Identifying Entrepreneurial Opportunities (PDF)

Identifying
Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1 Analysis possible sources for new as well as innovative business idea..............................1
2 .An introduction to the business ideas, what it is, who as well as where potential customers
and target audience......................................................................................................................3
3 Competitor analysis of the market and also evaluate its success as well as failures................3
4.GAP analysis.............................................................................................................................4
5. Secondary market Research.....................................................................................................6
6 Strengths and Weaknesses of the business ideas and also evaluate their opportunities for
growth as well as threats..............................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
An entrepreneur is an individual who can set up new business, enjoying most of the
rewards and have the ability to bear most of the risk(Kirzner, 2015) . They are commonly known
as innovator, business procedures as well as a source of new ideas services and goods. An
entrepreneur plays a key role by using skills and necessary initiatives to bring the good ideas to
the market. Present report lay emphasis on the Organic coffee limited company possible ways of
new as well as innovative business ideas. It also lay emphasis on the introduction of the business
ideas which is organic coffee and target the audience and potential consumers. Furthermore, it
also focuses on the competitive analysis of the market and it focuses on the secondary market
research and swot analysis of the organic coffee shop.
LO1 Analysis possible sources for new as well as innovative business idea
The 7 sources of innovative opportunities considered by Peter Drucker is one of the best
great management. The seven sources of innovation opportunity is given below (Venkataraman,
2019).
The Unexpected
The market place is full of unexpected surprises as well as failures. As unexpected
situations can be more powerful within the business world as they can motivate the leaders or
managers of organic coffee limited company to attract towards the more innovation and also
takes advantages of the opportunities that emerge within the market.
Incongruities
It is defined as a disconnection between the what is it and what should be( people desire)
Many firms can trap of developing their product without any actual research (Kuratko, 2016).
This leads to the downfall of the firm but it can also be a great source of motivation for the
innovators. As customers feedback, reviews as well as complaints are the best ways to know the
incongruity.
Process Need
it is more task focused rather than situation focused. Here source of opportunity came
from scrutinized the process of the organic coffee limited company and also identify the weak
spots of the company and how they can improve it (Burns, 2016).
Change in Perception
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Over the time people change,their lifestyle changes,the way they see the things changes,
and also things are modified over the time as smart companies like organic coffee limited have to
pay more attention towards these changes (Storey, 2016). Religion is known as the example such
as company can do changes according to the culture such as Islam.
New and innovative business idea is organic coffee shop, research has even shown that
the organic coffee has various benefits for environments, Health and farmers benefits who grow
organic coffee.
Health Benefits
Chemical farms uses pesticides, herbicides, insecticides, fungicides determined that
different studies damages reproductive as well as nervous system and also causes cancer. Here
conventional as well as traditional plants grow by using these methods and also pass the body
(Barringer, 2015).
Here 100 % certified organic coffee carry vitamins, antioxidants, minerals which are necessary
for the Human body for the various benefits for example protection from various cell damages as
well as boosting immune system. As pure organic caffeine is strong as well as energy booster
that increases proper functioning of brain.
Environmental benefits
High demand of coffee leads the coffee owners to the clear cut forest in order to fulfil the coffee
plantation needs that will seriously damage the environment (Khoshimov, Eckhardt and
Goldfarb, 2019). Many of the coffee planters also uses chemical fertilizer so that they can feed
the plant and also uses the pesticides so that plants can be saved from pests. Here he nutrition of
the soil as weld as natural predators for the coffee pests are also gone.
So choosing organic coffee helps to save from the environment damage as most of the
coffee owners uses the method called shade growing method and with that also taking benefit of
natural canopy of rainforest. Here organic coffee farming no use of chemical seeing into the
soil ,air or water which can cause grief to the farmers or also the nearby population.
Farmer Benefit -Organic farming makes land healthier as well as makes soil fertile, which
enhances the quality as well as quantity of the soil. As it decrease the exposure of the farmers to
toxic chemicals. Here the organic coffee growers offers a high rate of payroll to the employees.
