managing in an entrepreneurial way crespin thibault .pdf

2013

Thibault Crespin

Institute of Applied Entrepreneurship

Address: Priory Street,

Coventry CV1 5FB

- Tel.: 024 7688 7688

MA In Global Entrepreneurship

MA in Global Entrepreneurship

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MANAGING IN AN ENTREPRENEURIAL WAY M102IAE

Introduction

In this report, the writer will explain the company in general as the object of study.

Secondly, there will be an explanation about their organization and their entrepreneurialism,

how they proceed and what they do to improve their entrepreneurialism or to raise the

amount of their sales. In addition, there will also be an explanation related to what their

goals are and what they should change to succeed. Moreover, the writer will also try to

determine what their value and principle, what they want to keep or lost in their enterprise

in order to be more efficient. In the end, there will be some solutions or recommendations

to help the company to be stronger in entrepreneurial industry.


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Details of the company/organisation being investigated

The aim of this investigation is to understand how the company operates currently.

To answer this, relevant facts are needed to be gathered by asking the right questions, to

find out what actually happens and to know their views on how things are going or what

they want to see in the future.

First of all, the company Bruyerre is chosen as the object of study because there is a

chance for the writer to explore the company as his godfather works there in the finance

and accounting service, so that the writer knows this enterprise well. Moreover, Bruyerre is

a Belgium chocolatier and it is an interesting object to explore as many people love

chocolate. To begin this report, there will be a sum up the history of the company and the

organization.

In 1909, Franois Lon Bruyerre established the Bruyerre chocolates. Then in 1922,

he bought an old biscuit factory and began making pralines, chocolate bars, confectionery

and commodities for the Bakery. After World War II in 1945, Franois Lon died, and then his

two daughters and their husbands succeeded him. They extended the range of production

equipment and workshop store. In 1973, their children took the office. The third generation

opened the first Cash & Carry" shop in Gosselies. It also followed the first complete Shop

fitting "Keys to door" and activities of after-sales service. After that in 1984, Bruyerre group

existed with its four main activities: the raw materials, cash and carry" stores, after-sales

and the chocolate factory service.

Then, it came to the dark years, with the death of Martine and Thierry Collet.

Fortunately, Jean Franois Collet managed to meet the business, negotiated extensively with

banks and customers so that they regained their confidence. In the 2000s, he decided to

combine the four main activities on the site Gosselies.

At present, the Bruyerre company is again sitting on a solid, strong base of its 90

employees and a modern infrastructure of 11,500 sqm. The turnover is nearly 32 millions;

it has increased by 64% in 4 years, mainly because the part is made of commodity trading.

On the other hand, it should be noticed that the chocolate is still below the equilibrium

because they use too many labours (it is the smallest percentage of turnover) but Bruyerre

does not want to give this role because they are well known for this activity.

Nowadays, Jean Franois Collet is the CEO of the enterprise. He is described by

colleagues as someone dynamic, demanding but is always listening to his staff. He is trying to

gain market share by diversifying his products but maintaining a family and artisanal

character. However, his role does not stop there. In addition to be the owner, he also

becomes a shareholder as well as an employee of the company. He is located at the top

hierarchy in the organization; this position gives him the status of leader. It should be noted

that this position was given after a relationship. The structure of the organisation is simple.


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There are only three levels of production. Hereby there is a flow-chart of the organisation

structure.

Jean Franois Collet aims to ensure the sustainability of the company and gains

market share (USA, Japan). We can say that its objectives are multiple and varied times. As a

matter of economic perspective, his diversification of products and services allows him to be

one of the main leaders in the marketplace. If we look at his leadership style, we can realize

that all his decisions are the result of concerted action. When he needs to make decisions,

he presents his ideas and asks the opinion on each. This deduction is due to the fact that

Jean Franois Collet is an open person who does not hesitate to take the time to listen to his

staff.

Jean-Franois Collet (CEO)

The Finance and Accounting

Service

The secretariat

A Head of Technical Services

and Equipment

The head of commodity

trading

The store manager

The head of the chocolate

A computer scientist

The human resources manager


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The measurement system/approach used for evaluation: How

entrepreneurialism is judged

Having knowledge of the enterprise and how the employees in the company work,

the writer still needs to examine which parts of the business are currently working well and

which parts are problematic and have to be evaluated, especially related to their

entrepreneurialism.

