Entrepreneurial Opportunity: Analysis of Business Opportunities for a New Honey Shop in the UK

This assignment analyzes the business opportunities for a new honey shop in the UK using Mullins seven domain model. It explores the impact of various factors such as market attractiveness, political and economic factors, social factors, technological factors, target segment benefits, industry attractiveness, competitive and economic sustainability, and critical success factors.

ENTREPRENEURIAL
OPPORTUNITY

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Theory of Mullins seven Domain................................................................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................1

INTRODUCTION
Entrepreneurial opportunity is a situation in which entrepreneurs take certain actions to
build profits. Those situations usually exists in which imperfections of market are exploited. This
assignment analyses the business opportunities of new business of honey shop in United
Kingdom. The new business utilizes Mullins seven domain that supports to explore effects of
seven key factors that impacts its venture.
MAIN BODY
Theory of Mullins seven Domain
This model is used to separate the planned activities into seven domains. Different
domains focusses on different levels that are described below.
Market attractiveness
This is the market domain focusses on large scale perspectives (macro level) of natural honey
shop. New venture uses Pest analysis to find out large scale factors which impacts its market.
PEST analysis
Political factors
Political solidity and necessity of beverages and food in the country's economy. Risk of
military capture. Corruption level, government's interference and bureaucracy in the industry of
food & beverages. Legal regulation for contract imposition and Cognitive property protection.
Trade tariffs & frameworks, anti trust laws and preferred trading partners. Tax rates and
regulation of prices, wage legislation like small amount of wages and system of overtime and
product labelling are the political factors which will impact new business of natural honey shop.
Economic factors
productivity, labour costs, inflation rates, unemployment rate and rate of interest. Quality
of infrastructure, workforce skill level, growth rate of economy, discretionary income and stage
of business cycle related to prosperity, period of recession and recovery puts heavy impacts on
new venture.
Social factors

Demographics, population skill level, hierarchy, class and power structure in the
community. Standard and level of education, culture regarding social convention and gender
roles, wider nature and entrepreneurial spirit of the society, attitudes related to environmental
consciousness, health attitudes and leisure interests are the social factors affect business of
natural honey.
Technological factors
Technological diffusion rates, impact on value chain and cost structure in the sector,
industry and product offerings.
Target segment benefits and attractiveness
It is the market domain concentrates on micro level. The business segments its market in
following ways:
It segments its market by type, by application, by nature and by geography. The new venture
look over the advantages from it to the specified segment like the population looking for health
conscious diets and actively searching for the alternatives of sugar (Barbara and et.al, 2017).
The new business will be known as different beneficial shop from the other alternatives because
it launches natural honey that can balance people's sugar levels, obesity, diseases of fatty liver
and the ingredients that can have advantages like issues of digestion, high count of calories with
certain minerals, enzymes and antioxidants (Bourveau, Brochet and Garel, 2019). This launched
honey will help to have benefits in relief in many symptoms of several diseases related to
bronchitis and it also supports in relieving allergy. Trends of market that are driving honey
market as reporting to the research analysts. Tip three trends are inflate demands of honey
prepared from mono floral. Utilization of honey as agent of anti-cancer and high demand for
sweeteners that are natural. After doing all this segmentation in existing market that is
behavioural, when new business products gets successful the venture can access psycho-graphic,
demographic and geographic segments.
Industry attractiveness

This is industry domain and looks over on macro level by utilizing porters five forces to
assess the factors which will affect profitability of its industry (Abubakar, Anasori, and Lasisi,
2019).
PORTER five forces
It is the holistic strategy framework which is used to analyse present competitions in the
industry.
Threats of new entrants
Competition in the industry and new comers forces the business to lower strategy of
prices, decrease cost and deliver new value of prepositions for the consumers. The natural honey
shop has to manage those challenges and construct effective barriers to secure its competitive
edge (Martin, 2017.
Bargaining power of suppliers
Almost all the organizations in the industry purchase their raw material from several
suppliers. Those suppliers attain dominant position and lower the margins. The suppliers use
power of negotiating to extract high costs from the companies in the industry. The overall impact
of high bargaining power of suppliers decreases the entire profitability of the industry.
Bargaining power of buyers
Buyers often demand a lot. They demand to buy the best fit offerings by paying low
prices as much as possible. This factor puts heavy impact on the natural honey shop's long term
profitability.
Threats of substitutes
When the latest product meets same customer requirements in dissimilar ways the
profitability of industry suffers.
Rivalry
In this process, the rival among the industry is analysed. The research find out that the
competition is very intense then those reasons affects long term profitability within the industry.
Competitive and economic sustainability
It is industry domain mainly focusses on micro level to build and sustain in the industry. The
natural honey shop keeps honey pure and natural by retaining sufficient extracted honey to

deliver satisfaction for emergency requirements of feeding. This also ensure the long term
sustainability benefits within the company by focussing on its quality, label and packaging.
Mission, propensity for risk, aspirations
The new venture mission is it work to assure sustainable and thriving honey provider in
the industry of UK for which it supports research centre. Risk factors are that there are many
other providers which are in heavy demands. Its aspiration is to acquire high position in the
industry.
Ability to execute on critical success factors
It is the team domain of natural honey shop that has ability to execute strategic focus on
people, operations, marketing and finances.
Connectedness up, down and across the value chain
This is the team domain concentrates on its connections that are necessary in achieving
success in its business (Banihashemi and et.al, 2017).
CONCLUSION
The above report concludes that it is very essential for a new business to analyse its
attractiveness in both the market and industry sector by applying different frameworks and
models that supports in making business fascinating. Mullins seven domain supports businesses
to understand the long term sustainability and risk factors.

REFERENCES
Books and journals
Abubakar, A.M., Anasori, E. and Lasisi, T.T., 2019. Physical attractiveness and managerial
favoritism in the hotel industry: The light and dark side of erotic capital. Journal of
Hospitality and Tourism Management, 38, pp.16-26.
Banihashemi, S., and et.al., 2017. Critical success factors (CSFs) for integration of sustainability
into construction project management practices in developing countries. International
Journal of Project Management. 35(6). pp.1103-1119.
Barbara, C., and et.al., 2017. The european insurance industry: A PEST analysis. International
Journal of Financial Studies. 5(2). p.14.
Bourveau, T., Brochet, F. and Garel, A., 2019. The Effect of Tenure-Based Voting Rights on
Stock Market Attractiveness: Evidence From the Florange Act. Available at SSRN
3324237.
Martin, M., 2017. Porter's Five Forces: Analyzing the Competition. Business News Daily, 26.
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