Dr Shai Vyakarnam

Entrepreneurship: Presentation to Family businesses in the diamond industry

Introduction

• Quick introduction to entrepreneurship

• Helicopter view of diamond industry

• Two forms of entrepreneurial changes:

a) Redefining boundaries – example of Cirque Du Soleil

b) Incremental changes – using the Product/Market matrix

• To implement change will also require a change of culture: introduction to the culture web tool by Johnson and Scholes – levers that can be used to help manage strategic change

• Concluding remarks

My Landscape

Born or Made – Can it be taught?

Entrepreneurs are nor born they are killed

It is a process – It can be learned

Lack of Belief – No it cannot

Nonsense...

They tolerate risk and uncertainty....

Entrepreneurs are risk Takers.... And this cannot be taught!

Entrepreneur > Individual

Entrepreneurship > Process

Entrepreneurial > Mindset

Entrepreneurial Ecosystem > Role of Society

World Economic Forum Report – 2009 definitions.

Wilson, Vyakarnam.et al..

Fre

quen

cy o

fE

ntre

pre

neur

ship

(num

ber

of e

vent

s)

High

Low

Degree of entrepreneurshipInnovativeness, risk taking and

proactiveness

Low High

Procter and Gamble

Wendys

3M

Bell Labs

Nucor Steel

Tata

Apple

Original by Covin and Slevin

Entrepreneurial Intensity – Measure of Corporate Entrepreneurship

To foster an enterprise culture and learn how to set up entrepreneurship education programmes: Buy the book!

Your Landscape

Industry structure – as I understand it

Retail

Wholesale

Mining

Manufacture

Sightholders

Sorting, DTC

DeBeersAl RosaBHPAngolaDRCZimbabwe

Sort to price points80% rev = 20% of biggest stones

Rough – Trade onBreak bulk by region Increasingly

dynamic and innovativeDominated by India..plus Israel and NY

Big PlayersSmaller players

Inspired by Michael Porter

Consumer

Background

Retail – at the sharp end – is sales driven And Yet...

Inventory - security

Volatile speculation

Consumer perceptions

Economic climate has impact

Manufacture is getting increasingly innovative

Markets are moving to Asia – different needs

Celebrate $$$$ or Acquisition of customers?

Family businesses - succession

Learning from elsewhere...Ideas and practical suggestions..opportunities for entrepreneurship

1. Move along value chain2. Improve within your space on

value chain3. Take out competition

Retail

Wholesale

Manufacture

Sightholders

Page 14Courtesy S Ansari

THE CASE OF CIRQUE DU SOLEIL

Types of circuses

BIG TOP - Tents STATE CIRCUS WITH PERMANENT BUILDINGS

MULTIPLE SHOW ARENAS

ANIMALSSMALL REGIONAL – FAMILY SHOWS

Cirque de Soleil

Cirque du Soleil, the surreal circus company currently playing at the Royal Albert Hall in London, is expecting record profits of $250m (£156m) on revenue of $1bn this year, according to its founder, Guy Laliberté. Independent – January 2011

Original courtesy S Ansari

Redefining field boundaries

CIRCUSOPERA AND

THEATRE

CIRQUEDU SOLEIL

The field of Circus: Competitive features, services and benefits.Cirque took a view of eliminating, reducing raising and creating differentiators from its main competition

Price

Star P

erfo

rmer

s

Animal

Shows

Aisle

conc

essio

ns

Mult

iple

show

are

as

Fun a

nd h

umou

r

Thrills

and

Dan

ger

Unique

ven

ue

Them

e

refin

ed v

iewing

Mult

iple

prod

uctio

ns

artis

tic m

usic

and

danc

e0

1

2

3

4

5

6

Ringling

Regional

C du S

Offe

ring

leve

l

Eliminate Reduce Raise Create

High

Low

Original courtesy S Ansari

Strategic clarity

existing new

Mar

kets

/C

usto

mer

s

Products/Services

diamantaires (Rosy Blue)

Gold Winnie the Pooh

You have to sell something to someone to make a living!!!

Modelled on: Igor Ansoff, Corporate Strategy

Vyakarnam and Leppard: Marketing Action Plan

People and culture

Overall Culture

Strategy

StructureRituals

Systems

Symbols

Johnson and Scholes

Fostering a culture of entrepreneurship:What are you like now? And what do you want it to be?Some levers for change

Family businessOr

Business Family

Stories

Separating entrepreneurship from management is a fatal distinction

Opportunities for

• bold sweeping change/challenge to the industry

• Incremental and creative shifts in strategy

• And for changes to the culture and engagement of people in the business

It comes down to belief, intent and leadership

Concluding remarks

s.vyakarnam@jbs.cam.ac.uk

www.cfel.jbs.cam.ac.uk