Entrepreneurial Opportunity: Analysis of Business Idea and Application of 7 Domains

This report analyzes the business idea for “The Coffee Hub” taking into consideration of various market data and different types of theories. It also involves the application of 7 Domain Model to the business ideas and how it helps an entrepreneur to analyze the market.

Entrepreneurial
Opportunity

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
Description of Business Idea and application of 7 Domains..................................................1
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Entrepreneurs plays a significant role in the market place as they are involved in the new
business ideas which helps to contribute for the development of a country’s economy. A good
entrepreneur continuously search for innovative business ideas in order to apply changes in the
organisation. But in some cases, the existing economy can help these entrepreneur to develop
themselves. In this report, the business idea for “ The Coffee Hub” has been analyzed taking into
consideration of various market data and different types of theories. In the beginning, the source
of business idea has been developed with application of 7 domains that supports a entrepreneur
in development of business ideas.
MAIN BODY
TASK 1
Description of Business Idea and application of 7 Domains.
An entrepreneur continuously looks for new ideas through various sources. There are
various sources through which an entrepreneur gets ideas in order to start a new business and its
various prospects. There are various different types of journals or articles which provides
insights and new ideas about few industries(Akinboye and Morrish,2021). There are various
sources through which “The Coffee Hub” can get ideas :
Surveys : An entrepreneur can get idea from various queries by conducting a survey. It can
follow necessary steps in order to gather information generated through conduction of surveys. A
survey provides the best insights about competitive information and condition of customers.
Customer Complaints: The feedbacks and customer complaints plays an important role for any
business because their views are different as compare to that of entrepreneurs (Boozer, 2021).
Brainstorming: It refers to the techniques which are used in order to generate various solutions
for a particular problem. When employees work together , it leads to sharing of understanding
and generating new ideas. Brainstorming works a cost effective technique.
Introduction to Business Idea:
The Business idea involves a new coffee shop named “The Coffee Hub” that is opening
in Romania in order to serve consumers. In this shop, various variants of coffees will be served
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in order to meet the customer’s demand. The consumers can purchase coffee from various shops
or even can purchase from online websites. In the beginning, the coffee will be produced in order
to meet the local consumer demand and soon the business operation will be expanded to other
sectors. The employee count will be 15-20 and soon will increase according to the expansion of
business. The main motive to start this business is to not depending on others and earn a
livelihood.
Application of 7 domains to the Business idea :
The 7 Domains Model provides an entrepreneur a framework to decide whether a
business idea is marketable or viable(Byus, 2018). This model basically divides the idea into
seven parts or seven domains for the purpose to analyse. The five four domains involve the
macro and micro analyses of industry or market and the remaining ones are considered to be
company level factors. In addition to that various business start-ups fails to understand the reality
as they directly jump into the market without proper understanding. In order to provide the best
possible structure to the start up its is very important to critically analyze your ideas through
various angles.
Mostly the easiest way to analyze the business idea involves framework which includes Porter’s
Five Forces model or PESTLE analysis but it is always useful to examine the ideas from various
viewpoints that mainly involves the 7 Domain Model which was developed by John Mullins who
was a professor at London Business School that offers an entrepreneur a interesting and unique
idea to try out various business ideas. This framework helps the new business founders to look at
their ideas in a critical way without putting much time and effort in research( Campos, 2017). 7
Domain Model helps an entrepreneur to decide whether a business idea is marketable and viable.
The models helps in dividing the idea into seven domains for analysis. The first four involves
macro or micro analyses of industry or market and the remaining three are considered to be
company –level factors. The 7 domain model puts a proposed idea under a microscope and starts
anticipating the potential problems or challenges that might encounter. It will help to proactively
figure out or develop solutions to shift directions in certain situations.
Market Domain:
1. Determine market attractiveness at the macro level.
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This type of domain encompasses the market and the intention is to look for the market
