P1 Determine and evaluate different sources of entrepreneurial ideas and innovation (Doc)

Identifying Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation..............1
TASK 2............................................................................................................................................3
P2 The rationale and the market gap for a specific entrepreneurial............................................3
TASK 3............................................................................................................................................5
P3 Gap analysis in the evaluation of a specific entrepreneurial idea..........................................5
P4 Interpretation of data to provide evidence of market potential..............................................7
TASK 4............................................................................................................................................8
P5 SWOT analysis to assess the entrepreneur idea.....................................................................8
P6 Competitive and market environments in which the idea will be launched........................10
CONCLUSION..............................................................................................................................10
REFRENCES.................................................................................................................................12

INTRODUCTION
Entrepreneur is an individual who starts and runs a small business firm by undertaking
entire risks or uncertainties and rewards as well. The entrepreneur also known as innovator,
producing goods or services, sources of new ideas and development etc. Therefore, to be a
successful entrepreneur, there is requires continuously innovations and looking for various
opportunities so that business can be grow or run in more effective manner (Farmer, 2011).
Every individual try to develop their small enterprises by finding several opportunities and bring
innovation, creativity or uniqueness in particular products or services so that number of
customers can be attracted to satisfy desired needs or wants as well. This report is based on Cafe
Cappuccino shop which is a new start up and established in London, UK. It will define about
various sources of entrepreneurial ideas and innovation with the help of rationale and market
gap. This assignment will support in analysing gaps and interpret data that helps in providing
evidence of market potential. This will apply SWOT frame work to collate evidence that will be
beneficial for entrepreneurial ideas.
TASK 1
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation
In the present scenario, many of individuals come up with new innovative ideas and
creative thinking while starting a new venture or small business. They always focus on
developing firms and generate more revenues in an effective manner. It is the biggest
opportunities of individual that to come with unique ideas and generate higher profits by running
small business firm. There must bes required to select best alternatives solution from various
aspects or option as well. An entrepreneur is going to start a new cafe which is Cafe Cappuccino
at London (Yao, 2011). This is not an easy task start a new business venture in the competitive
environment because there are number of factors available that can affects on the business
operations as well. Firm needs to considers various resources and better strategies to deal with
these forces and run business in an effective manner. There are defined some external
environmental factors that bring various changes as well as opportunities to develop particular
business such as:
 Political factors: In this included several political issues or conditions that influence
business ideas and its operations as well. In this defined that government may have
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favourable conditions by undertaking tax rates, rules or regulations and restrictions etc.
there are wide scope of selected start up as individual can generate higher profits by
serving variety of coffees to customers so that they will be ready to get foods and
beverages in more efficient manner.
 Economical and Social factors: In this consider customers related factors that have
major impacts on the organisational profits and its reputation (Kung, 2011). Company
requires to analyse customers needs and demands by conducting small research of
consumer behaviour. In this, they will analyse customers choices, tastes and
preferences so that they can implements the ideas as well as provide better quality of
goods or services as per their requirements. These are very beneficial in generating
more profits and biggest opportunities for a new start up.
 Technological factors: in the present world, advanced technologies play an important
role in increasing works productivity by making entire activities more effective and
easy.
Role of entrepreneur: an entrepreneur has major role in developing country as they contribute
more in increasing economies and growth. They come up with new innovative ideas and
effective plan while starting a small business. Entrepreneurs always focus on finding various
opportunities and grab these to develop business firms in an appropriate manner. There are
defines some major role of entrepreneurs such as:
 Entrepreneurs helps in providing job opportunities for unemployed people.
 They support in improving economic conditions and country's infrastructure.
 Entrepreneurs support to social people for developing their living standards.
Types and scope of innovation: In this defined that entrepreneurs are needed to bring unique
ideas and creativity in producing goods or services so that customers can be attracted because
there are lots of competition in the international market (Mcintyre, 2011). The Cafe Cappuccino
has wider scope as they can achieve long term benefits and make customers loyal towards firm
as well.
