Identifying Entrepreneurial Opportunities.

Identifying
Entrepreneurial
Opportunities

Table of Contents
TASK 1............................................................................................................................................4
P1 Various sources of entrepreneurial innovation .................................................................4
M1 Provide a detail evaluation sources of innovation with help of Drucker’s 7s model.....5
D1 Critically evaluate overall benefits & drawbacks of various approaches that lead to
identification of different entrepreneurial ideas.....................................................................5
TASK 2............................................................................................................................................7
P2 Rationale & market gap by use of specific entrepreneurial idea as tools & techniques.. .7
M2 Justification of entrepreneurial idea for filling of market gap by using of various
techniques...............................................................................................................................9
D2 Evaluation of entrepreneurial idea on investigation & interpretation of competitive market.
................................................................................................................................................9
TASK 3............................................................................................................................................9
Covered in PPT.......................................................................................................................9
TASK 4............................................................................................................................................9
P5 Application of SWOT for supporting assessment of a entrepreneurial idea.....................9
P6 Evaluation of market environment where idea has to be launched.................................10
M4 Evaluation of a entrepreneurial idea in a competitive market.......................................12
D4 Conclusion & recommendations of a specific entrepreneurial idea in competitive market.
..............................................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERNCES.................................................................................................................................14

INTRODUCTION
Entrepreneurial opportunity is a idea used for developing a new venture that is feasible
economically for benefiting all the shareholders and stakeholders. New business idea is related
with new product development or new service launch. Virgin money is a financial organisation
that is providing required amount of finance to entrepreneurs who are budding for launching of
new ideas. Virgin money has developed a scheme that is offering capital to a new business
venture or innovation being added to exiting venture (McCarthy and Puffer, 2016). In present
scenario new venture which is operating since three months named as “Green Apple” a outlet
providing different combinations of juices, fruit & vegetable salads to their customers. It is based
on idea of living a healthy and fit life. Now, they require funds for adding a new innovation that
is making use of all the waste generated of fruits and vegetable in a productive manner. They are
adding a new recyclable outlet so that waste can be recycle generated in a manure and further
used in plantation of trees. This report is discussing about new concept with use of Models such
as Porter's framework, etc.

TASK 1
P1 Various sources of entrepreneurial innovation
In today's era economic growth of a country have a huge contribution from start up
ventures and budding entrepreneurs. Apart from providing profit to economy, these business
ideas also generate employment opportunities. A growth in GDP, improvement in infrastructure,
reduction in unemployment rate , increase in per capita income are various aspects of economic
growth which are directly affected from these new ventures. Budding entrepreneurs always look
for opportunities to support them financially which will help them bring their ideas to life.
Government of UK helps young budding entrepreneurs to execute their plans of new businesses.
The government also takes care of promoting effective and fair trade practices and reducing any
monopoly or dominating practices existing in market. With such support from government it
becomes necessary for an entrepreneur to keep innovating and increasing customer satisfaction.
There are some existing concept in 7 sources of Peter Ducker that will encourage GREEN
APPLE to bring in new innovations from time to time:
Incongruities: It becomes essential for entrepreneur to critically examine the present
market conditions before launching a new service in market. This helps entrepreneurs to develop
a service as per customer requirements. With this company can survive in competitive
marketplace and maintain sustainability for a longer period. In context of Go Green, company
found out the trend of healthy living and healthy eating which people around world are following
these days. This need of marketplace helped them develop an idea where they thought of
starting a restaurant which will only serve healthy food.
The Unexpected: It is essential for an entrepreneur to critically study market situations
continuously. It is a never ending process because needs and demand of customers could change
anytime. Thus, it becomes important for a business to forecast these changes.
Process need: According to this factor, it is important for a new business to beware of all
the weaknesses and drawbacks related to their venture. While making regular changes in some
processes of business weaknesses can be eliminated and company may also gain advantage over
its competitors. Considering this factor Go Green decided that they would keep changing their
menu every fortnight based on customer reviews and feedbacks.

