Business Idea Selection and Fine Dine Restaurant

The assignment requires students to select a new business idea and analyze its feasibility by considering different factors that have direct or indirect impacts on the business. The selected business idea is a fine dine restaurant, which has a favorable market demand with less unfavourable policies. The discussion also highlights the importance of gap analysis in achieving desired goals and objectives for the business.

Assignment
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Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation.........3
P2 Rationale and the market gap for a specific entrepreneurial idea.....................................4
P3 Gap analysis......................................................................................................................6
P4 Interpretation of data.........................................................................................................6
P5 SWOT analysis..................................................................................................................7
P6 Evaluation of market.........................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11
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INTRODUCTION
Entrepreneurship is setting up a business, taking on financial risks in the hope of earning higher
profits. Entrepreneurs identifies the positive opportunities that are present in the market and
explore same in order to achieve higher returns in the long run. There are range of options which
are there in the market and it is important that evaluation of each is done in an effective manner
so that the best option is chosen (Baggen and et. al., 2015). Every alternative has its own positive
and negative aspect and this is required that the options are examined that through which choice
maximization of profit can be made. Fine Dine restaurant is a new start up which is established
with a view of covering a great market share in the market. The idea behind same is to deliver
variety of famous dishes of different countries so that customers can enjoy same in their home
place. The following report will talk about the different factors that leads to the generation of a
new idea also with the discussion on factors that affects the same.
TASK 1
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation
With a development of business resources there is a direct impact on the options that are
present in the market. now the entrepreneurs can make their choice from more alternatives which
further increases the satisfaction level of an individual. Before starting a business, it has to be
recognised that what is the best option for business and same can be done by investigating the
market opportunities. An idea can be generated from variety of sources like the customers, macro
environment factors, level of competition etc. In order to understand how they help in evaluating
the business idea a detail discussion on each factor is done hereunder:
Customers – be it any business idea users of same are the most important factor that needs to be
analysed. This way it become the major source of idea for starting a new business idea. The
trends in market are analysed that to which sector customer show their maximum demand. It is
identified that by delivering what is most suitable for the business to start with. Client respond
differently to distinct options and same can be examined through a customer survey. In this by
using a direct communication channel it can be identified that what is maximum demanded by
them and hence same can be chosen to start business with (Davidsson, 2015).
Competitors – This is another major source to recognise what is best for an entrepreneur
to begin a new business with. There is a variety of competition level that is present in every
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industry and hence by examining that what competition can be dealt with the choice of option is
made. Apart from this competitor also helps in understanding the trends in a particular business
which further helps in knowing that weather a particular option is good to be adopted or not.
Investigation of previous records – Apart from the above two options an entrepreneur
can also get the idea of new business by going through the market trends. In this is examined that
what business received the favourable response and which were failed in achieving the desired
goals and objectives. The recognised options are either avoided or are used in business by taking
the corrective measures in advance. By comparing the business, it is easy to identify that through
which practice the formulated goals can be achieved.
External factors:
Technological factors – these are the factors that act as an indirect source for the
business idea. Under this the present state of applications used in a particular business type act as
a medium for information. High rate of investment is made in procurement of the capital hence it
is an important source for making a choice of business time.
Economic factors – The economic conditions of different nations are different and it is
important that the present trend in same is analysed well in advance so that it can be identified
that what business options can be opted to operate at a particular point of time (Foo, Uy and
Murnieks, 2015
P2 Rationale and the market gap for a specific entrepreneurial idea
At times when a business enters in the market around then there is a requirement to settle a
market gap with a specific end goal to expand client's purchasing nature. There are some
particular techniques which are required to lead statistical surveying that can present a business
successfully. There is a need to recognize the whole from where a business visionary can exploit
with aptitudes and assets. To have a benefit of these gap one ought to investigate itself to new
and intriguing individuals with encounters and thoughts. One inquiries emerge while discovering
the holes is, the place to search for holes, so there are a few pinpoints where a man can get the
holes, that can be seen as far as –
Make a world topical - If an individual can watch the environment then they will see that
there is a heaps of innovativeness, everybody is upgrading the open doors with their whimsical
work. Since creative energy opens an entryway of entrancing patterns. Gourmand and
Globetrotter is where everything occurs before anyplace else, in light of the fact that it will go to
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be a pioneer not an adherent. It will outfit the accessibility of the eatables with inventive
formulas that nobody has.
Trends and new innovation – There are heaps of patterns and innovation on account of
that new open doors are flying up in the market, one should watch out for the progressions and
broke down that what sort of effect the business would face.
Promoting division – Before propelling another nourishment item one ought to investigate
the market prerequisite which alludes to distinguish the client's needs.
There are diverse requests of clients and in regards to nourishment they unquestionably
have some flexibility and to know their taste it directed a showcasing research on division
premise that are as per the following –
Statistic division – Demographic division partitions showcase based on statistic factors like age,
sexual orientation, military status, salary religion, race, occupation, nationality, and so on the
grounds that there are different individuals whose nourishment propensities are relies on their
religions. Likewise, individuals dependably spend as per their pay and occupation so the
Gourmand and Globetrotter must have the moderate and arranged menu as per the targeting
(Gielnik and et. al., 2015).
