ENTREPRENEURIAL STRATEGY Report: Analysis of Swain & Jones Strategies

This report delves into entrepreneurial strategies for Swain & Jones, a UK-based motor dealership. It begins with an introduction to entrepreneurial strategy and its importance for market positioning. Task 1 critically evaluates various entrepreneurial strategies, including market penetration, market development, product development, and diversification, using the Ansoff Matrix. The analysis recommends market penetration as a primary strategy. Task 2 focuses on situational analysis, utilizing SWOT and PESTLE analyses to assess the firm's internal and external environments, identifying strengths, weaknesses, opportunities, and threats, as well as political, economic, social, technological, legal, and environmental factors. Task 3 outlines the determination and implementation of strategies based on the preceding analyses, providing justifications for the recommendations made. The report emphasizes the importance of adapting strategies to maintain a competitive edge in the market. The document is contributed by a student to be published on the website Desklib. Desklib is a platform which provides all the necessary AI based study tools for students.

ENTREPRENEURIAL
STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
a) Critical Evaluation of a range of entrepreneurial strategies....................................................1
TASK 2............................................................................................................................................4
Situational Analysis and Objectives............................................................................................4
TASK 3............................................................................................................................................6
Determination and Implementation of Strategy..........................................................................6
Justification for Recommendations.............................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Entrepreneurial Strategy refers to effective procedures and processes adopted by an
organisation to enhance its strategic, competitive and sustainable position within the market. It
includes set of methods and processes which helps a company in developing different and
effective approaches for itself to grow and establish an effective relationship with the
surrounding environment of the business (Thurik and et. al., 2016). The report below is based on
Swain & Jones which is a motor dealership organisation headquartered at Surrey, United
Kingdom. The firm deals with new as well as pre-owned vehicles and also provides its customers
with several services such as repairing, motor accessories, etc. The report covers development
and critical evaluation of a range of entrepreneurial strategies which the firm could use to
develop their situation. Moreover, it covers analysis of organisation's strategic situation, its
capability and position along with development of set of objectives. In addition to this, it covers
development of strategy for its solution and designing of approach to implement the same.
TASK 1
a) Critical Evaluation of a range of entrepreneurial strategies
It is very important for Swain & Jones to appropriately carry out and evaluate a range of
entrepreneurial strategies in order to enhance the scope of its growth in the future market as well
as ensure effective sustainability within the market (Martens and et. al., 2016). In addition to this,
such process would also help the organisation in analysing the most appropriate and relevant
strategy which could be utilised by the company in order to ensure a consistent and effective
future growth.
There are several strategies which are used by the company in context to consolidating
their situation. For this aspect, Ansoff Matrix is used which is a tool to describe several ways
through which Swain & Jones could grow within the market. This matrix is discussed below:
 Market Penetration:
Within this strategy, Swain & Jones would be selling its existing products within its
existing market. To attain this, the firm could reduce the processing time within the firm.
However, dealing in existing motors, there are several processes which is required to perform by
the firm in relation to provide the product to customer, for instance, delivery. Thus, within this
strategy, in order to grow, the firm could ensure faster delivery methods in context to enhance
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the preference of the firm within the market. Another process within this strategy could be
modification and improvement within their customer service (Khedhaouria and et. al., 2015).
Sometimes, it is highly important for an organisation to enhance the way feedbacks are acquired,
queries are solved, etc., in order to ensure better customer engagement. This would provide the
company an edge within the market, with just modifying its functioning.
However, this strategy focuses on short term modifications within the company. Thus,
the opportunity of each aspect adopted by the firm under this strategy could only be adopted by
the organisation till competitors of the firm does not adopt similar strategies. Hence, this would
require the company to modify its strategy frequently, which could be disadvantageous for the
firm in terms of cost as well as modifications.
