrepreneurship. Economic Geography. 91(4). pp.449-473.
Mat, S. C., Maat, S. M. and Mohd, N., 2015. Identifying factors that affecting the entrepreneurial
intention among engineering technology students. Procedia-Social and Behavioral
Sciences. 211. pp.1016-1022.
McDonald, R. E. and et.al, 2015. From “virtuous” to “pragmatic” pursuit of social mission: A
sustainability-based typology of nonprofit organizations and corresponding
strategies. Management Research Review. 38(9). pp.970-991.
Moses, C., Olokundun, A. M. and Mosunmola, A., 2014. Determining Women Entrepreneurial
Motivation: A Review of Theoretical Model. International Journal of Small Business
and Entrepreneurship Research. 2(3). pp.43-54.
Obschonka, M. and Fisch, C., 2018. Entrepreneurial personalities in political leadership. Small
Business Economics. 50(4). pp.851-869.
Prajogo, D. I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International Journal of Production Economics. 171.
pp.241-249.
Rahman, S. A. and et.al, 2015. Supporting entrepreneurial business success at the base of
pyramid through entrepreneurial competencies. Management decision. 53(6). pp.1203-
1223.
Rasmussen, E., Mosey, S. and Wright, M., 2015. The transformation of network ties to develop
entrepreneurial competencies for university spin-offs. Entrepreneurship & Regional
Development. 27(7-8). pp.430-457.
Roundy, P. T. and et.al, 2018. Entrepreneurial alertness as a pathway to strategic decisions and
organizational performance. Strategic Organization. 16(2). pp.192-226.
Stenholm, P., Pukkinen, T. and Heinonen, J., 2016. Firm growth in family businesses—The role
of entrepreneurial orientation and the entrepreneurial activity. Journal of Small Business
Management. 54(2). pp.697-713.
Tehseen, S. and Ramayah, T., 2015. Entrepreneurial competencies and SMEs business success:
The contingent role of external integration. Mediterranean Journal of Social
Sciences. 6(1). p.50.
Online
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About Roland Mouret. 2019. [Online]. Available Through:
<https://www.rolandmouret.com/>
BCG Matrix. 2019. [Online]. Available Through:
<https://www.feedough.com/what-is-a-bcg-matrix-examples-how-to-guide/>
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