Identifying entrepreneurial opportunities

This document discusses the concept of identifying entrepreneurial opportunities and evaluating different sources of entrepreneurial ideas and innovation. It explores the market gap and rationale for a specific entrepreneurial idea. The document also covers data analysis to support gap analysis and interpretation of market potential.

Identifying
entrepreneurial
opportunities

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1) Determine and evaluate different sources of entrepreneurial ideas and innovation.............1
M1) Provide a detailed evaluation of Drucker's 7 sources of systematic innovation.................3
D1) Critically evaluate the benefits and drawbacks of different approaches and sources that
can lead to the identification of entrepreneurial idea..................................................................3
TASK 2............................................................................................................................................4
P2) Explain the rationale and the market gap for a specific entrepreneurial idea.......................4
M2) Provide justification of how a specific entrepreneurial idea fills a market gap..................6
D2) Critically evaluate a specific entrepreneurial idea based on appropriate interpretation and
investigation................................................................................................................................7
TASK 3............................................................................................................................................7
P3) Present data needed to support gap analysis.........................................................................7
P4) Interpret data appropriately to provide evidence of market potential................................10
M3) Justify specific source and method of data collection.......................................................15
D3) Analyse appropriate specific sources and methods to justify business objectives............15
TASK 4..........................................................................................................................................16
P5) Apply SWOT frameworks of a specific entrepreneurial idea............................................16
P6) Evaluate competitive and market environment to assess potential viability......................17
M4) Critically evaluate a specific entrepreneurial idea............................................................17
D4) Formulate valid conclusion and justified recommendation on specific entrepreneurial
idea............................................................................................................................................18
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20

