Overview

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Summarization of Chapter 13 Case Analysis (ROOM & BOARD) S.W.O.T Analysis 5 Porter Forces Balance Scorecard Analyzed Strategies & How It Impacts Performance Recommendation New Strategies

The Strategic Management Process

Chapter Summarization
Chapter 13: Entrepreneurial Implications for Strategy
Entrepreneurship Identify entrepreneurial opportunities without being immediately constrained by the resources they control. Strategic Entrepreneurship 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. Corporate Entrepreneurship Application of entrepreneurship within ongoing, established organization

Chapter Summarization
Chapter 13: Entrepreneurial Implications for Strategy
International Activities

Firms domestic market to global

Innovative Activities

Invention, Innovation, Imitation

Approach to produce Innovation Internal Innovation, cooperative strategy, innovation through acquisitions

Room & Board

national retail stores an annual catalog a Web site

SWOT Analysis
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.

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.

SWOT Analysis
OPPURTUNITIES
Expand market - Europe & Asia Development of technology innovative in online sales. Strategic alliances university & international firm designing ; green materials for furniture.

THREATS

Small furniture retailer copy the model & offer low price. Regulatory environment across the globe vary the use of natural resources.

5 Forces Analysis
Bargaining Power of Buyers High Buyer can switch to competitors brand offering same products Bargaining Power of Supplier Low R&B create their own supply chain, vendor true relationship allow R&B to set annual goal of its product in stock quick delivery

Rivalry Among Existing Competitor High Competition from direct competitors Eg: Reach & Crate, Barrel

Threats of Substitutes Low Offer different from traditional furniture, used high Q hardwoods, granite & steel other company may use different material

Threats of New Entrants Low Difficult to entry huge capital requirement & highly developed supply chains.

Balance Scorecard
Financial fully integrated
multichannel sales approach

Sales

disavowed debt and equity-growth financing Embraced a unique multiple-stakeholders Same pricing model for everyone

Balance Scorecard
Customer

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

Balance Scorecard
Internal Business Process
Has its own supply chain More than 85% in US Discuss needs and share financial info

Supply Chain

Culture & Facilities

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.

Own its sales locations Plan to expand more in US Freestanding sites with ample parking Easy access Decorate with self design and furniture

Store Format

Service Offering & Distribution System

Own delivery centre Partnership with Minneapolis Comp.

Balance Scorecard
Learning & Growth
Room & Board help suppliers, employees learning more companys strategic information and action. based on the principle of trust, respect, relationships, transparency, entrepreneurial ownership of ones 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 1986 1989 1991 1991 1993 1997 2002 2004 2005 Location Skokie, IL Edina, MN Denver, CO Culver City, CA Chicago, IL Oak Brook, IL South Coast Plaza Village, SoHo, NY San Francisco, CA

Growth

Analyzed Strategies & How It Impacts Performance

Strategy Innovations in company culture, supply chain, employee development, leadership team, delivery center, and stores. Strategy Culture based on trust respect, relationship, transparency, entrepreneurial ownership of ones job and career. Strategy Guiding principles for employees and leaders Employees were shown annual strategy and detail financial package every month

Entrepreneurial mind-set

Good Culture

Clear expectation

Impact Employees became one of the competitive advantage for the firm

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

Impact This helped the employees to understand their connection to its business Understand the firms goal

Analyzed Strategies & How It Impacts Performance

Strategy Employees given Investment advice at no cost extensive physical fitness facility No rules for personal leave and sick pay Strategy Met with its vendors frequently to plan growth, discuss needs and share financial data Strategy 85% of the companys product were made in the United Sates

Good Benefit

Good relationship with vendors

Quality

Impact employees were happier and served better service to customer

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

Impact Maintain and attract new customers

Recommendation New Strategies

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Room & Board can be innovative through cooperative strategies strategic alliance with Europe and Asian new innovation to handle green earth issue

Thank You!