Entrepreneurial Strategies: A Case Study of RED & BLUE Restaurant

This report provides a comprehensive analysis of entrepreneurial strategies for the RED & BLUE restaurant, a Memphis-style barbecue establishment. It examines various strategic tools, including the BCG Matrix, Porter's Five Forces, and the Value Chain Model, to assess the restaurant's market position, capabilities, and competitive advantages. The report conducts a SWOT analysis to evaluate the restaurant's internal strengths and weaknesses, alongside external opportunities and threats. It also includes an evaluation of entrepreneurial strategies and how they can be applied to the restaurant. The report provides recommendations for strategic implementation, aiming to improve the restaurant's performance and achieve its business objectives. The analysis covers topics such as industrial rivalry, supplier power, buyer power, and the threat of substitutes and new entrants. It also discusses the importance of the value chain model in enhancing business operations. This report aims to provide a deep dive into the restaurant's strategic planning and implementation processes.

STRATEGY

EXECUTIVE SUMMARY
from the discussion in the report, it has been summarised that entrepreneurial strategy
acts as means using which relationships are set with the environmental factors. It is considered as
key framework that is followed by organisational managers while deciding structure together
with planning procedures to attain goals of business. Some of the entrepreneurial strategic tools
are Bcg Matrix, Value chain strategy along with Porter's five forces.
The report is all about RED & BLUE restaurant which is a Memphis mode barbecue
restaurant that provides food items. Using SMART techniques, the management team addition to
staff members focuses on attaining objectives. BCG Matrix will help the organisation to grow in
the competitive market addition to grabbing market shares.
The report comprises different entrepreneurial strategy, situational analysis together with
implementing appropriate strategy to attain objectives.

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
a. Evaluating entrepreneurial strategies.......................................................................................1
b. Analyse organizational strategic situation, capability & position and developing set of
objectives.....................................................................................................................................5
c. Strategy implementation..........................................................................................................8
d. Recommendations....................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Entrepreneurial strategy is the concept where new businessman develop new products &
services in order to gain competitive advantage in the market (Bradfield, Cairns and Wright,
2015). These strategy will be implemented by entrepreneur who have ability to take risk, create
something innovative or different by using various strategies. Main objective of an individual is
to implement various strategy in order to produce something creative or innovative. For the
better understanding of this concept, report selected RED & BLUE restaurant. Company
established in 2010 in Manchester and its co-owned by Jonathan Poole & Patrick Smith (RED &
BLUE, 2019).
This report include various topics such as range of entrepreneurial strategy which is
required by the small medium enterprises in order to develop their market condition. Critically
evaluate the subsequent strategy and then implement for effective of efficient outcomes. In
addition, analyse organizational strategic situation, capacity & position. Along with this, develop
objectives and use appropriate approach along with some recommendations.
MAIN BODY
a. Evaluating entrepreneurial strategies
Entrepreneurial strategies help the small or medium size organization to identify their
business requirement and adopt various strategy in order implement effective one. These are
considered as building blocks that helps managers to achieve benefits through delivering distinct
products in competitive market. By using different range of entrepreneurial strategies will helps
individual to enhance their organizational performance in order to achieve business goals &
objectives. There are various range of strategy which can implement by entrepreneur in their
business and innovate new products & services to satisfy customer's need & desire. RED &
BLUE restaurant can adopt various strategies and some of is discussed below:
BCG Matrix:
It was propounded by Boston consulting Group in order to evaluate strategic positions of
brand portfolio together with its potentiality (Fayolle and Redford, 2014). Such strategy is
designed to plan long tern strategies along with helping business to consider development
opportunities through time to time reviewing portfolio of products as well as to decide
investment aspects. Using BCG matrix, organisational managers of RED & BLUE restaurant can
1