Conduct division - In social division the exploration is subject to the obtaining idea of
populace, ways of life, states of mind, considerations, inclinations, decision and basic leadership.
Since if the general population are having a sumptuous way of life then they would not have
stressed over the cash the main thing matters for them is the brand and quality. They individuals
who comes in white collar class are having a few inclinations so they might be can't bear the cost
of the extravagance things yet they can spend a little measure of their salary on sustenance. The
individuals who are nourishment darling are matters a ton for eatery business since they needed
to eat the one of a kind sort of flavours that humour them.
Geographic division – Geographic division learns about the populace which is living in
the specific geographic region on the grounds that the general population who are living around
there has particular prerequisites as per the atmosphere. In eatery worldwide nourishment is
serving for the general population, there might be various types of individuals are remaining in
that region. this way more market area can be served and hence the sales can be raised to a great
extent (Hatak and et. al., 2015).
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P3 Gap analysis
In order to analyse the deviation in performance gap analysis is done as through same it is
identified that what are the difference between actual and desired outcomes. Under this concept
the elements which are tested are performances or capabilities. There is different basis on which
the gap analyses can be made like the end sales, shipping time, market rate of returns etc. Once it
is identified that what will be kept as a base the result of same are compared against the
standards set. Targets are set well in advance for instance estimation of sales and profit margins
so that the actual results received can be judged. Apart from this data for improvements can be
collected through conducting surveys in which from respondents it is found that how did they
find the services and what changes are required in them. This way in long term profit margins
and be maintained. Trends in the market can also be analysed to take decisions for own new
business idea so that the competitive advantage is achieved.
P4 Interpretation of data
Advertising investigation is basic to maintain in market for longer term on the grounds that
a representative appreciates the life span and for what reason not they put such a great amount of
vitality in it. The statistical surveying identifies the objective bazaar, customer issues and
reasonable contenders. Showcasing research taxicab be done from different stages amid the pre –
dispatch and post – dispatch. Since if an individual is having a decent learning about the
commercial centre then they can start an amazing business in aggressive environment. There are
a few methods of showcasing investigations, for example -
Primary statistical surveying – This investigation is carried by the commerce or an
organization itself which is gathers the data going to enhance its item, administrations and
capacities. Essential research is led in the field through gathering the criticisms, polls, overviews
or meetings of client about items and administrations. It can accumulate the information from
quantitative and subjective research also (Hmieleski, Carr and Baron, 2015).
Secondary statistical surveying - Secondary statistical surveying is very inverse of
essential research since it doesn't gather information from quantitative strategy rather it depends
on the nature of effectively assembled data. It considers the same number of various sources like
government information, office information, daily papers, magazines, web, and so forth. The
auxiliary research less takes less time and low cost.
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To grasp the statistical surveying there is the new advances can likewise be embraced like
discussions and online networking stages to know the request of clients what they are searching
for and what might be there response for the new items. The Gourmand and Globetrotter eatery
should look into the market to know the potential clients and their decision then they can
discover the key focuses where they can contribute more. For instance, there might be the
general population who just likes French or Spanish pleasures however in future they might
resemble other worldwide eats from different nations like claim to fame of UAE or India or
Middle East Countries. There might be a plausibility exists for the fruitful trials.
P5 SWOT analysis
There are distinct factors that has their direct and indirect impact on the smooth
functioning of business. It is important that evaluation of these elements is done so that
accordingly arrangements and planning can be made. There are distinct areas in business which
are excel in its field and some which needs improvements. The fine dine is a new start up
business in food industry and has the following strength and weaknesses. By going though same
it will be identified that what are the possible factors that can restricts the growth of selected
business idea (Karimi and et. al., 2016).
Strength
 Since the selected business idea belongs to an industry which is having a good demand in
the present time it is easy for same to create sales in the market.
 There is high degree of flexibility in this business type which helps in delivering grater
satisfaction level to customers.
 The selection of location choice is made effectively which will further help in attracting
to more clients. It is ensured that everyone can reach to same place with ease and hence
can be a favourable factor to promote sales.
 The marketing strategies adopted are effective enough to attract the new customer
segment.
 Variety of new food products are kept as a part of food menu which will help in attracting
more segments of market.
 The prices of commodities are kept low at the initial stage which further become a
strength of the referred enterprise to acquire higher market share.
Weaknesses
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 There are unlimited number of entrepreneurs who are doing the same business and hence
this makes the profit margins limited.
 Competitive big brands which are already present in this field makes it difficult to launch
a new business idea.
Opportunities
 By maintaining effective research and development team the new business idea can
innovate its present offerings and can grow with a high speed.
 Use of different promotional events can be made to acquire higher market share.
