Identifying Entrepreneurial Opportunities

This document discusses the sources of innovative entrepreneurial ideas and the process of evaluating market gaps for entrepreneurial ideas. It includes a case study on Magic Mania Hotel in London, UK. The document also covers topics such as SWOT analysis, gap analysis, and interpretation of data to provide evidence of market potential.

IDENTIFYING
ENTREPRENEURIAL
OPPORTUNITIES
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Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
P1. Different sources of innovative entrepreneurial ideas...........................................................4
TASK 2............................................................................................................................................6
P2. Rationale and market gap for entrepreneurial idea using relevant tools and techniques.......6
TASK 3............................................................................................................................................8
P3. Gap analysis in the evaluation of entrepreneurial idea..........................................................8
P4. Interpretation of data to provide evidence of market potential............................................13
TASK 4..........................................................................................................................................16
P5. SWOT Analysis to assess the entrepreneurial idea.............................................................16
P6. Evaluation of competitive and market environment to assess potential viabilities.............16
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................22
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INTRODUCTION
Entrepreneur is a person who creates, manage and develop new business entity, and
willingly take all the risk and profit of the business. Entrepreneur helps in enhancing the
economy of the country. Therefore it is very important for every country around the world to
motivate and encourage entrepreneur, as a result country can leads to overall development of the
country. The present report is based on Magic Mania Hotel which is initiating to develop a new
business idea in London, UK. Hotel will offer many attracting offers to grab the attention of
large number of customers, these elements includes live music shows, free Wi-Fi facilities and
many more. In this assignment, various topics are going to be covered which includes SWOT
analysis. Along with this, gap analysis are covered in order to find feasibility of the business
idea.
TASK 1
P1. Different sources of innovative entrepreneurial ideas
Different start up as well as entrepreneur business ventures highly contributes in the
overall development of the economy of a country. start-ups effectively contribute their high end
contribution in a country economy. Along with this all these business venture helps in generating
large number of employment opportunities as well as enhancing the GDP of country, improves
the infrastructure, increase per capita income and many more. In context of the present report,
Government of UK encourage young individuals in order to adopt the concept of
entrepreneurship. With the help of this encouragement by the government of UK which will
leads to promote fair and effective trade practices as well as reduce existing dominating
practices. Thus, it is very essential for entrepreneurs to develop new and innovative ideas for
satisfying the needs and requirements of the customer. With the help of innovative ideas,
entrepreneur can develop unique products and services which is not yet produced by any one in
the marketplace. There are some formative concept which is majorly related to seven sources of
Peter ducker which will encourage the management team of Magic Mania Hotel for launching
new services in London provinces.
Incongruities:
In order to promote or launch new service at the marketplace, it is very important for an
entrepreneur to examine current market situations. With this, entrepreneurs can take advantage
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and develop services according to the requirements of customers. As a result company will be
able to gain competitive advantage at the market and will be able to maintain their sustainability
for a long period of time.
The Unexpected:
for an entrepreneur it is very essential to examine and evaluate effectively all the
unexplored as well as unexpected ideas, thoughts which will aid them in order to gain support
from large number of customers. In today's dynamic world, needs of an individual changes every
day, as an entrepreneur it is very essential to assess the demand of customers in effective manner.
As a result, this will help Magic Mania restaurant in order to strengthen their brand image and
position at the competitive marketplace of London.
Process need:
As per this factor, it is essential for an entrepreneur to examine and evaluate all the
drawbacks and weakness which is associated with the idea of business venture. By doing
changes and modification in the ideas on a regular basis, entrepreneur can gain competitive
advantages as well as eliminate their weakness. With this company will be able to satisfy
customers requirements by offering best services to them. In reference to Magic Mania,
management team will examine and evaluate the shortcomings which is related with the
launching of Hotel and can leads towards achieving more profitability at the competitive
marketplace.
Changes in Market and Industry Structures:
As an entrepreneur it is very important element to aligned all the business activities
related to launching of new business idea with the current changing demands. With the help of
this, entrepreneur can take advantages from more developmental opportunities. In order to
launch a new business idea in London, it is very essential to evaluate the business culture, market
as well as structure of hotel industry effectively.
