Entrepreneurial Ideas and Innovation for Freshly Restaurant

This report discusses sources for entrepreneurial ideas and innovation, rationale and market gap for Freshly restaurant, SWOT analysis, and evaluation of market and competitive environment using PESTEL analysis.

Unit-27

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
P1. Determining and evaluating distinct sources related to entrepreneurial ideas as well as
innovation....................................................................................................................................3
P2. Explanation of rationale as well as market gap in context to specific entrepreneurial idea
by using relevant techniques along with tools.............................................................................5
P3 and P4.....................................................................................................................................7
Discussed in PPT.........................................................................................................................7
P5. Application of SWOT framework for collating evidence for supporting objective
assessment of specific entrepreneurial idea.................................................................................7
P6. Evaluating competitive as well as market environments wherein idea will be launched for
assessing potential viability.........................................................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
An entrepreneur may be referred as the person who have ability and willingness to develop and
organise business in order to generate profit along with serving quality service to society
(Henry., Hill and Leitch, 2017). Entrepreneurs identifies opportunities and take advantage of it
so as to achieve higher success in business. It is important for business to identify customer
needs and wants and based on that produces product which can meet customer expectation.
Customer’s demand and preferences are dynamic in nature and keeps on changing rapidly which
creates complexity for business to identify customer trend. In addition to that, entrepreneur
conducts market analysis, trends and other external forces that can influence company’s
operations. In order to gain entrepreneurial insights, Freshly, a healthy restaurant is chosen which
serves healthy food to people who are conscious to health. This project report will cover sources
for ideas that an entrepreneur can opt for along with rational and market gap. At last, it will cover
SWOT analysis and evaluation of market and competitive environment.
TASK
P1. Determining and evaluating distinct sources related to entrepreneurial ideas as well as
innovation.
There are various sources that relates to entrepreneurial idea which assist entrepreneurs to opt for
and can set up venture so as to generate profit. Freshly restaurant is a new innovative and
creative idea whose entrepreneur is looking to setup its venture at Welwyn Garden City. People
become more health conscious about their after COVID-19. They are looking for fresh and
healthy food by which they can maintain healthy living. It offers various food and snacking
options and facilitates customisation. The targeted audience for freshly is gym goers, youngsters
and mid-aged persons who wants to follow healthy lifestyle along with taste. Some of the
entrepreneurial ideas given by Peter Drucker are discussed below.
Unexpected- There are various uncertainties in modern business era and it is need to frame
flexible policies that can be altered, in case modification needed. In various cases, entrepreneur
generates ideas by analysing presented situation (Helms and Nixon, 2010). For example,
business of Freshly was come into existence after people become more conscious about their

health and wellness. After pandemic people are more conscious about their health and want to
adopt healthy lifestyle in order to keep themselves fit and fine.
Incongruities- It is also another form of entrepreneurial idea which relates to discrepancy among
what is do that and what it should be. For example, while providing food, entrepreneur generates
idea of providing healthy food options to people who are health conscious and want taste. It will
help them in keeping fit and healthy. In addition to that, it will be beneficial to boost immunity
and in managing weight.
Process Need- Needs can be referred as the mother of innovation and market needs helps
entrepreneur in generating new ideas so that they can fulfil customer’s needs by offering quality
products and services. In case of Freshly, company analyse weaknesses of its competitors and
based on that produces product that can meet customer expectation. Rather than brining
innovation to product, company can identify weak spot of competitors and frames strategies so
as to remain competitive in dynamic business environment. It becomes complex for company to
analyse market condition and conduct competitor analysis as it is time consuming as well as
expensive too. Along with this, company may face complexities in operating its business.
Change in market and industry structure- Changes within industry and market may lead to
generation of new ideas. It may be difficult for company to adopt with changes and making
alteration in strategies becomes complex for company (Welter and Gartner, 2016). So it is
important for company to effectively deal with market structure and based on that frames
strategies. In addition to that, this issue can be addressed by understanding market structure and
market structure. It facilitates company in gaining competitive advantage and in generating high
profit margins.
Demographics- Changes in income level and in lifestyle leads to better entrepreneurial idea. Due
to increase in increase level and on the basis of demographics, entrepreneur can get innovative
idea. It is important for company to conduct market analysis as each nation has different taste
and perception towards something. Better understanding of demographics can lead to better
entrepreneurial idea. By conducting demographics, Freshly have commenced its business
operations.
Change in perception- It can be referred as the process of perceiving things by people towards
certain thing. Change in perception towards healthy food came into effect after pandemic as
people become more conscious about their health and wellness. It creates an opportunity for