Arabica coffee beans (also involves the soil it grows) is free from the residues,artificial fertilisers
and also chemical fertilizers which provides three times guarantee to the high quality to the
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customers. These are known as the Fair trade, Quality assurance organic certification (Hitt and
Duane Ireland, 2017).
2 .An introduction to the business ideas, what it is, who as well as where potential customers and
target audience.
Organic coffee is known as the coffee which is produced without included various
artificial chemical substances. For example certain pesticides as well as herbicides. The farm of
the coffee must be 100 % organic. An organic farm of organic coffee limited do not allow
synthetic chemicals ,pesticide as well as chemicals that are used during production as well as
cultivation process. it is managed by the farmers as the working ecosystem here the farmers
provides technique such as terracing, natural pest control that can be offered (Kazanjian, and
et.al. 2017).
Organic coffee potential customers- coffee is the one of the most popular beverages that can be
produce more than 50 countries. Nowadays organic is becoming the favourite one for the young
generation of the united kingdom and also the health conscious people as it is rich in
antioxidants, vitamins as well as minerals that can helps to boost the immune system and also
protect against various diseases, also the target market for the coffee involves the drip coffee
lovers, speciality coffee drinkers.
Drip coffee drinkers- The latest reports found that the 78 percent adults of the United kingdom
drink daily on the basis. Among them organic coffee is becoming the favourite one as depending
on the price, students can be targeted as they are more health consigns as well as young ,so they
want a cheap cup of organic coffee which ultimately leads to the benefits to their skins as well as
health issues. On the other hand middle upper class have more income to pay the several dollars
such as 40 percent of the individual. Aged between 18 and 25 years old like to drink the organic
coffee while 54 percent of the people of aged 25 to 40 years like to indulge within a daily basis
(Hitt and Duane Ireland, 2017).
3 Competitor analysis of the market and also evaluate its success as well as failures.
Porter five forces is considered as a model that can recognizes a well as evaluate five
competitive forces that assist to determine the strength as well as weakness of the company. This
model can imply to any segment of the economy in order to gain the profitability as well as
attractiveness. There are five forces that mention below.
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Competitive rivalry-This forces evaluates that how enormous competion is in the market, which
regulates the number of current rivalries and also determine what each person can do. As
competion within the market is very high and many competitors sell the product at the same rate.
so it will create problems for the organic coffee company as customers easily switch to other
cafe's (Cooper and Folta, 2017) .
Bargaining power of supplier- Basically it assesses the number of the suppliers of Organic
Coffee limited Coffee Who are available. it is a force that evaluates the power of the suppliers
and also analysis that how much control over it in terms of prices, business profitability.
Bargaining power of the customers- This forces analysis the power of the customer to purchase
a product or services and also their impact of pricing as well as quality of organic coffee limited
coffee.. When the number of consumer regrading to a particular product as well as service is
small than they will affect pricing and quality and this same holds when the large number of
people can easily switch to another similar product.
The threat of new entrants-When the barriers to entry within a market is higher than it tough
for the new companies to take entry in the market due to the high costs as well as high
competition. Barrier includes such as access to inputs and also absolute cost advantages (Meyer
and et.al., 2017). Organic coffee limited can faced such threats where it might be difficult for
them to take entry in the market.
Threat of substitute products as well as services- This forces evaluates that how easily a
consumer can move from a product or services to that of the another rivalry. It evaluates that
how the price and quality compare to the competitors is examined and also how much profit is
earning. If the organic coffee limited shop can threat about the substitute of product than they
can lower the prize of their coffee even more than their competitors.
4.GAP analysis.
This table of Gap analysis states that the existing state is 10 percent per annum and its future
state is about 15 percent. Its gap description is 5 percent and it can be achieved by training
process as well as increase the marketing area (Kazanjian, and et.al. 2017) .its profitability can
be increases from 15 percent to 25 percent and here the gap description is 10 percent and
remedial action is by boosting the productivity as well as focused on the sales efforts. Also
customer existing state is 5 percent and future state is 20 percent. Remedial actions are By giving
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them different offers such coffee with cookies and also 10 % less to the regular customers.
