Introduction and Overview of Myer
This report is all about the corporate entrepreneurship strategy of the company to gain the competitive advantage. The organizations need to adopt these strategies because they have to deal with external environment which is changing continuously. The external factors that influence the competitive situation are the political, social, economic, legal and environmental and all these factors need to analyze before creating any strategy. This report is going to be focused on the retail company Myers to understand the theoretical concepts of the corporate entrepreneurship. The companies need to bring a lot of creativity and innovative skills in order to gain the competitive advantage. The need to develop the corporate entrepreneurship strategy arises because of the existence of the innovation in the economy. Therefore, this report talks about the strategy of corporate entrepreneurship in the retail company named as Myers(Myer Pty Ltd, 2017).
Myer is the largest retail store in Australia and it was established in the year 1899 by the Sydney Myer. However, the company is serving in the field of the style and fashion for the last 100 years. There were around 67 stores available in Australia at different locations. Moreover, the company is working with the 12,500 people and with 54000 shareholders and with the global suppliers approximately 1200. Talking about the products offered by the Myer group are as below:
- Women wear
- Men wear
- Kids wear
- Beauty products
- Homewares
- Footwear
- Handbags and accessories
The main sources to gain the competitive advantage are knowledge, technology, the skills of the employees. There are two main activities, like individual as well as the organizational entrepreneurial tasks are helpful in developing the strategy as to just for the survival of the company in the competitive world.
The mission of the Myer retail company is to provide the different offers with an intent to attract the maximum customers by offering them the different styles and various brands of the fashion.
The vision of the company is to bring a love of shopping in the life of the human beings. At Myer, it is possible by offering the wanted brands to the customers and by creating the customer experiences. The Omni channel is the initiative took from the company in order to deliver a world class shopping experience(Mcclintock, 2016).
There are many values of the Myer group that focusing on the culture as well as the behavior of the company.Some of the values are:
- Be passionate
- Delight your customers
- Challenge yourself
- Be courageous
- Do whatever is right
It is very important to understand the main theoretical concepts before creating any strategy for the Myer company in order to gain the competitive advantage. The two main theoretical concepts are corporate entrepreneurship and strategic management.
Myer
The simple definition of the corporate entrepreneurship given by the Morris is that it is the integration of the organizational venturing and the strategic entrepreneurship. There are four main models of the corporate entrepreneurship, presented in the below image: Enabler, producer, opportunist and Advocate(Ferreira, 2002).
The process of the corporate restructuring involves the three main steps which are defined below:
- Strategic renewal: – This is the first step of the corporate entrepreneurship as it involves the renewal of the key ideas of the company to transform the organization. However, it includes the activities such as redefining the business concept, re-structuring of the business, and making changes for innovation(Moriano, 2011).
- Innovation: – This part of the process is playing a very crucial role as the main focus is given to the creativity and innovation in technology. This involves the innovation at the time of the new product launch, new production methods and procedures. Innovation always plays the crucial role in the companies in order to survive in the competitive world(Garvin & Levesque, 2006).
- Corporate venturing: – This is the most effective feature of entrepreneurship as this element of the process includes the business strategies to create the new venture, to redefine the products and services and targeting new markets. For all organizations, regardless of size, the new business-venturing dimension refers to the creation of new business(Farinos & Latorre, 2011).
In the concept of the strategic management, there are five dimensions on the intensity, flexibility, horizon, planning and control attributes. All these five dimensions are explained below:
- Scanning intensity: – This is the first step of the making of strategy that involves into the test and analyze the available opportunities for the company. Before creating any strategy, it is very important to scan the threats of the company in its own environment. The Myer company has the threat of high competition because of which company nee a strategy for the survival of the company(Enginoglu & Arikan, 2016).
- Planning flexibility: -This refers to the situation of the company to accept the changing working conditions of the internal as well as the external environment. All the short term, long term and medium term goals of the company need to restructure while making any strategy for the company.
- Planning horizon: – Planning horizon refers to the time period for the creation as well as implementation of the strategies in the company(Nkosi, 2011).
- Locus of planning: – This dimension demonstrates the involvement of the team of the employees within the organizations. However, it can be of two types, shallow as well as deep. Shallow locus means the involvement of the top managers only in the planning, whereas on the other side, deep locus includes the involvement of all levels of employees(Sakhdari, 2016).
- Control attributes: – This is the last and crucial dimension as it involves the controlling techniques that check whether the goals and objectives are attained or not. There are two types of control- strategic and financial control. Strategic control is useful to check the performance in the market and financial control helps in measuring the financial status of the company.
At Myer, the company needs to bring some more innovation in the styles and the different brands and also expand their retail stores as their number is very less. For this company need to build the strategy and implement that strategy to gain the competitive advantage. Before creating strategies, Myer company needs to analyze the External environment. The strategy chosen to deal with the competition is that the company should open up more retail stores in other countries and bring and promote the innovation to make changes to the organization’s structure(Bouchard, 2001).