Changes in Market and Industry Structures: While dealing in a business it is
necessary for an entrepreneur to align all the function of business with dynamic market scenario.
This will help them attain benefits from any available opportunities.
Demographics: Demographic refers to various factors such as income level, male-female
ratio, age group etc. In order to run a business it becomes crucial for entrepreneurs to mark any
change in these factors. Taking Green Apple into consideration, it has been analysed that per
capita income in UK is good which will prove to be beneficial for business.
Changes in Perception: Change in perception of a consumer is a major gap which every
entrepreneur needs to fill. It is important because this is the most dynamic factor amongst all. In
case of Green Apple regular feedback from customers is taken and its effect could be seen in
menu of the restaurant.
New Knowledge: It is important for an organisation to be up to date with all the latest
technologies. Using cost effective technologies will help business in increasing overall
profitability as well it will increase efficiency of their work. Green Apple is using latest
technology of recycling waste of fruits and disposable glasses and straws used while serving to
customers (Wood, McKelvie. and Haynie, 2014). This is beneficial for business in terms of
profitability and positive media presence and also beneficial for the environment.
M1 Provide a detail evaluation sources of innovation with help of Drucker’s 7s model
The Drucker's seven sources of systematic innovation model is used for analysing
sources which are responsible for innovations (Shu, Ren and Zheng 2017). Applying the concept
of 7 sources on Green Apple it is concluded that there are more than one source responsible for
innovation of of this business. This idea is generated from process need, incongruities, changes
in new knowledge, perception and demographics. The shift of major chunk of population from
junk food to healthy eating have proved to be initiating point for this business. Knowledge about
new technologies led to innovation of recycling process. All these factors together contributed to
establishment of Green Apple.
D1 Critically evaluate overall benefits & drawbacks of various approaches that lead to
identification of different entrepreneurial ideas.
It is complicated to identify an entrepreneurial opportunity. A critical study of each factor
which may directly or indirectly effect business is conducted. There are various sources which
lead to generation of a new opportunity. These opportunities benefits the society economically

and environmentally. Along with all these benefit it brings along some drawbacks as well. These
innovations require a huge amount of investment. Also after investing time, money and efforts,
the profitability from new venture is not absolute. Another drawback of innovations are that it
also effects traditional practices.

TASK 2
P2 Rationale & market gap by use of specific entrepreneurial idea as tools & techniques.
The entrepreneur in this report is going to setup a new business start up in form of a
restaurant. This start up will be named GREEN APPLE. It is forecasted that aforesaid restaurant
will attract a number of people due to these innovative ideas they are introducing. These ideas
include encouraging healthy eating, decreasing use of plastics and introducing their own recycle
plant to recycle waste from food and disposables (Sarasvathy, , Ramesh and Forster, 2015). The
current change in trends have stated that people are diverting from junk food and moving
towards eating healthy food. This strategy will help GREEN APPLE to gain a competitive
advantage in market. This innovation helps business to fill the gap in market with services
which were not yet available for customers.
Analysis of Market gap with reference to a business idea:
Determining new opportunities:
The first step any entrepreneur needs to follow before setting up a new venture is
critically analysing policies and procedures followed by its competitors (Mawson, 2014). After
analysing it businesses can develop better strategies and fill market gap in the best way they can.
Technological progressions:
Technology is changing dynamically in today's competitive scenario. Due to this business
processes become outdated within a short period of time (Lerner, and Hmieleski, 2015). This
makes it important for an entrepreneur to keep themselves and their business processes updated
with current technology and take competitive advantage.
COMPETITIVE ANALYSIS
Basis GREEN APPLE SUBWAY VANILLA BLACK
Products
and Services
Green Apple is
providing its customer
with a huge range of
juices and salad to
choose from. They can
also customise their
flavours according to
Subway offers a range of
breads, wraps, sandwiches
and salads. The service
they provide is quick and
easy.
Vanilla Black is pure
dine-in. It is much fancier
in terms of ambience,
food and services. It is not
like a regular food joint.

