1.0 Executive Summary
Room & Board is successful in domestic furniture retailer. The American furniture retailer has initially developed based on IKEA business model by John Gabbert. He adopted different strategy from other traditional furniture industry. He focuses on high quality and design, and became popular and set a high loyal brand in the USA. Room & Board also succeed in implementing entrepreneurial strategies to create value. The company transfer its entrepreneurial ship mind-set to its employees even suppliers. Its core competency is using relationship business model, utilizing its source and capability to exploit competitive advantage to achieve above returns. Under external and internal analysis, the external environment doesn’t affect Room & Board’s business from 1995 to 2007. Because it does innovation bringing new into use, such as innovations in company culture, supply chain, employee development, leadership team, delivery center, and stores. Room & Board uses internal innovation, which from induced strategic behavior in the company. Vertically integrated business model ( innovation through cooperative strategy) that Room & Board used, which has engaged the energies of suppliers, employees, customers in its domain both inside and outside the company. The guide principle has been in Room & Board’s its leader team as cross-functional product development team. It’s obviously that Room & Board adopts incremental innovation. It improve traditional rules such as maintain good relationship with domestic suppliers, sharing business information of company with them, and making growth of business together. The suggestion for Room & Board is in the parts of internal innovation, cross function leadership team, innovation in cooperative strategy: strategy alliance and acquisition. 2.0 Chapter 13 Summary
Strategic entrepreneurship is taking entrepreneurial actions using a strategic perspective. Firms are engaging in simultaneous opportunity-seeking and competitive advantage-seeking behaviors, and designing and implementing entrepreneurial strategies to create wealth. Strategic entrepreneurship actions can be taken by individuals and corporations. Entrepreneurship is concerned with the discovery and exploitation of profitable opportunities. Firms that encourage entrepreneurship are risk takers; committed to innovation; and proactive in creating opportunities rather than waiting to respond to opportunities created by others. Entrepreneurial opportunities are conditions in which new goods or services can satisfy a need in the market. So entrepreneurs or entrepreneurial managers must be able to identify opportunities not perceived by others; take action to exploit the opportunities; and establish a competitive advantage. There are three types of innovative activities: (1) invention, (2) innovation, and (3) imitation. The most successful entrepreneurs have an entrepreneurial mind-set, which is an orientation that values the potential opportunities available because of marketplace uncertainties. International entrepreneurship, or the process of identifying and exploiting entrepreneurial opportunities outside the firm’s domestic markets, is important to firms around the globe. Three basic approaches are used to produce innovation: (1) internal innovation, which involves R&D and forming internal corporate ventures, (2) cooperative strategies such as strategic alliance, and (3) acquisitions. There are two forms of internal corporate venturing: autonomous strategic behavior and induced strategic behavior. Firms create two types of innovations-incremental and radical. Cross-functional integration is often vital to a firm’s efforts to develop and implement internal corporate venturing activities and to commercialize the resulting innovation. Strategic entrepreneurship contributes to the economic development of countries. 3.0 External Environment Analysis
PESTLE: Political- As part of the national or global trends and...
Please join StudyMode to read the full document