Innovation and invention: It is concern with two different concept as innovation and inventions
are very important aspects for modifying and changing in business operations, products or
services, and create new ideas or innovations so that particular goals or objectives can be
achieved in well manner.
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Evaluation of Drucker's 7 sources of systematic innovation
In term of small or medium enterprises requires to focus on bringing new ideas or
thoughts for the purpose of achieving set goals or targets. Individuals always try to implement
new ideas and innovations for getting maximum outcomes in more effective manner. There are
defined Peter Drucker's 7 sources for systematic innovations such as: Unexpected: The main purpose of brining or adopting innovative ideas as well as things
for being ready to face any kinds of situations or challenges (Duru, 2011). Entrepreneurs
focus on formulating better strategies and actions plans in well manner. Incongruity: It included several methods or techniques which support in making better
actions plans by following unique thinks. Entrepreneurs always thinks out of the box for
starting and developing firms. Innovation based on process needs: In this undertakes various new ideas as well as
creative thoughts which has based on needs or requirements. Change in industry and market: There is needed to adopt various innovative ideas and
several changes in the industry as well as market. Demographics: In this, entrepreneur start business by segmenting market and create
target customers for the purpose of increasing their satisfaction level.
 Changes in perception: There can be possibility to implement the new ideas and plans so
that individual can changes perceptions of buyers.
TASK 2
P2 The rationale and the market gap for a specific entrepreneurial
Every business organisations requires to analyse target market and particular customer's
needs or wants so that they can provide them better quality of goods or services in an appropriate
manner (Grégoire, 2012). In this process, entrepreneurs undertake innovative ideas or creative
thinkings as well as several kinds or tools or techniques for finding particular market, its current
trends, situations, customers with their choices, tastes and preferences, needs or wants and strong
competitors who are operating such kinds of business in the market place as well. There must be
required to identify various elements while launching a new business with ideas and effective
products in the market. There are defined basic requirements for reducing such types of gaps:
Identifying customers:
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In the food and beverage sector, there is necessary to identify potential customers and
target audiences by analysing their needs, demands and expectation regarding any goods or
services. with the helps of proper study and research, entrepreneurs can find the potential
customers so that they can satisfy their desired needs and wants in easy manner.
Marketing segmentation: Geographic: In this, market are segmented as per the areas or locations. Entrepreneurs
have to make decisions about new start ups and also analyse the particular area for
providing goods or services (Shepherd, 2012). in this included rural, urban and hilly area
for reaching at potential customers. Demographic: It is best idea or methods for finding appropriate customers who are
interested to have coffee over there. It is known as demographical segmentation which is
based on customers age, gender, income statements, religion and occupation.
 Behavioural: In this consider customer's culture, behaviours, lifestyles, believes and
many other things that has major impacts on the business operations. Entrepreneurs find
their target audiences by undertaking customers buying behaviours so that they can be
satisfied.
Products or services:
Tangible Intangible
There are required better quality of goods or
services which provided by the organisation
as per customers needs. It will helps in
increasing higher satisfaction level of
consumer.
The Cafe Cappuccino can make good image
among competitors by providing several
products or services at effective price in well
manner.
Benefits: There are various benefits or advantages for The Cafe Cappuccino in increasing
growth size and profits with very effective manner (Fuentes, 2010). They focus on building good
relationship among customers by providing better quality of products or services in an
appropriate manner.
Porters 5 force model Industry competitors: It can be seen that there are number of competitors available in the
marketplace who are trying to generate more profits or revenues and also create better
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position at market. Therefore, for Cafe Cappuccino it is necessary to analyse various
competitors and their strategies to capture the market as well as attracts customers for
generating higher revenues in the market. Bargaining power of suppliers: in the foods and beverage industry, It is necessary to
consider suppliers power because they are essential in providing raw materials, beverages
and other things that support in making different types of coffees with unique flavour as
well (Korsgaard, 2013). Therefore, entrepreneur have to make better decisions regarding
purchasing of such material on time so that the chances of delaying can be reduced. Bargaining power of customer's: Customers are kings for every business organisation so
it is necessary to satisfy customers needs or wants by giving them better quality of
products or services at affordable price as well. They can compare the cost factors with
other companies and make decisions regarding purchasing of such products or services in
an effective manner. This will support in making or creating strong relations among
customers and make them loyal towards firm. Threats of substitute: In the food and beverage sector, there are lots of competition as
competitors are coming with substitute of goods or other services. entrepreneurs have to
make strategies for building its goodwill or brand image.
