Analysis of Business Environmental Aspects and Entrepreneurial Strategy - Case Study of a Cluster of Bell Metal Enterprises in West Bengal, India

Abstract

This paper focuses on business environment aspects and strategic choices and their interrelation that have a bearing on the operation of enterprise owners in an industrial cluster. Environmental issues are reflected in the labour, machinery and other input condition, access to finance, competition from substitute products, marketability based on easy transport etc. While strategic choices focus on the direction that a firm nurtures in mind and through which the goals are expected to be achieved. This study is based on primary survey covering sixty bell metal enterprises in the Nadia district of West Bengal in India. Likert scaling has been used for capturing the environmental and strategic perception of the entrepreneurs. Factor analysis based on principal axis factoring with varimax rotation has been used to analyse the impact of multiple perceived environmental and strategic variables. Further canonical correlation analysis has been used to find the degree of correlation between the set of business environmental variables and that of strategic components. The study helps isolate major variables that have a bearing on perceived environmental and strategic components. The analysis suggests that choice of strategic variables by enterprise owners is usually in coherence with the environmental aspects affecting the business.

Keywords: Environment, Strategy, Canonical, Exploratory Factor Analysis

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