Demographics:
According to this element it is very essential for entrepreneurs to examine the changing
demographic environment, which is related with the income level, age group and many more.
For achieving competitive advantages at the marketplace, it has been examined that per capita
income level of an individual is very high in United Kingdom. As a result it will positively
influence the profitability of restaurant effectively in the upcoming years.
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Changes in Perception:
For every entrepreneurs, it is very important to examine the market gap and fill that
effectively, so that they can gain the support from local people within a particular locality. This
is because the requirements, needs, perception and trends of people change on a continuous
basis, which highly influence the productivity and profitability of the company. All these
elements will further aid the entrepreneurs in operating their business functions in effective as
well as in decent manner.
New Knowledge:
In today’s competitive world, technology plays very essential and crucial role in
achieving the organizational goals effectively. Therefore, it is very important for an entrepreneur
to examine all these technological advancements on a regular basis, so that they can succeed in
the competitive marketplace. Along with this, it will definitely helps in increasing the overall
profitability of the products and services offered by the company. All these upgraded tools and
techniques helps in satisfying the requirements of customers along with latest trends.
Strength and Weaknesses and advantage and disadvantage of sources of business idea
There are different types of of sources of business idea that can be undertaken by
entrepreneur of magic mania hotel. Some of the sources include, consumer surveys, franchises,
trade fairs and exhibitions and from personal experience and talent. Main strength which is
related to these idea include, that with the help of utilizing professional network entrepreneur
can able to identify what they think about the idea and how much feasible it is.
While major weakness that has been hold by sources of business idea include that, in
order to ensure its feasibility entrepreneur is require to invest more time and fund that may
further affect their business functioning.
TASK 2
P2. Rationale and market gap for entrepreneurial idea using relevant tools and techniques
In the present report, in London, UK entrepreneur is planning to develop a new business
start-up. As per the above mention, entrepreneur is preparing to launch a hotel named as Magic
Mania. This hotel will be able attract large number of customers as they will offer various unique
services. These services includes sport events, pick and mix option (customize offer) where
customers can chose services according to their requirements. Along with this, they allow their
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customers to eat and drink for long hours with music facility and also offer free Wi-Fi facilities,
with wide range of food items. (Top 10 Sources of Business ideas & Opportunities. 2018).
According to the current trends, it has also seen that customers prefer watching live music while
taking dinner in a hotel. Therefore, it is very important for an entrepreneur before launching their
new idea to properly evaluate the changing requirements of customer’s. With this they will be
able to acquire large market share which will help them to gain high competitive advantages at
the marketplace. In addition to this, it is needed for an entrepreneur to fill the gap of market and
offer all those innovative services to their customers which is not yet provided by anyone.
Market gap analysis is discussed below in reference to every business ideas:
Determining opportunities:
before launching any new idea at the competitive marketplace, entrepreneur is required to
examine what strategic policies are adopted by their rival firms. With the help of this
entrepreneur will be able to develop more effective policies as well as will fill the market gaps
effectively and in best possible manner.
Technological advancements:
In today's competitive and dynamic world, technology is changing fast. As a result,
products and services offered by companies will be outdated I very short period of time.
Therefore, it is very essential for an entrepreneur to keep them upgraded with latest technology
and take advantage at the competitive marketplace. In addition to this, innovative and advanced
techniques are used to evaluate the current market situation and offer high quality products to the
customers according to latest market trends.
COMPETITIVE ANALYSIS
Basis Happy Republic Inn
Hotel
Marriott Hotel Four Seasons London
Products and
Services
Hotel Happy Republic
inn provide various
services which includes
live music shows, with
free Wi-Fi facilities in
order to attract large
number of customers.
In case of Marriott hotel,
they offer various
unmatchable experience
with attractive
infrastructure and unique
room services.
Four Seasons London
hotel, offer high quality
services to their
customers along with
highly trained staff
members.
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By providing high
quality food items, large
number of customers
feel satisfied and visit
regular in the hotel.
Organization
structure
This hotel follows
functional structure
where they divide their
staff members on the
basis of their functions,
background and
specialisation.
In case of this hotel,
management team of adopt
departmental structure
where all the decisions are
taken by subordinates in a
particular department or
section.