Lumpkin and Dess (1996) conceptualized entrepreneurial orientation to consist of

five dimensions: innovation, pro-activeness, risk-taking, autonomy and competitive

aggressiveness. Those dimensions will be measured, developed, and used to measure the

Bruyerre enterprise. As Bessant and Tidd (2011:38) said, Innovation is about growth about

recognising opportunities for doing something new and implementing those ideas to create

some kind of value. Furthermore, Burns (2008: 18) added that Entrepreneurial

transformation is about adapting large firms through their leadership, strategies, systems,

structures and cultures so that they are better able to cope with change and innovation.

According to Bessant and Tidd (2011) and Burns (2008), Jean Franois Collet tries to

gain market share by diversifying its products and taking opportunities. Since the beginning

of this year (2013), he has developed the e-commerce. Nowadays, we can buy the Bruyerre

chocolate online. Jean Franois knows that more and more people use the internet to buy a

product that is why he decided to develop this new way of selling. He has significantly

developed his understanding of the market by creating this online shopping. Bruyerre always

seeks opportunities, as we can see in this picture. He uses the website Groupon to open his

circle of customer and to market his products.

Burns (2008: 18) suggested that entrepreneurial management is related to the ability

of leading and managing a larger entrepreneurial organization, and therefore, it includes the

development of an entrepreneurial architecture the network of relational contracts within,

or around, an organization, employees, suppliers, customers, as well as networks. While

Bessant and Tidd (2011:17) argued that an innovative business is one which lives and


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breathes outside the box. It is not only good ideas; it is a collection of good ideas,

motivated staff and an instinctive understanding of what customer demands.

According to Bessant and Tidd (2011) and Burns (2008), Jean Franois Collet takes

care about his employees, customers and suppliers. He is always listening to his staff; we can

see in the organization graph above that there are only three hierarchical levels. This is a

family business where the information goes up quickly. This type of structure allows

adapting quickly to changes and provides flexibility. Jean Franois Collet encourages

teamwork and open discussion by the fact that when he has to make a decision, he presents

his ideas and seeks the advice from everyone. Such deduction is due to the fact that Jean-

Franois Collet is an open person who does not hesitate to take the time to listen to his staff.

Jean Franois Collet takes care about his customers. For example, the company does

not hesitate to make an investment for a single American customer and decides to maintain

the packaging of chocolates whereas the outcome was their least expensive and this suits

the aim of satisfying a loyal clientele. They also offer cooking lessons and demonstrations to

customers where they explain some recipes.

Since the beginning of the society, Bruyerre wants to keep the family side of the

business. Westhead et al. (2011) discovered several things about the objectives of family

firms. Generally, a family firm focuses on ensuring the survival of the firm as a going

concern. They give more importance on seeking to ensure continued independent

ownership of their firms.

According to Westhead et al. (2011), in the 90s Jean Franois Collet worked hard to

maintain the family business. He first held the technical service and equipment and the

negotiation with the banks to merge all in order to survive the company. The purpose was

not to make a lot of profit but to keep the family business running. The most important

vision of Jean Franois Collet was to keep the family firm safe and the entire employees

knew that. Moreover, his second dream is to export his product, so that Bruyerre becomes

more famous.

Another point highlighted by Westhead, Wright and McElwee (2011), is that family

businesses allocate key managerial positions to family members based on kinship ties rather

than expertise of knowledge. It is true that most of the family member probably knew the

business well due to the fact that they have grown there. However, everybody is different

and he or she was not all born to work on the family business. If family members desperately

think that their children have to work there, they are wrong. They definitely have to hire a

qualified personal instead of family members, which are not meant for that. Ashton (2007)

argued that without good people, the business cannot grow. Recruiting the right people is

vital to develop the firm.


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As Finkelstein et al (2007: 67) said One of the most remarkable features of the

turbulent world of business is the ability to select band of companies to maintain their

dominant position for many decades, the illustrious survivors of numerous challenges, wars,

and financial crises. Refering to this sentence, Bruyerre is in a good position due to the fact

that he survived many events. Indeed, this enterprise has existed on the market since 1909.

The company therefore has certain seniority. Furthermore, the company advocates a quality

image. They export all over the world through it. However, their products have had little

known due to lack of publicity. Thus, we can see that they are not good in terms of

marketing. In addition, they have a lower reputation than other Belgium chocolatier like

Leonidas, Godiva or Galler.

Hisrich et al. (2006) claimed that An entrepreneur needs to understand all aspects of

the environment. We can say that Jean Franois Collet has this characteristic of a corporate

entrepreneur due to the fact that he developed the e-commerce. This allows growing of

online activity and therefore promotes trade. Jean Franois Collet knows that there are

several competitors in the chocolate sector in Belgium while he extends his vision exporting

its brand by the electronics market. Then, for a better understanding of the market in which

the business is located, the researcher asks questions to his godfather to create a Porter

analysis.