Threats
 As fine dine is new for the market the major threat for same is of failure as any mistake at
the initial stage can lead to exit from the market.
 Brand image is very sensitive in this field and any error can lead to great loss of goodwill
which effects the long term sales of the company.
 Investments are made in high amount and failure of business idea leads to great loss of
resources (Karimi and et. al., 2016).
P6 Evaluation of market
In order to examine the degree of success of any business idea it is important to do the
investigation of market. for every business the effects of different factors are distinct and they
have the capacity to influence the profit margins. Before selecting the business idea, it is better
that those factors are studied so that accordingly it can be examined that to what extent it is
favourable to opt the particular alternative from range of options. While doing same there are a
range of factors that are examined such as:
Potential for growth – As the given business has good demand in the market it can be said
that if the operations are carried out effectively than a start-up can be converted into an
advantageous option. Expansion can be done using the effective strategies and hence the
profitability can be raised. By marinating innovation in the variety of food products more
revenue can be generated and interest of service user can also be maintained.
Infrastructure – There are different services used for the day to day operations for this
business type like transportation, water, electricity etc. with the assistance of these the goals are
achieved. By keeping control over these expenses Fine Dine can earn higher profitability. As it is
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a start-up it will cater its services to the local market only. It shows that the facilities discussed
above will not affect much to the business as all these are easily available for the same.
Market for the goods and services – The selected business idea has a clear targeted market
which belongs to the age group of 20 – 45 which shows that planning for them can be done
easily and hence the chances of achieving the success is high. As the targeting is done specific
particular strategies can be made keeping in mind the customer which further assist in raising the
sales of an enterprise.
Rewarding to the investor – Idea chosen to start the business with is one which is not much
effected by the external forces. There is a stability in restaurant business and hence to a great
extent it is possible that the expected results are achieved by the investors (Kirzner, 2015).
Competition and competitive advantage – This can be a factor which can affect the profit
margins of the selected business idea. There are range of options which are available in the
market for its customers and hence making it a competitive business idea. It is difficult to
ascertain that there is a surety of earning the expected results and hence to be strategic is the
basic requirement to maintain the competitive advantage.
Incentives – It includes the benefits which are received by the government in the form of
tax free or duty less business activities. Fine dine is a part of restaurant business in which
different taxes are imposed by the government and effects the profit margins. Different
government imposes distinct laws for each industry and hence in case of a legal body that do not
favour the selected business tax rates for same increases.
Personal Training and management – Prior to starting with a new business idea it is
required that the human resource who will be a part of business are recruited carefully and
effective training and learning is delivered so that the maximisation of profit can be done.
The discussed factors show that there is a favourable market for the selected business idea as
most of them were in favour and show less unfavourable policies for Fine dine restaurant
(Kohlbacher, Herstatt and Levsen, 2015)
CONCLUSION
From the above report this has been summarised that in order to select a new business it is
important that different factors that has its direct and indirect impact are analysed so that
accordingly judgment are made. Fine dine is a part of a very safe industry in which sales can be
maintained using effective promotional strategies and through the quality of services. apart from
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this discussion on how gap analysis helps in achieving the desired goals and objectives was done
which shows that it is an effective tool that assist in raising the profit margins.
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REFERENCES
Books and Journals
Baggen, Y. and et. al., 2015. Linking complex problem solving to opportunity identification
competence within the context of entrepreneurship. International Journal of Lifelong
Education. 34(4). pp.412-429.
Davidsson, P., 2015. Entrepreneurial opportunities and the entrepreneurship nexus: A re-
conceptualization. Journal of Business Venturing. 30(5). pp.674-695.
Foo, M. D., Uy, M. A. and Murnieks, C., 2015. Beyond affective valence: Untangling valence
and activation influences on opportunity identification. Entrepreneurship Theory and
Practice. 39(2). pp.407-431.
Gielnik, M. M. and et. al., 2015. Action and action-regulation in entrepreneurship: Evaluating a
student training for promoting entrepreneurship. Academy of Management Learning &
Education. 14(1). pp.69-94.
Hatak, I. And et. al., 2015. Age, job identification, and entrepreneurial intention. Journal of
Managerial Psychology. 30(1). pp.38-53.
Hmieleski, K. M., Carr, J. C. and Baron, R. A., 2015. Integrating discovery and creation
perspectives of entrepreneurial action: The relative roles of founding CEO human
capital, social capital, and psychological capital in contexts of risk versus uncertainty.
Strategic Entrepreneurship Journal. 9(4). pp.289-312.
Karimi, S. and et. al., 2016. Fostering students’ competence in identifying business opportunities
in entrepreneurship education. Innovations in education and teaching international.
53(2). pp.215-229.
Karimi, S. and et. al., 2016. The Impact of entrepreneurship education: A study of Iranian
students' entrepreneurial intentions and opportunity identification. Journal of Small
Business Management. 54(1). pp.187-209.
Kirzner, I. M., 2015. Competition and entrepreneurship. University of Chicago press.
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