OverviewOverview

4

Summarization of Chapter 131

2

3

5

Case Analysis (ROOM & BOARD)

S.W.O.T Analysis

5 Porter Forces

Balance Scorecard

7

Analyzed Strategies & How It Impacts Performance6

Recommendation New Strategies

The Strategic Management ProcessThe Strategic Management Process

Chapter SummarizationChapter Summarization

Entrepreneurship

Strategic Entrepreneurship

Corporate Entrepreneurship

Chapter 13: Entrepreneurial Implications for Strategy

Identify entrepreneurial opportunities without being immediately constrained by the resources they control.Identify entrepreneurial opportunities without being immediately constrained by the resources they control.

Taking entrepreneurial actions using a strategic perspective. Firm engaging in strategic entrepreneurship & to continuously find new opportunities that it can try to exploit through innovations.

Taking entrepreneurial actions using a strategic perspective. Firm engaging in strategic entrepreneurship & to continuously find new opportunities that it can try to exploit through innovations.

Application of entrepreneurship within ongoing, established organizationApplication of entrepreneurship within ongoing, established organization

Chapter SummarizationChapter Summarization Chapter 13: Entrepreneurial Implications for Strategy

International Activities

Innovative Activities

Approach to produce Innovation

Firm’s domestic market to globalFirm’s domestic market to global

Invention, Innovation, ImitationInvention, Innovation, Imitation

Internal Innovation, cooperative strategy, innovation through acquisitionsInternal Innovation, cooperative strategy, innovation through acquisitions

Room & Board

national retail storesan annual catalog a Web site

SWOT Analysis SWOT Analysis WEAKNESSES

Depend totally on American designer & supplier.

Product only for American customers.

Lack of advertising.

Less number of store.

Low volume in phone & Web sales.

STRENGTHS

Long-term business relationship with vendors : Create their own supply chain (40 diff. vendor) & delivery centre.

Lower employee turnover – full time & pay based on salary.

Positive corporate culture – trust, respect, relationship, transparency.

Employee Benefits – offered added value (facility, programs & service).

Multichannel sales approach.

THREATS

Small furniture retailer – copy the model & offer low price.

Regulatory environment across the globe – vary – the use of natural resources.

SWOT Analysis SWOT Analysis

OPPURTUNITIES

Expand market - Europe & Asia

Development of technology – innovative in online sales.

Strategic alliances – university & international firm – designing ; green materials for furniture.

5 Forces Analysis5 Forces Analysis

Rivalry Among Existing Competitor

HighCompetition from direct competitors

Eg: Reach & Crate, Barrel

Bargaining Power of BuyersHigh

Buyer can switch to competitors brand – offering

same products

Bargaining Power of SupplierLow

R&B create their own supply chain, vendor – true relationship allow R&B

to set annual goal of its product in stock – quick delivery

Threats of Substitutes Low

Offer different from traditional furniture, used high Q hardwoods, granite & steel

– other company may use different material

Threats of New EntrantsLow

Difficult to entry – huge capital requirement & highly developed

supply chains.

Balance ScorecardBalance ScorecardFinancial

fully integrated

Salesmultichannel

sales approach

disavowed debt and equity-growth financing

Embraced a unique multiple-stakeholders

Same pricing model for everyone

• Customers are mainly consuming high-quality and exclusive design of furniture and less concerning price

• Focus on interaction with the customer from the beginning to the end

• Gain customer satisfaction more than 96 percent

Customer

Balance ScorecardBalance Scorecard

Internal Business Process

Supply

Chain

 Culture &

Facilities

Store Format

Service Offering &

Distribution System

Balance ScorecardBalance Scorecard

• Has its own supply chain

• More than 85% in US• Discuss needs and

share financial info

• Own delivery centre • Partnership with

Minneapolis Comp.

• Own its sales locations• Plan to expand more in

US• Freestanding sites with

ample parking• Easy access• Decorate with self design

and furniture

• Create harmony and good environment

• Share accountability with employees

• More facilities for employees

• trust, respect, relationships, transparency, entrepreneurial ownership and the importance of the balanced life.

Balance ScorecardBalance ScorecardLearning & Growth

• Room & Board help suppliers, employees learning more company’s strategic information and action.

• based on the principle of trust, respect, relationships, transparency, entrepreneurial ownership of one’s job and career and the importance of a balance life.

• The Guiding Principles has introduced to employees and leadership team.

• Training its own staff for delivery is to transfer good quality service to customers.

Year Location1986 Skokie, IL1989 Edina, MN1991 Denver, CO1991 Culver City, CA1993 Chicago, IL1997 Oak Brook, IL2002 South Coast Plaza Village, 2004 SoHo, NY2005 San Francisco, CA

Growth

Entrepreneurial mind-set

Clear expectation

Analyzed Strategies & How It Impacts PerformanceAnalyzed Strategies & How It Impacts Performance

Impact•Employees feel happy when spending time at work and can dealt well with customersLow employee turnover

StrategyCulture based on trust respect, relationship, transparency, entrepreneurial ownership of one’s job and career.

Impact

•This helped the employees to

understand their connection to

its business

•Understand the firm’s goal

Strategy Guiding principles for

employees and leadersEmployees were shown annual

strategy and detail financial

package every month

Impact • Employees became one of the competitive advantage for the firm

StrategyInnovations in company

culture, supply chain, employee

development, leadership team,

delivery center, and stores.

Good Culture

Good Benefit Quality

Analyzed Strategies & How It Impacts PerformanceAnalyzed Strategies & How It Impacts Performance

Impact•Contributing to quick deliveries and can control over product quality•Reduced the risk of supply chain disruption

StrategyMet with its vendors frequently to plan growth, discuss needs and share financial data

Impact

Maintain and attract new

customers

Strategy 85% of the company’s product

were made in the United Sates

Impact employees were happier and

served better service to

customer

Strategy Employees given Investment

advice at no cost extensive physical fitness

facilityNo rules for personal leave

and sick pay

Good relationship

with vendors

Recommendation New StrategiesRecommendation New Strategies

1

2

Room & Board can be innovative through cooperative strategies - strategic alliance with Europe and Asian

new innovation – to handle “green earth” issue

Thank You!Thank You!