Entrepreneurial Strategy Evaluation in UK SME: Hakim Group Analysis

This report evaluates the entrepreneurial strategy employed by the Hakim Group, a UK-based SME operating in the optometry, online retail, and real estate sectors. The analysis begins with an overview of the organization, its structure, and the primary challenge of unstructured management across its diverse portfolio of businesses. A detailed situational analysis, both internal and external, is conducted, including an examination of the company's business structure, financial performance, human resources, brand, product lines, online presence, industry, customer base, and a PEST analysis. Competitor analysis and a discussion of strategic options follow, with recommendations for improving central management, communication, risk management, and organizational culture to achieve the company's objectives. The report utilizes models like Porter’s Five Forces, SWOT, and TOWS to support its findings.

Running head: Entrepreneurial Strategy 1
ENTREPRENEURIAL STRATEGY
Student Name
Institution

Entrepreneurial Strategy 2
Executive summary
The aim of this paper is to evaluate the entrepreneur strategy used in SME business
within the UK market. The novel organization is Hakim Group, a medium organization with high
promising features. The strategy problem is unstructured management as the organization is
made up of organizations under different management. The business structure is mainly portfolio
management system with different portfolios under a single name. Human resources are divided
into those employees from main organization and those human resources based on smaller
businesses. The company as a brand has many product lines that are grouped into portfolios and
this forms two major portfolios. Product analysis of various optometry practice and online
business sold under Hakim Group can be cauterized depending on various companies forming
Hakim Group. The industry and competitor can be grouped into three areas mainly health care,
online business industry and real estate. The proposed strategy composed of central management
with clear communication, risk management and organization culture that will drive the business
objectives.

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Table of Contents
1 Introduction.........................................................................................................................................4
1.1 Organizational Overview..............................................................................................................4
1.2 Organizational Problem...............................................................................................................5
2 Situational Analysis (internal)..............................................................................................................5
2.1 For example.................................................................................................................................5
2.2 Business structure.......................................................................................................................5
2.3 Financial analysis.........................................................................................................................6
2.4 HR................................................................................................................................................6
2.5 Brand...........................................................................................................................................7
2.6 Procedure evaluation...................................................................................................................7
2.7 Product analysis...........................................................................................................................7
2.8 Online and social media presence...............................................................................................8
3 Situational Analysis (external).............................................................................................................9
3.1 For example.................................................................................................................................9
3.2 Industry........................................................................................................................................9
3.3 Customer analysis........................................................................................................................9
3.4 PEST analysis..............................................................................................................................10
3.5 Competitor analysis...................................................................................................................11
3.6 Company objective and strategy...............................................................................................12
3.7 Threats.......................................................................................................................................12
4 Competitor Analysis...........................................................................................................................13
5 Strategic Options and Analysis...........................................................................................................14
5.1 Strategy proposal.......................................................................................................................15
5.2 Strategy process........................................................................................................................15

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6 Recommendations.............................................................................................................................16
7 Conclusion.........................................................................................................................................16
8 References.........................................................................................................................................17
9 Appendix............................................................................................................................................20
9.1 Appendix 1: Example Porter’s Five Force Model.......................................................................20
9.2 Appendix 2: Example SWOT model..............................................................................................21
9.3 Appendix 3: Example TOWS Analysis...........................................................................................22
9.4 Appendix 4: Example Competitive Analysis..................................................................................23

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1 Introduction
1.1 Organizational Overview
Hakim Group is an organization that composed of various small businesses drawn from
various products line. The organization was incorporated in 1997 with intention of forming a
joint venture with many businesses providing optometry practice to customers. Since its
inception, the organization has grown to link many different opticians within the country and
some of these include Simon Falk Eyecare, Holland Opticians, Dr. Stella Griffiths Opticians,
Kimberley Opticians, David Henderson Opticians, Sarah Dineen Opticians, DayBell & Choo and
Alvastone Opticians. The second product line includes partnering companies that have also join
the group to operate under this brand and some of these include Simply Group, Mobius Tech and
iTeddy that offers a variety of products mostly from online services. Olive Estates focuses
majorly on real estate and property services and is also part of partnering companies.
1.2 Organizational Problem
The main organizational problem is lack of proper management structure that can unite
various businesses operating under Hakim Group. Many companies under the management of
Hakim Group are not managed by the Hakim Group due to limited strategic plan that can
incorporate these companies. This implies that these companies operate on their own through
their senior management staffs form the board of directors. The only challenge that remains is
the ability of all subsidiaries to used brand name and brand feature. This is a management issue
that needs to address since it may lead to the breaking of the organization. For instance, some

