ENT301: Entrepreneurial Strategies - Pound Bakery Case Study

This report provides a comprehensive analysis of the entrepreneurial strategies employed by Pound Bakery, a small bakery business that expanded from a single location to multiple outlets. The report begins with an introduction to entrepreneurial strategies and theories, then delves into a case study of Pound Bakery, examining their growth, challenges, and market position. The main body of the report explores various aspects of entrepreneurship, including the link between entrepreneurial practices and theories, the problems faced by small enterprises (such as financial constraints, competition, governmental regulations, and human resource issues), and specific issues identified regarding Pound Bakery's operations. These issues include entrepreneurial growth strategies, leadership, and corporate innovation. The report also includes SWOT and PESTLE analyses to provide a holistic view of the business environment and the factors influencing Pound Bakery's success. The report concludes with a summary of findings and recommendations, offering valuable insights into the strategies and challenges faced by entrepreneurs in the food industry. The analysis covers market penetration, product development, and innovation within the context of the bakery's expansion and adaptation to market demands. This report provides a detailed examination of Pound Bakery's journey, highlighting the application of various entrepreneurial theories and practices.

Entrepreneurial
Strategies

Executive Summary
As per the above report it has been summarised that entrepreneurial strategies can help to
analysis of business and open at new place. There are pound bakery open by man and slowly
expand their business at broad level. At the time operating of business face various types of
financial problems which become barrier but sort out in effective manner.

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Link Between Entrepreneurship practices and theories ........................................................1
Problems faced by small enterprises:.....................................................................................3
Issued identified regarding to Pound Bakery ........................................................................3
Self-evaluation........................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Entrepreneurial strategy is the means through which an organisation establishes and re-
establishes their fundamental set of relationship with its environment (Anderson and others,
2015). The main aim of these strategy to receive the debate on the role of entrepreneurship in the
reference of mature business. To understand the concept of the report selected organisation,
Pound Bakery which is specialise in savoury products like pasties, sausage rolls and sandwich. It
is located in Bolton, England. In the report contains various topics such as entrepreneurship
theories, issues, Entrepreneurial leadership and corporate innovation.
MAIN BODY
Case Study – A man started Pound Bakery from his house in Bolton, England. They
selected their area because there was no any bakery so it was good chance to earn money. In
starting they can sale out Pastries and cookies to their customers. In starting they were facing
many problems regarding to entrepreneurship. To operate their business in effective manner they
can apply different entrepreneurship theory which can help to survive in their area of Bolton.
They were famous for cookies due to made in house and good taste. After the success they can
start to sale out more things from the shop such as bread rolls, muffins and sandwiches. As a
result more peoples arrived at their shop and purchased things. After that a man can open another
shop in other area and provide good quality food to buyers. After some time they establish small
business in bakery and supply food to small shop. Due to good quality of food Sayers acquired of
the bakery which is the largest independent retail baker in the North West in England. In present
time they can operate their bakery with name of Pound Bakery and provide services.
Link Between Entrepreneurship practices and theories
According to (Deschamps, 2015)An entrepreneur focus on the business and their
associated risk to generate profit. To operate their business they can apply different theories
which can guide how to conduct different situation in effective manner (Lee, 2015). These
theories are connected to practices because after continue practices it can work to get success.
There are defined different types of theories -
 Economic Theory – The particular theory is main economic theory which can closely link
to entrepreneurship. It will become reason of economic growth where work according to
economic conditions. It is hardly use by entrepreneurship when conditions are not
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favourable. On the basis of this theory an entrepreneurs get motivation in the presence of
economic incentive like tax policy, availability of infrastructure and market & investment
opportunities. It is connected with practices because start to their business need to
analysis of economic condition of particular country then prepare strategies according to
situation.
 Opportunity based theory – To being successful an entrepreneurs catch many
opportunities in order to make available with the help of changes in technology. There
are considering opportunity regarding to society and culture where occur many changes
according to preferences. An entrepreneur must therefore take many opportunities to get
success in their business. It is mainly based on technology with innovation, it is created
and facilitated. It is link with practices and provide suggestion to always lookout for new
things and able to increase growth with its venture (DeTienne, McKelvie and Chandler,
2015).
 Sociological Theory – It is consider as contemporary theories of entrepreneurship. The
social culture can help to get success in their business. They are more likely to acquire
growth in particular social setting. There are defined social aspects like customs, social
values, religious, beliefs and other cultural activities. Through these feature analysis that
social expectations conform of not. It is connected to practice due to tribe because there is
required to connected with community and understand their perception regarding
particular goods and services.
 Psychological theory – According to particular theory an entrepreneur can focus on the
individuals elements which is related to emotional and mental situations. There are
includes need to high achievement and a vision or providence ability to face opposition.