categorise business portfolio into different categories related with competitive position addition
to industry attractiveness. Reason to adopt such strategy is to analyse the status of products that
require more investments or divestment are to be done by adopting research together with
development activities. BCG Matrix comprises four quadrants that as as elaborated:
Dogs: Organisational products under such quadrant have low growth rate together with
low market share as compared to existing competitors. Some of the products of RED & BLUE
restaurant that falls under Dogs quadrant are Eggplant garlic sauce, steamed chicken, marinated
beef shank, Lo Mein and Roasted Duck. Application of Dog strategy can help entrepreneurs of
selected organisation to analyse the products that are unable to attain market share and posses
low growth rate.
Cash Cows: This quadrant is popular as most profitable brand as well as helps in
attaining more profits as possible. They involves high market share together with low growth
rate. It further helps in making investments into stars with the aim to support their growth in
future phases. The food items that has achieved strong market position includes steamed
vegetable dumpling, Gyoza, tomato egg soup, aromatic cucumber salad, mango chicken, Dragon
and phoenix, chilli dry pot, coconut smoothie and pepper streak. Entrepreneurs of RED &
BLUE restaurant by applying cash cows strategy can expand business activities as well as can
introduce attractive food products in the competitive world (Gans, Stern and Wu, 2019).
Question mark: The products that are categorised as question mark generally consists of
low market share but high growth rate. These required more emphasis for development as they
devour huge cash amounts addition to incur losses. Pork bean Curd, potato. Egglant, curry
chicken, curry beef, hunan shrimp, shumai, buffalo chicken wing and oxtail tomato soup falls
under question mark quadrant. Considering question mark strategy, business entrepreneurs can
evaluate their decisions pertaining with investments.
Stars: Star quadrant states that there are numerous products that have high market share
together with high growth rate. RED & BLUE restaurant prepares and delivers different types of
food products such as Chicken nuggets, veggie spring roll, salt crispy chicken, seafood tofu soup,
chow mei fun, sauteed udon noodle, honey walnut shrimp and cumin chicken wings. Adoption of
star strategy by entrepreneurs of respective company will help in attaining rapid growth of
numerous products.
Porters Five Forces:
2

The framework was defined by Professor Michael Porter in order to analyse competition
level in the market. It is a powerful tool that helps marketers of the company to identify key
strategies to attain potential profits together with understanding environmental forces that
hampers operations. By adopting such entrepreneurial strategy, managers of RED & BLUE
restaurant can enhance products attractiveness (Hernández-Perlines, Moreno-García and Yañez-
Araque, 2016). Forces are as elaborated:
Industrial rivalry: The more competitors in any industry, more competitive rivalry. It is
high in restaurant industry as numerous organisations performs operations in order to grab more
market share addition to maintaining profit flows together with supporting business to attain
growth. Some of the competitors of RED & BLUE restaurant are Cafe Bondi, Whole Hog Cafe
and Rumrunnerssaloon that delivers same services to customers with the aim of grabbing their
attention and retaining them for long time aspects.
Power of suppliers: Suppliers are the people who provides raw material to organisations.
Purchasing power of supplier is low as small number of suppliers only perform similar
operations in such industry that helps managers of RED & BLUE restaurant to purchase raw
materials at they prices they prefer to pay. If there are changes made by single supplier then other
suppliers also have to change their strategies accordingly. Food chief chef of such restaurant buy
material s at low prices along with switch to other suppliers when such suppliers changes their
pricing strategies.
Power of Buyers: Buyers holds power that can influence decision making of any entity.
Some of the aspects through which buyers influences working of RED & BLUE restaurant
comprises of price changes, quality of food products together with products offered by
restaurant. As the entity can not afford to over price its food items due to having limited
customers. They adjusts prices as per the targetted audiences as well as affordability in the
market. Thus, it has been evaluated that buyers posses moderate purchasing power in context to
RED & BLUE restaurant (Johnson and Van de Ven, 2017).
Threat of substitute: Due to availability of various competitors performing similar
operations together with delivering similar food items, threat of substitute availability is high for
RED & BLUE restaurant. High substitute threat reduces power of selected restaurant to sale
products at high cost in the market that results in low productivity addition to profitability. In
order to deal with such circumstance, managers of the restaurant have to produce unique addition
3

