Some of the questions in the assessment are as follows:
What is Enterpreneurship ?
Discuss the Sources of Entrepreneurial Innovation and Idea.
Expain Entrepreneurial Idea.
Entrepreneurial opportunities are generally described as situations in which a person realize there are huge possibilities in the market to gain high profit by launching new variety of products and services. Currently there are various opportunities in the market for an entrepreneur to proceed their entrepreneurship. A person needs to be business minded identifying entrepreneurial opportunities in the respective marketplace. There are many ways available for identifying these opportunities. For example; listen to customers, analyse market competition, look at market trends, understand actual demand of clients, etc. By considering these ways, an entrepreneur will able to take huge advantages in the market. This report discusses various sources of entrepreneurial ideas and data collection methods. Report includes a specific entrepreneurial idea also which help to an entrepreneur to start a new venture. Many terminologies and aspects related to entrepreneurial opportunities are mentioned in this report.
Sources of Entrepreneurial Innovation and Idea
The term entrepreneurship is defined the activity of setting up a business or businesses taking on financial risks in the hope of profit. To become a great entrepreneur one must come with new and practical ideas. Business ideas are essential as they decide the potential energy of the company at its starting levels to the times when it begins to thrive (El-Awad, Gabrielsson and Politis, 2017). Some of it are discussed here:
Interests and hobbies: Whatever an individual enjoy doing in its leisure time is its hobby and it is primary source of business ideas. For instance, if people enjoy traveling, one must go in the field of tourism and make money out of it.
Customer surveys: Knowing what people need can be done easily by caring out surveys and knowing what is not readily available to them, and they need it (Geissdoerfer,Vladimirova and Evans,2018). Offering exactly the same can make the organization a big name in the market in no time.
Franchise: Domino's pizza, who in UK would not like to have it nearby. Obtaining franchise is the easiest form to start a new business and outshine in less time.
Peter Drucker listed 7 sources of innovative opportunity which are as follows:
The unexpected: The market in which new enterprise will launch should be studied constantly as it is major area to look for opportunities. Demand of the services provided by organization is directly proportional to profit of it.
The Incongruity: When the entrepreneur knows difference between what it is and what it should, goal becomes clear the path towards success becomes easy. Eg: Facebook nailed this idea. It observed Myspace what the company was, what it should be and built a platform for self.
Process need: Finding weak spots in the company and correcting them or redesigning them from time to time is very important for a smooth going. This leads to innovation of new ideas within the company in its existing capabilities. Eg: If a restaurant let the customers wait for too long it must hire a new chef so there is speed up in food preparation and people are served in short interval.
Industry and Market Structure Change: Business and market are in continue flow. Some product lines may contract others may expand. Like Cassette Tape Recorders, it is no longer used by people. The company should stop its manufacture it and search for new products related to it.
Demographics: To be a smart firm, changes occurring in population, age, income levels must be paid attention at. Eg : If the firm sells baby boomers and the ration of children in the locality is too less it wouldn't be beneficial to organization.
Changes in Perception, Meaning and Mood: Considering Religion as an example, it is seen that Islam and atheism are at rise. Companies should adapt overcharges in it regarding culture (Link, 2017).
New knowledge: Finding better ways of doing things, adding new technology and improving process are very important for an entrepreneur to become successful.
Entrepreneurial idea is to launch a new range of coffee in the UK's coffee cafe market. Currently many cafes providing coffee in different flavours, but still there are various opportunities to launch a new coffee range. People in the United Kingdom are crazy to take coffee specially in their working hours, because coffee makes them vary energetic at workplace. So, it is a good entrepreneurial idea, because there are many chances to gain huge profit by launching new product.Want to get Assignment help? Talk Our Expert Now!
Market gap is basically a situation where customers not able to get products and services which they demand for (GREGORY, 2019). So, many business minded people see this situation as entrepreneurial opportunity. Then these people start work for fulfilling market needs and gap. In this situation these people are defined as entrepreneurs. There are many tools and techniques available to analyse market gap, but here is only mentioned McKinsey 7S technique. This technique is very favourable to systematically analyse the gap.
McKinsey 7S Technique
McKinsey 7S technique is helpful in identify market gaps. It is important in boost present business performance as well. This technique includes seven major elements which discusses below;
- Strategy: Strategy is the first aspect which entrepreneur need to use for effectively implement entrepreneurial idea. It needs to analyse competitors' business strategy also to gain huge competitive advantage in the market.
- Structure: It indicates structure of business activities which an entrepreneur will conduct in the market.
- Systems: It is too necessary task to entrepreneur for running all business activities in systematic manner (Chandra, 2017). That entrepreneur is responsible to create a systematic work-culture for their employees as well.
- Shared Values: Shared values are basically a set of traits and beliefs within venture which increase or decrease people's performance in the business operations.
- Style: Style includes such ways which an entrepreneur choose to properly manage all entrepreneurial activities. The management chooses various styles to influence people also within entrepreneurial activities.
