Entrepreneurial strategy is a process where the entrepreneurs interpret, explore, and evaluate their ideas, plans, and policies in a systematic manner in order to achieve their aimed goals. Before entering the into market, entrepreneurs should make a strategy. This strategy contributes to the entrepreneur to gain competitive advantage for their sustainability in the market. Entrepreneurs Strategy involves the exploration of ideas, set of decisions, action, and reaction for exploitation of the opportunity; which contributes to minimize costs and maximize the benefits. There are three key stages for the entrepreneurial strategy. They are: (Poudyal & Pradhan, 2020) Show
FAQs, Corporate entrepreneurial strategy should be thought as
Ans: b) Vision Oriented The basic entrepreneurial strategy is to
Ans: a) make the most profit, with the least amount of risk. Which of the following is not a key stage of the entrepreneurial strategy?
Ans: d) Applying unethical strategies to be competitive Entrepreneurial Strategy MatrixThe entrepreneurial strategies are an aid of decision making for the entrepreneurs at different degree of risk and innovation. In the above figure of entrepreneurial matrix, innovation and risk are main measurement variables. This matrix is very useful for the analysis of new venture creation. Here, innovation means creating new product and services whereas risk refers to the probability of financial and other major loss. In the figure, four quadrants can be seen i.e. in first quadrant high innovation/ low risk, high innovation/high risk, low innovation/low risk, and low innovation/high risk. These quadrants represent the four profiles for analyzing the new venture (Lima, Polo, & Matos, 2010). The first quadrant shows high innovation/low risk situation. In this situation, the venture carries little risk with little investment and focuses mostly on research activities and developmental activities. Similarly, the second quadrant shows the situation of high innovation and high risk. In this situation, venture carries high investment with high research and development to be competitive in the market. The third situation of low risk and low innovation represent the venture carries both low investment and risk; and in this situation some ventures fail as well. The fourth situation of low innovation and high risk represents the small ventures business where there is low requirement of innovation. New EntryNew entry means offering or introducing the new product and services to the targeted consumer in an established or new market. When the entrepreneurs generate new ideas through the innovation that can add value to its company along with the targeted market then; they make new entry of their product and services in the market. New entry can also be known as the combination of human creativity, innovation, and other resources in the product or services. In order to make the new entry in the market many entrepreneurs involve in the research activity for the generation of new idea, concept, knowledge and technology for introducing the innovative and unique product for the customers. New entry contributes for the survival and growth of the business in the competitive market. But introduction of the new product also create challenges for the entrepreneurs to make the customer familiar with their product and services, provide detail information of product, and risk of loss and not meeting the target. FAQs, The primary force encouraging the entry of new firms into a purely competitive industry isa) economic profits earned by the firms already in the industry. In which of the following industry structures is the entry of new firms the most difficult?a) Oligopoly How does the entry of new coffeehouses affect the profits of existing coffeehouses?a) Entry will not affect the profits of existing coffeehouses. When new firms have an incentive to enter a competitive price-taker, their entry willa) increase the price of the product. Generation of New Entry OpportunityIn order to enter the market with the new products, entrepreneurs should generate new entry opportunity by utilizing the resources and knowledge they acquire; along with proper analysis of the market situation. While generating the new entry opportunity, entrepreneur must aim of creating value in the society. Some of the elements that must be taken while generating new market opportunity are as follows: i. Resources as a source of competitive advantages:Resources are most for generating new entry opportunity in the market. Resources can be capital, human, machine material, etc. Efficient utilization of resources in the production process helps to gain competitive advantage. The nature of the resource should be valuable, rare and imitable, for the better performance of the organization. ii. Creating Resource Bundle:Creating the resource bundle which is valuable, rare, and inimitable is the important element of generating new opportunity. The sources of resource bundle are the collective mind and experience of the entrepreneurs, managers, and employees. The main source of creating the resource bundle are; entrepreneurs market knowledge and technology knowledge. iii. Assessing the attractiveness:Entrepreneur should be able to asses attractiveness of new product or service in the market. The information of the new entry and the entrepreneur’s willingness to take decision without proper information is dependent with assessing the attractiveness level. The assessment new entry attractiveness is affected by prior knowledge and information search, window opportunity and comfort with decision making. Entry Strategy for New Entry ExploitationThere must be competitive advantage over the competitors for the successful new entry exploitation in the market. Most of the entrepreneurs believe that they are the first one to introduce the new product and services in the market. The introduction of the new product will help to improve the performance in the market. There are the factors that influence the decision to enter the present market and for the delay entry. Some of the advantages of first mover are as follows:i. It develops the cost advantage by producing the large-scale production to fulfill the market demand. Similarly, the first-mover disadvantages are: i. Sometime entrepreneurs should face the problem of customers uncertainty. Risk Reduction Strategy for New Entry ExploitationThere is no business without risk. That’s why, entrepreneurs should take necessary measures to develop strategy to reduce level of risk associated with new entry exploitation. Basically, there are two strategies to reduce the risk and uncertainties are as follow: Fig: Risk Reduction Strategy for New Entry Exploitation (Poudyal & Pradhan, 2020) i. Market Scope Strategies:This scope focus on making choice by the entrepreneur to make decision on which customer to serve and how to serve them in the best way. This strategy includes: a) Narrow-Scope Strategy: This strategy focuses on producing customized product, high level of craftmanship and localized business operation. It also offers the small range of product to small number of customers in order to satisfy their needs. This helps to reduce the level of risk as it can concentrate the resources in limited market focusing its targeted customers. b) Broad Scope Strategy: It offers the range of products at different market segments considering the portfolio approach for dealing with the uncertainties. From this, the entrepreneurs can understand the whole market by determining the product profitability and the loss. In this way, this strategy reduces the risk associated with uncertainties over customers preferences. ii. Imitation Strategy:It is another strategy on minimizing the risk associated with the loss of new entry. This strategy involves the copying the practices of other firms having similar nature of business. Most of the entrepreneur finds easy to imitate the practice of successful business rather than going through the long and expensive process of systematic research. This strategy includes: a) Franchising: It is the process of imitating proven formula for the new entry from a franchiser (Poudyal & Pradhan, 2020). It helps to minimize risk through the contract between the new entry firm and franchiser by allowing to use brand image and value of the product or serve. MC Donalds, KFC, Hotel Radisson, are the examples of franchising. Bibliography(n.d.). Retrieved from Study.com: https://study.com/academy/answer/in-which-of-the-following-industry-structures-is-the-entry-of-new-firms-the-most-difficult-a-oligopoly-b-pure-monopoly-c-monopolistic-competition-d-pure-competition.html Introduction to Entrepreneurship – Definition, Nature, Development and Process | Fundamentals of Entrepreneurship Which of the following is an advantage of the matrix organizational structure?Perhaps the biggest advantage of a matrix structure is that it brings together highly skilled team members from different departments, allowing the organization to capitalize on the resources it already has rather than seeking expertise and recruiting project team members from outside of the organization.
Which of the following are advantages of the matrix organization structure quizlet?-Matrix advantages include that it is flexible, easier to share resources, better cooperation between departments, more input for decisions, wide acceptance of decisions, good discipline-specific knowledge, effective integration on projects and increased knowledge transfer between projects.
Which of the following is an advantage of the matrix design quizlet?Which of the following is an advantage of the matrix organizational structure: It makes good use of organizational resources.
Which of the following is a disadvantage of matrix organizational structures quizlet?A disadvantage of a matrix organizational structure is that conflicts will arise between project managers and functional managers regarding priorities.
|