ENTREPRENEURIAL STRATEGY (BB31403)

TUTORIAL WEEK 4:
Topic 4: The Entrepreneurial Process and New Venture Creation
– Exploitation of Business Opportunity
Topic 5: Organisation and Control of Resources

GROUP 14: LOGISTICS AND TECHNICAL COMMITTEE

No. Name Matrix Number

1. MOHD HAIQAL AZIMI BIN GUNTAR BB20110280

2. NINA SYAZWINA BINTI HARIMAN BB20110199

3. LIYANA NATASHA BINTI LAZRAN BB20110197

4. IZZAH NADZIRAH BINTI TUKIMAN BB20110621

In a group, read the article by Hitt, Ireland, Sirmon & Trahms (2011), and in not more than
300 words,

1. Explain ‘strategic entrepreneurship’?

Strategic entrepreneurship involves creating value on the firm's efforts in shaping market
competitiveness and wealth by identifying opportunities that can be exploited in the market. In
other words, strategic entrepreneurship also involves creating and maintaining one or more
competitive advantages as a route through which opportunities are exploited. The elements that
form the basis of strategic entrepreneurship include growth, creating value for customers and
creating wealth for the company. According to this article, a company's wealth can be leveraged
for various stakeholders, including society. Moreover, entrepreneurs who play a role in opening
up new markets by introducing new products, services and technologies are able to find benefits
that are beneficial to all organizations, in addition helping to generate new wealth.

Moreover, strategic entrepreneurship (SE) is the simultaneous pursuit of opportunities and

competitive advantages that improves business success. In the dynamic process of simultaneous
opportunity and advantage seeking behaviors, the SE model which has been improved or advanced
integrates the environmental, organizational, as well as individual focuses. These behaviors add
value for societies, organizations and also to people when they are applied properly. There are
three dimensions in the SE model which are the resource/factor inputs, resource orchestration
processes, and outputs.
2. Explain the ‘resources’ and ‘outcomes’ of strategic entrepreneurship in an
entrepreneurial process.

According to the article, the improved model of strategic entrepreneurship presented herein
incorporates environmental influences, explains how resources are managed in the process of SE
to create value over time, and describes several different outcomes, thereby providing a more
comprehensive view of the field.

The new model, resource management discussions, and unique SE outcomes generate a number
of valuable and important questions that merit scholarly investigation to advance our
understanding of SE and its application in organizations. Effective competitive positioning is a
key factor influencing a firm's ability to generate value and wealth for stakeholders and society as
a whole (Ketchen, Ireland, & Snow, 2007; Porter, 1980). Similarly, the firm's unique resource pool
influences efforts to achieve these outcomes (Barney, 1991).

There are three dimensions of SE model's: resource/factor inputs, resource orchestration processes,
and outputs. The first dimension specifies the resources/factors that serve as inputs to the SE
process at various levels, such as environmental factors, organizational factors, and individual
resources. Second, the firm's SE-related actions or processes, focusing on resource orchestration
and entrepreneurial actions used to protect and exploit current resources is examined. Finally, the
differences of outcomes across levels are examined.

A successful SE will result a potential outcome which benefit individual, organization and social.
In terms of individual, the entrepreneur gain satisfaction for himself such as owning a knowledge
to implement a new venture. On the other hand, the organization have the advantage in terms of
technology and innovation. Having the access to scientific knowledge are one of the advantages.
In terms of social, entrepreneurs activity basically become the major contribution to the growth of
economy, creating new job opportunities as well as enhancing market valuations.