 Threats of new entries: It is another important factors that have major impacts on the
business operations. Strong competitors are available in the marketplace and some new
small start ups are also launching day by day which biggest threats for the Cafe
Cappuccino restaurant.
Gap analysis – This is use to identify the gap between existing marketplace and
expected market requirements. Through identifying this gap it will help to recognise potential
market of Cafe Cappuccino. This gap analysis can be conduct through Mckinsey's 7S frame that
has seven factors. These seven elements are given below -
Hard S's
 Strategy - Cafe Cappuccino can develop strategy to gain competitive advantage in the
existing marketplace. As there are several companies are already providing same kind of
products so it needs to create strong plan that can beat the competition in market.
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 Structure – It refers to structure of Cafe Cappuccino in which environment entrepreneur
works like their reporting structure. This informs about their subordinates works
according to report their senior manager.
 System – This defines to conduct their daily operations and activities in which employees
needs will be engaged.
Soft S's
 Style – This is a leadership style of the enterprise and Cafe Cappuccino has a democratic
leadership which also involves their employees in decision making. So that they can get
new and innovative ideas.
 Staff – Cafe Cappuccino has approximately 6 members team that assist to conduct
routine operations of the firm.
 Skills – There should be a skilled taskforce that can support in firm's activities like its
cafe. The employees should be capable to prepare coffee and snacks that can attract
customers.
 Shared values - These are refers to the norms and standard of Cafe Cappuccino that
guides employees behaviour and actions. Hence, this is foundation of the organization
working ethics.
TASK 3
P3 Gap analysis in the evaluation of a specific entrepreneurial idea
Gap Analysis: In this consider the gap or difference between position of actual and
benchmarking of company within define time period (Nassif, 2010). It shows the firm's desired
place where they wants to go in which the first phase defines about actual or current situations of
particular firm including their brand image, financial positions, employees performance,
productivity level and many more. On the other side, second positions denotes the expected
futures by undertaking present time as well. Therefore, the particular gap that occurs from their
differences is known as gap analysis. It is necessary to review and inspect such gaps so that
better strategies and actions plan can be formulated in an appropriate manner. It is particular
study regarding customers needs or wants and employees current performance.
The Cafe Cappuccino shop can consider this for making effective position and generate
higher revenues through improving business performance in an appropriate manner. The future
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expectancies can be create barriers while running business operations or functions. Market
research can be helpful in reducing these expectancies in well manner (Ghobril, 2010). The Cafe
Cappuccino is providing different types of coffees with various flavours which helps in attracts
more customers towards firm.
Data gathered by online media:
In the present world, the online platform is best mode for collecting various types of data
or information because it helps in providing media, websites and other tools that beneficial for
identifying customers current demands and needs in an appropriate manner. It is a cafe shop
which provide different flavour of coffee to the customers.
Factors Gap Solutions
Business It helps in analysing the
customers ratios that lower
There must be required proper
planning regarding making or
formulating new strategies.
Application It consider the appropriate
informations regarding buyers
behaviours.
In this gather and interpret data
about potential buyers for the
purpose of promoting new
application and services.
In this, the current gaps can be reduced if the Cafe Cappuccino formulate effective
strategies and make favourable decisions in an effective manner (Silva, 2010). They can use
several tools or techniques which will support in identifying the current states, present
performance for the purpose of analyse gaps and then after they can create a bridge for meeting
such gaps. This is an essential in attaining final goals or objectives in more efficient manner.
