Identifying Entrepreneurial Opportunities

This document discusses the process of identifying entrepreneurial opportunities and evaluating different sources of ideas and innovation. It covers topics like determining sources of ideas, evaluating market gaps, and using tools like gap analysis and SWOT framework. The document also includes a questionnaire and data interpretation to support the market potential of a specific entrepreneurial idea.

Identifying
Entrepreneurial
Opportunities

Table of Contents
Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1: Determine and evaluate different sources of entrepreneurial ideas and innovation........1
TASK 2............................................................................................................................................3
P2: Explain the rationale and the market gap for a specific entrepreneurial idea using relevant
tools and techniques to support your choice...........................................................................3
TASK 3............................................................................................................................................4
P3 Present data needed to support gap analysis in the evaluation of a specific entrepreneurial
idea.........................................................................................................................................4
P4: Interpret data appropriately to provide evidence of market potential..............................6
TASK 4..........................................................................................................................................11
P5: Apply a SWOT framework to collate evidence to support an objective assessment of a
specific entrepreneurial idea.................................................................................................11
P6: Evaluate the competitive and market environments in which the idea will be launched to
assess potential viability.......................................................................................................13
CONLUSION................................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Entrepreneurship refers to process under which individual or group of people starts a new
venture and motive behind business is profit maximization. It can be designing of a business or
launch a new business. The entrepreneur is ready to take risk if required as maximum the risk
maximum are the chances of profit (Autio and et.al., 2014). The new idea is based on Pine hut
bakery in which the entrepreneur is providing sugar free biscuits. The concept behind business is
targeting fitness oriented people that can be of different age group, also it include people that
have high diabetic issues and old age people that can have nutritious bakery items without
compromising their taste. This report cover topics like different sources of innovation address the
specific choices of entrepreneurial idea for investigating marketing gap. Moreover, use primary
as well as secondary data in order to identify potential market. Further, evaluate desirable
entrepreneurial idea that is potentially viable and help to overcome competitors by carry out
sustainably success.
TASK 1
P1: Determine and evaluate different sources of entrepreneurial ideas and innovation.
The competition in market is increasing day by day and entrepreneurs are aware about it.
To overcome the obstacles they need to introduce something fresh or new to compete in the
challenging environment. As a entrepreneur, the main objective is to innovate the producer in
such a way that it can compete with the competitors products which will result in increase
customer and greater penetration in the market. So to get that advantage the entrepreneur of Pine
Hut Bakery has implemented adopted Drucker's source model so that innovation and idea can be
identifies. The steps of the model are determined below:
The Unexpected: The chances of innovation are unexpected for an organisation but there
is a requirement of analysing the demand of target audience. If the company is not planning to
make any innovation and at the same time there is an unexpected innovation, it can help the
organisation in its growth and development. At same time if the idea is wrong it can hamper the
growth of company.
Incongruities: Within this process the entrepreneur have strong urge to think out
innovatively due to which they have out of the box thinking ability. Such method is innovative
and based to grab opportunities that exist in potential market (Davidsson, 2015). Further, it is
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derived out by resolving incongruities and by significantly identifying healthy competes for
wellbeing of people.
Process Need: This is an essential step immensely required by innovator to carry out
innovation. Here, needs of the potent market is exactly identified based on which the
requirements are appropriately catered. Diverse forms of aspects are viably considered like
innovation sources are made to cater untapped requirements of target audiences. This further
maximise the productivity as well as profitability for an entrepreneur by favourably carrying out
the innovation aspect for potential customers.
Industry and Market Structure Change: Entrepreneur explores the opportunity in eth
external environment and makes immense affects in cover to convert the simple idea into
detailed concept. For this techniques are used according to existing market structure or condition
like if any change in market is wittiness then innovation is backed accordingly (Godley, 2013).
Negligence of industry and market structure can directly hamper interest of ultimate consumer
and leads to the chances of economic loss.
Demographics: Demographics represent the living standards as well as forms of choices
that are acquired by people living in the particular periphery and immensely affect the innovation
aspect. Thus, United Kingdom is the greater platform where immense innovation takes place in
order to cover the diverse customer by resolving their queries significantly. Eventually within the
prevailing business idea that is based upon preparing sugar free cookies which is made from
wheat and jagger does not only fulfil requirement of people but also help them to lead healthy
and fit lifestyle. This determines that it can appeal local residence of UK who is mostly healthy
freak. Investment in such innovative can significantly accommodate the present lifestyle of
people and cover the need of different age group significantly.