individual preferences.
Along with it Green
Apple is also providing
a satisfaction that no
harm is done to
environment directly or
indirectly.
Organization
structure
Green Apple will follow
departmental structure
(Koryak, Mole, and
2015Larios-Hernández,
2017). In this structure
subordinates of a
particular department
have the right to take
decisions. This makes
the process of decision
making quick.
In subway matrix structure
of business organisation is
followed. According to this
employees are distributed
work according to their
products base.
In Vanilla Black
functional structure is
followed where the work
is divided amongst staff
members according to
their functions,
background and
specialisation
(Kohlbacher, Herstatt,and
Levsen, 2015).
Promotional
strategy
Green Apple uses new
age technology for its
promotion. Social
media is the only
platform used by them
for it. Other than this
they depend on positive
word of mouth.
In case of subway,
marketing strategy adopted
by this food joint is social
media platforms, online
technologies, websites,
newspaper articles and
magazines. They have a
number of outlets
throughout the world so
they do not need to spend
much on promotion.
Black Vanilla uses
traditional methods of
advertising and
promotion. They use
magazines and
newspapers. Other than
this they also depend on
hoardings.

M2 Justification of entrepreneurial idea for filling of market gap by using of various techniques
The idea which entrepreneur introduced is promoting healthy living through healthy
eating. Another idea introduced through this venture is sustainable development. This
entrepreneurial idea helps in filling the gap which no other business ever initiated (Koester,
2016). They are strictly prohibiting use of plastics in their business. Green Apple is thinking of
benefiting environment by not disposing any wastes in it. Be it solid or liquid they are recycling
their waste and making products which can be used again. These techniques will help them stay
longer in market and run a profitable business.
D2 Evaluation of entrepreneurial idea on investigation & interpretation of competitive market.
The idea of restaurant which is presented through this research have various positive
outcomes. It is a profitable business which will also promote healthy living and healthy eating.
This venture is 100% eco- friendly (Hurmerinta,, Nummela, and Paavilainen-Mäntymäki,
2015)6 No use of non-biodegradable products twill take place in this venture. All the wastes
generated from this business will be recycled with help of a small recycling plant. This will help
the business to grow in market along with sustainable development. It is beneficial for
entrepreneur, customers as well as environment. All these factors are valid to convince Virgin
money to invest in this venture.
TASK 3
Covered in PPT
TASK 4
P5 Application of SWOT for supporting assessment of a entrepreneurial idea
SWOT analysis:
This is a framework adopted by entrepreneurs for making a analysis of weakness &
strengths of a business for contributing in sustainable development as discussed below:

Strength: This is related with implementation of new idea on market, a entrepreneur has
to making a analysis of how can they reach to large number of customers. Most companies are
focussing on their products in such a manner that it is not harming environment instead must
contributing towards green revolution where the manure generated will be used for agriculture
purpose of plantation of more trees (Hechavarría, . and Welter, 2015). All this is going to
contribute towards safe development of environment protection.
Weakness: Each new innovation is having some weakness for this in present scenario
Green apple has also conducted a detailed analysis of market and different weakness that are
associated with their new addition to exiting services. For this there will be a investment of large
amount of funds that will be require to be arranged and other plans are going on simultaneous by
this venture hence there is a strong requirement of management of funds in most appropriate
manner so that maximum benefits can be reaped from available funds with Green Apple.
Opportunities: In present scenario, customer choices are Changing continuously and are
never consistent, Green apple is a part of service industry where choices can never be constant.
In case of present outlet there is a very profitable opportunity to increase variety of fruit salads as
there has been a consumer shift towards healthy life (Diochon, and Ghore, 201). So, there are
dual objectives that can help Green apple in attracting more customers such as contributing
towards healthy lifestyle of people and at same time in use of waste generated by this restaurant
in a more productive use by converting it into a manure.
Threats: There is increasing threat for Green apple as many new ventures are emerging
that can lead to a negative impact on present sales. Also, this is a new venture hence it will take
time to make people aware of the innovative concept on which this service outlet is based.
P6 Evaluation of market environment where idea has to be launched
Before establishing Green Apple it is very crucial for its entrepreneur to critically analyse current
market conditions in order to bring maximum customer satisfaction.
Competitive Market:
An entrepreneur needs to analyse both internal as well as external environment of business in
order to evaluate its opportunities and threats. It will help business to improve in ways which
were unknown earlier. Porter Five Force model could be applied to it:
Competition within Industry:

