Identifying Entrepreneurial Opportunities Assignment : Coffee exotica

IDENTIFYING
ENTREPRENEURIAL
OPPORTUNITIES

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation..............4
TASK 2............................................................................................................................................6
P2 Explain the rationale and the market gap for a specific entrepreneurial idea using relevant
tools and techniques to support your choice...............................................................................6
TASK 3............................................................................................................................................8
P3 Present data needed to support gap analysis in the evaluation of a specific entrepreneurial
idea..............................................................................................................................................8
P4 Interpret data appropriately to provide evidence of market potential..................................10
TASK 4..........................................................................................................................................13
P5 Apply a SWOT framework to collate evidence to support an objective assessment of a
specific entrepreneurial idea.....................................................................................................13
P6 Evaluate the competitive and market environments in which the idea will be launched to
assess potential viability............................................................................................................15
CONCLUSION..............................................................................................................................15
REFERENCES .............................................................................................................................16

INTRODUCTION
Entrepreneurship is an important act known for creating a business opportunities for
earning profitability. It is majorly related with transforming the world by evolving the big issues
such as initiating social change, with innovative products or a unique life changing solutions.
This report is based on the new business idea, originated by “Coffee exotica” which introduces
new range of coffees that are red velvet, unicorn latte and rainbow latte to enchant existing and
new consumers. This assignment covers various sources of entrepreneurial idea and innovation
by evaluating rationale and market gap with help of various tools and techniques. It also
includes gap analysis by using data to evaluate entrepreneurial idea and SWOT analysis to
examine viability of entrepreneurial idea. At last it evaluates competitive market environment
for accessing potential viability of business project.
TASK 1
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation.
Innovative business ideas are very much important for entrepreneur as well as consumers
and it comes from various sources by evaluating social change, innovative mindset and
determination to bring unique life changes. In context of Coffee Exotica that bring chain of
unique coffee's for their consumers so to evaluate sources that inspire them should be accessed
with help of Drucker's model of innovative opportunity that are as follows:
The unexpected:
Market place is foremost area to identify opportunities and a good manager constantly
evaluate scope of their business (Aliaga-Isla and Rialp, 2012). In that regards they focus on
product or services are in greater or lesser demand in anticipated market. They also find out ways
to exploit hidden opportunities in positive manner so manager or entrepreneur majorly rely on
evolve rare opportunities to remain always competitive. The unexpected event helps to an
entrepreneur to evaluate the market gaps by finding out opportunities that are relatively lack
behind in order to comply with deficiencies. In context of Coffee exotica they aimed to bring
series of coffee in market by analyzing market gaps.
The incongruity:
The Incongruity denotes the gap between what is and what should be. Various
organization fail to develop the willing product or services as they not focus on appropriate
research regarding target market,demand of consumers and many more factors (Busenitz And

et.al ., 2014.). So by taking reviews from consumers, feedback and grievances helps to evaluate
gaps while providing products and services to consumers. It is one of most important factor that
shows the realities of concerning market. After evaluating the market and share of coffee in
respective field helps to organization to come up with new ideas or beliefs that in market the
ratio of profitability rises day by day that is major component to capitalize opportunities.
Process need:
Process need consist of evaluating major areas of an organization for correcting or
redesigning them. It is task oriented rather than situation focused in which opportunities occurs
from with in the organization to bring reforms in concerning areas to better perform. In context
of Coffee exotica they evaluate the market needs and current products and market. After that
evaluate that market products should be redesigned as consumers become more demanding so
they aimed to launch in market.
Industry and market structure change:
As per the Drucker's model sometimes innovative ideas come from when industry or
market continual faces fluctuations such as technological advancement demanded, lag in
profitability due to disruption and kinds of factors. So leaders closely evaluate each and every
factor to remain always competitive by adopting innovative business or idea which is Time's
demand. The coffee industry divided into the three main segments that are growers, roasters and
retailers and also two main economic structures which helps to control the coffee industry. In
context of Coffee Exotica they aimed to launch the series of coffee as per the needs of consumers
to remain always competitive in marketplace.
Demographics:
Organizations directly affected by change which occurs in demography by determining
demand of products, target market and quantity of products purchased by consumers (Chell,
2013.). Change in demo-graphical factors such as age, education, purchasing power of
consumers and their education level are affected on business decisions.
Change in perception:
Change in perception is very much crucial factor for an organization so management
have to keenly study perception of their target market. Now a days perception changes overnight
due to advent of technology, involvement of social networks and many other deliverable. These
crucial level of perception brings innovative ideas in mind of entrepreneurs after conducting

