Evaluating Entrepreneurial and Intrapreneurial Strategies for Nest Plc

This report provides a comprehensive analysis of entrepreneurial and intrapreneurial strategies, focusing on Nest Plc, a British multinational clothing retailer. The report begins with an introduction to entrepreneurial strategy and its significance, followed by a critical evaluation of various strategies, including studying competition, researching new products, listening to customer feedback, and responding to change. It then analyzes Nest Plc's strategic situation using PESTEL and SWOT frameworks, assessing political, economic, social, technological, environmental, and legal factors, as well as internal strengths, weaknesses, opportunities, and threats. The report further develops an implementation strategy, employing the Ansoff matrix to identify market penetration strategies. The document emphasizes the importance of adapting to changes in the business environment, understanding consumer demands, and leveraging technology for growth. It also provides recommendations for Nest Plc to expand its business, maximize profit margins, and effectively manage its competitive landscape. The report's conclusion summarizes the key findings and reinforces the importance of strategic planning for entrepreneurial success.

Entrepreneurial
Strategy

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Critically evaluate a range of entrepreneurial and intraprenuerial strategies..............................1
Analysis of organisation’s strategic situation and its entrepreneurial capability and position....2
Development of an implementation strategy that will be consistent with identified objectives. 5
Judgement of opinion and evaluation of alternative approaches to problem solving..................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................6

INTRODUCTION
Entrepreneurial strategy is the means by which an enterprise sets up and re-establishes its
fundamental set of relationships with its environment. It is strategy categorized by extensive and
more or less instantaneous modification in the pattern of determinations considered by a firm. It
can be an activity of developing new commodities and approaches in a constrained and
competitive atmosphere (Gans, Stern and Wu, 2019). Entrepreneurial plan of action include
techniques for innovation and running a business consisting all components of marketing and
operations. This written report is based on Nest Plc. which is a British multinational clothing,
footwear and home commodities retail company. This venture operates its business globally in
number of nations of the world with the help of its approx 500 stores and contribution of 43,970
employees. The document will explain about different entrepreneurial and entrepreneurial
strategies, organisation’s strategic situation and capability etc. Further, will define about
development and implementation strategy and recommendation.
MAIN BODY
Critically evaluate a range of entrepreneurial and intraprenuerial strategies
Entrepreneurial and intrapreneurial strategies refers to those plan of action that are used
and utilised by a business firm in term of establish and re-establish the business of the venture.
These strategies also use by a firm to operate its business in effective manner or gaining
competitive edge from specific business sector. The description of range of entrepreneurial and
intraprenuerial strategies are explained below in context of Next Plc:
Study the competition- It is an effective strategy that can be used and adopted by the
management of the company. By implementing this plan of action, the administration of Nest Plc
can determine the rivalry in the business sector in which it operating. This will assist in framing
and devising plans to deal with rivalry and get over competition (Anwar, Khan and Khan, 2018).
The knowledge about rivalry will assist the firm to offer better market for its products & services
t stand out, even using the competition’s weaknesses to Nest plc’s benefits.
Research new products and services- It is another strategy that can be also adopt by a
business as it assist in understanding emerging commodities and services on the horizon that
could develop the organisation’s operations. In Nest Plc, by adopting this plan of action, the
administration can organise investigation that which kind of products and services are highly
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required market. For example, online shopping and mobile application services are greatly in
trend and prefer by consumers. So by offering these kinds of services to target audiences, the
firm can make development in its business.
Listen to customer feedback and adapt- It is an effective and most important strategy that
can be consider by a business venture and an organisation like Nest Plc. Because, with the
assistance of this strategy, the management of respective venture can aware with the consumers
experiences and the issues that are facing by them, regarding organisation’s services and
commodities (Gao and et. al., 2018). It will assist in familiar with consumers’ demands and
needs so that they can offer goods and services as per their desires. It will enable in increasing
customer base and maximising sales.
Respond to change- In a business change are taken place day by day. In business change is
inevitable and those able of responding are flexible and versatile. In Nest plc, by adopting this
plan of action, the management can analyse the changing that are occurred in business
environment regarding technological etc. and adopt them for effective running of business. If the
administration adopts change rapidly then it will assist in improving brand image and market
position as well as retaining consumer till long term.
Analysis of organisation’s strategic situation and its entrepreneurial capability and position
To determine the enterprise’s strategic situation, the administration of the firm can use
different models and concepts. Some of them are defined as below in context of Nest Plc:
PESTEL Analysis
It is an activity in which a firm find out the macro environment and make modifications
to get over the issues appropriately. There are diverse components which are defined in a brief
manner in context of Nest plc to define its strategic situation:
Political factor- It includes of the diverse factors that is connected with the national
authority’s rules and laws. It has the main influence on the modifications of the organisation’s
culture, so this is important for the company to keep the change in an efficient way (Ching, Gans
and Stern, 2019). In UK, the government is stable and have promoted the firm culture which
assists in maximising the economy of the enterprise. Currently, Brexit have influence the
business because most of the consumer of the firm in the European market which minimise the
sales and profit margin of the firm. Nest plc administration has to concentrate to the political
modifications and consider better action that assist in improving culture of the venture properly.
