Entrepreneurship

1、Strategic entrepreneurship & the strategy development process 2 Strategic Entrepreneurship Todays plan Discuss what we know about Stag International Summarise the different approaches to entrepreneurship Effectual entrepreneurship activity 3 The Report Task Background The core business of the Stag I

2、nternational case study is identified as the manufacture and sales of Stags sports goods (mostly table tennis related). However, there are other opportunities to diversify into areas such as apparel or be a distributer in India of global branded sports equipment Report Question Should Stag Internati

3、onal use an intended, emergent, entrepreneurial or combined approach when developing the strategy for: The core business Diversification opportunities The report must contain the following: Introduction and discussion about the core business The argument and justification for the strategy you believ

4、e Stag should adopt A summary to conclude your essay You must be able to critically discuss and review your recommendations 4 Something to think about for the report Do organisations need a strategy and if so when? In strategic planning what is the difference between prediction, risk and uncertainty

5、? PREDICTION: Should the strategy be deliberate/intended? RISK: Does the strategy need to be flexible i.e. can be changed if required? UNCERTAINTY: Should the strategy emerge over time ? does diversification into new markets with a different customer base and limited ability to predict success mean

6、they must adopt a more emergent approach and think about managing prediction, risk and uncertainty? What factors influence the selection of a strategy development process? Situation and context? -Stag is an organised business with a solid market share in a sector they understand, know the trends and

7、 perform well. Therefore should it planned and can they do it with any level of accuracy? Who is or should be involved in developing strategy? How is the process managed? Where does entrepreneurship fit into strategy development 5 The Differences Between PREDICTION, RISK and UNCERTAINTY Black text:

8、Read, Sarasvathy, Dew, Wiltbank & Ohlsson (2011). Effectual entrepreneurship. Taylor & Francis. Red text: My own hint 6 What do we know? 4th generation family business closely knit stakeholders Appeal to new generation of customers affluent, educated, lifestyle conscious Dynamics of the business has

9、 changes planning for future generations of the Kohli family The business is at a point where decisions about the future must be made The lifestyle and fitness market is increasing (estimated value of $500m USD) with significant growth in the fitness and lifestyle industry Domestic demand for sports

10、 equipment is increasing whilst export is decreasing (60/40%) Government is opening up the Indian retail segment to foreign multi brand retailers Government keen to develop the sports infrastructure within India Special focus on foreign trade policy What does this mean & why does it matter? 7 What d

11、o we know? Tax incentives introduced to promote retail in India Economic turbulence in the European markets Branded apparel and retail is growing at an annual rate of 15% (monopolised by Reebok, nike, Puma, Adidas with no Indian competitor) Partnerships were becoming increasingly popular Local India

12、n businesses need to react quickly to establish a retail chain of their own As demand increases local manufacturers need to focus more on domestic sales to avoid the threat of competition Stag need to make a decision as to their future strategy What does this mean & why does it matter? 8 Summary - C

13、ontrasting Perspectives on the Source of Opportunity 9 Group activity (45 minutes) Effectual Entrepreneurship Using the principles of effectual entrepreneurship (listed below) your task is to create a discussion under each of the headings which demonstrates how Stag may have adopted this approach. S

14、tart with your means resources and competencies Set your affordable loss How much can they afford to lose rather than predicting gain? Leverage contingencies the what if turning a surprise into a positive action Form partnerships who are they associated with? A.Create opportunities what are they? 10

15、 Effectuation (the process as a flow chart with FEEDBACK lacking from normal illustration of intended strategy) Sarasvathy & Dew (2005). New market creation through transformation. Journal of Evolutionary Economics, 15(5), 533-565. A. Start with your means Stag already have a solid market share Vini

16、ta is a qualified fashion designer Kohli Bros. first hand knowledge of table tennis Very tech aware business Already a top 5 producer in the world Knowledge of market trends Contacts in the sports networks Accredited by ITTF Already the largest producer of table tennis tables Brand Knowledge of comp

17、etition Knowledge of macro environment and economic trends Onsite manufacturing Consistent good performance Healthy balance sheet Few barriers for diversification 12 B. Set affordable loss Operate under zero credit arrangement Low cost operation No need for borrowing under usual trading conditions N

18、eed between $14-20m USD over 5 years Consider how much Stag could afford to lose rather than expected return 13 C. Leverage contingencies Expansion of the product range Consideration of incoming brands into sector Take advantage of surprises Turn the unexpected into profit eg. Hire out of manufactur

19、ing plant during downtime 14 D. Form partnerships One of 5 premium partners Close association with the ITTF Network of 400 dealers 30 year relationship with some clients Involved in the sports federations Sponsor grass roots programmes 15 Vision to be in the top 3 table tennis brands world wide Incr

20、ease manufacture Become number 1 sports exporter Build 30 new brands Lifestyle and fitness awareness increasing Government opening up the retail sector to foreign brands Strategic tie ups with global brands for distribution rights Begin a brand ambassadors programme to increase awareness and engage new partners Use Vinitas skills to appeal to a younger audience Future generations of the Kholi family to plan for Use stakeholders and partners as co-creators of the markets E. Create opportunities 16 The Report Task Background The core business of the Stag International case study is