INTRODUCTION
Entrepreneur is the one who has new and creative idea to start the business and that
whole is known as Entrepreneurial. The opportunities that is faced by an entrepreneur to measure
the growth and development is known as entrepreneurial opportunities (Gans, 2019). As it
provides different ways to the business to enhance the market share by grabbing the attention of
the customers. Tesco is one the most largest retailers as compared with the gross revenues that is
established in 1919 by Jack Cohen and its headquarter is in Welwyn Garden city Hertfordshire.
This report includes about the new innovative idea of Tesco as they launch there furnitures with
the new innovation. With that includes the detailed evaluation of Drucker's 7 sources and
evaluate the benefits and drawbacks of an entrepreneurial idea. Then explains the market gap by
applying several tools and techniques then apply SWOT to measure the strength and weaknesses
for the growth of innovative idea.
TASK 1
Covered in ppt
TASK 2
P2) Explain the rationale and the market gap for a specific entrepreneurial idea.
Tesco work on an international level thus uses geographic segmentation and on the basis
of that manage the supply in different areas (Dalpiaz, 2019). While in behavioural segmentation
manages the supply on the basis of culture, values, beliefs of the society. Whereas, in
demographic segmentation manages the supply on the basis of gender, age family size etc. By
analysing all the factors Tesco manages there sale and earns the profit.
Porter's five force model: It is a model that defines different factors through which
company gains the profit that is as explained below as:
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(Source: Porter's five force analysis, 2019)
Bargaining power of
suppliers
As Tesco has several suppliers that supply different services to the
company thus bargain power of suppliers is weak. Thus Tesco
purchases the raw materials from those suppliers that provides the
resources with lesser cost and thus company increases their profits.
Bargaining power of
buyers
There are different company that produces the furnishing products
thus customers have lot of options and thus to maintains the
sustainability in the business environment Tesco provides quality
products to the customers.
Threat of substitute It might that competitors of Tesco as Morrisons and Walmart also
start producing the same products that reduces the overall profit of
the company, For that Tesco provides the best quality products with
reliable prices that attracts the large customer base.
Threat of new entrants New entrants always comes with more advancement in the business
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and they are also ready to measure the less revenues in order to grab
the attention of market. For that Tesco brings the continuous
improvement in there products and offers the best services to the
customers.
Rivalry among existing
competitors
Tesco faces the competition with those who have worked on larger
scale of economies. There competitors are ASDA, Morrisons etc.
Thus for that Tesco also induces the changed within the business and
develops there services even more.
Thus, with that Tesco analyse all the factors and then implies the changes as per the
requirements and demands of customers.
Industry life-cycle: It is a cycle that defines the different stages of the company that is as
defined below as:
( Source: Industry life-cycle, 2020)
Start-up It is a stage in which newly business is launched in the market and with that
there is less awareness about the company in the market. Thus company works
with negative profit as well and company also faces less cash inflows in the
business.
Growth It is a period in which retailing industry faces the growth and with that cash
flow and profit turns to be in positive side. And people get more aware about
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the product and services that is offered by the company.
Shake-out It is a stage in which company faces more profit as compared to cash flow in
the business and with that revenues also becomes slow down.
Maturity In this stage retailing company is well established and shares more profit with
growth and development. With that induces the innovation within the business
to attains the attraction of the customers (Gans, 2019).
Decline It is a stage in which retailing company faces slowdown and with that cost and
profit both becomes low. And after that company will be out from the market
and other competitors and new entrants takes their place.
M2) Provide justification of how a specific entrepreneurial idea fills a market gap.
Market gap defines the difference between the expectation and the reality of the market
as what customers demand and what company supplies to the market. Company gets the growth
between this period as market provides a lot of opportunities to the business. Market provides the
lot of opportunities by demanding different services to the company whereas, company grabs the
opportunity and works as per the requirement of customers. Entrepreneurial idea also comes as
per the requirement and demand of market and company fulfil that demand with innovation.
D2) Critically evaluate a specific entrepreneurial idea based on appropriate interpretation and
investigation.
Entrepreneurial idea is the based upon the requirement of customers and for that
company performs different interpretation by conduction questionnaire, survey and then try to
analyse the demand of the market. After analysing the demand of market company investigate
the different idea through which innovation is proceeded (Hueter, 2019). With that market has a
lot of competition and all the companies performs creativity in there business to measure the
growth and development. Thus for that Tesco performs different function that induce positive
growth in the business and that is happens by inducing the innovative products.
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TASK 3
P3) Present data needed to support gap analysis.
Gap analysis defines what company has and what company wants to achieve within a
particular period of time. Thus Tesco analyse the difference by compare the current and future
situations that is defined below:
Basis Current position Desired position Action plan
Products and
Services
Tesco deals with
different products as
groceries, insurance,
clothes, toys, telecom,
furnitures and
financial services,
electronics etc.
To manufacture
furnishing services
that is more furnished
and advanced
structures (Joll, 2018).
To manufacture
furnishing services,
Tesco works to
training to their
employees to work
with advanced
machineries.
Cost Tesco provides the
products and services
with the reliable rate
and reasonable price
that attracts large
number of customer
base.
Tesco uses pricing
strategies to fixed the
cost of their different
products and services.
Tesco uses price
penetration strategy in
the starting to grab the
attention of customers
towards their new
furnished products.
Innovation Tesco wants to
enhance their sales in
furnished department
and thus induce the
changes in that
To introduce the
innovation in the
furnished services,
Tesco decides to gain
the market advantages.
Tesco conduct survey
and collect the
feedbacks of the
customer then induces
the change within the
business (Malecki,
2018).
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Objectives Strategies
Tesco has the objective the enhance the
productivity with the new innovation.
 To manufacture the best and unique furnitures.
 Tesco uses penetration strategy to attract the
large customer base.
To maintain the sustainability within
the business.
 Tesco collects feedbacks from customers and
then insert the change as per requirement.
 Tesco also offers discount to all the customers
and special offers to permanent customers.
Gantt chart: It shows the total time that is assigned by the Tesco foe each individual
activity that is performed to enhance the productivity of the company.
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P4) Interpret data appropriately to provide evidence of market potential.
There are various sources through which data has been collected by Tesco and then the
manager will interpret that data and analyse the suitable form of innovation for the business.
Tesco collects the data from 30 persons and try to collects their reviews through the
questionnaire that is as explained below as:
QUESTIONNAIRE
Name:
Age:
Address:
Contact Number:
Q1. Did to aware about furnished products?
A. Yes
B. NO
Q2. Did you use furnished products at your home?
A. Yes
B. No
Q3. Is furnished products shows uniqueness and superiority ?
A. Agree
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B. Disagree
C. Don't Know
Q4. Do you think that furnished products get the success in the market?
A. Agree
B. Disagree
C. Can't Say
Q5. Do you think Company gains the advantage through this innovative product?
A. Yes
B. No
Q1. Did to aware about furnished products? Frequency
A. Yes 17
B. No 13
Total 30
Mean 15
Median 15
Mode 4
Interpretation: According to the above graph Tesco analyse that from 30 persons, 13
are those are aware about the furnished products while 17 are those who doesn't aware about that
services. thus as per the information mean is 15, median is 15 and mode is 4.
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Did you use furnished products at your
home? Frequency
A. Yes 25
B. No 5
Total 30
Mean 15
Median 15
Mode 0
Interpretation: According to the above graph it has been analysed that 25 persons out of
30 used furnished products in their home while 5 didn't known about that. As per the above
information it is analysed that mean is 15, median is 15 and mode is 0 (Markard, 2018).
Q3. Is furnished products shows uniqueness
and superiority ? Frequency
A. Agree 16
B. Disagree 8
C. Don't Know 6
Total 30
9
A. Yes B. No
0
5
10
15
20
25
30
25
5
Column B