through research. The perception of people changes in radical manner in order to organization
have to put resources to build products as per the consumers need. Consumers always prefer
products that are innovative in nature, in context of Coffee Exotica as per the consumers wants
aimed to launch series of coffee in market. All are the important sources to bring innovation in
market after analyzing needs.
New knowledge:
New knowledge work as an source of innovation with the advent of technological
advancement brings end no. of opportunities in front of businesses (Cruz, Hamilton and Jack,
2012). Internet, Research and development helps to find out better ways to improve in products
and services incrementally. Technological advancement is very much important for an
organization in order to remain always competitive in the market. In context of Coffee Exotica
they while conduct research find out various kinds of tools and techniques that are advance in
nature so to avail opportunities exist in market they aimed to launch no. of coffee in market.
From the above discussion it has been summarized that innovation is very significant part
for the whole world in which many factors contributes to think inventively. In context of Coffee
Exotica they bring chain of innovative coffee's with use of The incongruity after conducting the
through research regarding emerging consumers needs and wants of consumers should be
evaluated properly.
TASK 2
P2 Explain the rationale and the market gap for a specific entrepreneurial idea using relevant
tools and techniques to support your choice.
For an organization before launching a new idea or concept they have to keenly observe
or study about the consumers needs and wants by checking viability of business idea to get
success. In context of Coffee Exotica they conduct through research before come into
marketplace that are as follows:
Business idea:
Business idea is one of well known concept in between business tycoons, build to gain
financial stability which rely on products and services offered by firm (Koryak and et.al ., 2015.
). In context of Coffee Exotica which brings series of innovative coffee for both their existing
and new consumer base after knowing their taste and preferences. In their chain of innovative

products are Red velvet, unicorn latte and rainbow latte as Their target audience are majorly
young people who demands always something unique attributes while visiting their coffee shop.
So to satisfy consumers emerging needs they bring range of coffee's to get potential market share
in UK.
Target audience:
The target audience of respective organization who are always prefers products that are
innovative in nature and for that they are ready to pay higher prices. In context of Coffee Exotica
to compensate emerging needs of their target base which is majorly youngsters launches new
series of coffee's to remain always competitive in marketplace. Majorly the target audience of
coffee shops are lovers of it and people who spend the time where specifically drinks and regular
cups available in inviting cups to gain potential market share (What Is the Target Market for
Coffee?, 2019). The people who purchase beans also includes in list of target audience of coffee
shops as they always prefer to consume coffee.
Rationale:
The entrepreneurial idea is very much important for Coffee Exotica as they are deal in
coffees for long time but the target market always demands variations (Krueger, 2017.). In that
regards it is very much essential for them to bring some innovation in that series they add no. of
innovative coffee in their menu. By introducing new coffees they able to attract the attention of
new and existing consumer base in positive manner. Day by day the coffee lovers rises in the
whole world and people more interested to consume coffee that are very much innovative and
based on the new theme so in context of Coffee Exotica they aimed to launch series of coffee to
remain competitive in the marketplace by gaining potential outcomes. The reason behind to offer
coffee to the consumers is to enlarge business opportunities as consumers become more
demanding day by day so it is very much potential to gain market share by launching new
products into market. The £10.1bn UK coffee shop market grew by7.9% in the year 2018 that
shows that market share is very much wide and by establish more coffee houses organization
needed to avail opportunities.
Gap analysis:
A gap in the market in which business are not currently serving with help of research and
development they evolve out hidden opportunities to remain always competitive in market. Also
gap analysis assist in evaluating own strength and weaknesses by comparing with competitors,