 Market Development:
Another effective strategy for the organisation is market development which refers to a
situation, where the firm deals its existing offering in the new market. Swain & Jones under this
strategy would be offering their Jaguar and Land Rover existing and new vehicles outside its
prominent location in order to gather a larger market share (Spigel and Harrison, 2018). This
could be quite advantageous for the organisation as its core competencies are associated with its
offerings, rather than its existing market segments. However, within this strategy, the prime
focus of the company must be upon whether the firm could expand their market with the existing
resources. Moreover, another emphasis of the company would be upon whether the new
segments could back up the potential demand for the offerings of the company. Hence, it could
be very profitable for the organisation to expand its operation in its wider geographical market.
However, with market development, the situation of the company could get a bit riskier
than market penetration as there are chances of competitors within the market segments which
the company might explore for its offerings. Moreover, it is also not necessary that segments
within the outside markets have the same taste as its niche markets, which could further develop
challenges for the company.
 Product Development:
Within this strategy, the firm emphasises on development of new product and target the
same within the existing market of the firm. Swain & Jones, could achieve this strategy through
development of new products and services which are actually required by the market to fill the
gap (Shirokova and et. al., 2016). In addition to this, there are certain advantages associated with
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the company in relation of its new product. For instance, the firm could leverage all of its
strengths through offering the exact products within the market, which are required by the
customers.
However, it is quite riskier than an other strategy mentioned above, this is because within
the current market, the firm could be risked to exposing themselves with new competitors within
the market. Thus, organisation might have to develop enhanced strategies to cope up with
competition at both ends.
 Diversification:
In this strategy, Swain & Jones would be introducing new products within new markets.
As, this strategy is of risk in nature and threat to business operation is quite high (Morris, 2015).
Swain & Jones motor is already established in one specific and launching business to market,
where operations are not even operating and then in that situation, operations are not even likely
to be accomplish. This entrepreneurial strategy is only been applicable, if motor dealership
business of Swain & Jones is well known and brand image is well-settled among their
customer's. The chances of an application of this strategy is highly minimal. Hence, applicability
of the diversification strategy is very risky and due to this its been difficult to operates on both
domestic and global platform.
Critical analysis: Swain & Jones is suggestible to utilises market penetration strategy as
choice to grow business operation at the major platform. This motor dealership is been
recommendable to go for market segment and selling more vehicles to lower segment (Lumpkin
and et. al., 2015). Thus, periodic use of strategies such as market penetration & development
with purpose to accomplishes strategic position into the sector of entrepreneurial is necessary
and relevant. Hence, its important for Swain & Jones motor to correctly utilises Ans-off matrix
strategy so as to gather development of business operation on quiet formal basis.
If talks into critical manner, use of Ansoff matrix is implemented to know how Swain &
Jones can grow its business operation and led to accomplishing strategic opportunities such as
achieving entrepreneurial growth, accomplishing operational profitability and targeting segment
such as luxuries or affordable. Using market penetration, strong hands can be gain on selling
motor vehicles to an existing market and with approach of market development, existing motor
dealership can be brought to new market. Thus, organisation is need to conduct market research
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before implementation of market development to identify market to be target and sells out motor
dealership & vehicles.
TASK 2
Situational Analysis and Objectives
This assessment is based on analysing situation of the business firm, its capabilities and
position into the market. While checking firm capabilities, SWOT analysis is pioneer concern
here, in which strength and weakness belongs to the part of an internal capabilities, while threats
and opportunities belongs to the category of an external capabilities (Wu, 2015). Thus, thorough
and sustainable analysis of SWOT analysis is need to be done along with the external
environment analysis using Pestle model analysis to formulates SMART objectives, so as to
develop strategy to gain entrepreneurial strength into the market. The clear and concise analysis
is as follows:
SWOT analysis: This is one of the simplest tool which is helpful in case of developing
own business strategy and evaluates in order to guides an existing company such as Swain &
Jones Ltd. To implement subsequent strategy, the above Swot analysis is as follows:
Strength Weakness
Highest customer retention and pure quality
offering is one of the major strength of Swain
& Jones. Pricing and cost saving chain are two
major positives for this leading motor dealer
firm to gain market strength. People loyalty to
buy jaguar cars from Swain & Jones Ltd is
very high and customers are in like to buy car
from this motor leadership on frequent basis.