entrepreneur of Freshly to take advantage of it. It will be helpful for company to attract larger
customer base and makes it easier to render services.
New knowledge- The speed of innovation is enhancing with new knowledge of market and
business. It will help entrepreneur in getting idea of setting up a healthy food restaurant. There
are various benefits of new knowledge as it facilitates in identifying opportunities which can
support company in achievement of organisational goals (Madsen and Grønseth, 2022). Along
with this, there may be risk of implementation of new knowledge.
All the above ideas helps entrepreneur in identifying innovating idea and contributes in
commencement of Freshly restaurant.
P2. Explanation of rationale as well as market gap in context to specific entrepreneurial idea by
using relevant techniques along with tools.
Entrepreneurial idea- The entrepreneur has several idea to set up their business in market. In
food and beverage industry, there can be seen an ample number of growth opportunities that
companies can take advantage of it. Entrepreneurs can grab those opportunities by setting up
their venture and operating in best and efficient manner. This will help them in capturing
customer and an attracting potential customers. This generates idea of setting up of Freshly
restaurant and offer fresh and healthy food options to its customers. Many investors are seeking
for investing their money in such type of business. Investor analyse potentiality and growth rate
of business and based on that setup business. In context to Freshly restaurant, it offers various
types of food which are rich in nutrition and helps in keeping people fit and fine. It also offers
protein smoothies to gym goers who want nutrition as well as taste. In UK, there is no company
that offers this type of food and this new idea can bring efficiency to business operations. It will
also help in meeting expectation of people and can gain advantage in form of getting customers
and in elevating brand image of company. It offers various healthy food option to its customers
such as fruit bowl, protein smoothies, low calorie meals and high protein meals.
USP of new idea- Unique selling proposition may be referred as the factor that differentiate
venture from its competitors. A business can have various types of USP such as high quality, low
cost and so on. In context to Freshly, it offers healthy food option along with low cost that makes
it unique from its rivals.
Gap Analysis- It may be referred as the process by which business can analyse difference
between actual condition and desired condition of market. With this process, company can

formulate effective strategies so as to fill gap. In context to Freshly, it uses this tool by which it
can analyse gap and can take measures to fix those gaps. Along with this, it will also help
company in remain competitive by framing effective strategies. Most of the companies use this
tool to analyse market opportunities so as to gain benefits from it. Due to pandemic, people are
adopting healthy lifestyle and became more conscious about their health and this idea helps in
attracting customers. Company can analyse market gap and can be filled by fulfilling customer’s
expectation by rendering quality product. No company offers such type of food options and there
can be seen a gap of healthy food options but this could be filled by offering quality food along
with minimum price so as to attract larger customer base.
Competitive market –In today’s dynamic business environment, it is important to conduct
market research so as to know about strengths and weaknesses and based on that frames
strategies so as to competition. The main competitors of Freshly are Healthy restaurant, Protein
House and Diet King which also offers similar type of food options but at higher price. But it
offers both type of food options and Freshly is a new concept that can bring efficiency in food
and beverage sector. As people are more conscious about their health and it becomes easier to
attract larger customer base by offering quality product at minimum price. Along with this, it
also offers customisation food options in which customer may customise their food as per their
requirement. Freshly also offers food deliver options that makes it more convenient for
customers to opt this company. Customer can order directly through its mobile application and
can get food delivered direct to their home. In order to analyse competition in market, Porter’s
Five Forces model can be used.
Bargaining power of buyers- In food and beverage industry, company highly depends on buyers
and power of customers in this industry is generally high as they are one to whom products are
manufactured and sold (Bygrave and Hofer, 2021). In context to Freshly, bargaining power of
customers is higher and can effect on pricing of customers. In order to address this issue, low
cost pricing strategy can be opted by company so that it can attract maximum buyers.
Bargaining power of Suppliers- They are the medium which provides required raw material in
order to manufacture products at same time delivering to end customers. Having high number of

suppliers leads to high bargaining power. By opting supplier which provides quality material but
at minimum price, this issue can be resolved and company can offer best price to its customers
too.
Competitive rivalry- In food and beverage industry, there are various rivals that offers similar
products but in case of Freshly, there is little competition as there is no single restaurant which
offers only healthy and customised food options. This will help company in gaining competitive
advantage by capturing larger market.
Threat of new entrant- In case of food and beverage industry, it becomes difficult for company
to achieve economies of scale but company can generate high profit by offering unique products
along with lost cost. This will help in capturing market in short span of time. Threat of new
entrant in food and beverage industry is high and company have to alter its strategy so as to face
competition with newly established firm.
Threat of substitute- Substitutes are those products that can be used in place of another. There
are very least options available in this industry as company may compromise with their quality
so as to gain higher profit (Kent., Sexton and Vesper, 2019). It shows that there are few threats
available to Freshly and can get advantage of it.
P3 and P4
Discussed in PPT
P5. Application of SWOT framework for collating evidence for supporting objective assessment
of specific entrepreneurial idea.
Strengths Weaknesses
 It offers customised healthy food
options to its customers.
 It offers large variety of healthy food
that are rich in nutrition.
 Cost of some products are higher due to
high cost of ingredients used.
 Company have to make all
arrangements and need to have all
ingredients all time which costs higher.
Opportunities Threats
 Company can expand its operations in  Changes in political legislation can