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Economical factor- It is a component that is related with the inflation, recession and gross
domestic income etc. All these aspects are important because it assist firm to maximise the sales
and offer support for the economy. The existing economical factor of UK is instable cause of
pandemic of COVID19 that affect growth and success of business in term of earning profit
(Khan and et. al., 2019). Apart from this Brexit is another factor that also affected the economic
situation of the venture due to generate inflation which affect the economic condition of Nest plc
as supplier increase raw material cost and some fluctuations also arisen in tax etc.
Social factor- It involves changing trends in the society, individual background and how
they influence the business. The diverse country has their own kind of culture and customs that
influence the culture of business. In UK, the individual are more social and tech friendly so in
this case Nest Plc administration have to find out the social culture and make modifications
according the demands and necessities of the people that assist in maximising the sales
appropriately. in addition to it, the company have focus on the trend and fashion as the needs and
demands of people change as per trend. In UK, the corporate culture is more formal, in this case
the venture have offer more formal clothing as also follow the modifications in the society that
tend to implement effective organisational change in firm.
Technological factor- This is the factor that highly influence business of organisations. The
technology is changing continually that impact the working culture of the firm. There is diverse
elements that are exist in this component like bring innovation in the services and introduction of
new technology that assist in maximising the sales of the company. In context of Nest Plc, the
administration has to find out the current modifications that occurred in the technology and also
concentrate on how the firm can adopt and implement, as the diverse nations like China and
India are fast developing countries are accepting, the modifications appropriately. The firm have
to bring out a new technology like augmented reality clothing by which target audiences can
virtually try the pair of clothes without wearing and this will also assist in developing the
experience of users (Omotosho and Anyigba, 2019). This will favourably impact the firm in term
of maximising sales, customer base and retaining them till long term with the respective venture.
Environmental factor- It is affiliated to the atmosphere and it is important for the firm have
pressure from the national authority as they harm the atmosphere. For the clothing sector, there
are several kind of chemical are utilised for devising clothes because it minimise all kind of
component and influence the surrounding in a well explained way. In current era, COVID19 is
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one of the major environmental factors that highly affect the business of company like Nest Plc
in term of reducing sales, minimising profits and productiveness etc. By considering
environmental protection laws in its business like pollution act and carbon footprints etc. the firm
can create a favourable impact upon environment.
Legal factor- The legal laws also influence the firm, so this is important for each company
to concentrate on the modifications completed in laws as this aid in smooth performance of the
company appropriately (Kitsios and Kamariotou, 2018). This includes different components like
the rules and laws of internationals trade, policies and taxation rates that all comes under legal
component. There are different types of sources that are vital as this assist in accomplishing
expected results and also aid in implementing efficient modification. The legislations must be
followed by the organisation like Nest Plc which facilitate in better functioning of the firm.
There are some of the laws which are utilised to prevent the unethical activities and to offer
better service to the consumer. The administration of Nest Plc has to follow all the directions
which are utilised in UK and implement the modifications to manage the demand and supply in
the market. There are diverse types of components which require need to be found out and assure
because this aid in developing the good growth option to attain set aims and objectives in the
respective way.
SWOT analysis
It is a strategic option that is used by the business venture to determine the strengths,
weaknesses, growth option and treats. The description of this analysis is defined in context of
Nest Plc:
Strength- The company offer trendy and fashionable cloths. It has attractive and creative
design of stores. The firm has effective implementation of online channel such as attractive and
sophisticated website, nest day delivery for online purchases etc.
Weaknesses- The main weaknesses of the firm are lack of focus on positioning i.e. in the
middle among cost leadership and differentiation. The profitability ratio is also below the
average profitability ratio of the market (Ganco, Holcomb and McDonald, 2018). Another
weakness of the firm is that they are not able to integrate with the new and changing culture.
Opportunities- the administration of Nest plc can make development and growth in its
business by making international expansion with the concentration on emerging economies.
Effective engagement in celebrity endorsement via hiring famous celebrities with the target
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consumer segment is another option that can be adopt by the respective firm in term of making
growth in its business.
Threats- The main risk that is faced by Nest Plc is maximising competition from the
discount clothing brands. There are number of companies such as Zara, Gucci, John Lewis etc
are some organizations that generate competition by offering substitutes products (Lombardi and
et. al., 2019).
The administration of the firm can also develop some objectives that can be beneficial for
the growth of the company. The description of some objective in context of Nest plc is as below:
 To make development in the sales of the company by expanding its business into new
market.
 To maximise the profit margins of the firm by offering new products and services to its
target audiences.