There are defined that an entrepreneur get experiences regarding to their growth and has
various individuals with the appropriate psychological characteristics. It is connected to
practices where traits for upbringing with excel and low father dominance.
 Entrepreneurship innovation theory – This theory consider as top theory for
entrepreneurship because an entrepreneur does not simply conduct business to better their
lives alone. Through different activities they can able to become reason of development
in the economy as well as in society at large stage. To introduce new product in market
need to motivation and sort out certain problems in the society to make more convenient.
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To connect practices it can help to intensify of production methods to lead of reduction in
the cost of production as well as increase in the goods productions (Gans, Stern and Wu,
2019) .
Problems faced by small enterprises:
A newly started small business has to face a lot of problems in the corporate world in its
initial stage. Internal factors as well as external factors have issues that may affect the business.
Pound Bakery is a small enterprise and facing problems in order to perform its daily
transactions and activities to run its business. Some of the major issues that is being stress for the
Pound Bakery are:
Financial problems: financial problems are the problems that causes difficulties in
monetary terms. Small business enterprises like Pound Bakery has a lack of funds and money
resources. Their cash out flow is more than cash inflow. At the initial stage, Pound Bakery has to
spend its most of the funds on setting up the business premises and fixed assets which do not
generate revenue.
Competition problems: Pound Bakery is newly started and there are a lot of firms have
already been working in the market. They have already set themselves in the market and a much
more experience in the industry. They have far better technologies and marketing strategies.
They have acquired most of the customers. It is a challenging task for the Pound Bakery to stand
in front of the big firms and create its strong customer base (Gupta and Batra, 2016) .
Governmental problems: There are so many rules, laws and legislations imposed by the
government on a new business. These are the tax policies, health and safety regulations, pricing
policies and others with which Pound Bakery has to comply. These policies create an extra
burden on the revenue of the small enterprises.
Human Resources Problems: Small enterprises like Pound Bakery has limited sources ,
connections and funds. The company is not in the condition to afford well qualified and
experienced employees and managers. Hiring of less qualified and skilled employees reduces the
quality of the products as well as the professionalism in the organization.
Issued identified regarding to Pound Bakery
There are identified various issues which is highlighted by bakery when they are starting
their business and face critical situation.
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Entrepreneurial growth strategies – As per the entrepreneur perspective it is analysed
that growth strategies such as Market penetration, product development, market development
and diversification. These are major part to achieve growth in their business. To start their
business Pound Bakery focus on these aspects and work according to growth strategies. In
market penetration include movement of new markets and new products. Market development
defined that introduce new product and services to enter new city. Product development produce
new product and sale to existing market to new customer with modification (Hallak, Assaker and
O’Connor, 2014) .
Entrepreneurial leadership – An entrepreneur can work as leader because to start
business need to people who can work for bakery. On starting of the business they can not hire
any one but after expand their business they need to bake food items and serve to people need
servers. At the time Pound bakery hire some peoples and guide for their work. As a leader they
can keep eye on towards the future, self confidence, communication, self care and adaptability.
Corporate innovation – It can be described as process of organisation in order to
execute new innovation opportunities regarding to existing models. There are established
business connect with corporation innovation and typically have commitment regarding to their
efforts. In pound Bakery they can innovation carry out in Bakery things like Iced rings which is
new for customer and attract them to purchase . In starting people can not purchase because they
do not want to try due to health but they can sale out in cheap rate and many time provide as a
sample.
SWOT Analysis
Strengths Weaknesses
Pond Bakery supply foods in good
quality to their clients and satisfy of
their needs.
It's some items are highly expensive
which makes the customer not sure of
investing in it. This results in lack of
customers.
The company has it's own distribution
channel which makes it easier to supply
the products in high bulks.
It is having capacity issues as production
and manufacturing happens under one
unit.
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Opportunities Threats
The bakery has researched about market
after that according to customer taste
innovation in food items .
It faces competition from their
competitors and copy to their product
easily.
It's products have zero emissions and are
eligible for financial incentives.
It focuses on price skimming that offers
high demand but low profit.
PESTLE Analysis
Political factors: These factors determine the extent to which government may influence
the economy or a specific industry. It includes trade tariffs, tax and fiscal policies. Pound Bakery
sale out of food items where on some food are taxable. The PESTLE analysis help to draw the
impact and applicable of several factors. The particular analysis focus on the Pound Bakery
which is based on UK and affect to specific area of UK.
Economic factors: These determine performance of an economy that directly impacts a
company having long term effects. It includes the effect of economic growth patterns, inflation,
interest and foreign exchange rates. It also considers foreign direct investments. The company
has risen it's sale prices by improving factors of production and growth. It has experienced a
profit margin of 30% between 2016 and 2017. UK regulation is expected to rise by 2.5%
whereas the Indian society is estimated to grow at 6%.