to delicious food product and provide it at reasonable prices which can influence audiences
together with helping organisation to make more profits.
Threat of entry: To launch and manage operations by new restaurant requires some
investments only which makes easy for new company to enter inside the industry. Economies of
scale is also a factor that impacts on new entrants. New companies have to pay more focus on
fixed together with operating cost as to attain cost advantages together with managing operations
despite of possessing low profit abilities. By considering all such factors, it shows that the threat
of new entrant is moderate which can help RED & BLUE restaurant to expand business
functionalities and making more profits (Lechner and Gudmundsson, 2014).
Value Chain Model:
Value chain framework helps in analysing particular activities using which values
together with competitive advantages can be attained. By using such strategy, managers of RED
& BLUE restaurant can understand capabilities together with areas for development. In addition,
it is used to realize the ways in which competitors creates values together with outsourcing
particular activities and accordingly framing further decisions. The concept was developed by
Michael E. Porter and includes following activities:
Primary activities: It comprises of the mentioned below activities:
Inbound logistics: Inbound logistics comprises of receiving, storing together with
distributing inputs internally. Herein, marketers of RED & BLUE restaurant carefully analyses
market demand addition to collecting information and scheduling transportations so to collect
raw materials to perform further activities.
Operations: Herein, collected raw materials are further processed to produce a final
product. Superior Chefs of RED & BLUE restaurant provides detailed guidances to chefs so to
produce a delicious dish from the raw materials or ingredients. The operational system helps in
creating organisational values.
Outbound logistics: It involved distributing final prepared product to customers. The
restaurant staff members serves hot food to their customers as per the demands. For home
delivery, they uses distinct transportation systems to provide food items as soon as possible at
distant places (Linton and Kask, 2017).
Marketing and sales: It comprises of pricing, advertisements, distribution channels,
promotions together with managing products to deliver information till appropriate consumer
4

groups. The marketers implements actions through procedures to persuade audiences to make
purchase decision.
Services: These are the combination of certain functions that helps in maintaining
performances of distinct products after the time they are produced. Managers of RED & BLUE
restaurant focuses on providing after sales services as well as providing trainings.
Supporting activities: Such activities helps in performance of primary activities and consists the
followings:
Technological development: This type of activity is associated with managing,
processing informations together with protecting organisational knowledge base. Management
authorities of RED & BLUE restaurant by using such activity can reduce costs associated with
informational technology as well as maintain technical excellence.
Firm infrastructure: It consist of business support system together with functions that
helps in maintaining daily operations. Managers of the company can perform operations related
with legal, general management, accounting together with administrative in order to gain
beneficiary results (Lumpkin, and Dess, 2015).
b. Analyse organizational strategic situation, capability & position and developing set of
objectives
RED & BLUE restaurant is a fast food company which performs significant functions in
restaurant industry. The managers of the company makes analysis of strategic position,
capabilities together with pertaining situations by emphasising towards certain factors. The
strategies related with situational analysis includes followings:
SWOT Analysis: Using such analysis, managers of the restaurant can understand market
situations together with internal strengths and weaknesses together with external threats and
opportunities. SWOT analysis of RED & BLUE restaurant is as follows:
Strength Weakness
 RED & BLUE restaurant has diverse
product portfolio.
 Restaurant delivers high quality food.
 Managers of the firm focuses on
satisfying customers needs.
 The company has limited expansion in
adjoining product segments.
 Small coverage of market shares by
RED & BLUE restaurant (Niu and Ho,
2014).
5

 Weak food presentation from Chefs of
the organisation.
Opportunities Threats
 Delivering products by RED & BLUE
restaurant distributors through online
services or apps in quick time period.
 The company can launch innovative
food concept can act as opportunity for
growth.
 Managers of the entity can open new
restaurant in other location by making
contractual agreements with
government authorities the nation
(Perry–Rivers, 2016).
 Increasing competition from other
restaurants.
 Skilled workforce shortages results in
threats for profit margins of RED &
BLUE restaurant.
PESTLE analysis: IT is a tool that is adopted by managers to analyse together with
monitoring external environmental factors which results in strong impacts on organisational
operations along with decision making. PESTLE analysis of RED & BLUE restaurant are as
follows:
Political factor: It comprises of political systems, stability, trade policies, restrictions
and taxation policies. Changes in political system, implementation of new legislations or
regulations, rising conflicts among political parties build burden on working of RED & BLUE
restaurant that leads on negative impacts along with threats for the company and its decision
making.
Economical factor: These involves economic growth, inflation, interest rates, disposable
income and exchange rates. Increase in interest rates together with decrease in economic growth
can impact negatively on RED & BLUE restaurant as the managers have to pay more in such
conditions that decreases profit margins of the business (Shan, Song and Ju, 2016).
Social factor: Population growth, career attitudes, age distribution, shared beliefs and
health consciousness are some of the social factors. Marketing team of RED & BLUE restaurant
6