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The gap analysis can be identify and fill through better performance of company. It can
be fill by undertaking various aspects such as expected and actual performances of firm so that
company can make better decisions regarding utilising available resources (Jean, 2012). The
market gap can be defines as the budget sales and the actual sales which will support in
determining the profits gaps among real and expected as well.
There are two basic research methods that are given below -
Primary method – This method is used to get gather fresh information from people in
order to know their perceptions and point of views. This is conducted for the first time that's why
it caters fresh data from potential market. It can be conducted through observations, interview,
surveys and so on.
Secondary method – It is based on primary research method and it uses previous
collected information to recognise needs and requirement of customers. This information can be
gathered through observations, interview, surveys, newspaper, journals, research papers, etc.
Questionnaire
Q1 What are the major types of food available at Cafe Cappuccino?
Particulars Frequency
a. Coffee 17
b. Snacks 13
Q2 Which age group of customers are mostly buying the food products?
Particulars Frequency
a. Young people 16
b. Adults 14
8
0
5
10
15
20 17
13
a. Coffee
b. Snacks

Q3 Does Cafe Cappuccino have attained success in their business operations?
Particulars Frequency
a. Yes 21
b. No 9
Q4 The products of Cafe Cappuccino are healthy to consume?
Particulars Frequency
a. Yes 19
b. No 11
9
13
13.5
14
14.5
15
15.5
16
16
14
a. Young
people
b. Adults
0
5
10
15
20
25 21
9
a. Yes
b. No

Q5 Does the location of Cafe accessible easily to customer?
Particulars Frequency
a. Yes 22
b. No 8
P4 Interpretation of data to provide evidence of market potential
As per the gathering data or informations, it can be analyse that there are tough
competition in the marketplace where better marketing strategies required so that better products
or services can be sell to the targeted customers (Kraus and Kauranen, 2011). It is necessary to
established effective marketing strategies which will support in increasing demands and goodwill
in more effective manner. The Cafe Cappuccino requires to consider the best tools or techniques
for promoting their business and goods or services so that goals or outcomes can be achieved in
an efficient manner. They are requires to undertake some marketing tools and promotional
strategies because it is a new business or cafe shop which launched in recent time so they
requires to promote their business among customers for creating good positions into their mind
10
0
5
10
15
20
19
11 a. Yes
b. No
0
5
10
15
20
25 22
8
a. Yes
b. No

in well manner. Marketing team will support in formulating strategies and business plan so that
they can create awareness among targeted customers (Audet, 2012). One of the best method is
social media as well as online platform in which a particulars business can be promoted. There
are wide scope of the online method because it support in stay connected to every individuals
towards with the help of internet. In this also consider a online campaigning which is a best
suitable mode of increasing sales volume and generate demands among more customers in very
efficient manner.
The Email services is also one of the best method for providing various goods or services
as marketing departments teams provide information regarding special offers, schemes and
occasional sale which support in increasing demands and create customers awareness in more
effective manner.
The Newsletters are other important component for Cafe Cappuccino for providing
various kinds of informations to the customers which will support in creating better relationship
among customers. They undertake some attractive scheme and offers such as discounts, coupons
and others codes that are beneficial for promoting the particular products or services in more
efficient manner. The Cafe Cappuccino can consider customer's feedbacks after providing goods
or services to them (Kotha, 2013). It is also helpful aspects in improving business performances
for increasing their satisfaction level in an appropriate manner.
Search Engine Optimization (SEO) is one of the best method for promoting business as
most of firms have undertaken this for promoting their business among competitors. It is a
modern method as user search about particular foods or beverages restaurants on google and find
many of alternatives as per the fame or ranking positions. Every firm wants to get that positions
by giving advertisements, pay per clicks, banners on social sites and own webpage as well.
The Cafe Cappuccino can collect data or informations through internet, market research
or survey and other ways. They also undertake market segmentations such as geography,
psychography, demographic and consumers behavioural so that company can target the potential
customers in an effective ways. This is also beneficial for taking business decisions as well as
take corrective actions to attain future goals or possible outcomes as well (George, 2012). The
Cafe Cappuccino can undertake online surveys for customer's feedbacks so that better
informations can be get. This will support in improving exists products or services by
modification or launching new one so that they can be satisfied in more efficient manner.