Mean 10
Median 8
Mode 4
Interpretation: As per the above graph it has been analysed that furnished products
shows uniqueness and superiority and out of 30, 16 persons believe that whereas, other didn't
believe in that. As per the above information it is analysed that Mean is 10, median is 8 and
mode is 4.
Q4.Do you think that furnished products get
the success in the market? Frequency
A. Agree 13
B. Disagree 10
C. Can't Say 7
Total 30
Mean 10
Median 10
10
A. Agree
B. Disagree
C. Don't Know
0 2 4 6 8 10 12 14 16 18
16
8
6
Column B

Mode
6
Interpretation: It has been analysed from the above graph that 10 out of 30 persons
believes that furnished products get the success in the market while other 13 didn't think that and
7 are neutral. Thus as per above information mean is 10, median is 10 and mode is 6 (Modi,
2018).
Q5. Do you think Company gains the
advantage through this innovative product? Frequency
A. Yes 16
B. No 14
Total 30
Mean 15
Median 15
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Mode
2
Interpretation: It is analysed that 16 persons believes company gains the advantage
through this innovative product while 14 doesn't think that. As per the above information mean
and median of this statement is 15 and mode is 2.
M3) Justify specific source and method of data collection.
Internal sources of data collection: It is a data that is collected by the Tesco from their
business as well some are as follows as:
 Stakeholders: As company make the financial report for to present that in front of the
stakeholders. These are those participants that takes part in all the profit and loss states of
the business. For example creditors, suppliers, owner, customers, employees etc.
 Financial reports: It is a report that is developed by the company itself and it includes
the record of performance of the business with different product and services (Özakça,
2018).
External sources of data collection: It is a source of the company that provides the data
as from outside the company some of are as follows as:
 Customers: These are the biggest source as provides all the data as per their experiences
and company collects that in the form of feedbacks and reviews.
 Journals: It is a scholarly data that is already presented by some researchers and it helps
the company as provides some relevant information that adds the values in the products
of Tesco.
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A. Yes B. No
13
13.5
14
14.5
15
15.5
16
16.5
16
14
Column B