In this hotel, managers
adopt Matrix structure
where all the employees
and staff members get
their responsibilities
according to their
functions as well as with
product base.
Promotional
strategy
It is the hotel which
uses televisions, radios,
newspapers in order to
promote their services.
Their promotional
strategy is very much of
traditional method.
In case of Marriott Hotel,
marketing strategy adopted
by the management team is
social media platform,
websites, online
technologies and many
more.
In case of this hotel,
managers provide
qualitative services and
gain large number of
positive response by
doing mouth publicity.
Along with this, they also
use social media
advertising in order to
promote their services.
After evaluating all these factors effectively, it has been analysed that entrepreneur can
successfully establish their business at the marketplace. With the help of technological
innovation, entrepreneur will be able to produce high quality products and services and beat the
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competitors. Along with this, continuous adoption approach is very essential for an entrepreneur
to maintain their sustainability at the competitive marketplace. In addition to this, it is very
essential for an entrepreneur to collect huge amount of funds to run a business entity in an
effective manner. For this, government of UK help the entrepreneurs to establish their start-up
as it helps in developing the economy of London effectively.
TASK 3
P3. Gap analysis in the evaluation of entrepreneurial idea
Gap analysis is considered as an essential strategic tool that helps business organisation
in fulfilling low areas of business. It can be said that Magic Mania Hotel, is required to fill gap
between their expected performance and actual performance. This is mainly related to
performance of employees, profit and product with in London. In this required questionnaire
have been prepared so that gap can be identified so that they can be fulfilled effectively. Thus,
with the help of Gap analysis Magic Mania Hotel can effectively able to identify the gap in
between consumer expectations and consumer experiences. This will allow them to determine
the factors from which customers are feeling dissatisfied. Gap analysis allow organisation to use
tool to effectively narrow down the gap among reality and perception and further ensure to fulfil
expectation of customers in best effective manner.
Secondary Research
This form of research include collection and evaluation of already existing information
and data. In this, organisation can acquire information from news reports, magazines and
newspapers, academic journals and more.
QUESTIONNAIRE
NAME:
AGE:
ADD:
GENDER:
MAIL ID:
Q1) Are you aware with the service provided by Magic Mania Hotel in London?
 Yes
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 No
Q2) As per your opinion, Which of the below mentioned services attracts you the most towards
the hotel?
 Free Wi-Fi
 Fast Food Range
 Entertainment Options
Q3) Do you think, prices charged by Magic Mania from its customers for its offered services are
worthy or not?
 Yes
 No
Q4) Do you think, employees of Magic Mania are providing effective services to customers?
 Yes
 No
Q5) Provide effective suggestions to Magic Mania Hotel which helps them in improving their
performance and profitability in Hospitality Industry.
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Theme 1: Aware with the service provided by Magic Mania Hotel in London
Q1) Are you aware with the service provided by Magic Mania Hotel in
London?
Frequency
a) Yes 22
b) No 8
10
22
8
a) Yes
b) No

Theme 2: Different services offered by Hotel
Q2) As per your opinion, Which of the below mentioned services attracts you
the most towards the hotel?
Frequency
 Free Wi-Fi 12
 Fast Food Range 8
 Entertainment Options 10
11
12
8
10
Free Wi-Fi
Fast Food Range
Entertainment Options

Theme 3: Prices charged by Magic Mania from its customers for its offered services are
worthy
Q3) Do you think, prices charged by Magic Mania from its customers for its
offered services are worthy or not?
Frequency
a) Yes 25
b) No 5
12
25
5
a) Yes
b) No

Theme 4: Employees of Magic Mania are providing effective services to customers
Q4) Do you think, employees of Magic Mania are providing effective
services to customers?
Frequency
a) Yes 26
b) No 4
P4. Interpretation of data to provide evidence of market potential
In order to attain effective information, it is essential for entrepreneur to go for different
sources so that information can be gained by them effectively and in less period of time. In this
regard, individual has gathered information from both the primary and secondary sources for
anlaysing the market of London in effective manner. In addition to this, management team of
Market mania will also offer huge variety of services like Live music, variety of food and free
wifi in order to grab attention of targeted customers zone.
