Identifying Entrepreneurial Opportunities

This project examines the process of identifying and evaluating entrepreneurial opportunities using the case study of Coffee Meet, a proposed coffee house in London. It analyzes the market potential of Coffee Meet and assesses its viability in the competitive coffee industry by applying various frameworks and tools, including gap analysis, SWOT analysis, PESTLE analysis, and Porter's Five Forces model.

Identifying
Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Evaluation of different sources of entrepreneurial ideas and innovation.........................3
TASK 2............................................................................................................................................5
P2. Rationale for entrepreneurial idea....................................................................................5
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 of Coffee Meet...............9
TASK 4..........................................................................................................................................12
P5 SWOT framework to collate evidence to support objective assessment of a specific
entrepreneurial idea..............................................................................................................12
P6 Evaluation of competitive and market environments in which idea will be launched to
assess potential viability.......................................................................................................13
CONCLUSION .............................................................................................................................17
REFERENCES..............................................................................................................................18

INTRODUCTION
An entrepreneur is a person who is capable of taking risk to start a new venture so as to
build their innovation and idea into reality. They develop their concept by carrying out tasks by
using creativity and innovation. Identification of opportunities is essential in this dynamic
environment. The present report is based upon the idea of launching a coffee house in London
whose name is Coffee Meet. It provides Black coffee with brown sugar. They have brought up
this idea for health conscious people. This report is based on exploring sources by which
business can be developed and gap analysis is done. SWOT and market analysis is done to
acknowledge different aspects of market.
TASK 1
P1 Evaluation of different sources of entrepreneurial ideas and innovation.
In dynamic environment, entrepreneurs are looking forward for new and innovative ideas
to gain competitive advantage. This will help them to enhance their productivity. Apart from this
they can use new technologies to implement their ideas (Audretsch, 2012). Entrepreneur of
Coffee Meet is coming up with new idea that is black coffee with brown sugar in United
Kingdom. Herein, entrepreneur has adopted Peter F Drucker's seven sources of opportunity for
innovation to know whether his innovation will be successful or not in competitive market of
UK. These sources are elaborated below:
Unexpected success and failure: Acknowledgement of different reasons for unexpected
success and failure leads to generation of new innovation. To understand this an example can be
considered, IBM build their accounting machines for banks, but later on they discovered that
libraries want to buy these machines. This did not lead to failure despite it lead to new idea.
Unexpected product failure leads to generation of new idea or innovation which can lead to
something which market likes.
Incongruities: It is variance between what it is and what it should be or assumption of
people it to be. This indicates that if things are not happening in same manner as they were
supposed to be then there can be scope of innovation. To understand this an example can be
considered like when number cars increased there came shortage of parking space, this lead to
development of smart cars. They are small cars which can come in small space. Incongruities
acts as important source of innovation.

Process needs: This stage involves identification of weak points of organisation and
redesigning them. Source of opportunity for innovation comes from this. An innovator can think
out of box so that weak links can be removed. An example can be considered in this context like
motel was short on help and was facing issues related with laundry, for this they installed washer
and dryer in room which is behind receptionist desk (Dimov, 2011). In spare time, reservation
clerk can do towels and sheets. This helped to solve problem.
Changes in industry and market structure: Changes in market and industry are prime
sources which must be acknowledged. Emergence of new and fast growing segments provides
different scope for innovation. An example can be taken to further understand this like tablets,
cell phones etc. Before Google, search engines were not optimised and perfect. Google shaped
them by making information searchable.
Changes in demographics: Organisations are affected by change in demographics.
These changes strongly affect market as it helps to find out demand of services. Innovation can
be based on certain demographics like age, employment, education, etc. Lifestyle needs are not
small and their fulfilment is important.
Changes in meaning and perception: Altering or changing perceptions in respect to
certain things also lead to innovation. An example can be considered in this context like medical
and cosmetic industries have changed. Like people who are of 50 appears to be of 45 or younger.
It is necessary to acknowledge services and products which can alter perceptions.
New knowledge: It can also act as source of innovation. It can be understood by this,
whether it is artificial intelligence, biotechnology or nano-technology, new knowledge in any
specific area can provide innovation (Fuentes and et. al., 2010). This knowledge can be used to
develop new, innovative products. Innovations can be risky as emergence of new knowledge and
their conversion into usable technology and there can be gap before product is launched within
market.
These sources helped to gain new inspiration in leading business growth and having an
innovative idea to enhance productivity in specific sector.