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companies such as Simply Group, Mobius Tech, and iTeddy do not directly operate under the
official brand name of Hakim Group (Park & Lee 2009).
2 Situational Analysis (internal)
2.1 For example
2.2 Business structure
The business structure used in Hakim Group can be described in three different ways.
The first description majorly consists of portfolio management system with different portfolios
under a single name. Hakim Group business structure consists of many different optometry
practices. That is headed by a board of directors representing various business brands with the
organization. The bossiness model used within the Hakim Group consists of mainly portfolios
management united under the chief executive management. The second structure that can also be
seen within the organization is matrix structure that incorporates both online and in-house
service. In addition, the business structure also consists of an online platform that allows
customer placing an order for specific service. In the in-house business structure, the
organization offers specific optometry service (Hakim Group 2017).
2.3 Financial analysis
The financial analysis of the organization requires an understanding of the financial
information of each of the businesses under the organization. Financial analysis can, therefore,
be analyzed following portfolio or online businesses. Firstly, Imran Hakim indicated that by
2009 the overall value of the optometry was £20m. This was expected to increase by more than
£10 at the end of 2010 due to the incorporation of iTeddy. By the end of 2017, the net worth of

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the organization has grown to more than £65m owing to the continuous expansion of the
business.
2.4 HR
Human resource management within the organization can be grouped into two
based on their area of operation. Human resources are divided into those employees from main
organization and those human resources based on smaller businesses. Firstly, the human resource
includes employees from different businesses under the Hakim Group. These businesses have
joined to form a single brand under this title. In addition, the Hakim Group senior management
offers the management services although employees are recruited under specific business.
Secondly, the human resource management within this organization also includes managing
employees within the main Hakim Group management and consist of employee recruited under
this main office (Kaufman 2008, p. 312-28).
2.5 Brand
Hakim Group is brand consist of various service lines offered by different facilities
countrywide. The company as a brand has many product lines that are grouped into portfolios
and this forms two major portfolios. The first portfolio is mainly composed of optometry practice
companies and the second portfolio is named other portfolios. The second division of the brand
is mainly offered through other business that are partners within the brand name Hakim Group.
These companies offer a wide variety of services and products such as online retailing, real estate
and internet entertainment. Under this brand division, businesses such as Simply Group, Olive
Estates, and iTeddy form the core organization’s outlets (Karolina & Andresa 2012, pp. 9-19).

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2.6 Procedure evaluation
The procedure with the organization can be evaluated based the communication between
senior management and management of each business within the Hakim Group. The procedure
within the organization is top bottom where senior management mostly board of directors that
run the whole organization (Hakim Group 2017).
2.7 Product analysis
Product analysis of various optometry products sold under Hakim Group can be
cauterized based on various companies forming Hakim Group. These products and services are
grouped into two mainly Optical Practice Portfolio and Other Businesses Portfolio. Firstly, the
Optical Practice Portfolio includes all businesses that offer Optical Practice services and some
examples include Simon Falk Eyecare, Holland Opticians, Dr. Stella Griffiths Opticians,
Kimberley Opticians, David Henderson Opticians, Sarah Dineen Opticians, DayBell & Choo and
Alvastone Opticians. Secondly, product line can also be analyzed based on the glass products
that are sold through some business within Hakim Group. For instance, Alvastone Opticians,
Kimberley Opticians, and DayBell & Choo are some business under Hakim Group that is selling
eyewear products under this brand. Thirdly, product line also includes businesses that form other
portfolio businesses. Under this product line, businesses such as Simply Group, Olive Estates,
and iTeddy are some other companies that offer online business platforms (Parikshat 2010).
2.8 Online and social media presence
Hakim Group as an organization dominates the online platform through its brand name or
through various companies under such company names. The company has website incorporated
with e-commerce software that enables the business to sell its products and services within the