Interpretation of above data:
Theme 1:
13
26
4
a) Yes
b) No

Central Tendency Data
Mean 15
Median 15
Mode 0
Standard Deviation 9.89
Interpretation 1:
On the basis of above made data, it has been analysed that maximum number of
customers are aware about the different services which are offered by Magic Mania hotel in
London. For attracting customers, the company can take use of social media.
Theme 2:
Central Tendency Data
Mean 10
Median 10
Mode 0
Standard Deviation 2.82
Interpretation 2:
According to above stated graph, it has been seen that customers gives more preference
to free Wi-Fi so that they can take use of internet facilities. This facility contributes in enhances
of sales performance which raises their profitability.
Theme 3:
Central Tendency Data
Mean 15
Median 15
14

Mode 0
Standard Deviation 14.14
Interpretation 3:
According to above represented data, it has been identified that prices of services offered
by Magic Mania Hotel services are worthy to customers. This contributes in increase in customer
base.
Theme 4:
Central Tendency Data
Mean 15
Median 15
Mode 0
Standard Deviation 15.56
Interpretation 4:
According to the graph, it has been identified that employees of Magic Mania are
offering effective services to customers which improves their satisfaction level.
GAP ANALYSIS
Basis Current condition Desired condition Action plan
Products and
Services
At present,
infrastructure of hotel
rooms are not
developed which
ultimately wastes time
of customers at their
check in and check
out.
The main focus of
company to deliver
Free Wi-Fi services to
customers so that they
can get better access to
internet.
In order to develop
this, it is important for
them to follow all
provisions related to
Free Wi-Fi and Loud
music.
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Cost Currently high cost
room services are
provided to customers.
The company is
required to adopt
similar pricing strategy
which have been
offered by its
competitors to its
customers.
It is important for the
company to revise its
prices so that they can
grab attention of
customers and gain
competitive
advantage.
Business objectives of Magic Mania Hotel
Objectives Strategies
To increase satisfaction level of
customers in order to raise their
loyalty towards the company.
 By offering Free Wi-Fi, vast range of food items
and Live music facility to customers.
 Offering online booking facility to customers
Sustainability of business  By taking regular based feedbacks from
customers desired modification can be done in
effective manner.
 Usage of latest technology helps company in
improving their sustainability as quality of their
services will be improved with its usage.
TASK 4
P5. SWOT Analysis to assess the entrepreneurial idea
In order to propose a new business idea entrepreneur is required to analyse the business
strength weakness and opportunities in order to conduct their business operations in best
effective manner in London provinces (Siegel and Renko, 2012). Mentioned below as what has
been conducted in context with Magic Mania hotel:
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Strengths:
Hotel services linked with offering services that are required by customers on daily basis
such as free Wi-Fi, live music and great variants of food. This will attract customers and let them
stay for long hours and allow hotel to gain more advantages as compared to competitors in
London.
Weaknesses:
Launch a new business ideas require to evaluate shortcomings as to gain high advantages. In
context with Magic Mania Hotel selected location that has been chosen by entrepreneur is
province of London which is included in the world’s one of the most expensive location that
provide materials and transportation at high court.
Opportunities:
Entrepreneur is required to evaluate opportunities on continuous basis as to enlarge their
profitability level. In context with Magic Mania hotel entrepreneur is required to evaluate
demands of population in London and provides services according to them as to gain more
advantages compared to rivals.
Threats:
In order to launch a new business idea entrepreneur is required to evaluate each and every
threat factors. In context with Magic Mania Hotel entrepreneur can face threat which is related to
competitive price, new entrants in the sector of hotel industry along with high operating cost.
Objective Assessment of Business Idea
According to the above mentioned SWOT analysis, it has been identified that there is
large number of opportunities that are prevailing within marketplace of London as it is one of the
economically developed place. This effectively allow entrepreneur of magic Mania Hotel to
launch their services can assure more profit outcomes. This further show that there is a wide
chance for entrepreneur to ensure more effective outcomes while assuring effectively fulfilment
of organisational objectives.