TASK 2
P2. Rationale for entrepreneurial idea.
Depending upon needs and tastes of individuals, Coffee meet is opting for providing its
services in Coffee sector. Coffee Meet is a new venture which is providing black coffee with
brown sugar. This idea came into mind as people have became more health conscious and are
opting for options which do not have any negative impact on their health. For this they mostly go
for green tea and do not have many options available with them. Herein, an entrepreneur is
coming up with this innovation in new market place of United Kingdom. Entrepreneur is
focusing much on health conscious people such as youngsters, professional workers and fitness
freaks. The main objective of this innovation is to bring healthy lifestyle in busy working
schedule of a person. They opted for this product as black coffee boosts up memory, enhance
performance during workouts, helps to fight out with different liver problems, promotes weight
loss, reduction in risk of diabetes, stress level can be reduced and many more. Brown sugar helps
to prevent obesity, they are chemical free, energy is boosted naturally, digestion can be
improved, provides relief from cold, prevents asthma and many more. These are some benefits of
black coffee and brown sugar independently. When these both will be combined then they will
provide enhanced benefits. As people are health conscious, it will provide them various benefits
and will not not lead to any kind health issues.
TASK 3
P3 Gap analysis in the evaluation of a specific entrepreneurial idea.
Gap analysis is method for assessing difference between business information system to
analyse whether business needs are met or not. It is strategic tool for identifying gap between
target and expected result (Grégoire and Shepherd, 2012). It deals with space between present
state and target state.
It helps Coffee Meet to identify and define their needs in present context and in future context,
it will also help them to determine which skills are required so that they can gain competitive
advantage and enhance their performance and gain profit.
Primary Research: It is conducted by company itself or someone is hired for this who
can do this. It includes going to sources prospective customers or usual customer within target
market. It includes interviews which can be telephonic or face to face, surveys either mail or

online, questionnaires or visit competitors' locations. Questionnaires method is used by Coffee
meet are so that they can find out and analyse gap in company. By this they can work on specific
gap and accomplish it. Questionnaire is shown below.
Secondary Research: It is kind of research which is already gathered, compiled,
published and organised by others. It includes studies and reports made by trade associations,
government agencies or other businesses within same industry (Kohlbacher, Herstatt and Levsen,
2015). This data can also be collected from institutes, books or journals. It requires lot of time
and cost so Coffee Meet is not using this.
Questionnaire
Q.1. Are you are aware about products of Coffee Meet?
Yes
No
Q.2. Does Coffee Meet provides unique ingredients as per demand customers?
Agree
Disagree
Q.3. Do Coffee Meet provide services at effective rate?
Yes
No
Q4. Are you satisfied with the customer services provided by Coffee Meet?
Agree
Disagree
Q.5. Does Coffee Meet can gain attention of target market customers?
Yes
No
Theme 1: Coffee Meet provide effectual services
Q.1. Are you are aware about products of Coffee Meet? Frequency
Yes 22
No 18

Theme 2: Services
Q.2. Does Coffee Meet provides unique ingredients as per demand
customers?
Frequency
Variety of drinks 10
Wi-Fi services 14
Premises 16
Yes No
0
5
10
15
20
25