D3) Analyse appropriate specific sources and methods to justify business objectives.
Primary source: It is a source that presents the data as per the very first time as by
collecting the data by conducting the survey, interviews, questionnaire etc.
Advantages of Primary source Disadvantages of Primary source
Tesco gets the relevant information that adds
value to the innovator product.
It is a time consuming and costly process as
data is collected by manually.
Secondary source: It is a source in which data is collected from the already published
data i.e. from journals, books, articles etc.
Advantages of Secondary source Disadvantages of Secondary source
It is a sources that provides the adequate
results that helps the company to enhance their
productivity.
It is not fixed that company always gets the
relevant result, thus somehow it might be time
wasting process (Parker, 2018).
TASK 4
P5) Apply SWOT frameworks of a specific entrepreneurial idea.
SWOT Analysis: It is used by the Tesco to measure the strength and weaknesses of the
business.
Strength Weaknesses
 Tesco has the large customer base and
has worldwide expansion with that
have huge customer base. That attracts
the customers towards the new product
of the company.
 Tesco has lot of competitors with that
there are other companies as well that
produces furnished product. Whereas,
Tesco has less experienced in
furnitures.
Opportunities Threat
 Customers always get attracted towards
the unique and good furnitures thus
 New entrants are the biggest threat as
they works with the less profit as well
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Tesco has huge scope for success. that reduces the profit share of Tesco.
Market and competitor analysis: It is an analysis that shows the different competitions
that is faced by Tesco that is as explained below as:
Basis Tesco Walmart ASDA
Products and services Tesco deals with
different groceries and
merchandisers.
Walmart deals with
retail goods, photo lab
services, pharmacy
and many more
(Phadermrod, 2019).
ASDA works as
retailer and also deals
with car insurance,
credit card services
etc.
Organisational
structures
Tesco follows
hierarchical structure
as they works on a
larger scale.
Walmart follows
hierarchical and
functional structure as
they provides wide
services.
ASDA follows
functional hierarchical
structures to manage
their staff.
Major attractions Tesco uses customer
centric approaches to
satisfy the demand of
customers.
Walmart provides
direct delivery to the
customers.
ASDA provides better
place for local
communities to live-in.
P6) Evaluate competitive and market environment to assess potential viability.
PESTLE Analysis: It is an analysis that describes the macro-environment factors of
affects the growth of Tesco is as define below as:
Political Tesco follows all the rules and policy of UK government with that to advance
the benefit after Brexit Tesco induce the changes in the business to enhance
the sale.
Economic Companies gets the benefit as UK infrastructure is well developed thus
company easily gets all the resources that helps to measured the growth.
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Social With the new innovation Tesco provides job opportunity to the people and try
to connects with the society.
Technological Tesco induce all the advancement in their business on an continuous process.
Legal Tesco believes to work for the society welfare thus follow all the legal
formalities.
Environmental Tesco induce the change that is environment friendly and doesn't harm the
society.
M4) Critically evaluate a specific entrepreneurial idea.
The idea of Tesco is very much impressive as large number of customers gets attracted
towards the advancement and all want that there surround is well furnished (Schwienbacher,
2018). And Tesco made the products that is well polished and provides new look to the
infrastructure with the reasonable prices. Thus that attracts large amount of customer towards the
services of the company.
D4) Formulate valid conclusion and justified recommendation on specific entrepreneurial idea.
It has been concluded that Tesco developed unique products and targets the large
customer base. If they insert continuous advancement and provides the best infrastructure as per
the demand of customer that even more enhance the profit of the company.
CONCLUSION
It has been concludes that innovation and advancement brings the positive changes in the
business and also provides new opportunities for the business to measured the growth in terms of
enhancement in sales. With that Tesco analyse the market gap and rationale that by using
Drucker's 7 forces model and then collects the data from the primary and secondary source. After
that Tesco interprets the data by collected the feedback from the customers. Furthermore, in the
end Tesco analyse PESTLE and SWOT analysis to measure the strength and weaknesses of the
business environment.
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REFERENCES
Books and Journals
Gans, J.S. And et. al., 2019. Foundations of entrepreneurial strategy. Strategic Management
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Hueter, G.J. and Quandt, S.C., CERTONA CORP, 2019. System and method for automating
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Joll, C. and et. al., 2018. Developments in labour market analysis. Routledge.
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Markard, J., 2018. The life cycle of technological innovation systems. Technological
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Modi, Y. and et. al., 2018. Monitoring external vibration sources for data collection. U.S. Patent
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Özakça, M., 2018, March. Analysis and optimal design of structures with adaptivity. In 2018
International Conference on Advance of Sustainable Engineering and its Application
(ICASEA) (pp. 267-268). IEEE.
Parker, S.C., 2018. The economics of entrepreneurship. Cambridge University Press.
Phadermrod, B. and et. al., 2019. Importance-performance analysis based SWOT analysis.
International Journal of Information Management. 44. pp.194-203.
Schwienbacher, A., 2018. Entrepreneurial risk-taking in crowdfunding campaigns. Small
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ONLINE
Porter's five force analysis. 2019. [Online] Available through: <https://medium.com/product-
gyaan/porters-five-forces-analysis-868945aa5846>.
Industry life-cycle. 2020. [Online] Available through:
<https://corporatefinanceinstitute.com/resources/knowledge/strategy/industry-life-
cycle/>.
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