other regions of country so as to serve
healthy food to its customers.
 Company can make relations to health
and fitness centre so as to expand
customer base.
create threat to company and it can
negatively impact on company’s
performance.
 People can opt for other healthy food
option which offers low cost.
SWOT may be referred as the framework which can be used to assess strengths, weakness,
opportunities and threats of any business. By doing this, company can get to know about its
strengths and weakness and based on that frames strategies so as to eliminate weakness. It is
highly used tool used by many entrepreneurs in order to make effective decision which can leads
company towards attainment of goals. Freshly restaurant is a new entrepreneurial idea that offers
healthy food options to its customer such as protein bowl, protein smoothies and low carb diet.
This will help customers in keeping them fit and fine. SWOT analysis of Freshly is discussed
below
By analysing strengths and opportunities of company, it can be concluded that company can
meet expectation of customers and may attain its objectives effectively and efficiently. Along
with this, company have to take corrective actions so as to eliminate barriers of success. By
eliminating weakness, it becomes easier to achieve higher success in competitive market.
Company emphasize on both quantity and quality which can fulfil customer’s expectation. In
addition to that, it will help in attracting more customers if company renders quality food items
(Kirzner., 2015). It will also help company in attracting investors so that expansion of business
can be easier and establishment can function its operations more smoothly. By having adequate
funds, company can operate its functions more effectively and efficiently.
P6. Evaluating competitive as well as market environments wherein idea will be launched for
assessing potential viability.
In today’s business world, there are various external factors that may negatively impact on
company’s performance and it is needed to analyse and take corrective action in order to achieve
higher success and to mitigate risk associated with it. In order to analyse external factors,
PESTEL analysis can be used. It is needed to bring innovation to product or to bring new
improved and unique product that differentiates from its customers (Sarsby, 2016). It is

important for company to regularly update its products that facilitates in remaining competitive
in dynamic business environment. For instance, providing healthy food option to customers
which keeps them fit and fine is an entrepreneurial idea introduced by entrepreneur. Along with
profit making, it will also help in decision making and in enhancing performance. There are
various factors that can impact on company’s performance and should be taken into account
while framing strategies.
PESTEL analysis- It may be referred as a framework which is highly used by marketers to
analyse and monitor various macro environmental factors that may impact on company’s
performance. In context to Freshly, PESTEL analysis is discussed below.
 Political factors- This factor relates to political interventions that may affect business
organisation. It involves various interventions such as political instability, government
policies, tax rates and other governmental policies. It is important for freshly to comply
with all rules and regulations framed by UK government so as to avoid penalties. Due to
political instability and fluctuation in tax rates, it may be difficult for company to operate
its business.
 Economic factors- This factor states that how a company is operating its business and its
profitability. This factor involves various essentials such as disposable income, inflation
rate and economic growth of nation (Dockalikova and Klozikova, 2014). Management of
Freshly focus on this factors and brings innovation to its food items so as to capture
customer’s attention. Company operates and grows rapidly due to its USP. It brings
innovation to its products by analysing customers’ needs and by taking feedback.
 Social factors- This factor relates to social culture in which it involves belief, tradition,
custom and ethos. Company frames its strategy on the basis of social factors so as to meet
customer’s expectation.
 Technological factor- It is also important factor that company have to take advantage of
it and it is needed to opt latest technology which can bring efficiency to its functioning.
Along with this, it facilitates in faster working and reduces chance of human error. By
opting latest technology, company can get competitive advantage and can make process
more simplified.
 Legal factors- Rules and regulations are framed by government and it is needed to follow
for smooth functioning. It will help in avoiding penalties and in enhancing productivity of

business. In context to Freshly, it operates its business legally and ethically so as to
elevate brand image in market. It has to follow some rules such as minimum wages act
and consumer protection act which ensures that employees are fairly treated that
contributes in enhancing organisational productivity.
 Environmental- This factor relates to environment and involves scarcity of raw material,
carbon footprints and natural calamities that can influence company’s operation. In
addition to that, company have to take action against minimising its negative impact of
process on environment. Company have to reduce carbon footprint in order to make
environment keep and clean.

CONCLUSION
From the above project report, it was concluded that market analysis of market helps
entrepreneur in identifying various opportunities that can be grabbed and competitive advantage
can be taken. PESTEL analysis can be used to analyse external forces that can impact on
company’s performance and profitability. There are various sources to entrepreneurial idea such
as new knowledge, perception, demographics and so on. It is needed for business to determine
market gap and based on that frames strategy that can lead to fixation of those gaps and makes it
easier to attain organisational goals. SWOT analysis can be used to assess strength and weakness
of company so that alteration can be done in existing strategy so as to accomplish objectives.

REFERENCES
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