Increasing competition from local dealers such
as Sop trade or dealer is matter of tension for
Swain & Jones, because local dealer try to cut
down extra cost of the customers and tries to
sell car near to its original price. Rising
conflict with other dealer is weakness, in this
case, they cannot be arranging car if being
need for urgency.
Opportunities Threats
Control over cost will be opportunity and less
expenses to customer of the Jaguar at times of
purchasing (Ott and et. al., 2017). This is
necessary for Swain & Jones to utilise to do
Continuous competition from local vendor
and dealer's is one of the major threat for
Swain & Jones to operates in UK market. High
cost or prices is the major threat for Swain &
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identification of the market such as targeting
new and premium customer's base including
premium buyers or purchasers. Rise existing
selling of motor vehicles either by cutting
down cost or focus on offering quality.
Jones to maintain its business profitability for
longer period of time.
Pestle analysis: This is a framework or tools which is useful in case to analyse and also
monitor the macro environmental factors that may have a profound impact on the organisation
performance. This type of tools is especially useful, when starting a new business or entering the
foreign market. This tool is useful in case of suggesting right entrepreneurial strategy to drive
business and carry out it to the productive platform. In context of Swain & Jones, Pestle analysis
is as follows:
Political: In UK, political factors are certainly changing to the negative way due to recent
election, fluctuation of political bodies and rising protest as well as conflict has creates burden on
Swain & Jones to operate in trading environment (Hartsfield and et. al., 2017). Due to the
political instability, prices of motor vehicles and cost-to-customer has been increased which is
the leading threat for Swain & Jones so as to operate in their respective environment. Impact of
political factor is not in favour of business of Swain & Jones, this is as because of negative
influence of political factors. Right and correct decision making is required here.
Economical: Rising of an exchange rates, inflation rate and rise of labour cost are some
of the major issues in context of Swain & Jones. Due to economic instability, Swain & Jones is
suffering as because of the economic imbalances, rise in the cost and pound imbalance in
comparison to the US dollar. Hence, this is a major causes for degradation of the business
performance. In addition, impacts of this factor could be major and severe for profitability of this
dealer firm.
Social: Due to rise of cultural or social status, demand of premium car such as jaguar has
risen and supply is comparatively low (Engelen and et. al., 2015). This is responsible to creates
gap between demand and supply and Swain & Jones has pre-order from its customer which is
creating as serious issues. As because of social burden, Swain & Jones is forced to brings
changes in their policies and make centric to social development of the UK.
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Technological: Due to rise in technological aspects such as automated vehicles, advance
technology cars and in turn customer change in perception is very much critical for Swain &
Jones. People are demanding advance features in the car, in response company is adding features
and rising cost to operates. In same manner, motor dealers are being forced to rise to survive
their entrepreneurial business and in addition, Swain & Jones is to be seek for higher margin.
Environmental: In UK, environmental protection is one of the legal concern, as it attracts
tourism on an optimum basis and in case of pollution found the major, serious action plan can be
taken in context of the same (Shan and et. al., 2016). Hence, Swain & Jones is under-pressure to
ensure that before sales of the motor vehicles, correct check of environmental certificate is need
to be approved and taken care so as to rise higher sales and dealing to the car product on an
proactive basis.
Critical analysis: From the above discussion, it has been realised that Swain & Jones is
required to takes correct decision in respect of developing strategic decision making or action
plan to structure plans or policies in respect to selling entrepreneurial ventures products or
services. Thus, it is necessary for Swain & Jones to check out environmental certificate of a car
based vehicle and sells it out.