consumers feedback to put best efforts. After accessing the gaps which hinders in organizational
development and enhancement in that regards leader have to pay attention on building strategies
and tactics to perform in best manner. In context of Coffee Exotica they by conducting research
find out gaps in performing well and after that takes crucial decisions to launch no. of innovative
coffees in market that are Red val-vet, Rainbow latte and Unicorn Latte. By using various tools
organization can find out gaps with help of SWOT analysis, Fish bone structure and McKinney's
7s model to get optimum outputs. In context of Coffee Exotica there unique selling point that
they aimed to launch series of coffee that is red velvet, unicorn latte and rainbow latte that are
rarely exist in market and consumer demands the products and services that are unique in nature
so that consumers attract in order to remain always competitive in marketplace. As they operate
from many years in market so they conduct research and development in market so after that
evaluated that consumer taste and preferences rapidly changes and they demand highly
innovative products in that regards they aimed to launch series of products in market.
Strategy to beat the competitors:
The best strategy to beat the competitors is to choose one of best promotional strategy
that helps to reach at large no. of consumers in positive manner. They can define the aspects that
are very much important for consumers and differentiate from their fierce competitors so all are
important factors to compete in better manner.
Fish bone / Ishikawa diagram:
Fish bone which is a structured team process model helps to identify factors or causes
related with adverse event. It is very effective in brainstorming by evaluate possible reasons of a
problem and sort it into various categories (Nijssen, 2017. ). In that, problem or effect showed at
the head or mouth of a fish and contributing causes of root problem listed at mid or smaller
bones of it. In context of coffee Exotica which deals with youngsters and they always prefers
products and services that are innovative in nature but they threatened to pilfer or it is easily
replicate by competitors in market. The another mid or smaller bone fish problem of respective
organization that they have to compete in market as large no. of coffee shops existed in market.
Further major problem that face by them is lack of funds, resources which hinders self interest to
reap out important benefits.
So after evaluating each effect of the respective issues or problem organization can easily
eliminate gaps by giving their best to remain always competitive in marketplace.

TASK 3
P3 Present data needed to support gap analysis in the evaluation of a specific entrepreneurial
idea.
For an organisation after evaluating gap it is needed to communicate it with
organisational stakeholders so that they can plan accordingly to perform in best manner (Omri,
and Boujelbene, 2015.). The major gaps in front of Coffee Exotica is that they face problem of
resources or funds that hinders their self interest. Also they threatened regarding their business
idea which is not so much innovative as other competitors copy it very easily. To analyse gap
coffee Exotica should be compared by Costa coffee that are as follows:
Coffee Exotica Costa coffee
Coffee Exotica are new in market and their
consumers are majorly youngsters that always
demands innovative products.
Costa coffee is one of great brand name and
covers a large market share with their quality
of products which provides loyal consumers.
Coffee exotica provides product at lower cost
in comparison to costa coffee.
As they have great brand value they charge
higher prices in respect.
So after comparing both the organisation it has been evaluated that Coffee exotica have to
work on building brand value and bring innovation which is not easily replicable.
Also With help of primary and secondary research method, gap should be eliminated that are as
follows:

Primary data:
Primary data which is accumulated by a researcher from first hand objects that are
surveys, questionnaire, experiments and events (Perry, Chandler and Markova, 2012.). In
context of Coffee Exotica by using questionnaire they majorly find out gaps to judge
competitiveness of their product.
1. Is consumers like or prefers the chain of innovation that aimed to launch in market?
Yes
No
2. What are the new concepts or trends which prevails in marketplace?
Personalized experiences
Innovation in products
Interior of coffee shops
3. Is it essential to implement innovation in organisation time to time?
Yes
No
4. Which promotional activity proved effective to reach at large no. of consumer in context of
coffee industry?
Advertisement
Sales promotion
Events
5. Is new chain of coffee able to attract satisfy consumers wants?
Yes
No