Threat of new

entrants

Bargaining

power of

suppliers

Bargaining

power of

customers

State power

Threat of

substitute

products

2 3

4

1

2

0

Competitive

rivalry


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State intervention

Competitive rivalry

Threat of new entrants

Bargaining power of suppliers

Bargaining power of customers

Threat of substitute products

Nil Points : 0

The longevity of the company gives him certain notoriety and gives confidence to customers. The company is a leader in Wallonia but still quite challenged by bakers, confectioners and regional chocolatiers. Ranson SA (the biggest competitor of Bruyerre but they work only in Flanders) and Bruyerre do not want to share their own work areas to avoid conflicts and to review the prices down. Given that competitors do not have exactly the same activities, the competitive analysis is based primarily on the chocolate. Points : 3

The market is already highly competitive and so there has little chance to have new entrants, with the exception of small businesses like bakers or pastry. Points : 2

Since this is a large company, they can order large quantities and therefore have discounts. Points : 2

For smaller customers' bargaining power is not huge, but for example one of their clients for whom they bought a specialized machine, it is lower. It is the same for large areas because everyone wants to have a place on the shelves, so they have a greater bargaining power. Points : 4

There are products of industrial chocolate or other substitute like sweets, biscuits and cakes. However, they will never reach the quality required for their customers because Bruyerre sells a range higher than chocolate lovers are looking for. Points : 3

Competitive advantages


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According to Westhead, Wright and McElwee (2011), family firms avoid strategies

focusing only on short-term gains. Therefore, Jean Franois Collet does not take many risks

due to the fact that he will not make an investment if he does not believe with it. It is

because he does not want to lose his family business. When he invests or does any big

change, he thinks it in long-term. He wants to keep the successful business for the future

generation.

Bruyerre tries to become more creative in diversifying its products. On the picture

below, we can see that they create different boxes: for men, for ladies, for collector, for

people seeking luxury, etc.


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The result of the investigation

In this section, the findings will be revealed. Since the data has been obtained by

asking Bruyerre , the aim is to identify whether Bruyerre has the characteristics of an

entrepreneurial enterprise. Furthermore, their entrepreneurialism will also be analysed

further.

First thing that should be discussed is his vision of the leadership. Jean Franois Collet

wants to keep the family side of the business and he works hard to preserve and obtain this

goal. He manages to meet the business, negotiates with bankers and customers, so that he

obtains their trust again. He also continues to use the best raw materials and clever recipes;

he develops a range of very high quality chocolates to keep the craft side. Furthermore, Jean

Franois Collet desires to bigger the business to become more famous, that is why, he then

developed the e-market. Wickham (2004) argues that leadership is increasingly recognised

as a critical part of managerial success. An entrepreneur can rarely drive their goal to market

on their own. Bruyerre knows that it is important to support other people both from within

and outside the organisation.

Secondly, Jean Franois Collet tries to develop his opportunity recognition. Wickham

(2004) explains that an opportunity is a gap in the market where we can find potency to do

something better while adding value. Bruyerre found an opportunity on the e-market and

catch it. He also creates some special packages for events, for example for celebrating

Valentines Day; he creates pralines in heart shapes. He has been very accustomed with

innovation becaue he wants to innovate, he listens to his staff and tries to find new ideas.

Thirdly, in order to risk taking, Bruyerre does not take many risks because they do not

want to get their investment lost, so the family focuses on long-term planning. Employees

also do not dare to take any risk; they prefer to work normally and if they have a suggestion,

they give their proposal to their manager.

Last but not least, Bruyerre is a creative enterprise. It creates several sorts of way to

sell the products. Here we can buy business gifts, seasons packages for every taste, etc. As

Wickham (2004: 10) mentioned, The idea of innovation encompasses any new way of doing

something so that value is created. Innovation can mean a new product or service, but it can

also include a new way of delivering an existing product service. Recently, he expands his

way of selling by using the e-market; he also innovates a new way of in delivering an existing

product. Not only that, Bruyerre also creates and tries to develop many kinds of different

way to eat or taste chocolate. It always tries to combine different flavours. However, it is

better if Jean Franois Collet does not only create an innovation, but also encourages his

staff to be more creative and follow what he does.


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Recommendations; how could they be more entrepreneurial?

Before coming to recommendations for this company, the writer will determine and

evaluate the potential options for improving their entrepreneurialism. Some values need to

be reviewed and advice as well as options should be provided on the operation of the

current business, so that the company will be more entrepreneurial.