- Staff: An entrepreneur is responsible to choose an effective workforce or employees during implementation of “idea”, because it'll able to gain productive results from their all activities with the support of effective employees.
- Skills: There are various skills needed in entrepreneur to successfully implement their business idea in the market.
Entrepreneur is responsible to follow all aspects of McKinsey 7S technique to systematically fulfil market gap, because with the support of this gap technique it'll able to identify actual demand of customers (Teach, Tipton and Sidhu, 2019). There are existing competitors will give tough challenge to the entrepreneur, but if it provides quality coffee then it'll able to face that competitive marketplace. This idea will really fill coffee cafe market gap of the United Kingdom. The main reason behind the last statement is, currently people get bored for taking those same coffee flavours within market. In this case, if entrepreneur will launch a new range of coffee, then people will show their interest in buy this new range. That's why this entrepreneurial idea is able to fills market gap.
Data Needed to Support Gap Analysis
There are various data needed to support gap analysis. In this case, some major data which highly needed to support market gap analysis are mentioned below;
Size of Coffee Market: Size wise UK is the fifth biggest coffee market, where people are highly consume coffee in their daily life (Belz and Binder, 2017). There are great opportunities to coffee business for gaining huge profit in this market. Each year many coffee outlets are opening in this country, but still many customers demanding for new coffee range in the market.
Customers Demand: Customers give high priority to tea than coffee in UK's market, because customers still not able to take that fun from coffee which tea gives them. In this case, if entrepreneur give them very good coffee, then it'll able attract those customers also which too much like tea.
Market Competition: Currently there is very high competition in the UK's coffee business. Some major leading companies in this market are Blue Bottle, Starbucks and Peet's etc. but these companies mainly provides coffee on high rates. Many people who come from middle and lower income group are not able to afford coffee of these companies. In this situation, here is great opportunity to the entrepreneur to gain high profit by launching its new coffee range on favourable prices (Esfandiar and et.al., 2019). In other side, it'll able to fill this market gap also by providing coffee on favourable prices.
There are many sources and methods chosen for collecting data. For example; internet, new papers, business magazines, blogs, television, etc. These sources are too productive in provide specific data which an entrepreneur need for its research. Data which mentioned above are very helpful for identifying current potential of coffee market. The entrepreneur is easily able to achieve their business objectives with the support of these data, because these are giving those all information which are helpful in venture operations. These all sources are very appropriate to collect specific data. Internet is the most useful source than other sources, because this provides lots of information which no other source provide. On the internet, many bloggers publishes various blogs on the coffee market of United Kingdom. By reading these blogs the entrepreneur able to analyse market gap. It specially needs to attract those customers which totally depends on tea.Worried for Business Assignment Writing Help? Get our experts Help Now!
Interpretation of Data
Currently people who come from high income group mostly demanding for coffee in the United Kingdom, because they are easily able to afford coffee (Neill, Metcalf and York, 2017. Middle and lower income group of people are also wants to buy coffee, but it is some costly than tea. So, they mostly take tea in daily life. Some coffee outlets currently taken step to provide coffee on low prices, but they not maintain good quality of coffee. They decrease quality of coffee, for selling it on cheap rates, this business model currently follow by these outlets. In this situation, people still not much buying coffee, because they want quality coffee with cheap rates. So, there is really great opportunity to the entrepreneur to gain huge profit in the market by implementing their idea. It only needs to understand basic demand of customers, like; provide quality coffee on cheap rates. Per year, coffee market is increasing by 10% in the United Kingdom (Guerrero, Urbano and Fayolle, 2016). Coffee businesses was given contributes approx £17.7 billion last year in the UK's economy and which was not bad. Currently some leading companies are also providing quality coffee, but they charge too much amount on selling. According to this entrepreneurial idea, the entrepreneur completely focuses on sale quality coffee on cheap prices. In case, if this idea become succeed, then the entrepreneur will able to expand their operations in the other European countries as well. So, there are many opportunities to the entrepreneur to gain huge profit in the market by implementing their entrepreneurial idea.
SWOT Framework is very helpful tool to the entrepreneur for analysing current strength, weaknesses, opportunities and threats for their entrepreneurial idea (Zhu and Lin, 2019). These all aspects of this framework are highly influencing idea in both term positively and negatively.
Strengths: This idea is based on launching new a range of coffee in the UK's coffee cafe market. In this case, this will give good results to the entrepreneur, because people get bored by buying same coffee flavours for last many years. Now entrepreneur plan for provide new coffee product with extra ordinary flavour which no coffee shop is providing in market. This idea will help in gain large customer base in the coffee care market, because most people in the UK are literate and ready to pay any cost for buying quality products. Entrepreneur specially focusing for launching good quality coffee, in which it'll really attract lots of customers.