Changes in Perception: Innovation of any new offering basically change the perception
of society. This help the people to generate better habits which are beneficial for them in terms if
healthy and safe life. Such practices directly influence the habits of customer by generating
awareness which lead them or make better choices in their lives (Hsiao, 2013). Such as, bakeries
in normal life helps to fulfil different requirements like the youths and adult visit bakery when
they out from home to want to have some filling and tasty items. Along with that enormous
demand of products are generated during the time of parties. So the Pine Hut bakery shop have
come up with sugar free cookies which are high in protein and low in carbohydrates due which
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even the diabetic patient do not have to compromise their taste. Ingredients like honey, almonds,
jaggery and natural sweeteners are added due which people can have nutritious and healthy sugar
free biscuits which come in various flavours. This respective innovation directly assists
entrepreneurs to expand their firm smoothly.
New Knowledge: The knowledge needs to be constantly updated by the innovator to
better price their innovation. Currently, bakery shop has come up with new concept that is sugar
free cookies but it is not necessary that this idea will successfully run in future as well. So better
knowledge of the potential market can maximise the overall led company to outperform in the
competitive market and remain in pace to constantly acknowledges the requirements of
customer.
TASK 2
P2: Explain the rationale and the market gap for a specific entrepreneurial idea using relevant
tools and techniques to support your choice.
Pine hut bakery is dealing with sugar free biscuits, the basic idea behind product is that it
will attract normal audience as well as fitness conscious people within market because the work
is done in such a way so that they can achieve the balance between fitness, old age group of
people, children and youngsters (Kacperczyk, 2013). So all segments of eth market is covered
and all audience are targeted due to which more demand can be achieved. The market size right
now is limited but respected bakery in future can look to increase its market potential. This help
them to deliver services to the other parts which are right now untapped. Various strategies are
adopted by Pine hut bakery from which one of them is Gap analysis.
In simple words gap analysis tool is defined as the gap in productivity of firm in
regards of actual and potential achievements. It is a tool which is majorly used by the firms so
that they can identify the company’s current position and where they can actually change. The
gaps in the organisation are achieved due to various unforeseen elements. Application of such
tool is a process of finding deviation between market demand and market supply on the basis of
which firm can identify the opportunities in which portion of market the product is more than its
supply. Once company find those markets they can increase the supply of their product on those
areas. In the case of Pine hut bakery premium pricing of products may result in low demands of
the same so the company can work on reducing unnecessary cost incurred while producing.
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Another method is Fish bone model in which primary concern like machine, material, methods
etc are considered. Under prevailing bakery the staff can work on finding quality machinery at
minimum cost and the factory can be lay down in an area where raw materials are easily
approachable (Fishbone Model Template, 2019). Thus, implementation of this model company
can reduce cost of the project which will result in maximising profit.
TASK 3
P3 Present data needed to support gap analysis in the evaluation of a specific entrepreneurial
idea.
Gap Analysis is the process of finding deviation between the company’s actual
performance and the actual potential of company. It is basically done to find out what company
is doing currently and what company can achieve on potential basis. In case of Pine hut bakery
gap analysis helps in reducing the cost by targeting the right audience and right market. With the
help of gap analysis prices of raw material is also focused so that customer can get product at
reasonable prices (Karimi and et.al., 2016).
Primary Data: Primary data is also referred as first time investigation as here the
researcher carry out self investment without priory depending on any other sources of data.
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Illustration 1: Fish-Bone Model
Source: Fishbone Model Template, 2019

According to Pine hut bakery’s project, the entrepreneur have effective designed questionnaire to
be fulfilled out through random sampling method in order fill market gap. Based on research it
has been recognised that local residence highly appreciates the idea and ready to make desirable
investments.
Questionnaire
Name:
Email ID:
Contact No.
Q1. Do you like to have Bakery biscuits?
 Yes
 No
Q2. Will you feel good if you don’t have to compromise your health while consuming sugar
free biscuits?
 Yes
 No
Q3 Does sugar free cookies obtained in different flavours can help to deliver desirable
satisfaction to customers?
 Yes
 No
Q4. Do sugar free biscuits can cover all segments of market?
 Yes
 No
Q5. Does intensive promotional techniques are requirements to widespread the awareness
amongst potential market?
 Yes
 No
Secondary Data: Secondary research is found from the data which has already been
collected by other form or individual. So it is a secondary data which may be from generated
from newspaper, research paper and other documents (Bakery Product Production Industry,
2019). The advantage of this type of data is that it saves the cost of an organisation.
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Figure 1Bakery industry UK
Sources: Bakery Product Production Industry, 2019
On the basis of factual figure and graphs it has been analysed that the bakery market is
constantly increasing within UK due to which it acts as an opportunity for Put Hut bakery to
bring out desirable innovation and leverage immense amount of productivity and profitability.