SMART objectives: This stands for specific, measurable, attainable, relevant and time
oriented goals or objectives (Zehir and et. al., 2015). In context of Swain & Jones, Smart goals
are being for purpose of set objectives that are based on time, specific in nature, measurable to
goals and targets and also attainable, as when required. For Swain & Jones, Smart objective is as
follows:
Rise sales by 5 percent within 6 months cumulatively: This objective is based on time,
being measurable and attainable and specific in nature. This target is not easy to be determined
and attain in the lesser time period. Market penetration will be right strategy in order to targets an
existing market or segment of a customers. Along with all above.
Development of a channel sales to reach customer within 2 months: Swain & Jones is
just asked to develop its channel sales by developing strategies such as motivates out the sales
people by offering them sales incentives or bonus and creates multi channel sales to reach out to
the customer's in lesser time and this platform is need to be build within 2 months which is time
oriented in nature and achievable.
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TASK 3
Determination and Implementation of Strategy
Implementation of the strategy means process which is required when goal is decided
whether SMART or general in nature. When any business set out goals or target such as timely
specific, being measurable in period and attainable, thus, right strategic development & planning
is necessary. In the previous assessment, Ansoff matrix has been discussed in context of
suggesting most suitable strategy so as to led combined for purpose of attaining Smart objectives
in right point of time (Wales, 2016). The major discussion of the right strategy is as follows:
Market penetration: In this strategy, existing product is selling to the existing market by
lowering down prices of the offering and focus on quality of the product. In order to attain,
Smart goal of the 5 percent rise in sales within 6 months, Swain & Jones is need to be focused on
quality of services along with decrease cost of the dealership so as to decrease overall cost of the
Motor vehicles. In addition, effective relationship with the customer is also needed in order to
acquire market strength and favourable position to sell motor products.
Market development: In this strategy, concern is given to selling existing product in new
market and for this market research is the suitable option & idea. With using development of the
market clear focus is on selling through channel sales (Linton and Kask, 2017). In that situation,
market development is a right strategy to be entertain in lesser point of time.
Both market development and market penetration are suitable here to attain Smart goal of
the business and its operation. Aim of all strategic decision making to acquire market strength in
the UK.
STP: It is comprising of segmentation, targeting and positioning. This help to tell how
customer's need to locates, targets and attain in an entrepreneurial market.
Segmentation: Swain & Jones is looking to segment their customer's on basis of the
demographic, geographic and aspect of behaviour such as purchase frequency. Customers of this
firm is mainly located around UK and its cities such as London, Cardiff etc.
Target: Swain & Jones have an option to targets their customer's on basis of lifestyle,
status and income or wealth (Johnson and Van de Ven, 2017). Swain & Jones deals in jaguar car
segment and they have major scope to target customer's based on lifestyle, status and which is
costly also.
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Position: They position themselves using motor exhibition, business deals or through
channel advertisement such as big hoardings or advertisement.
Justification for Recommendations
From all above analysis, it is recommendable that, Swain & Jones should be utilising
market penetration & market development to rise its business strength and increase durability of
an entrepreneurial ventures at the major height or status. In addition, Swain & Jones should
understand its internal capabilities such as resources which is necessary in case of building
strength of a business and accomplishes higher sales.
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CONCLUSION
From the above report, it is concluded that entrepreneurs are those who starts off any idea
and implements business behind it. They utilise strategies so as to accomplish strategic status and
position into the market. Ansoff matrix is termed as necessary strategy, which is necessary in
context of bringing strategic position into the market. Market penetration is one of the necessary
strategy, so as to target existing market and sells to them effectively. It is also concluded that
entrepreneurs are required to evaluates their strategies in an effective manner and makes sure that
all strategies must be focused on accomplishing its specific goals or specific.
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REFERENCES
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directions. International Small Business Journal. 34(1). pp.3-15.
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differentiation strategy and innovation performance. Procedia-Social and Behavioral
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