The government of UK has set some regulations and policies for those engaging in hospitality
business. In context of Green Apple, business faces threats from other joints which provide
healthy & diet food such as subway, black vanilla etc. This makes it important for entrepreneur
to formulate strategies to compete in market.
Threat of New Entrants:
In order to enter in hospitality business, huge investments are required. This is an
important barrier which limits the entry of new business in this industry. So all the company
needs to do is attract customer with its unique services (Devece, Peris-Ortiz and Rueda-
Armengot, 2016).
Bargaining Power of Buyers:
Bargaining power in hospitality industry is high with buyers. The reason behind this is a
number of alternatives present. Even in the sector of healthy food there are a number of
competitors who provide similar products.
Bargaining Power of Suppliers:
There is less power of bargaining in hospitality industry for suppliers. The only supplier
who enjoy bargaining power are labours. Green Apple need to take care of this factor in order to
assure its long term sustainability of business.
Threat of Substitutes:
Threat of substitute in this industry is moderate, neither to less nor too high. It is the job
of an entrepreneur to keep themselves updated with all the alterations taking place in the industry
in order to be ready for any upcoming threats.
Market Environment: Market environment for a business is divided into two broad categories:
Macro Environment: Macro environment consists of external environment factors which are
Political: There are various laws , rules and policies framed by government of UK like
employment, environmental, tax etc. Green Apple needs to obligate by all of these regulations.
Economic:Economic factors refers to all economic criteria which effects a business. Green
Apple can use pricing policies for achievement of more benefits & operate in best manner.
Social: It includes values and beliefs of society business is operating in. Green Apple is
satisfying customer by providing sustainable development through recycle plant (Crutchfield,
2014).

Technological: This refers to all the new advancement in technology going on in market.
Green Apple took best use of it by using biodegradable products.
Micro Environment: Micro environment consist of all the factors which are linked with
culture, values and practices followed in business.
M4 Evaluation of a entrepreneurial idea in a competitive market
The present entrepreneurial idea Green apple that is to use their generated waste for
purpose of converting it in a manure and as a fertilizer and manure for placations purposes is a
very innovative concept. With growing concern of globalisation there has been a increase in
concern of both government and society of developing ways to protect environment. Hence, this
concept will be of great help for the newly launched venture in creating a positive impact on
mindset of customers & society. At same time, the waste can also be used for the purpose of
making a contribution towards external environment which is actually providing al resources to a
organisation. Hence, it will lead to fulfilment of their corporate social responsibility also at same
time.
D4 Conclusion & recommendations of a specific entrepreneurial idea in competitive market.
With the evaluation of above discussed points it can be said that in Green apple the
innovative concept which is being planned by this organisation is totally different and productive
both for organisation and society as a whole (Bingham, , Furr,. and Eisenhardt, 2014). While
making a analysis of this idea in competitive environment it is very crucial to consider that it is
going to provide Green apple a source of competitive advantage. The present basic idea has to be
analysed properly in terms of cost associated with it as financial resource are limited and that
have to be analysed in most productive manner so that maximum benefit can be reaped with
them.

CONCLUSION
The above report concludes that entrepreneurs are responsible for development of new
ideas which helps in running a business more effectively and efficiently. Entrepreneurs possess
many skills and capabilities which are essential to generate innovative idea and convert them into
a successful business plan. There are various models such as STEEP model, SWOT analysis,
Duckers 7 source model etc. which can be applied on the organisation and can be used to form
future strategies for business. Another great tool to study marketing environment is Porters five
force model. In order to survive in long run an entrepreneur needs to continuously study these
models with respect to business and take required measures to improve processes and services.

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