P4: Interpret data appropriately to provide evidence of market potential.
Theme 1: Prefer bakery cookies
Do you like to have Bakery cookies? Frequency
Yes 25
No 5
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Interpretation: From the above graph it has been interpreted that most of the respondents that is
25 out of 30 prefer to have cookies in their normal lives. On other side 5 respondents does not
like to have cookies.
Theme 2: Prefer balancing taste and health
Will you feel good if you don’t have to
compromise your health and taste while
consuming cookies?
Frequency
Yes 30
No 0
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Interpretation: On the basis of bar graph it has been interpreted that entire respondent that is 30
finds the solution in terms of getting solution which can maintain their taste as well as add
nutritious value to their lives. This led them to have cookies guilt free by gaining favourable
benefits out of it.
Theme 3: Offerings that leads to satisfaction
Do sugar free cookies obtained in different
flavours can help to deliver desirable
satisfaction to customers?
Frequency
Yes 26
No 4
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Interpretation: It has been observed that the 26 out of 30 respondents are in favour to have
different flavours of sugar free cookies. On contrary, 4 of them are least interest to invest in
sugar free bakery items.
Theme 4: Sugar free cookies can attract diverse customers
Do sugar free biscuits can cover all segments
of market?
Frequency
Yes 22
No 8
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Interpretation: Based on above displayed graph 22 respondents over 8 respondents believes that
sugar fee cookies fits to satisfy the taste of different age groups. This offers competitive
advantage to components it terms to accommodate the requirements of diverse taste and
preference appropriately.
Theme 5: Promotional Activities
Does intensive promotional techniques are
requirements to widespread the awareness
amongst potential market?
Frequency
Yes 17
No 13
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Interpretation: It is analysed from above bar graph that 17 out of 30 respondents which mean
majority of people believes that Pine Hut Bakery need to practice promotional activities in order
to deliver their services. Whirl 13 of them are not in favour as they think that company needs to
focus in their product and will automatically gain eth advantage of word of mouth publicity.
TASK 4
P5: Apply a SWOT framework to collate evidence to support an objective assessment of a
specific entrepreneurial idea.
SWOT Analysis: It is a framework used to evaluate a company's performance, changes
of competition as well as risk to carry out the growth of potential goods or services. SWOT is
described as an examination of working environment and external factors that identify an
organization's needs for improving and implementing strategic plans. SWOT Bakery Analysis is
defined as:
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Strength
 The main strength gained by Pin Hut
company is that it deals in the sugary
free cookies and other bakery items that
are highly consumed by local residence.
The lists of health ingredients enrich
qualities of final produce which highly
gain the appeal the interest of customer.
 As the product caver diverse need of
the people that belong to different age
group and preference like along with
youths even old age people and diabetic
patient can have cookies which widen
market for company. Also products are
available in different flavours to satisfy
the taste of existing and potential
customer.
Opportunity
 The Company needs to effectively
explore digital media in terms to build
their wide presence. Along with that
intensively promotional techniques are
used where the brand is repetitively
showcase to customer through email
marketing, SEO, social media pop up
advertisement and so on
 Sample packs needs to launch along
with bigger packs so that people can try
out different flavours and accordingly
makes the feasible choices
(Kohlbacher, Herstat and Levsen, 2015)
Weakness
 Limited presence of company confines
the awareness amongst customer about
healthy and tasty sugar free cookies
which can simultaneously restricts the
expansion of company (Nijssen, 2017).
 Usually the supreme level of products
maximises final prices that can led
people to comprise their health. Only
the wealthy and healthy conscious can
become loyal customer but affect the
chances to target wide range of
Threat
 Strong and wide existing and new
competitors within bakery market can
affect the positioning of firm as they
constantly need to practices on terms to
retain as well as maximise existing
market share of company.
 Its challenging to participate in
competitive environment where the
preferences of customer and policies of
govern can suddenly change by leading
immense pressure internal functioning.
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customer.
P6: Evaluate the competitive and market environments in which the idea will be launched to
assess potential viability.
PESTLE Analysis helps in analysing external macro environment components that can
impact the organisation. The analyses are helpful when an organisation is thinking of expanding
key business operations or they are entering into foreign market. The explanations of elements in
context to Pine Hut bakery are illustrated below:
Political Factors: It comprises of all the rules and regulations imposed by government. In
case of Pine hut bakery tax policies can impact the normal working of business. Changes in
employments laws may affect in salary disbursements of employees which will go against the
organisation (Koryak and et.al., 2015).
Economic Factors: The major components of economic factors are inflation rate, interest
rate and foreign exchange rate. If the firm is environment is about inflation rate they can
purchase the raw materials when the prices are extremely low and knowledge of interest rates
helps in getting loan at least interest. This let Pine Hut Company to pay less comparatively.