Weaknesses: The entrepreneur not has accurate market research, because there are many other entrepreneurs also plan for launching new range of coffee in the UK's coffee cafe market (Wang, Thornhill and De Castro, 2017). The marketing strategies are also not much effective, in which entrepreneur will not able to attract large customer in initial stage of venture. It still not discussed their idea with any business consultant.
Opportunities: There are various opportunities available to the entrepreneur. For example; it able to use digital marketing tools within their operations, it able to consult their business idea with any business consultant to get specific suggestions, it able to use expansion strategy for expanding their operations in different markets, etc. In this case, it able to take huge advantage from these opportunities.
Threats: Day by day increasing market competition is the biggest threat to this entrepreneurial idea. Currently competitors also uses various terminologies or techniques for developing their ventures. In this case, these will give tough challenge to entrepreneur when it launches their new product. It needs to develop some new marketing strategies to deal with this market competition. Many times people not accept new range of products and services in the market, because they feel comfortable with previous products. This type of market situations is also a big threat to the entrepreneur.
There is entrepreneur need to take various steps for developing their skills which will support in develop, manage and sustain their entrepreneurial idea in the high competitive market (Nijssen, 2017). For example; it develops decision-making skills, then it'll able to take many creative and productive decisions for its plan. In short, with the help of these skills it'll able gain effective results from its entrepreneurial idea.Take Examples of Assignments Now!
The entrepreneur specially need to focus on remove their weaknesses. It needs to complete full market research before implementing their idea of new coffee launch. It is responsible to take specific suggestions from some highly qualified business consultants. These consultants are helpful in giving productive solutions for new entrepreneurial venture. There are innovative marketing strategies also too important for gaining large customer base in the initial stage. In this case, entrepreneur need to improve these strategies as well.
Evaluation of Competitive and Market Environments
For evaluating the competitive environment of the market there is mentioned Porter's Five Forces. In other side, here is PEST analysis also mentioned which helpful in evaluating market environments.
Porter's Five Forces
- Power of Buyers: There are bargaining power of buyers is too high in the UK's coffee market, because they have many choices in the market to buy. They able to avoid coffee if it available on high prices.
- Power of Suppliers: Bargaining power of suppliers is something low, because there are many suppliers are available to a coffee outlet to fulfil its raw-material needs (CHAPPELOW, 2019). Suppose, a supplier provide raw-material on high rates. In this case a coffee outlet is able to buy raw-material from that supplier who provide it on low rates.
- Threat of New Entrants: This force is high in coffee market, because there are many growth opportunities new a person who wants to start a coffee venture. Currently, this entrepreneur is a new entrant in this market, in which it'll face high market competition in its initial stage.
- Threat of Substitutes: Threat of substitutes force is also high in this country's coffee market, because customers not depends only on coffee to drink something. They able to take cold drinks, juice, tea also to fulfil their drinking needs.
- Competitive Rivalry: This force is high, because there is huge competition in the coffee market. There are many coffee businesses currently well-established in this country. Starbucks, Blue Bottle and Peet's some leading ventures in the coffee business of the United Kingdom (Sarkar, Rufín and Haughton, 2018). So, the entrepreneur need to use some productive marketing strategies during implementation of their idea to systematically face this market competition.
PEST analysis is very helpful tool to identify market environments. This is discusses some major factors of market which impact venture in both term positively and negatively.
- Political Factors: These factors will highly impact entrepreneurial idea, because entrepreneur will need to fulfil those formalities which imposes by the UK's government. For example; taxation.
- Economic Factors: These factors will impact idea positively, because most people in this country are come from high income group. They easily able to afford coffee in the market. So here is great opportunity to the entrepreneur to take huge advantages from these factors.
- Social Factors: Social factors are also too favourable to entrepreneurial idea, because most people in this country are literate (Clark and Ramachandran, 2019). They ready to give any cost for buying quality products. So, the entrepreneur will easily enable to achieve their goals by providing quality coffee.
- Technological Factors: The entrepreneur has facility to use different technology in the United Kingdom. It able to systematically implement their idea by using UK's latest technology. In short, these factors will help to entrepreneur in increase its business performance in the initial stage.
It can be concluded that, there are many sources of entrepreneurial ideas and innovation available to an entrepreneur. There is McKinsey 7S technique is mentioned above which helpful in identification of market gap. This entrepreneurial idea is able to fill gap within coffee market of the United Kingdom. There are various data needed to support gap analysis in the evaluation of entrepreneurial idea, like; current market competition, customers demand and size of market, etc. With the support of these data, an entrepreneur enables to analysis respective market gap. The entrepreneur need to use various sources for collecting these data. Internet is the most favourable source of data collection. There are all strengths, weaknesses, opportunities and threats of this idea also mentioned above, in which entrepreneur specially need to focus on their weaknesses. It needs to properly complete market research to gain effective results from its idea. High market competition in the UK's coffee market is the toughest challenge this entrepreneurial idea. In this case, the entrepreneur will need to use some latest business tactics to achieve huge competitive advantage in the market.