The analysis of the external environment is important for the expansion of the business or opening of the more retail stores in the other countries. Myer company should analyze the external environment before making any strategy. The company needs to create strategy because it is facing a high competition. The retail Store, Myer, need to identify all the main business and external factors that may affect the strategic management with the company. There are three different levels of actors that taken into consideration while creating these strategies.
- To analyze the Environmental factorsthat are at the organizational level,
- To consider all the Organizational factorsspecifically related to the organization or Myer and
- To evaluate the Individual level factorsthat include all the values and beliefs of the people.
Environmental factors involve all the political, economical, competition, technological changes and market conditions that have an influence on the organizational structure, resources, competence and the reward system. All these factors should be analyzed in order to bring a change in the organization.
Political Environment: These factors are related to the government and the politics of the Australia. It has been observed that the Myer company faced the low political because of the stability in the economy. Myer can take the benefits from these factors as the government of the Australia is offering free trade agreements with the emerging companies such as New Zealand, China and Singapore. However, it is very easy for the Myer company to import the brands across the globe by signing these agreements.
Economical: The economic environment of the Australia has the negative impact on the retail industry because of the financial crisis in 2009. This environment is very unfavorable for the Myer company (Myer Pty Ltd, 2017).
Mission
Technological: Technology opens up a lot of opportunities for the Myer to reach the wide range of the customers by offering the online shopping and the online direct marketing techniques.
Labor environment: The employees of the company are the strength of the company as they are the main representative of the company and the company is already offering the best services and facilities to the employees with attractive wages.
Legal and regulatory: Myer already adopted the corporate governance to improve the performance of the employees and managers. The Code of the Myer’s also offers some of the legal guidelines relevant to the operations of the Myer such as occupational health and safety, code of ethics, fair trading, employment practices.
Global Environment: The company has great opportunities to expand the business globally as there are many emerging countries for the expansion of the business across the globe. The countries like China, New Zealand has the potential to grow in the field of retail industry.
Competitive Environment: This is the most risky environment as there is a very high competition for the Myer’s such as the David Jones, Kmart, and Big W.
Customer Environment: The company has the greatest customer value and the company is targeting the niche market as these people never hesitate to pay high prices for the high quality and famous brands.
Organizational factors are related to the business models that the Myer company is already using and how it will be affected by the corporate entrepreneurship strategies. The individual factors can have a great impact on the organization as a whole and even in the retail industry. All these levels of the factors may affect the entrepreneurial mindset(Brizek, 2015).
- Entrepreneurial vision and mission,
- Entrepreneurial culture, and
- Entrepreneurial leadership.
However, the Mayer company should manage all its strategies to avoid the risks and management of the strategies means to gain the competitive advantages by the Mayer by opening up new stores with the use of the innovation and the latest technologies. The various models of the corporate entrepreneurship strategy suggest that the competitive advantage of the Myer brand can be gained by enhancing the creation, development of the innovation and to promote the brand in the niche market.
Therefore, the corporate entrepreneurship strategy for the Myer will help to gain the competitive advantage by analyzing all the above factors. The company has the threat of high competition and the negative point of the Myer is that it has very minimum number of stores across the world. The company needs to focus on the niche markets outside the Australia. No doubt, Company is offering the Omni channel and the customer Led offers to attract the people, but all these offers of the Myer require more innovation to make love for shopping in the life of people. Myer need to focus on the corporate innovation and venturing strategies just to give the wonderful shopping experiences to the people(Armesh, Ghalandarzahie, & Shahnevazie, 2013).
Vision
After analyzing the internal and external environmental factors, the next important thing is to analyze the different activities and assessing them to achieve the goals of the company. However, this is the assessment of the current situation of the company. The different categories of the Entrepreneurial health assessment of the Myer company are given below:
- Management support, for Corporate Entrepreneurship: The management of the Myer company is supportive and always ready to bring some changes in the organizations. However, the management of the Myer company always opens for the corporate entrepreneurship(Piekarski, Zocche, & Francisco, 2013).
- Climate: The working environment of the Myer Company is good and it has the high entrepreneurial intensity.
- Organizational boundaries: The organizational boundaries are not may create problem in making the strategies to gain the competitive advantage(Talukdar, 2016).
Except these factors, the SWOT analysis also conducted in order to assess the entrepreneurial health of the Myer Company. The SWOT analysis is represented through the below table :
Therefore, the overall assessment of the Myer company and its entrepreneurial performance demonstrates that the company has the greatest potential to grow in the niche markets and it has a high intensity of the corporate venturing because of the good working climate in the organization. Moving further, there are some of the dimensions shows the uncertainty and disagreement such as organizational boundaries(Suárez-Alvarez & Pedrosa, 2016). Therefore, the entrepreneurial health of the Myer company needs more improvements to gain the competitive advantage.