from a wide range of perspectives to figure out the new service or product that fits in. In context
to the “The Coffee Hub” , the business founder need to analyse the various information related to
working of market, potential buyers, prospective consumers and market demonstrated growth
(Garbuio and Lin, 2018).
2. Research sector market attractiveness and benefits at the micro level:
The market is made through a variety of customers and it is not necessary that every
consumer would be attracted towards the business idea. At this level, there is a need to get proper
understanding of the consumers. In context to “The Coffee Hub”, it important to understand and
have a deep knowledge regarding the target market which involves making the product or service
to stand out and deciding which market segment would benefit the service or product.
Industry Domain :
3. Determine the industry attractiveness at the macro level:
It involves looking at the big picture of the industry where the organisation is competing in. It
involves examining the level of ease of entry and level of competition. In context to “The Coffee
Hub” , the entrepreneur needs to find easy ways to enter into the industry, analysing the power of
buyer or seller and fierce competition (Hattab,2019).
4. Look for a sustainable advantage at micro level.
It involves going more deeper into analysis of prospective competitors and chosen industry.
It involves thinking about the staying power of business or uniqueness of the business. In context
to “The Coffee Hub” it involves developing a unique selling proposition, plans to keep business
sustainable and competitive and analysing the uniqueness that the business idea have as compare
to its competitors.
Team Domain:
5. Examine the team’s propensity for risk, mission and aspirations.
It involves getting personal through focusing on values, commitment, goals as well as that of
teammates. In context to “The Coffee Hub” it involves ways to pursue the business, visions and
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goals for the venture, risks to take, lining business with personal value and commitment towards
starting up the business.
6. Looking critically at team’s ability to execute critical success factors:
It involves specifying the critical success factors (CSFs) which involves high level goals that
are critical for a business to reach in order to gain success. In context to “The Coffee Hub” it is
important to decide the type of decisions and analysing the team’s ability to meet the CSFs and
bridge gaps in skills and knowledge (Keane and Costin, 2019).
7. Consider team’s connectedness up, down and across the value chain.
It is the last domain which is all about relationships which is a important factor in every
entrepreneurial venture which involves looking at connections from customers to investors,
suppliers to competition and how it can affect the business. In context to “The Coffee Hub” it
involves building a relationship with suppliers and investors, connections with potential
customers or distributors and knowing your competitors personally(Yuan and Autio, 2021).
CONCLUSION
From the above report it can be concluded that entrepreneur plays an important role in any
business market and in order to develop business idea and start a new business it involves a lot of
effort and hard work to innovate new ideas in the market. In addition to that it involves the
business idea of “The Coffee Hub” which focuses on providing different types of coffees to the
customers through shops and online sites. Moreover, it involves the application of 7 Domain
Model to the business ideas and how it helps an entrepreneur to analyse the market.
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REFERENCES
Books and Journals
Akinboye, A. and Morrish, S. C., 2021. Conceptualizing post-disaster entrepreneurial decision-
making: Prediction and control under extreme environmental uncertainty. International Journal
of Disaster Risk Reduction, p.102703.
Boozer, J., 2021. THE ENTREPRENEURIAL IMPULSE. In Career Movies (pp. 95-145).
University of Texas Press.
Byus, K., 2018. Observe, orient, decide, act: A subjectivist model of entrepreneurial decision
making. Journal of Managerial Issues, 30(3). pp.349-277.
Campos, H. M., 2017. Impact of entrepreneurial passion on entrepreneurial orientation with the
mediating role of entrepreneurial alertness for technology-based firms in Mexico. Journal of
small business and enterprise development.
Garbuio, M. and Lin, N., 2018. Entrepreneurial 9 Opportunities in Healthcare. Entrepreneurship
in Healthcare, p.199.
Hattab, H., 2019. The Impact of integrating design-thinking approach into university
entrepreneurship education on students' entrepreneurial mindset. In ICSB World Conference
Proceedings (pp. 1-6). International Council for Small Business (ICSB).
Keane, C. and Costin, Y., 2019. Collaboration in an entrepreneurial cluster: a study of an urban
coop. Journal of Enterprising Communities: People and Places in the Global Economy.
Yuan, X. and Autio, E., 2021. Entrepreneurial Resilience During a Crisis: Systematic Review
and Integrative Framework. In Academy of Management Proceedings (Vol. 2021, No. 1, p.
14744). Briarcliff Manor, NY 10510: Academy of Management.
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