carefully understands any alteration in attitude or needs of customers and accordingly set
strategies to satisfy them that impacts in positive manner as more customer satisfaction results in
attainment of more profits and expansion of business accordingly.
Technological factor: Technological advancements and automation are part of
technological factors. By adopting automation together with technological advancement tools
managers of RED & BLUE restaurant can analyse market trends addition to communicating
important information to large audiences will result in building relationships along with
increasing awareness which will result in positive impacts on capturing market size.
Legal factor: It compasses health and safety, advertising standards, product safety, equal
opportunities, consumer rights addition to laws. The management of RED & BLUE restaurant
follows all the laws that are governed by government authorities such as minimum wags act
together with health and safety provisions so to provide safety to workforce as well as making
payments as per the work done by them which results in retaining employees as well as building
image in the eye of government authorities that impacts in positive manners (Stam and Spigel,
2016).
Environmental factor: It plays important function at RED & BLUE restaurant and helps
the senior chef together with other personnels to optimally utilise scare raw materials, targeting
population as well as performing operations in ethical manner that result sin positive imp[acts as
it helps in sustaining in competitive world.
Objectives of RED & BLUE restaurant.
 To increase sales of specific dishes by 25% in 2 months.
 To grab market share by 32% within 5 months.
 To increase profit margins by 12% in coming 6 months.
 To build powerful brand name of the restaurant in international market.
 To increase satisfaction of customers by 38% in 4 months.
SMART Technique to attain objectives.
To increase sales, the manager should guide sales force and should start delivering food
items by using delivery apps. In order to enhance margins of profits, management team of such
organisation should cut expenditures and works to retain existing customers (Webb, Ireland and
Ketchen Jr, 2014). To build brand name, authorities should emphasis on improving operational
capabilities of personnels as well as marketing team so to increase awareness with the help of
7

social media promotions together with direct marketing techniques. To increase customer
satisfaction, organisational manager should build customer service communities, provide
multichannel supports, understanding and delivering customer demanded food products, working
on customer reviews, benchmarking customer satisfaction and implementing customer
relationship management schemes. To achieve market share, managers should keenly emphasis
on innovation techniques which includes acquiring competitors strategies, strengthening
relationships together with working on smart hiring practices.
c. Strategy implementation.
As per the above discussion related with different entrepreneurial strategies,
organisational managers will work on implementing set strategies. As per the needs addition to
objectives of RED & BLUE restaurant, BCG Matrix model can be implemented with all its
strategies:
Dog strategy: Herein, strategic choices by managers of RED & BLUE restaurant will be
made on divestiture as well as liquidations. They should follow relationship building strategies
so to elevate awareness of Eggplant garlic sauce, marinated beef shank, Roasted Duck and
steamed chicken so to attract more customers and grab market share.
Cash cows strategy: In this, marketers of RED & BLUE restaurant will implement
diversification strategy in order to expand demand of food items such as cucumber salad, pepper
streak, Gyoza, mango chicken, tomato egg soup and coconut smoothie (Wu, 2015). Other than
this, they should make strategic choices for retrenchment, diversification along with product
development.
Question mark strategy: Herein, marketing team of the company will implement
investment strategies to increase market share for potato Egglant, hunan shrimp,oxtail tomato
soup, pork bean Curd as well as buffalo chicken wing. In addition, strategic choices to develop
market together with product, penetrate market and divestiture are build powerful brand name.
Stars strategy: Marketers of RED & BLUE restaurant implements integration and
development strategies for salt crispy chicken, chow mei fun, Chicken nuggets, cumin chicken
wings, veggie spring roll, seafood tofu soup and honey walnut shrimp so to satisfy customers
and increasing sales.
8