The vision of Jean Franois Collet is clear but he does not approach the good way for

the marketing. For example, he uses the website Groupon to open his circle of customer and

on the other hand, he wants to be in the high market of chocolate. Everybody knows that

Groupon is interesting to touch numerous people, but not the wealthy ones. To my part,

Jean Franois Collet has to know better which type of market he wants to reach. If the

company wants to offer a different product from the competitors, they must continue with

this in mind and change their marketing way.

When we talk about opportunity recognition, Bruyerre is in a good position. He

expands his products all over the world and at the same time, tries to develop other market.

However, even if Bruyerre is recognized for its chocolate and imports his products around

the world, he only has few customers out of Belgium. The company is in a long way from

having the same renowned as other Belgium chocolate companies like Neuhaus, Leonidas

and Godiva. The real value is created when that opportunity is exploited by something new

which fills the market gap (Wickham, 2004: 10).

Chell (2008) argues that taking risk is not like a gambling. However entrepreneurs

should be brave to take high risk if they want to succeed. They have to avoid low-risk

situations due to the fact that they think this is a lack of challenge, so they prefer to take

high-risk to succeed. Bruyerre avoid risk and does not accept that its employees take risks.

Wickham (2004) explains that an entrepreneur provide a service by taking the risk that

generally people want to avoid.

After all, Jean Franois Collet has a good company in terms of creativity; he

encourages people and tries to create new products. However, Bruyerre catches an

opportunity in interring in the e-business but it is not the first chocolatier who sells his

product on internet so it does not really a great innovation at all. The company needs to do

things differently.

Thus, Bruyerre needs to differentiate its product from the competition. To realize

this, the company has four ways. First, in terms of design and quality, for example, Bruyerre

might think to a particular style in a new product. This can be done by changing the form of

chocolates or taste or creating new ones. Indeed, shapes or tastes are both the things firstly

faced by the customers and easily attract them. If they like, they will continue to buy this

product.


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Second, it is in the level of service and support. Bruyerre already offers cooking

courses, which is a good thing. The company could offer more and focus on the new

product.

The third thing is at the staff level. Bruyerre should think about getting to know their

new product in an unusual way. It needs to attract peoples attention, so that they

remember the product and will want to buy it. The company has just problems in marketing.

Proceeding internet seems the best solution because nowadays, everyone uses it. They may,

for example, create a small original clip and engage more people to know the product.

Finally as seen in the image, Bruyerre could create events such as posting contests on

their site that would allow the winner to go to any chocolate Bruyerre in the country and use

the chocolates he or she desires for a certain sum. Otherwise, the company can make

competitions allowing customers to imagine and to conceptualize their own chocolates.

Summary

To conclude, the writer thinks that Jean Franois Collet is a great leader but he is not

a good entrepreneur. He wants to extend his market but he does not take risk. He has to

focus and implements a strategy of differentiation. Bruyerre is a creative company and uses

high quality products to produce chocolates. Therefore, they must increase its reputation by

increasing its market shares and distinguishing it from other competitors. They have to make

more publicity. The goal is that the buyers have the feeling of getting something that is not

provided anywhere else. If the customers are more than satisfied with the companys

products, they will continue to buy chocolates in Bruyerre. This results in customers loyalty.


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List of references

Ashton, R. (2007) The entrepreneurs book of checklists: 1000 tips to help you start and grow

your business. London: Prentice Hall

Bessant, J. and Tidd, J (2011) Innovation and entrepreneurship. 2nd edn. West Sussex: John

Wiley & Sons Ltd

Bruyerre. Bruyerre Since 1909. [online] available from http://www.bruyerre.be/

Burns, P. (2008) Corporate entrepreneurship: Building the entrepreneurial organisation. 2nd

edn.Hampshire: Palgrave Macmillan

Chell, Elizabeth (2008) The entrepreneurial personality: a social construction. 2nd edn.

London: Routledge.

Finkelstein, S., Harvey, C. and Lawton, T. (2007) Breakout strategy: meeting the challenge of

double-digit growth. New York: The McGraw-Hill Company

Hisrich, R.D., Peters, M.P. and Shelpherd, D.A. (2010) Entrepreneurship. 8th edn. New York:

McGraw-Hill

Lumpkin, G. T. and Dess, G. G. (1996). Clarifying the entrepreneurial orientation construct

and linking it to performance. Academy of Management Review

Westhead, P., Wright, M. and McElwee, G. (2011) Entrepreneurship perspectives ans cases.

Edinburgh: Prentice Hall

Wickham, P.A. (2004) Strategic entrepreneurship. 3rd edn. Edinburgh: Prentice Hall

managing in an entrepreneurial way crespin thibault .pdf

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