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country and regionally. In addition, the organization has websites for its subsidiary companies
under various company names. Some of these companies such as Simply Group that is an online
business and this company uses its website as an online shop (Mulcaster 2009, pp 68–75.).
Secondly, the organization has a well developed social media platform that ensures the
company has its presence felt year in and year out. The organization has both its own social
media pages and various companies’ social media pages that ensures connection with much
social media user. Moreover, some of the social media platforms that give the organization
online dominance include Facebook, Twitter, and LinkedIn and within all these platforms the
overall name used is Hakim Group (Cameron 2014, pp 22-27).
3 Situational Analysis (external)
3.1 For example
External situation analysis includes competitors, industry, customers, and PEST analysis.
One example of a competitor is amazon.com. Amazon.com is a key competitor that has an
impact on the operation of the UK market. Amazon stores sell numerous products in its online
store giving the organization an upper hand in the UK. The only portfolio that is not under threat
from Amazon store is the optometry that only deals with eye care and eyewear.
3.2 Industry
The industry where the organization operates is very diverse with many companies
operating in healthcare specifically optometry practice. The industry can be grouped into three
areas mainly health care, online business industry and real estate. Firstly, the service industry
mainly consists of service and product line that entails offering eye care and eyewear. Under

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health care service industry the organization offers optometry practice service where most of its
subsidiaries companies offer a wide variety of services and also sell various eyewear to its
customers that are spread through the country and regionally. Secondly, the organization also
operates within an online business industry where it sells products and services through its
website on the platform. For instance, Simply Group has a couple of online shops where the
company sells a variety of hammock products and furniture (Besanko, Dranove, Schaefer &
Shanley 2012).
3.3 Customer analysis
The organization has customers that are mainly from different sectors that the
organization operates. Customers for the organization can be grouped depending on the location,
portfolio and online. Firstly, customers grouped according to the portfolio include those
customers that purchases according to various organizational portfolios. These are customers are
from the healthcare sector, entertainment sector and general customers that purchase furniture
from the online shops. For instance, customers from healthcare sector are mainly purchasing
services from major companies such as Alvastone and Holland Opticians among other centers.
These are a customer that purchases services and property through Olive Estate Company (Merz,
He & Vargo 2009, pp 328-44).
Secondly, customers can also be grouped according to location and these are customers
that purchases products and services from various locations within health centers spread
throughout the United Kingdom. Most of the portfolios operate within different locations
indicating that their customers are mainly from those locations of their operation. The third
category of customers is majorly online customers that purchase products through online

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platforms and retails. Some also purchase products such as hammock and furniture through
partner Simply Group. These customer segments are the core customer that has a high influence
on the overall organizational performance (Heyne, Boettke, Peter, Prychitko & David 2014, pp.
102–06).
3.4 PEST analysis
PEST analysis is the analysis of various business environmental factors such as political,
economic, social and technological factors. To understand environmental factors affecting the
Hakim Group there is need to look at some of these factors. Firstly, UK government play an
important role in the growth and development of SMEs within the country. Secondly, economic
factors in the United Kingdom has influence in the operation of the organization since economic
policies established by the government of UK in 2011 offer a good opportunity for SME
companies to grow (Porter 2008). For instance, the 5th highest GDP of UK make the country
suitable for small and medium businesses since the economic condition characterized by a high
population is a ready market. Thirdly, sociological factors such as high living standards, high
population and free movement of citizens favor the development of small and medium business
such as Hakim Group. Fourthly, technological factors have an upper hand since most of the
companies operating under the organization have advanced technological capabilities. Moreover,
the faster technological growth within the country makes it easy to start and run an online shop
in the UK. This is due to the fact that those customers that can purchase products from online
retailers such as Simply Group are many making the organization to gain profit (Hakim Group
2017).

