There is a huge pool of ideas that can make a entrepreneur successful but they need to be analyse the opportunities, threats and capacity of a idea that can sustain a for a long time in the market. As there is s wide range of products and services that does not stay in the market because of the changing demand and choices of the targeted customer. Because the customer always a better option to switch, the one who is going to establish a business with an idea first should get know that reasons of customer shifting to another brand. This report is about a restaurant which is going to be launched with a idea that people can never stay away from the savour food and that's why the name is also invites them, Gourmand & Globetrotter which is a international cuisine restaurant in London. The ideas behind the name is to offer a special cuisines of different countries, that the customers can get only when while travel across borders but bow they can get it under one umbrella. The report underpins marketing segmentation, external and internal factors, funding process and so on(Block and Wagner, 2010).
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation
There are various sources which can gives a entrepreneurial ideas because there is always a need that needed to make some changes. In bookish language, these ideas that has already started a business requires some innovation and that innovation can be revealed by the customer's survey and interviews. Whereas in actual the ideas is of a business is generated derive through observation and the thought that can has some economical value to the people and entrepreneur. These sources of ideas can be as described as follow -
Customers – As in every business the customer is a prime person who should be satisfied from the product cause if the end user is satisfied than then they will also raise the sales. That's why they are most fruitful source of ideas when it comes to open Gourmand & Globetrotter the customers are the priority for this. Because there was a lot of people who are seeking for some different kind of flavours that's why the cafe is offering food from beyond the limits(Dimov, 2011).
Competitors – Competition is also a factor which increases sales because there are so many existing restaurants which are offering the similar types of eatery but Gourmand and Globetrotter is going to launch with some extinguish items that can dramatically drive the sales.
Looking at the past and future – While one is about to open a restaurant they should observe others what they have done before because the mistakes they had made, that can be avoid to occur and put a business in pitfalls. Present requirements and future expectations aid to expand a business(Ekpe, Mat and Razak, 2010).
Macro environment factors
Macro environment factors are those which impacts on a business externally that are as follows-
Legal factors – Legal factor is the most important criteria to be followed. Because getting a license for Gourmand & Globetrotter is crucial before starting the service if license is not approved by the UK Government then the business will be illegal and the entrepreneur is also liable to pay the penalty. So it is essential to follow the legal structure for the business.
Social factors – Social factors are those which makes an impression on the society and business both. Because human beings are lives in a society so there some religions and they has some rules that they have to be follow. So, business should has some ethics that does not violate customer feeling. For example, in restaurant the products raw material should be according to their belief and there must not be any kind of product which can harm anyone. Another aspects of social factor is word of mouth, if a business has a good image then that will attract more customers(Foo, 2011).
Technological factors – Technology is a helping hand for business cause it makes so many things accessible within a touch. Putting a business on internet brings numerous customers and also creates a goodwill.
Economical factors – The economical factors affects the innovtion because a business needs funds to grow and operate smoothly but if the economy is low then then business cannot survive in the market.
Environment factors – People is aware about environment and the business which keeps safe environment the public supports to the firm.
Sources of innovation opportunities can be define as -
- The Unexpected – A good entrepreneur should always looking for the opportunities in the market that can give new direction to the restaurant.
- The incongruity – It considers things as what it is and what it should be that can make things more better than before.
- Process need – process need is about to identifies the weaknesses and redesign them in a meaningful way.
- Industry and Market Structure Change – There are some regulations that changes with time so the entrepreneurs should watch these regulations.
- Demographics – The business depends on the population, income levels, educaitons, perception and age so it should innovation the products according to the requirement to sustain in the market.
- Changes in Perception, Meaning, and Mood – The polulations changes over time and their perceptions and moods also changes and that impacts a business and there is always a scope for innovations.
Types of innovation
- Process innovation – Process innovation refers to a new or important improvement in production to deliver the final product.
- Product innovation – Product innovation is to introduce an item or services which is new or has some innovative features to use.
- Incremental innovation – Incremental innovations is a sequence of small improvements or updated techniques applied in a company for an existing products, services, process and methods.
Difference in innovation and inventions
invention defines creation of a product or services for the first time whereas the innovations is an amendment in the existing goods and services according to requirements.
P2 Rationale and the market gap for a specific entrepreneurial idea
When a new business is going to be enter in the market with Gourmand & Globetrotter which is a restaurant that provide special cuisines in London. at that time there is a need to fix a market gap in order to increase customer's buying nature. There are some specific tools which are required to conduct market research that can introduce a business effectively. There is a need to identify the gap from where an entrepreneur can take advantage with skills and resources. To take an advantage of these gap one should explore itself to new and interesting people with experiences and ideas. One questions arises while finding out the gaps is, where to look for gaps, so there are some pinpoints where a person can get the gaps, that can be noticed in terms of -
- Trends and new technology – There are lots of trends and technology because of that new opportunities are popping up in the market, one should keep an eye on the changes and analysed that what kind of impact the business would face(Heinonen, Hytti and Stenholm, 2011).
- Make the a world topical - If one can observe the surrounding then they will notice that there is a loads of creativity, everyone is enhancing the opportunities with their fanciful work. Because imagination opens a doorway of fascinating trends. Gourmand & Globetrotter is a restaurant where everything happens before anywhere else, because it will be going to be a trend setter not a follower. It is going to furnish the availability of the foods and beverages with innovative recipes that no one has(Quan, 2012).
Before launching a new food product one should analyse the market requirement which refers to identify the customer's needs. There are different demands of customers and regarding food they definitely has some versatility and to know their taste it conducted a marketing research on segmentation basis that are as follows -
Demographic segmentation – Demographic segmentation divides market on the basis of demographic variables like age, gender, martial status, income religion, race, occupation, nationality, etc. because there are various people whose food habits are depends upon their religions. Similarly people always spend according to their income and occupation so the Gourmand & Globetrotter must have the affordable and planned menu according to the targetting customers.