Theme 3: Coffee Meet offer services at effective price rates
Q.3. Do Coffee Meet provide services at effective rate? Frequency
Yes 30
No 20
Theme 4: Customers are satisfied by Coffee Meet
Q.4. Are you satisfied with the customer services provided by Coffee Meet? Frequency
Variety of drinks Wi-Fi services Premises
0
2
4
6
8
10
12
14
16
Yes No
0
5
10
15
20
25
30

Yes 22
No 18
Theme 5: Coffee Meet can gain attention of target market
Q.5 Does Coffee Meet can gain attention of target market customers? Frequency
Yes 32
No 18
Yes No
0
5
10
15
20
25
Yes No
0
5
10
15
20
25
30
35

P4. Interpretation of data to provide evidence of market potential of Coffee Meet.
Entrepreneur needs to collect data for launching their venture and for this they have
collected data from different sources. Entrepreneur can use this data to find out when coffee
house can be opened so that they can gain attention of customers and sustain within market for
longer time (Siegel and Renko, 2012) . Primary and secondary sources have been used to collect
data. Coffee Meet has options to provide products which are healthy and do not have side affects
on their customers. Apart from this they can customise their drinks as per preferences and taste
of customers. This will help to build customer's loyalty for their products. By this they will be
able to attract health conscious customers.
Interpretation of above data:
Theme 1:
Central Tendency Data
Mean 20
Median 20
Mode 4
Standard Deviation 2.828
Interpretation: From above interpretation, it has been found that people are aware about
services being offered by Coffee Meet. Furthermore, they can use social media to create more
awareness of their products among their target customers.
Theme 2:
Central Tendency Data
Mean 13.333
Median 14
Mode 10
Standard Deviation 3.055

Interpretation: From above interpretation, it is found that customers are more attracted to
premises in which provide effective services. Coffee Meet has provided open roof top, from
where customers can have a pleasant view.
Theme 3:
Central Tendency Data
Mean 25
Median 25
Mode 10
Standard Deviation 7.071
Interpretation: From above interpretation it is clear that customers finds value for their money,
apart from this it has been analysed that Coffee Meet is providing their services at reasonable
amount.
Theme 4:
Central Tendency Data
Mean 20
Median 20
Mode 4
Standard Deviation 2.83
Interpretation: Customers are satisfied by services being offered to them by Coffee Meet. It has
been that 22 respondents have given their positive feedback.
Theme 5:
Central Tendency Data
Mean 25
Median 25

Mode 14
Standard Deviation 9.899
Interpretation: As per 32 respondents Coffee Meet is able to attract customers towards
themselves. Furthermore they can provide more drinks to health conscious customers.
The competitors of Coffee are local coffee stores and other stores that are offering black
coffee with brown sugar. Moreover, an entrepreneur of Coffee meet are adopting various
strategies such as equivalent pricing strategy, offering premium quality of product and services
in order to attain success in the competitive marketplace. Furthermore, they are operating on
large market scale of United Kingdom so the risk potential is relatively higher then other
competitors. As they are new in marketplace the need to make huge efforts in attaining
sustainability in competitive marketplace.
Gap analysis:- Coffee Meet is a cafe which is offering black coffee with brown sugar
which is healthy and tasty. They conduct gap analysis to identify opportunities and requirement
which is required by them in future. For achieving future goal and objective they develop various
strategies and plans, adopt marketing methods and so on. This will help them in achieving
objective ion effective manner. They can adopt techniques like advance promotional techniques,
introduce new products according to demand and need of customers time to time and many
other.
TASK 4
P5 SWOT framework to collate evidence to support objective assessment of a specific
entrepreneurial idea.
SWOT analysis is used for determining competitive position of organisation by
determining their strengths, weaknesses, opportunities and threats. This helps them to work on
certain factors and gain opportunities available within market. Coffee Meet is new venture which
is opting to serve in Coffee industry (Suddaby, Bruton and Si, 2015). SWOT analysis is done so
that they can identify their strong points which can make them different from their competitors,
their weakness so that they can overcome those, find out their opportunities and analyse their
competitors present within market. SWOT analysis of Coffee Meet is presented below:

Strength: They are described as factors which makes organisation different from their
competitors like their brand value, image, customer base and many more. Coffee Meet is new
venture in United Kingdom but it acquires different features which make them different from the
market. There strengths are mentioned below:
 Coffee Meet provides unique coffee which can attract customers.
 Price offered by Coffee Meet for their services is less as compared to their competitors.
 Coffee Meet provides their customer with unique product, apart from this they can
customise their drinks as per requirement of customer’s. They are more focussed on health of customers, for this they are using ingredients which
do not have negative impact on customers.
Weaknesses: This addresses reasons which stops organisation from giving their best.
They need to address these issues so that they can remain competitive within market. As Coffee
Meet is new in market they have different limitations, they are shown below:
 Coffee Meet is new in the market.
 They need acquire and provide their customers with new products, so that they can attract
them.
 They do not want that they must be categorized in offering one product. Customers have their own taste and are addicted for products offered by competitors, it is
difficult to attract them.
Opportunities: They are those factors which organisation can use to gain competitive
advantage (Tang, Kacmar and Busenitz, 2012). Different opportunities are present for Coffee
Meet which can be used by them. They are mentioned below:
 Coffee Meet has opportunity to create niche in market
 The respective cake shop must start their business during summer which is second largest
events quarter.
 Market can be analysed, premises offered by competitors and as per that relevant changes
can be made within premises to attract customers.
 Coffee Meet can opt for outsource caterers so that they can provide improved and
enhanced quality of drinks in different tastes.
Threats: They refers to factors which can harm organisation like competitors, lack of
customers, etc. Threats which can hamper or affect Coffee Meet are mentioned below:

 It will be expensive for Coffee Meet to start their own venture.
 There are large number of competitors who have strong customer base and people are
addicted to them like Starbucks, Coffee Meet, etc.
P6 Evaluation of competitive and market environments in which idea will be launched to assess
potential viability
Pestle analysis and Porter's five force model analysis is done by Coffee Meet to
determine their competitive and market environment of organisation (Welter and Alvarez, 2015).
Pestle analysis is used to monitor and analyse external market environment which can impact
organisation. Porter's five force model is used to measure intensity of competition and
profitability on an industry. Results of these analysis are mentioned below:
PESTLE Analysis
Pestle analysis is done by Coffee Meet to analyse environment in which they are opting
to provide services. Pestle means political, economic, social, technological, legal and
environmental factors which can have impact on organisation. These factors are mentioned
below:
Political Factors: These are factors which help to determine extent upto which
government can affect economy. Coffee Meet has analysed these factors before they entered
within market. They are present below:
 Political stability in this sector in economy of country.
 Legal framework which is necessary for enforcement of contract.
 Pricing strategies related to same sector.
There are various opportunities a company can get in this factor. The political stability of
country will create opportunities to the company to create its market. The policies and
regulations set by the company will enhance the business operations and thus an opportunity is
created.
Economical Factors: In this impact of certain factors like interest rate, saving rate,
inflation rates, etc. are evaluated (Autio and et. al., 2018). Economical factors which can be
considered by Coffee Meet are mentioned below:
 Extent to which government intervenes in this sector.
 Evaluation of unemployment rate, interest rate and inflation rate.
 Costs of raw materials must be analysed.