Secondary data:
Secondary data which is collected by someone else and cost effective in nature with
easily available (Rasmussen and Wright, 2015.). In context of Coffee Exotica they collect
necessary data to take important decisions that are as follows:
From the above graph it has been summarized that Ten years ago only 10,000 places
existed to purchase coffee in market of UK in which one third are giants such as Starbucks,
Nero's and costa coffee but in last few year in market of UK more than 22000 coffee shops
existed that are doubled than branded outlets.
P4 Interpret data appropriately to provide evidence of market potential.
Theme:1
1.Is consumers like or prefers the chain of
Illustration 1: Is the UK reaching coffee shop saturation point? 2019
source: Is the UK reaching coffee shop saturation point? 2019

innovation that aimed to launch in market?
Yes 15
No 5
Interpretation:
From the above graph it has been evaluated that consumers likes to purchase the products
as respective products are innovative in nature. So after conducting research and development
positive reviews of consumers should be gathered.
mean 10
mode 0
median 10
Theme: 2
2. What are the new concepts or trends which
prevails in marketplace?
Personalized experiences 10
Innovation in products 5
Interior of coffee shops 5
Yes No
0
5
10
15
15
5 Column B

Interpretation:
From the above graph it has been evaluated that there are some trends prevails in market
that demands by consumers that are personalized experience and innovation in products and
interior of coffee shops. In which as per questionnaire personalized experience most demanded.
mean 6.67
mode 0
median 5
Theme: 3
3. Is it essential to implement innovation in
organisation time to time?
Yes 12
No 8
Interpretation:
10
5
5
Personalized experiences
Innovation in products
Innovation in products
Yes No
0
5
10
15 12
8
Column C

For an organization it is very much necessary to implement innovation on regular basis so
that market can easily access present as well as emerging needs of consumers. In context of
Coffee shops that aimed to bring chain of innovative coffee in market to gain competitive
advantage.
mean 10
mode 4
median 10
Theme: 4
4. Which promotional activity proved effective
to reach at large no. of consumer in context of
coffee industry?
Advertisement 10
Sales promotion 5
Events 5
Interpretation:
While implementing innovation and new products into market it is very much crucial to
give proper knowledge to potential consumers about it. In context of Coffee industry they use
advertisement to reach at large no. of consumer base to remain always competitive in
marketplace as mostly consumers are youngsters so respective method of advertisement proved
10
5
5
Advertisement
Sales promotion
Events

beneficial to reach at large no. of consumers . 10 respondents favors advertisement to reach at
masses.
mean 6.67
mode 0
median 5
Theme: 5
5. Is new chain of coffee able to attract satisfy
consumers wants?
Yes 10
No 10
Interpretation:
from above graph it has been summarized that coffee can attract large no. of consumers
as their products innovative in nature but as discussed above it is easily replicate then they are
not able to remain competitive for long time in market. Respondents equal remark for respective
question.
mean 10
mode 0
median 10
Yes No
0
2
4
6
8
10
10 10
Column C

TASK 4
P5 Apply a SWOT framework to collate evidence to support an objective assessment of a
specific entrepreneurial idea.
The series of coffee which is offered by Coffee Exotica are one of most viable and
feasible idea as they are providing one of best and innovative coffee to their consumers. They
majorly focusing on providing innovative products and services that enhance living standards
and also satisfy their emerging needs and wants in positive manner (Seuneke, Lans and
Wiskerke, 2013. ). To provide better products and services to consumers it is needed to evaluate
Strength and weaknesses of respective organisation that are as follows:
Strength
 The major strength that possess by
Coffee Exotica that they have large
product portfolio that helps to satisfy
the emerging and existing needs and
wants of consumers in positive manner.
 They conduct research and
development in proper time gap which
helps to eliminate gaps to perform in
proper manner.
 The idea that are bought in market are
very innovative in nature and helps to
them to remain always competitive in
marketplace.
Weaknesses
 As they come in market with no. of
innovative coffee that are red velvet
coffee, rainbow latte, Unicorn Latte that
are easily replicable in nature and not
assist to organisation to sustain for long
time in market.
 As they are not so much experience of
market and successful deal with
changes so they face some problems
such as lack in resources and funds and
resist of change.
Opportunities
 With help of their new concept they
able to cope up with emerging changes
in market and able to beat rivalry.
 As they have large product portfolio so
now they can open some new outlets in
market that helps to enlarge business
Threats
 there are huge giant coffee providers in
marketplace that possess great brand
value which easily beat Coffee Exotica.