Money invested existing is 10 % per annum and its future state is 20 % per annum.
Objective Existing
state
Future state Gap
identificatio
n
Gap
Description
Factors Remedial
Actions
Increase
sales
revenue of
organic
coffee
limited.
10 percent
per annum
15 percent
per annum.
Yes 5 % per
annum is the
difference
Sales It can be
achieved by
training on
the
marketing
and also
review the
price
strategies of
product.
Profitability
to be @ 25
% sales
15 percent
on sales.
(Schaper,
2016)
25 percent
on sales.
Yes 10 percent
per annum
By boosting
productivity
and focused
on sales
efforts and
also review
on the
company's
offer.
Customer
increase
5 percent
per annum.
20 percent
per annum.
Yes 15 percent
per annum
As
customer
are unaware
about the
offers and
By
providing
them various
offers such
coffee with
cookies and
also 10 %
less to the
regular
customers.
Money
invested
return
10 percent
per annum
20 percent
per annum.
Yes Return
money after
2 years
Initially
avoid the
profits and
increase
customer
Base (Hitt
and Duane
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Ireland,
2017).
5. Secondary market Research.
Secondary marketing research is known as the cost effective and considers as one of the
reason t be a popular choice among the business or organizations. Not every company can pay
the enormous amount of money to conduct a research and gather the data. So secondary
information is also known as desk research. Given below there are some popular secondary
research methods with examples (Khoshimov, Eckhardt and Goldfarb, 2019).
Data available on the internet-it is know has one of the most vital ways of collecting secondary
data by using internet,as enormous amount of data is available on the internet and it can be
downloads from there from a click. This data is practicality free and individual have to pay
negligible amount of money. As various website has huge information that firm like organic
coffee limited is used to suit the need of their research. Thus, organization only trusted on the
ethnic or trusted website's information.
Government as well as non government agencies-Secondary data can also be calculated from
some government as well as non government agencies. There are certain small business
development centres that can uses appropriate data so that the company like organic coffee
limited is used. Certain cost is applied to download the information from these websites as data
or information obtained from these agencies are authentic (Venkataraman, 2019).
Public libraries- it is known as the another good source to search the data for the secondary
research. As public libraries have copies that are earlier conducted. Public libraries have
storehouse for the various important documents as well as information. furthermore library can
give the furthermore information about the ideas of the innovation that are used by ancestors so
that it can become more innovative. Organic coffee limited shop can use these techniques to
make their product more innovate to the customers.
Educational institutions- Collecting of Data from educational institutions for the secondary
research is often consider more research is conducted from college students as well as
universities student such as how the coffee's taste and various other things regarding the coffee.
The data collected through the universities are basically for the primary research ,but business
organization like organic coffee limited can uses such data and also request feedback from them
(Schaper, 2016).
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Commercial information sources- Commercial information sources like Newspaper,m
agazines,RADIO, T.v, journals are known as the great source of the information to obtain the
data and these information sources have authentic information regarding on the economic
development, market research, political agenda and also similar subjects.
Organic coffee limited can request to consider the data which is become more relevant to their
study. Firm does not have opportunities to recognize their potential clients but also knows about
the promotion of their products as well as services through these sources as they have a broad
research.
6 Strengths and Weaknesses of the business ideas and also evaluate their opportunities for
growth as well as threats.
It is a study which is undertaken by various companies to recognize the internal needs as well as
weakness and also the external opportunities of the organic coffee limited company. It is
considered as the realistic ,fact based ,drivers that focuses on the firms' weakness as well as
strength (Hitt and Duane Ireland, 2017).