Social Factors: Under social factors the company need to respect the environment where
they are actually working and laid down goals accordingly. Within this shared belief as well as
attitude of audience is taken in detailed consideration. The Pine hut company tries to understand
the purchasing behaviour, change in customer behaviour and the price and production are done
accordingly.
Technological Factors: Technology advancements generally mean adapting capital
intensive techniques. The company generally deals whatever option they have of imported
machine and find out the one which suited their needs.
Porter' five force model: It is basically done to understand the competition in market
which helps the firm to generate more profit if the five forces in the market are taken care of
adequately.
Bargaining Power of Suppliers: As the competition in the bakery business is high so the
supplier can’t negotiate so they have to work in limited margin (Mitchelmore and Rowley,
2013). In relation to Pin Hut Company generally purchase the raw material at bulk so that they
can get cheapest possible rate available in the market.
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Bargaining Power of Buyers: As the competition is high so buyer tends to bargain a lot
as they have lots of options available in the market. Herein, Pin Hut company provides
qualitative product at best market prices with lot of alternatives to attract its potential buyer.
Competition in industry: It is known fact that the competition on bakery business is very
high so Pine Hut Company is no exception to the rule; it faces tough competition which can
affect business operations of the bakery. Providing sugar free biscuits in different flavours is
added on which gives the company its competitive advantage that can help them to survive in
competitive environment.
Threat of Substitute Products: Cookies can also new substitute with brownies, over
pancakes or normal biscuits, so availability of substitute is significant. The offers offered by
Pin hut bakery needs to have its unique selling proposition due to which customer choose
them other substitutes available in the market (Wood and McKelvie, 2015).
Potential of New Entrants into industry: It is very feasible to start a bakery business
reason being the barrier to entry is very low. For the company the threat of new competition
will also be there so inner manager need to focus on substitute it by exercising the control on
various market segments and had an abundant market share of audience.
CONLUSION
From the above report it can be determined that entrepreneur plays an essential role
within the society by understanding the problem faced by people and cover it into unique
solution. Market research takes an essential role in terms to effectively draft business activities
and conduct business successfully. This helps to explore diverse opportunities based on which
new concept is developed and practically coveted into the reality to maximise market share.
Application of internal or external framework like SWOT and PEST analysis in helps to bring
out sustainability within marketplace. Further, porter's five force models assist to gain long term
competitive positioning.
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REFERENCES
Books and Journals
Autio, E. and et.al., 2014. Entrepreneurial innovation: The importance of context. Research
Policy. 43(7). pp.1097-1108.
Davidsson, P., 2015. Entrepreneurial opportunities and the entrepreneurship nexus: A re-
conceptualization. Journal of Business Venturing. 30(5). pp.674-695.
Godley, A.C., 2013. Entrepreneurial opportunities, implicit contracts, and market making for
complex consumer goods. Strategic Entrepreneurship Journal. 7(4). pp.273-287.
Hsiao, A., 2013. Developing an entrepreneurial mindset in engineering students. Proceedings of
the Canadian Engineering Education Association (CEEA).
Kacperczyk, A.J., 2013. Social influence and entrepreneurship: The effect of university peers on
entrepreneurial entry. Organization Science. 24(3). pp.664-683.
Karimi, S. and et.al., 2016. Fostering students’ competence in identifying business opportunities
in entrepreneurship education. Innovations in education and teaching international.
53(2). pp.215-229.
Kohlbacher, F., Herstatt, C. and Levsen, N., 2015. Golden opportunities for silver innovation:
how demographic changes give rise to entrepreneurial opportunities to meet the needs
of older people. Technovation. 39. pp.73-82.
Koryak, O. and et.al., 2015. Entrepreneurial leadership, capabilities and firm growth.
International Small Business Journal. 33(1). pp.89-105.
Mitchelmore, S. and Rowley, J., 2013. Entrepreneurial competencies of women entrepreneurs
pursuing business growth. Journal of small business and enterprise development. 20(1).
pp.125-142.
Nijssen, E.J., 2017. Entrepreneurial marketing: an effectual approach. Routledge.
Wood, M.S. and McKelvie, A., 2015. Opportunity evaluation as future focused cognition:
Identifying conceptual themes and empirical trends. International Journal of
Management Reviews. 17(2). pp.256-277.
Online
Fishbone Model Template. 2019. [Online]. Available through:http://wovensheet.co/fishbone-
model-template/
Bakery Product Production Industry. 2019. [Online]. Available through:<
https://www.hallidays.co.uk/views-and-insight/sector-report/bakery-product-
production-industry>
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