opportunities (Todeschini And et.al .,
2017).
After evaluating each and every aspect it has been concluded that organisation which
aimed to launch series of coffee into market they have to properly build strategies and tactics in
order to lessen down the effects of Brexit and internal environment that sometimes conditions are
not favourable and people oppose to accept changes in positive manner. As with the advent of
Brexit organisation have to face increased import cost as coffee will be 10 to 15% more
expensive in market of UK. The study suggested that more chances available in the market of
growth but at slower pace. So it is very much important to build strategies and communicate with
potential candidates in order to gain potential outcomes from them.
P6 Evaluate the competitive and market environments in which the idea will be launched to
assess potential viability.
For an organization it is very much potential to analyze the competitive strength and
market environment that helps to assess viability of the products that are launched in
marketplace. In context of Coffee Exotica which brings series of products in market that are Red
velvet, Rainbow latte and unicorn Latte so for successfully launching product in market they
have to analyze industry and market with help of Porter five force model that are as follows:
Level of rivalry:
Level of rivalry refers to number of competitors with in the industry in that scenario the
rate of earning profitability is very much low (Seuneke, Lans and Wiskerke, 2013). In coffee
industry concentration ratio is very high and differentiation and production cost is low. In
context of Coffee Exotica there are large no. of competitors existed in market that hinders their
self interest to remain always competitive in marketplace.
Entry potential:
Entry potential refers to easy to access to entering a industry or market, in context of
Coffee industry it is very easy to enter and low prices to making a profit. In context of Coffee
Exotica with the rise of economies of scale respective industry has increased size of top players
that creates hazardous effects on it.
Power of suppliers:

Power of suppliers refers to the no. of suppliers existed in the marketplace, the more
suppliers in market the lower cost of supply will be. In context of Coffee Exotica they deals with
one broker that able to secure less pricing for long time but on the whole industry have explosive
growth that helps to suppliers to coordinate whole market.
Power of consumers:
Power of consumers refers to the no. of buyers and their purchasing power regarding
buying products and services. There are large no. of buyers in market and they have lot of
options to stimulate pricing of coffee products. In context of coffee Exotica consumer power is
very much high, that they bargain down prices.
Substitute products:
Substitute products refers to capability to purchase other products that are similar in
nature and easily replicate to other products (Zahra, 2015.). As no. of substitutes existed in
marketplace that create threat in context of Coffee Exotica to remain always competitive in
marketplace. On other hand most no. of coffee drinkers brew coffee of their own that are major
threat for organization.
PESTEL analysis:
Before expanding into new marketplace it is very much essential for an organization to
conduct proper study to find out major gaps in performing well that are as follows:
Political factor:
The political factor in which consisted the government regulations, terms and conditions
while dealing in UK. The recent changes in government that EU and British government reached
an agreement that impacts on the business activities in marketplace. Kinds of parliamentarians
come into reservations that they prefer to come into stay with EU. In context of respective
organization that aimed to launch series of coffee in market so they have to build strategies that
impact on their business activities.
Economic Factor:
In economic factors consist of tax rates, interest and many other factors which directly
influence on the business activities. In context of Coffee exotica impact of Brexit impact may be
impact on the profitability as the inflation on the hike that directly influence on purchasing
capabilities of consumers.
Social factor:

With the change in consumers taste and preferences the organization have to bring new
ideas and concepts into marketplace. In context of Coffee Exotica they aimed to launch series of
coffee into market that are relevant for consumers as it changes rapidly. So respective innovation
proved beneficial for them to remain competitive in market.
CONCLUSION
From the above report it has been concluded that Entrepreneurship is one of effective
way to introduce new ideas and product by accessing needs and wants of consumers. To
successfully launch a new product into marketplace it is potential to eliminate gaps by
conducting proper research and development so that important attributes should be obtained. To
get incremental growth organization have to evaluate their strength and weaknesses so that they
can put efforts to eliminate hurdles in achieving potential outcomes. Hence organization have to
always focus on innovative ideas and services to remain always competitive in marketplace.

REFERENCES
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FISHBONE DIAGRAM, 2019 [Online]. Available through.
<https://asq.org/quality-resources/fishbone>.
Is the UK reaching coffee shop saturation point? 2019 [Online]. Available through.
<https://www.bbc.com/news/business-41251451>.
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