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3.5 Competitor analysis
The organization has a wide array of competitor that are drawn from various industries
that the organization operates. The first group of competitors is those companies that are also
offering healthcare services especially opticians. Closely related to these competitors are
eyewear designers and vendor that also sell the same products as those of Hakim Group. Some
example of a competitor within this sector includes Vision Express, Norman Salmoni Opticians,
and Boots Opticians. Some of these competitors have been in the industry for a long time while
some such as the NHS receives funding from the government. The only advantage that the
organization has is diversified products under this product line (Conroy 2014, p. 237).
The second group of competitors is from the furniture and property sector which is a very
competitive sector within the country. For instance, these include those companies that are
selling furniture and property within the real estate industry. Some examples of the competitor
are amazon.com, The Mexican Hammock Company, Hammock Heaven, World Stores,
Rightmove, and Faxtones. In addition, some competitors are perennial competitors that have
been in business for a long period of time such as Amazon stores that retail in a number of
products. These competitors are most likely to take advantage of products specific nature of
Hakim Group products line. A good example of a competitor with this characteristic is Amazon
store that has very many products under a single store (Laszlo & Zhexembayeva 2011).
3.6 Company objective and strategy
The company objective is to make the professional journey smoother and the partner's
business ambitions come to life. The objective focuses on assisting young ambitious business to
grow from the comfort of their operation. To ensure this objective the organization is partnering

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with young businesses to bring them under the brand name of Hakim Group. The organization
work to make member partners comfortable and feel valued within the organization.
The strategy of the organization, therefore, entails bringing together various businesses to
achieve the common good. This strategy involves a partnership between many different
companies to help in mentoring or to increase access to a pool of expertise. This assist young
organization grows to become a medium business (Cowen & Tabarrok 2013, pp. 228–29).
3.7 Threats
There are many threats to Hakim Group and some of these threats include lack of proper
strategic incorporation structure, highly competitive business venture, and limited financial
support. Firstly, the organization lacks properly structure of management as the company is
formed mainly by autonomous companies that are only linked to the board of directors. This is
particularly risky due to financial related issues. Secondly, the sectors of operation where the
organization operates is very competitive and this includes very old firms that are the main
competitors. Thirdly, limited financial support received from member companies as most
companies operate on their own making financial support difficult. This is particularly a problem
owing to few directly operating businesses under the main organization (O'Connor 2010, p. 49).
4 Competitor Analysis
There are many competitors that share the market with Hakim Group in the UK and
around the world. Competitors can be divided into online and portfolio depending on their area
of operation within the market.
Online Competitor Analysis

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Online competitors are those competitors that purchase products and services through the
organization’s online businesses and partner businesses. Some of the major online competitors
are Amazon store that though being American store, it has another store in the UK. Amazon
store is a major competitor since it has larger market share with the country alone and its
transactions can be felt at any point internationally. Amazon is selected since the store sells
nearly all products that are sold by Hakim Group subsidiaries such as Simply Group and iTeddy.
Simply Group, for instance, has various more than two online retail selling different products. In
addition, some other competitors such as Debenhams UK also sells a wider variety of products
hence competitor for various Hakim Group online stores (Hakim Group 2017a).
Portfolios competitors’ analysis
The organization has many portfolios that include many different health care centers
spread across the country. This healthcare has the main competitor that is the National Health
Service since the NHS also offers eye care within its many hospitals. Though not a profitable
organization, NHS attracts a larger number of clients that would have been a customer to Hakim
Group Optometry canters. Other competitors that also has considerable market share are Vision
Express, Norman Salmoni Opticians, and Boots Opticians. In addition, NHS is also a
policymaker within the Optometry industry of UK. Other competitors have their market shares
but not that greater as the main competitor NHS (Cameron 2014, pp 22-27).
5 Strategic Options and Analysis
There are three main strategic options that can highly influence the growth of the
organization. Firstly, senior management needs proper organization as the company’s senior
management currently work independently from other organizations. The organization with