Social factors: These factors look out the social environment of the market. It's
determinants are cultural trends, demographics, population analysis etc. Pound Bakery products
are environment friendly and attract wide number of customers. These are supposed to be cheap
as compared to a traditional car over a period of time as it runs on electricity. It is sustainable for
the environment.
Technological factors: These relate to the innovations in technology that may affect the
activities of an industry. It includes research and development operations. Pound bakery make
products considering the changes and requirement of the economy. It adapts various technology
to deliver food to customers.
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Legal factors: These are the factors that portray how laws are affected in the operations
of the business. It includes securities, employment, customer protection and other industry
specific laws. The company is expanding into other markets. They should abide by the
international regulations.
Environmental factors: It includes factors that are affected by the impact of economic
surroundings. It consists of weather, climate and tourism. Pound Bakery are environment
friendly. It can help to maintain balance between population and environment.
Self-evaluation
Entrepreneurial Strategy making is a key aspect for achieving excellent business
performance as well as profitability. This concept applies for all types of firms irrespective of
what size, nature or kind they are. In the context of Pound Bakery, the business was established
from a small household located in Bolton, England.
 One of my first strategy as an entrepreneur was to determine the optimal location for the
business to launch from. Since location is one of the biggest aspects of determining
whether or not the customers are able to reach it easily, this strategy played a crucial role
in its initial years. As the business was located in an area where no other bakery business
operated, I was able to achieve immense success in terms of profits as well as turnover
(Pihie, Asuimiran and Bagheri, 2014) .
 The strengths of the bakery include the uniqueness of the cookies that are served at the
shop. As they are freshly baked at the shop itself, the customers are able to savour the
taste of home-baked goods in our products which include an assortment of bread rolls,
muffins and sandwiches among others. However, one of the main weaknesses that have
been identified by me includes the implementation of proper strategies in order to retain
and expand customer base.
 The main difficulties faced by me included price ascertainment of the products in a
manner which included profit realization as well as cost-effectiveness. As a result, most
of the customers were not coming back. Also, demand and supply did not match. This
resulted in wastage of unsold goods on a regular basis. In order to overcome this,
analysis of different prices for similar products was carried out, by me, which were being
sold in similar nearby areas. This helped keeping the cost economical and helped in
minimization of demand-supply gap (Reichborn-Kjennerud and Svare, 2014).
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 I feel that Pound Bakery has immense potential. The business has been able to flourish
and bode well with the residents of Bolton. However, it can be improved greatly by
ensuring that the prices and quality of the goods is maintained in such a manner that it
remains true to its roots. Apart from this using promotional activities could have created a
much better marketing for the shop and helped in gaining more customers than current
scenario.
CONCLUSION
As per the above report it has been concluded that an entrepreneur to conduct any type
business need to prepare different types of strategies. These are helping to understand market
trends and know about customer perception regarding to specific products. As a result an
entrepreneur effective launch their product in market and attract to customer for their goods. In
starting Pound bakery face different types of issues but after applying entrepreneurship theories
and practices they can understand how to operate business. To conduct case study share
experience which is many time good and may times bad.
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REFERENCES
Books and Journals
Anderson, B. S. and et.al, 2015. Reconceptualizing entrepreneurial orientation. Strategic
management journal. 36(10). pp.1579-1596.
Deschamps, E. and Lee, J. J., 2015. Internationalization as mergers and acquisitions: Senior
international officers’ entrepreneurial strategies and activities in public
universities. Journal of Studies in International Education. 19(2). pp.122-139.
DeTienne, D. R., McKelvie, A. and Chandler, G. N., 2015. Making sense of entrepreneurial exit
strategies: A typology and test. Journal of Business Venturing. 30(2). pp.255-272.
Gans, J. S., Stern, S. and Wu, J., 2019. Foundations of entrepreneurial strategy. Strategic
Management Journal. 40(5). pp.736-756.
Gupta, V. K. and Batra, S., 2016. Entrepreneurial orientation and firm performance in Indian
SMEs: Universal and contingency perspectives. International Small Business
Journal. 34(5). pp.660-682.
Hallak, R., Assaker, G. and O’Connor, P., 2014. Are family and nonfamily tourism businesses
different? An examination of the entrepreneurial self-efficacy–entrepreneurial
performance relationship. Journal of Hospitality & Tourism Research. 38(3). pp.388-
413.
Pihie, Z. A. L., Asuimiran, S. and Bagheri, A., 2014. Entrepreneurial leadership practices and
school innovativeness. South African Journal of Education. 34(1).
Reichborn-Kjennerud, K. and Svare, H., 2014. Entrepreneurial growth strategies: the female
touch. International Journal of Gender and Entrepreneurship. 6(2). pp.181-199.
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