d. Recommendations
To enhance sales, customer satisfaction, grabbing market shares together with
profitability of the restaurant as well as achieving business goals, BCG Matrix strategy is
recommended which will help in solving issues to determine growth and development of
products. Such strategy will benefit organisational managers to bifurcate food products according
to the performances addition to standards. There are some recommendations which helps the
business to improve their operational functions and provide high efficiency as well as
effectiveness. BCG Matrix strategy will help in adopting technological changes which make the
business capable to survive in the business for the longer period, conducting loyalty program for
the customers which make them aware regarding their latest product in the market, attracting
more customer in order to increase productivity or profitability. Other than this, Using proper
kitchen equipment and it will enhance efficiency of kitchen staff and they are able to deliver their
product more faster which increase customer satisfaction level. Hence, it will helps the business
to improve their operational functions and provide high efficiency as well as effectiveness.
CONCLUSION
From the above discussion, it has been concluded that by using different range of
entrepreneurial strategy an individual develop their capability to introduce innovative product
and services in order to capture market growth. Entrepreneurial strategies comprises of Porters
five forces, BCG Matrix and value chain strategy. These strategies will help the business to
increase their demand in the market. It increase the demand of product in the market along with
this, it improve productivity as well as profitability. In addition, evaluation of strategy will helps
in implementing strategy into reality along with various market approach. Using Swot Analysis
addition to PESTLE analysis, situations are analysed. BCG Matrix strategy is the recommended
strategy to attain all objectives. It will help the business to improve their efficiency as well as
effectiveness and it provide market growth.
9

REFERENCES
Books and Journals:
Bradfield, R., Cairns, G. and Wright, G., 2015. Teaching scenario analysis—an action learning
pedagogy. Technological Forecasting and Social Change, 100, pp.44-52.
Fayolle, A. and Redford, D. T., 2014. Handbook on the entrepreneurial university. Edward Elgar
Publishing.
Gans, J. S., Stern, S. and Wu, J., 2019. Foundations of entrepreneurial strategy. Strategic
Management Journal. 40(5). pp.736-756.
Hernández-Perlines, F., Moreno-García, J. and Yañez-Araque, B., 2016. The mediating role of
competitive strategy in international entrepreneurial orientation. Journal of Business
Research. 69(11). pp.5383-5389.
Johnson, S. and Van de Ven, A. H., 2017. A framework for entrepreneurial strategy. Strategic
entrepreneurship: Creating a new mindset. pp.66-85.
Lechner, C. and Gudmundsson, S. V., 2014. Entrepreneurial orientation, firm strategy and small
firm performance. International Small Business Journal. 32(1). pp.36-60.
Linton, G. and Kask, J., 2017. Configurations of entrepreneurial orientation and competitive
strategy for high performance. Journal of Business Research. 70. pp.168-176.
Lumpkin, G. T. and Dess, G. G., 2015. Entrepreneurial orientation. Wiley Encyclopedia of
Management. pp.1-4.
Niu, Y. and Ho, D. W., 2014. Control strategy with adaptive quantizer’s parameters under digital
communication channels. Automatica. 50(10). pp.2665-2671.
Perry–Rivers, P., 2016. Stratification, economic adversity, and entrepreneurial launch: The effect
of resource position on entrepreneurial strategy. Entrepreneurship Theory and Practice.
40(3). pp.685-712.
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.
Stam, F. C. and Spigel, B., 2016. Entrepreneurial ecosystems. USE Discussion paper series.
16(13).
Webb, J. W., Ireland, R. D. and Ketchen Jr, D. J., 2014. Toward a greater understanding of
entrepreneurship and strategy in the informal economy. Strategic Entrepreneurship
Journal. 8(1). pp.1-15.
Wu, C. W., 2015. Antecedents of franchise strategy and performance. Journal of Business
Research. 68(7). pp.1581-1588.
Zehir, C., and et. al., 2015. Linking entrepreneurial orientation to firm performance: the role of
differentiation strategy and innovation performance. Procedia-Social and Behavioral
Sciences. 210. pp.358-367.
Online
RED & BLUE. 2019. [Online]. Available Through:
<https://www.b.co.uk/company-profile/?red-and-blue-restaurants-106938>
10