Entrepreneurial Strategy 15
numerous portfolios and should be directly managed through the main office as this will ensure
that core values are maintained as planned. Development of a proper communication channel is
another organizational management strategy that eased the coordination of organizational
activities (Ireland, Hoskisson & Hitt, 2008).
Secondly, development of common organizational culture is an important strategic
option. As the organization operates currently sharing core values is difficult since each business
member operates on its own. In addition, a common business culture that is shared by all
companies assists in giving the direction required for the success of the organization. Uniform
culture determines the organizational behaviour and where there is no organizational uniform
culture the development within the organization will not be uniform.
Thirdly, risk management strategy minimizes the risk that may affect the organization.
The organization lacks proper strategic risk management plan that enables the organization to
assess the risk within its member company. Developing risk management strategy is important as
it helps the organization achieve its objectives without losses.
5.1 Strategy proposal
Hakim Group customers view the services and products offered as similar to other products or
services. This implies that customers have the capability of purchasing products given that their
quality is worth their preference. This means that organizational management remains the
determinant of the outcome of the business. Working together, the organization developments of
a proper management strategy that will assist the company coordinates its activities. Moreover,
risk management strategy has the full potential of minimizing risk while ensuring profitability of
the business. Therefore the strategy that is proposed includes uniform management of all

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organized under the brand name, development of an organizational culture that is adopted by all
partnering businesses, and development of risk management.
5.2 Strategy process
The development of proposed strategy can follow a number of stages. The first stage of
the development is the formulation stage and entails coming up with this strategic options
through the senior management of the organization. At this stage, the strategy is explained in
details to ensure that there is no error and the strategy is relevant to the organization. The second
stage in the strategy process is strategy implementation that involves the application of the
strategy within the business to achieve the business objectives. The last stage of the strategy
process is monitoring stage that mainly requires the management to monitor the strategy to
ensure that all are according to plan (Tang 2014).
6 Recommendations
In light of all the company analysis, there are some recommended practices that can help
the organization grow and develop. Firstly, the organization needs to restructure its management
to ensure that the business is properly coordinated with a good communication strategy.
Secondly, there is need to develop a uniform organizational culture that is shared throughout the
organization. Thirdly, the organization needs to develop risk management strategy that
minimizes risk while maximizing the profitability.

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7 Conclusion
In conclusion, the entrepreneurial strategy is an important aspect of organization
management especially SME organization. A clear study of Hakim Group reveals the
competitors and strength of the organization that make the organization fit within its market.
There are some strategic options that can assist the organization to improve its management and
strategies with the view of increasing profitability of the organization. Therefore, Hakim Group
being SME has the potential of becoming premium organization within the UK market.

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8 References
Besanko, D., Dranove, D., Schaefer, S. & Shanley, M. (2012) Economics of Strategy, John
Wiley & Sons.
Cameron, B.T. (2014) Using responsive evaluation in Strategic Management. Strategic
Leadership Review, vol.4, no.2, pp 22-27. Available at
https://submissions.scholasticahq.com/supporting_files/248937/attachment_versions/249177
Cowen, T. & Tabarrok, A. (2013) Modern Principles: Macroeconomics (2nd ed.). New York:
Worth Publishers. pp. 228–29.
Conroy, R.M. (2014) CFA Institute Level I: Corporate Finance & Portfolio Management.
p. 237.
Hakim Group (2017) Independent Opticians Reinvented, Hakim Group. Available at
https://www.hakimgroup.co.uk/ [Accessed on 12 November 2017]
Hakim Group (2017a) Our Portfolio, available at https://www.hakimgroup.co.uk/our-portfolio/
[Accessed on April 17, 2018]
Heyne, P., Boettke, Peter, J., Prychitko, & David, L. (2014) The Economic Way of Thinking
(13th ed.). Pearson. pp. 102–06.