Conclusion
This report mainly focused on the retail company Myers to understand the theoretical concepts of the corporate entrepreneurship. The companies need to bring a lot of creativity and innovative skills in order to gain the competitive advantage. The need to develop the corporate entrepreneurship strategy arises because of the existence of the innovation in the economy. Therefore, the corporate entrepreneurship strategy for the Myer will help to gain the competitive advantage by analyzing all the above factors. The company has the threat of high competition and the negative point of the Myer is that it has very minimum number of stores across the world. The company needs to focus on the niche markets outside the Australia. However, the Mayer company should manage all its strategies to avoid the risks and management of the strategies means to gain the competitive advantages by the Mayer by opening up new stores with the use of the innovation and the latest technologies.
References
Armesh, H., Ghalandarzahie, K., & Shahnevazie, Y. (2013). Emerging Issues in Corporate Entrepreneurship and Development of Firm Performance: Exploring of literature. Journal of Basic and Applied Scientific Research, 3(12), 235-244. Retrieved from https://www.textroad.com/pdf/JBASR/J.%20Basic.%20Appl.%20Sci.%20Res.,%203(12)235-244,%202013.pdf
Bouchard, V. (2001). Exploring Corporate Entrepreneurship : A Corporate Strategy Perspective. Retrieved from https://www.hajarian.com/esterategic/tarjomeh/balideh1.pdf
Brizek, M. (2015). Explaining corporate entrepreneurship: A contemporary literature investigation. Journal of Management and Marketing Research, 1-13. Retrieved from https://www.aabri.com/manuscripts/131617.pdf
Enginoglu, D., & Arikan, C. (2016). Creating a corporate entrepreneurship strategy for competitive advantage. International reviews of economics and management, 4(1), 14-28. Retrieved from https://dergipark.gov.tr/download/article-file/286540
Farinos, J., & Latorre, A. (2011, September). Corporate entrepreneurship and acquisitions: creating firm wealth. International Entrepreneurship and Management Journal, 7(325). Retrieved from https://rd.springer.com/article/10.1007/s11365-011-0201-4
Ferreira, J. (2002). Corporate Entrepreneurship: a Strategic and Structural Perspective. Retrieved from https://citeseerx.ist.psu.edu/viewdoc/download;jsessionid=FEC79A2EB344CF72BB1CE60229E1A194?doi=10.1.1.124.7201&rep=rep1&type=pdf
Garvin, D., & Levesque, L. (2006). Meeting the Challenge of Corporate Entrepreneurship. Retrieved from https://hbr.org/2006/10/meeting-the-challenge-of-corporate-entrepreneurship
Mcclintock, N. (2016). Myer Annual Report. Retrieved from https://investor.myer.com.au/FormBuilder/_Resource/_module/dGngnzELxUikQxL5gb1cgA/file/Myer_Annual_Report_2016.pdf
Moriano, J. (2011). Corporate Entrepreneurship. Retrieved from https://kmps.vse.cz/poe/wp-content/uploads/2011/07/IP-Corporate-Entrepreneurship.pdf
Myer Pty Ltd. (2017). Our vision & values: Myer. Retrieved from www.myer.com.au: https://www.myer.com.au/c/about-myer/careers/working-myer/our-vision-and-values.html
Nkosi, T. (2011). Corporate Entrepreneurship and Organisational Performance in the Information and Communications Technology Industry. Retrieved from https://wiredspace.wits.ac.za/bitstream/handle/10539/11983/Corporate%20Entrepreneurship%20and%20Company%20Performance%20-%20ICT%20sec.pdf?sequence=1
Piekarski, C., Zocche, L., & Francisco, A. (2013). Life Cycle Assessment as Entrepreneurial Tool for Business Management and Green Innovations. Journal of technology management and innovation, 8(1), 1-10. Retrieved from https://www.scielo.cl/pdf/jotmi/v8n1/art05.pdf
Sakhdari, K. (2016). Corporate Entrepreneurship: A Review and Future Research Agenda. Technology Innovation Management Review, 6(8), 5-18. Retrieved from https://timreview.ca/sites/default/files/article_PDF/Sakhdari_TIMReview_August2016.pdf
Suárez-Alvarez, J., & Pedrosa, I. (2016, January). The assessment of entrepreneurial personality: The current situation and future directions. Retrieved from https://www.researchgate.net/publication/295673460_The_assessment_of_entrepreneurial_personality_The_current_situation_and_future_directions
Talukdar, R. (2016, September). Situation analysis and personality. Retrieved from https://www.slideshare.net/DrRupaTalukdar/situation-analysis-and-personality
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