Strength- There is an availability of green coffees like Organic coffee and also company have
alliance certified coffees. One of the factor where people fear about the drinking coffer are the
health benefits ,but due to the organic coffee, there are certain new innovations with the organic
coffee which is great in taste so it helps the customers to attract towards the organic coffee and
also good for their health regarding benefits. As organic coffee helps to keep their blood pressure
maintain and it is good for their skin related issues and also helps immune system to guard
against diseases (Kazanjian, and et.al. 2017). Cafe has also focuses on the high speed wifi and it
focuses on the remote workers. Young crowd has the live music so that they can enjoy their
organic coffee with a good mood. Furthermore, they have the best strength of enormous amount
of reading book and also they can issue these books to customers so that they can easily read at
the coffee shop and also at their home, as it helps them to keep in touch to the coffee shop as
when they return the books they again came to coffee shop and this builds a relationship among
the customers.
Finding Weakness- Weakness of Organic coffee limited that the staring cost of the coffee are
higher than the other normal cafe, Since the organic business has risk factor as it might not be
successful like other business. As business is new in the country as all the people of united
kingdom are not book lovers. In addition to this the maintenance cost of books as well as
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machines are high so it will seize time as well as cost. It affects the profit as wel (Meyer and
et.al., 2017)l.
Opportunity- Coffee Cafe is a rapid growth franchise as lot of people love to consume
coffee ,also it helps to spend time with friends at cafés also shoe people alone spend their time in
the cafe. Hence, lots of people look for new taste in the coffee as well also want some health
benefit is an additional advantage in their life. As Organic coffee limited shop helps the coffee
lovers to attract them with the new aroma and also they ties up with companies for the
advertisement which also laid benefit to the consumers as well as with cafe (Kazanjian, and
et.al. 2017).
Threats-As customer prefer cheaper coffee and lots of cafes replaced the customers and also
there are lots of instant. Organic coffee which are available at the general market and also at
cheaper prize. So to target the audience company provides more healthy ways and also caffeine
is not included that much.
CONCLUSION
From above study it is analysed the innovative business idea such as organic coffee for
the customers. Such as seven sources Peter Drucker unexpected, process need, also change in
perception. it also analysis the business ideas ,target audience. it also laid emphasized on the
market analysis such as porter five forces such as competitive rivalry, Bargaining power of
supplier,the threat of new entrant,Threat of substitute products as well as services. it also focused
on the GAP analysis such as increase in sales from 10 percent to 15 percent and also increase the
profitability from 15 percent to 25 percent. Furthermore it lay emphasis on the secondary market
research such as data available on the internet, commercial information sources and at last it
concludes about the strength as well as weakness of the organic coffee limited shop.
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REFERENCES
Books and Journals
Barringer, B. R., 2015. Entrepreneurship: Successfully launching new ventures. Pearson
Education India.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Cooper, A. and Folta, T., 2017. Entrepreneurship and high‐technology clusters. The Blackwell
handbook of entrepreneurship, pp.348-367.
Hitt, M. and Duane Ireland, R., 2017. The intersection of entrepreneurship and strategic
management research. The Blackwell handbook of entrepreneurship, pp.45-63.
Kazanjian, R. K., and et.al. , 2017. Implementing strategies for corporate entrepreneurship: A
knowledge‐based perspective. Strategic entrepreneurship: Creating a new mindset, pp.173-199.
Khoshimov, B., Eckhardt, J. T. and Goldfarb, B., 2019, July. Abandonment of the Applicants
Signal: Grades and Entrepreneurship. In Academy of Management Proceedings(Vol. 2019, No.
1, p. 12909). Briarcliff Manor, NY 10510: Academy of Management.
Kirzner, I. M., 2015. Competition and entrepreneurship. University of Chicago press.
Kuratko, D. F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
Meyer, G.D. and et.al., 2017. The entrepreneurship‐strategic management interface. Strategic
entrepreneurship: Creating a new mindset, pp.17-44.
Schaper, M. ed., 2016. Making ecopreneurs: Developing sustainable entrepreneurship. CRC
Press.
Schaper, M. ed., 2016. Making ecopreneurs: Developing sustainable entrepreneurship. CRC
Press.
Storey, D. J. ed., 2016. Entrepreneurship and new firm. Routledge.
Venkataraman, S., 2019. The distinctive domain of entrepreneurship research. In Seminal Ideas
for the Next Twenty-Five Years of Advances (pp. 5-20). Emerald Publishing Limited.
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