Entrepreneurial Strategy 19
Ireland, R. D., Hoskisson, R. & Hitt, M. (2008) Understanding business strategy: Concepts and
cases. Cengage Learning.
Karolina, J. & Andresa I. (2012) The strategic importance of brand positioning in the place brand
concept: elements, structure and application capabilities, Journal of International Studies, Vol. 5,
No 1, pp. 9-19.
Kaufman, B.E. (2008) Managing the Human Factor: The Early Years of Human Resource
Management in American Industry. Ithaca, New York: Cornell University Press. p. 312-28.
Kester, L., Griffin, A., Hultink, E.J. & Lauche, K. (2011) Exploring Portfolio Decision Making
Processes. Journal of Product Innovation Management, vol.28.
Laszlo, C. & Zhexembayeva, N. (2011) Embedded Sustainability: The Next Big Competitive
Advantage. Stanford, CA: Stanford University Press.
Merz, M.A. He, Y. & Vargo S.L. (2009) The evolving brand logic: A service-dominant logic
perspective. Journal of the Academy of Marketing Science; vol.37, no.3, pp 328-44.
Mulcaster, W.R. (2009) Three Strategic Frameworks, Business Strategy Series, Vol 10, No 1, pp
68–75.
Parikshat, S. M. (2010) strategic brand Positioning Analysis through comparison of cognitive
and conative Perceptions. Journal of Economics, Finance and Administrative Science, vol.15,
no.29.
Park, C. & Lee T.M. (2009) Information direction, website reputation, and eWOM effect: A
moderating role of product type. Journal of Business Research, vol.62, no.1.

Entrepreneurial Strategy 20
Porter, M.E. (2008) The Five Competitive Forces that Shape Strategy, Harvard Business Review,
January, Vol. 88, No. 1, pp. 78-93.
Rainer, R.K. & Turban, E. (2009) Introduction to Information Systems (2nd edition), Wiley, pp
36–41.
Tang, D. (2014) Introduction to Strategy Development and Strategy Execution. Flevy. Available
at: http://flevy.com/blog/introduction-to-strategy-development-and-strategy-execution/
[Accessed on 2 November 2014].
O'Connor, T. (2010) Strategic Planning for Distributors: Execution Isn't Everything--It's the
Only Thing! Natl Assn Wholesale-Distr. p. 49. Available at https://books.google.com/books?
id=TgmLvRjLtlwC&pg=PA49&lpg=PA49&dq=Competitor+profiling+
+detailed+profiles+on+each+of+your+major+competitors&source=bl&ots=1yPyTfrELu&sig=q
bFTs3KaLEL8Taux0hRQJ6RfPYM&hl=en&sa=X&ei=v8DiUpHZFImYrgfC4oG4CA&ved=0C
CsQ6AEwAQ#v=onepage&q=Competitor%20profiling%20%20detailed%20profiles%20on
%20each%20of%20your%20major%20competitors&f=false
9 Appendix
9.1 Appendix 1: Example Porter’s Five Force Model

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10 The threat of new
entrants
1. Entry restrictions except on the part of online
and real estate industries
2. Has limited significant role in the market as the
business is SME
2
Threat of substitutes 1. There many product and substitute in the
market
2. There are many companies offering similar
services
3
Bargaining power of
customers
1. Limited customer bargaining ability as most
products and services has marked price
2. Many clients are willing to pay for the services
4
Bargaining power of
suppliers
1. The organization has many suppliers on the
online business
2. Optometry has few suppliers as various
business has specialists
5 Industry rivalry
1. Low pressure on the rivalry business on some
other business
2. High pressure on online business as many
organization offer the same products and

Entrepreneurial Strategy 22
services
9.2 Appendix 2: Example SWOT model
Hakim Group SWOT Analysis
Strength
1. Has the ability to bring together many organizations
2. The new niche that is promising
Weaknesses
1. Unstructured management that is distributed within a
member organization
2. A poor communication strategy that leads to financial
challenges
Opportunities
1. Has prospective for growth due to its ability to bring
together many organization
2. High chance of getting financial support from member
organizations
Threats
1. The organization lacks properly structure of management
2. Sectors of operation where the organization operates are
very competitive

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3. Limited financial support received from member
companies
9.3 Appendix 3: Example TOWS Analysis
Threats
1. Very competitive business
environment
2. Limited management ability
Opportunities
1. The high number of customers in
the industry
2. New marketing niche with high
prospective
Weaknesses
1. Low financial capabilities
2. Poor business strategic plan
characterized by limited
organization culture
Strength
1. High innovative business especially
on optometry