Geographic segmentation – Geographic segmentation studies about the population which is living in the particular geographic] area because the people who are living in that area has specific requirements according to the climate. In restaurant international food is serving for the people, there may be different kinds of people are staying in that region(Renko, Shrader and Simon, 2012).
Behavioural segmentation - In behavioural segmentation the research is dependent on the purchasing nature of population, lifestyles, attitudes, thoughts, preferences, choice and decision making. Because if the people are having a lavish lifestyle then they would not worried about the money the only thing matters for them is the brand and quality. They people who comes in middle class are having some preferences so they may be can't afford the luxury things but they can spend a small amount of their income on food. Those who are food lover are matters a lot for restaurant business because they wanted to eat the unique kind of flavours that indulge them.
Industry life cycle: It is the normal stage that a industry goes through during the course of its life cycle in the market. An industry life cycle is divided in to five categories such as:
Early stage phase: In this phase, product may be alternate option which makes a place for it in the company.
Innovation phase: In this, an organizor can expand their product with innovative style in order to increase profitability of the company.
Cost phase: It mainly refers to the consolidation of an industry. Few business are naturally eliminated this is because they are not able to grow along with the industry or developing cash flows in the negative way.
Maturity phase: At this stage, company's revenue from the various products becomes the main focus of an organisation.
Decline phase: It is marked by minimising revenue as the demand change to other product in the industry.
According to the above concept it has been analysed that Gourmand & Globetrotter multinational cuisine restaurant need to follow industry life cycle in order to increase its market demand in London. Therefore, there is need to improve their phases in different ways.
P3 Apply a SWOT framework to collate evidence to support an objective
SWOT analysis is a useful tool for brainstorming and strategic planning. It is used to analyse the strength, weaknesses, opportunities and threats within external environment of business. It takes the advantage of new business opportunities, trends, technology and competition advantage to attain its objectives. For illustration, Gourmand & Globetrotter restaurant is a new entrant in the market and therefore, it has so many large era where it stand through identifying the existing weaknesses of hospitality industry(Ekpe, Mat and Razak, 2010).
- Gourmand & Globetrotter restaurant is a new entry in the food and beverages so people are easily attracted towards it.
- It has multiple choices in the food so people can get whatever they want from across the boundary.
- This restaurant will be situated at a place where people can easily reach because location should be accessible by everyone and that is the most prominent aspect to increase the sales(Foo, 2011).
- The plan to get the more customer is that there would be a different criteria for every customer so that every consumer can enjoy the feast according to their income.
- The relish meal plan is affordable for its customer with some coupons and vouchers.
- Gourmand & Globetrotter is offering a new kind of cuisine in the market including specialised food plan from diverse country culture but there are only French or Spanish people in the country.
- It is going to be open soon but weak marketing or lack of influencing strategies can drop its opening expectations.
- The entrepreneur wanted to enter in the market with a bang because it has when it creates a major impact on customers mind.
- A huge range of international food.
- It make a place among every kind of consumer segment.
- Gourmand & Globetrotter is a new entry and there are already a huge pool of restaurants.
- Fear of loosing investment and time.
- Creating a brand image in new market is very difficult in the presence of giants.
P4 Evaluate the competitive and market environments
When one is conducting an in -depth investigation about the competition and market environment regarding a business in that situation it is allowed to peep in to the competitors strength and weaknesses which can help a business person to analyse and evaluate the strategies that are going to be implement(Heinonen, Hytti and Stenholm, 2011). Because it will improve the the state in competition advantage. When Gourmand & Globetrotter is looking for the competition in the market then it analyse the expectations what its rivals are serving to their clients and what it expects to be. This will provide a data from where it can book a place in the market. After that one should conduct a research to know that about the rivals and their service methods and satisfaction level of customers. As a businessman knows the information then they should prepare the marketing strategies through advertisement, sales brochures, newspaper, etc., for a grand opening so the people can know about the restaurant.
When the business has been opened one should analyse its annual report in order to evaluate the its potential sales and actual sales on the basis of previous year to get the information about the business progress.
Regarding the market environment there are such variable which are used to evaluate the viability of the business idea like market size, targeted customers , trending trajectory. It is hard to gauge the market size and demand but having a sense about potential market size and demand for investing time and money in a venture is good. It is easy to observe the people who are talking about Gourmand & Globetrotter restaurant by tracking the SEO and social media websites (Quan, 2012).
It is always a good practice to know about competitors because every business is starving to increase the sales more. One should know about competitors before getting start because that will give a less surprise in order to see up and down graph of the firm. It is also essential to find information regarding their potential customers and are they able to purchase the products.
Competitive market – Competitive market can be define as -
Substitute goods – The customer can purchase the things which are less than in price but similar to kind of product which is selling by one firm.
Demand – The things which are fulfils the needs of people that is called demand because they are bound to purchase the things when needed.
Target audience – Target audience refers to the people for whom the product or services are entered into the market.
Macro environment – Macro environment can be refer as external environment that can influence on the business that can be refer as PESTEL factors.
Micro environment – Micro environment can be define as the internal environment of the firm that impacts on a firm it can be refers strength, weaknesses, opportunities and threats.
The above report is about identification of entrepreneurial opportunities that includes what are types of opportunities are exists in the market while launching a new idea of business. The idea of business is about to launch a new restaurant in London that is named Gourmand & Globetrotter which is offering a international food and beverages. It includes macro environment sources and opportunities, marketing segmentation, market research, gap analysis, evaluation methods SWOT analysis.