P6. Evaluation of competitive and market environment to assess potential viabilities
In order to effectively launch Magic Mania hotel in London entrepreneur is required to
analyse current conditions in a market place in order to satisfy customers with best:
Competitive Market:
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It is essential for entrepreneur to analyse internal and external business environment as to
evaluate basic strength and weakness (Hanse and Shrader, 2016). Further it will help to
formulate policies with the help of which various advancements can be earned. As to fulfil this in
best effective manner Porter Five Force model is mentioned:
Competition within Industry
UK Government set regulation for hotels those who are engaging in the services of hotel
industry. In present context magic Mania Hotel entrepreneur will face competition threat from
Marriott, Hilton and Four Seasons. Thus, it is required by entrepreneur to formulate best
effective competitive strategies.
Threat of New Entrants:
As to start business in hotel industry, fund is require in large amount. This is the barriers
that hamper Hotel. Thus to lower down this threat Magic Mania hotel can consider customer
centric approach in order to attract customers towards services like free Wi-Fi, live music and
variety of food.
Bargaining Power of Buyers:
Bargaining power in hotel industry is high as there are different types of alternative
available in a Marketplace. Buyers always looked towards low price services with best qualities.
Thus, it is required by entrepreneur to take advantage of low cost strategies.
Bargaining Power of Suppliers:
Less power has been held by suppliers as in this potentially skilled labours enjoy more
power of bargaining. Entrepreneur of Magic Mania Hotel is required to consider this factor as to
make sure long-term sustainability.
Threat of Substitutes:
Threat of substitute is moderate in these industries as individual always look towards less
value with high quality. Thus, entrepreneur is required to make themselves update with each and
every knowledge that is related to this industry along with rival’s strategies in order to frame best
effective policies.
Evaluation of Competitive environment for assessment of Potential viability
With the application of Porter Five Forces Model magic Mania Hotel can effectively able
to gauge more competitive advancements within hospitality industry. In this company can
effectively analyse level of competition within industry and set their prices accordingly for their
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services. As if competition is higher hotel can provide their services with low price. This will
effectively allow them to gain more competitive advantage. In addition with this, with the
implementation of this model, magic Mania Hotel can effectively engage in proper planning. As
if organisation make investments then it is hard to reverse it back. With the help of porter model
organisation can identify threat of substitutes. This will aid organisation to enter into new
marketplace by analysing threat of substitutes that will prove beneficial for company.
While, major weakness of this model is that, due to passage of time there is regular
change within technology on daily basis that highly influenced upon constantly changing
markets. Thus, in order to overcome this weakness magic Mania Hotel must undertake use of
constantly evolving technology as to overcome challenges in best effective manner.
Market Environment: It includes two types of factors that affect business functioning which is
described below:
Macro Environment:
Macro environment include factors that are presented in external environment mentioned below
it has been for the elaborated in PEST format
Political:
Different types of rules and regulations have been framed by UK Government such as
employment, environmental, and tax for hotel industry. Thus, it is essential for Magic Mania
Hotel to obligate all these regulations in order to save themselves from any turmoil in this sector.
Economic
In economic factor entrepreneur of Magic Mania Hotel can take advantage of pricing
policies in order to gain more advantages and operate the functions in best effective manner
(Kohlbacher, Herstatt and Levsen, 2015).
Social:
Operate business operations in best effective manner entrepreneurs is required to consider
values, believes, culture in a society as to satisfy customers. This factor will offer unsupported
nature as in this idea of entrepreneur can be copied.
Technological:
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Entrepreneur of the Magic Mania restaurant is required to take advantage of
technological advancements in this regard they can initiate online booking facilities in order to
gain more strategic edge.
Micro Environment:
Micro environment includes factors that are linked with culture, values and practices.
CONCLUSION
On the basis of above discussed report, it has been identified that entrepreneur owns
capability of taking risk and grabbing business opportunities available at marketplace. It has been
analysed that entrepreneurs are required to take advantage of technology so that proficiency of
their work can be improved in right manner. Along with this, usage of technology also helps
entrepreneurs in satisfying their customers effectively. In addition to this, SWOT analysis helps
entrepreneur in understanding their weakness, strengths, opportunities and threat so that effective
measures can be taken for improving profitability.
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REFERENCES
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