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Q1 What are the major types of food available at Cafe Cappuccino?
Particulars Frequency
a. Coffee 17
b. Snacks 13
Total 30
Mean 15
Median 15
Mode 4
Interpretation – From the above figures it can be analysed that out of 30 respondents average
15 people are get products according to their requirement whether its coffee or snacks. They can
find food items according to their choice.
Q2 Which age group of customers are mostly buying the food products?
Particulars Frequency
a. Young people 16
b. Adults 14
Total 30
Mean 15
Median 15
Mode 2
Interpretation – As it can be clearly stated that out of 30 respondents average 15
percent young and adult people buys their preferable products. They can purchase coffee and
snack items from Cafe Cappuccino.
Q3 Does Cafe Cappuccino have attained success in their business operations?
Particulars Frequency
a. Yes 21
b. No 9
Total 30
Mean 15
Median 15
Mode 3
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Interpretation – There are average 15 people who favours that Cafe Cappuccino
attained its success in marketplace. As they serve people customized products that attracts them
and that aims to achieve success.
Q4 The products of Cafe Cappuccino are healthy to consume?
Particulars Frequency
a. Yes 19
b. No 11
Total 30
Mean 15
Median 15
Mode 8
Interpretation – From the above statistics it is clear that out of 30 people there are
average 15 people who voted in the favour of healthy products of Cafe Cappuccino. They does
not find any hygiene issue regarding food items.
Q5 Does the location of Cafe accessible easily to customer?
Particulars Frequency
a. Yes 22
b. No 8
Total 30
Mean 15
Median 15
Mode 6
Total 21
Interpretation – There are average 15 people who favours towards easy customer
approach. This is one of the biggest reason of its success because people can reach easily reach
to the cafe.
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TASK 4
P5 SWOT analysis to assess the entrepreneur idea
It is necessary for the organisation to perform internal analysis so that all factors can be
examined effectively in order to determine the impact which can be positive and negative.
SWOT analysis is performed that include analysing strengths, weaknesses, opportunities and
threats so that effective decision can be made accordingly (Abu, 2012). It is very much
indispensable to perform the analysis so that proper steps can be taken by management in order
to minimize threat that may hinder the performance of coffee shop. SWOT analysis of “The Cafe
Cappuccino” is described below:
Strengths
 The quality of coffee offered by them have allow them to gain high market share.
 The physical appearance of shop have gained interest of large number of customers.
 They offer different type of offers and discounts to their regular customer.
 They render full attention on health and safety of employees as well as customers.
 The prices charged by them is affordable (Burg, 2012).
 They have also formulate plans to carry out CSR activities in order to uplift the
environment in which it is operating.
Weaknesses
 Staff members are not trained properly which hinder their overall growth and
development.
 Proper training are not imparted to staff people as there are number of customer's
complaints registered regarding their misbehaviour.
 Modern and advanced technology has not been adopted.
 Availability of different type of resources at proper time period.
Opportunities
 Grab the number of advantages that is available in competitive market place.
 Introduce number of innovative process so that modern needs could be fulfilled.
 More attention and efforts must be executed to supply healthy food products to their
customers so that they remain satisfied and contended (Perrini, 2010).
 It should offer different types of dishes to distinct segment of customers by adopting new
variety of recipes.
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Threats
 Presence of number of competitors in same segment pose a huge threat in front of “The
Cafe Cappuccino:.
 Adopting different rules and regulations that are formulated by government body can
cause several type of hindrance in overall performance.
 The potential customers can withdraw their percentage of share if their needs and wants
do not get satisfied.
As it is a newly established venture hence may face number of difficulties in various aspects.