Development of an implementation strategy that will be consistent with identified objectives
In context of development, the administration of Nest Plc can adopt Ansoff matrix which is
a model that consider diverse strategic option that are beneficial for the growth of the firm. This
concept is developed by Igor Ansoff to helped many organisations to understand the risks of
growing their business. The description of this concept in context of respective firm is explained
as under:
Market penetration- It is the first and foremost strategic option of this concept that can be
adopt by the administration of Nest Plc with the purpose of making growth and development in
the business in term of increasing customer base and maximising sales. If the company adopt this
strategic option, then there is no risk because within it existing products are launched in existing
market by making innovation and changes in promotion and pricing strategies.
Product development- It is another strategic option that can be adopt by the administration
of Nest plc in term of making development in productivity and profitability of the company
(Elert, Henrekson and Sanders, 2019). The level of risk is high in comparison to market
penetration because within its new product and service is launched by the firm in to existing
market so it is not clear that target audiences will like it or not.
Market development-This development option can be adopt by the management of Nest
plc in term of catering to a different customer segment, entering into a new domestic market and
entering into a foreign market. The level of risk high more than product development strategy
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because in this, the business venture launched its business in to new market or nation with its
existing goods and services. So it is not confirm that the customer of new market will like these
products and services of respective company. Each nation has its own culture and customs, so
the demands and requirements are differ.
Diversification- This strategic growth option is more risky because product and services
both are new. This development option can be adopt by the administration of Nest Plc with the
purpose of making growth and development in its sales, customer base and profit margins
(Barba-Sánchez and Atienza-Sahuquillo, 2018). By accepting this option, the firm can form two
kind of diversification such as related and unrelated by expanding business in related sector of
expanding business in different industries like Food, hospitality etc.
From the above content, it can be summarised that Market development is an effective
option that can be adopt by the administration of Tesco in term of launching and expanding its
business in to developing nations like China and India etc. This will assist in improving the
business of the firm in improved manner.
Judgement of opinion and evaluation of alternative approaches to problem solving
It can be recommended to the respective company, as per the defined information that
including different approaches and concepts of situational analysis, approaches and strategies of
entrepreneurial, development and growth concept that these all are effective and essential for the
growth and development of the company. By framing effective strategies, the venture can
survive in a competitive environment and operate its business in effective manner in term of
accomplishing its business goals (De Massis and et. al., 2018). Implementation and utilisation of
several concepts are also contributed in the growth and success of the company.
CONCLUSION
This has been summarised from the above information that entrepreneurial strategies refers
to this plan of action that are used by a firm for effective establishment of the company in a
business industry. Appropriate strategies are beneficial for the development and growth of a
business. By using PESTEL analysis strategic situation can be analysis and SWOT analysis
assist in determining capability and position of the venture in business industry. By adopting
strategic option of Ansoff matrix, the firm can make improvement in its business.
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REFERENCES
Books & Journals
Gans, J.S., Stern, S. and Wu, J., 2019. Foundations of entrepreneurial strategy. Strategic
Management Journal. 40(5). pp.736-756.
Anwar, M., Khan, S.Z. and Khan, N.U., 2018. Intellectual capital, entrepreneurial strategy and
new ventures performance: Mediating role of competitive advantage. Business and
Economic Review. 10(1). pp.63-93.
Gao, Y. and et. al., 2018. Impacts of proactive orientation and entrepreneurial strategy on
entrepreneurial performance: An empirical research. Technological Forecasting and
Social Change. 135. pp.178-187.
Ching, K., Gans, J. and Stern, S., 2019. Control versus execution: endogenous appropriability
and entrepreneurial strategy. Industrial and Corporate Change. 28(2). pp.389-408.
Khan, N.U. and et. al., 2019. The role of entrepreneurial strategy, network ties, human and
financial capital in new venture performance. Journal of Risk and Financial
Management. 12(1). p.41.
Omotosho, S.I. and Anyigba, H., 2019. Conceptualising corporate entrepreneurial
strategy. Journal of Strategy and Management.
Kitsios, F. and Kamariotou, M., 2018. Open data hackathons: an innovative strategy to enhance
entrepreneurial intention. International Journal of Innovation Science.
Ganco, M., Holcomb, T. and McDonald, R., 2018. Entrepreneurial Strategy, Ewing Marion
Kauffman Foundation.
Lombardi, R. and et. al., 2019. Entrepreneurial universities and strategy: the case of the
University of Bari. Management Decision.
Elert, N., Henrekson, M. and Sanders, M., 2019. The Entrepreneurial Society: A Reform Strategy
for the European Union. Berlin, Heidelberg: Springer.
Barba-Sánchez, V. and Atienza-Sahuquillo, C., 2018. Entrepreneurial intention among
engineering students: The role of entrepreneurship education. European Research on
Management and Business Economics. 24(1). pp.53-61.
De Massis, A. and et. al., 2018. Sector-based entrepreneurial capabilities and the promise of
sector studies in entrepreneurship.
Online
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6 Timeless Strategies That Drive Successful Entrepreneurship. 2020. [Online]. Available
Through: < https://www.entrepreneur.com/article/242573 >.
Next Plc. 2020. [Online]. Available Through: < https://research-methodology.net/next-plc/>
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