P6 Competitive and market environments in which the idea will be launched
In this define a proper study and research regarding particular market which is necessary
to identify customers, competitors, demands and choice of behaviours so that predetermine goals
or objectives can be achieved in more efficient manner (Vurro, 2010). There must be requires to
analyse several environmental factors that have major impacts on the business operations and its
functions as well. There are more competitors available in the business environment therefore,
Cafe Cappuccino requires to formulate strategies and also make effective plans so that they can
survive in the competitive environment in more efficient ways. The Cafe Cappuccino is a new
small venture that opened in recent time and they are serving various types of coffees to the
people foe satisfying their desired needs or wants. They are requires to make better strategies
with the help of analysing target customers by conducting survey so that company can identify
their desired needs, wants and current trends which support in producing best goods or services
as per their requirements (Costanzo, 2010). It is very difficult to start a new venture and
launching it into marketplace so an appropriates idea and plan required for promoting such
business in an effective manner. There are also necessary to conduct market research for
screening environment and its factors such as internal and external that have major impacts ons
the sales of products or services. these forces can affects on the company's profits or productivity
in several ways. Marketing study and tools bring several opportunities for developing firms so
Cafe Cappuccino have to grab such opportunities for getting success. This will support in
attracting more customers and make them loyal so that sales or profits can be increased in better
ways.
Porter's five force model
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Bargaining power of customers – There are several customers who can decrease the
cost of Cafe Cappuccino products. As there cafes are already existing in the market who are
offering similar products so it is necessary for the cafe to stay on low cost. This strategy can pull
the customers.
Bargaining power of suppliers – As Cafe Cappuccino is a small firm and it has a few
suppliers of raw material. That's why it has less bargaining power to switch supplier because it
can be costly for it. This expense will reflect on its increasing prices of food items that has
potential to decrease the customer satisfaction and they can also switch their products.
Threats of new entrants – Cafe Cappuccino should innovate and include new products
that cannot be overtake by others. As others are looking for drawbacks to make their product
popular among target customers. This can be beneficial for new entrants and it will be harmful
for cafe because new comers can attract customers.
Threats of substitutes – Cafe Cappuccino should provide quality and cost effective
products because customer has power to substitute their products with others. As there are
several several other products that has same flavour, in order to exist in the marketplace it should
maintain quality of the products.
Industry rivalry – There are so many rivals in marketplace that's why Cafe Cappuccino
needs to develop effective strategies that can support it to stay in market. Therefore, it should
utilise aggressive marketing that can attract customers.
PESTEL Analysis
Political factor – Cafe Cappuccino is encouraged by Brexit as it is a small firm that
needs to be supported by the government of UK. Hence, it also contributing towards the nation
economy that's why it is supporting by government legislation.
Economical factor – The firm is going to be established in London that has a high per
capita income that's why customer can pay premium price of the product. It is beneficial for the
firm.
Social factor – As the customer purchasing behaviour impacts on the growth of Cafe
Cappuccino. But UK has high growth rate that's why people can easily buy products according to
their requirement. They will not prefer cost of the products when they really needs that product.
Technology factor – In present time, customers are prefer to purchase product through
internet. That's why Cafe Cappuccino can tie up with any local food delivery app or can take
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orders on their Facebook page and telephone. This will enhance their visibility among customers
and it will also attract potential market to increase sales of business.
Environment factor – Customer are more attracts towards brand image of a business.
Cafe Cappuccino can establish its image through participating in environmental activities that
can capture attention of prospect customers. It will increase customer range.
Legal factor – There are some norms and legislation of the country that has to be
followed by organisations. Cafe Cappuccino is abide to obey these rules and it violates that then
it have to pay fine for it.
CONCLUSION
From the above business report it has been concluded that entrepreneurs are always
taking risk when they are starting a new venture as have to prepare themselves for the future
circumstances. The main aim of establishing ventures is linked with achieving success and
profits in their business activities and developing innovative ideas which are beneficial for the
development of the economy. There is need of analysing the needs and wants of customers in
order to provide them services according to the requirements. The new ventures are established
by enterprise in order to develop new thoughts and ideas which are useful foe them in order to
achieve compensative advantages.
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