If the economy of a country is good and the purchasing power of customers is high this
will create opportunity for the company to expand its market in the new sustainable economy.
Social Factor: They examine social environment of market like population analytics,
demographics, cultural trends, etc. In this context following factors are analysed by Coffee Meet:
 Structure of power, hierarchy class structure within society.
 Education levels, cultural trends, changes in lifestyle and change in attitude.
The social factor of the country include the taste, perception and personal aspects of
customers. The country in which company is going to invest should have the customers who
have same perception of demanding the product from company.
Technological Factor: This will help Coffee Meet to analyse different technologies
which are used within market and apart from that they can also acknowledge new technologies
(Barazandeh and et. al., 2015). As per that they can use their innovation to attract more
customers. Some factors are mentioned below:
 By using technology they can build their own attractive website.
 They can take orders by usage of online booking facility.
 They can develop their own applications with different features.
Technology also plays an important role in the succession of a business. If a country
provides recent trends and technologies than there will be great opportunity for the company.
Legal Factor: Coffee Meet needs to carefully evaluate legal factors before they enter in
market. As these factors can create problem to them like they must be aware of employment
legislation, health and safety and many more. Some factors are anti- trust law and data
protection, health and safety law and employment law .
The legal factor provide laws and regulations of that country. If all the process of setting
up the business are going well according to the law than there is a great chance for the company
to perform its business.
Environmental Factor: Coffee Meet can acknowledge ecological aspects and their
surrounding environment. This will help them to understand their growth in this sector. They
need to address these factors like climatic change, laws related to environmental pollution and
waste management in respective sector.
Porter's five force model Analysis

The environment of the country should favour the company so that it can perform its
operations smoothly. If the company is following all the environmental laws and regulations than
it will be great opportunity for the company to perform its operations.
By using Porter's five force model, Coffee Meet can keep an eye on their competitors.
There are five factors which can drive competitive position of organisation within specific
industry (Barazandeh and et. al., 2015.). The five factor of Porter's which Coffee Meet should
analyse are mentioned below:
Threat of new entry: This refers to the situation where new entrepreneur launch
business in same industrial sector and offer innovative services to win competitive advancement.
In respect the company it can be evaluate that in respective business there is high threat of new
entrance. So according to situation here threat for Coffee Meet is high because in coffee cafe
sector any one can establish their business in very easily.
Threats of substitutes: This includes options which customers have in same products.
This can affect business of Coffee Meet as different alternatives are available like Costa Coffee
provides wide range of products in same sector. Some factors which can affect Coffee Meet are:
wide range of substitutes are available, secure relationship with other brands, brand
dependability. These are some factors which can have adverse impact on Coffee Meet. Here for
respective company threat of substitute is high because there are number of coffee cafe who
serve safe and related products. So to overcome this situation they can introduce some new
innovative techniques which is unique and different.
Bargaining power of suppliers: Raw materials in Black coffee with brown sugar are
black coffee, brown sugar, milk, etc. which are easily available within market. Some factors
which may impact Coffee Meet are: few suppliers of raw materials, alternatives may not be
present so they have to accept prices offered by suppliers, switching cost can be high, etc. here it
can be evaluated that bargaining power of suppliers is high which affect company operations. To
overcome it managers of respective company develop effective relationship with suppliers by
which they able to get raw materials in low price.
Bargaining power of buyers: For customers there are many options available for
customers and competitors available within market due to which bargaining power of customers
or buyers is high (Welter and Alvarez, 2015). Here the bargaining power of customers is high

because if respective company offer their products at high price then their customer can go to
another cafe. This can be so because there are number of coffee cafe available in market.
Competitive Rivalry: Coffee Meet can find their strong competitors and can identify
their strengths. Companies can exercise some or no control on prices of services and goods. For
this Coffee Meet can opt for new and innovative products which will help them to survive within
market for longer time. Rivalry is intense when: organisations are of same size, they have
comparable strategies, growth rate is low, loyalty of customers is high, barriers to exit are high
and many more. Coffee Meet must focus on quality of their products so that they can attract large
number of customers. Competitive rivals of Coffee Meet is high because there are high number
of coffee cafe available in market. To overcome this risk they can introduce new unique and
innovative technique.
CONCLUSION
From above report it is clear that entrepreneurs have large number of options available
with them and they can use opportunities to formulate their idea. For launching a new venture it
is necessary to analyse external factors so that organisation can lead to success. Furthermore,
SWOT analysis is conducted to analyse different factors in respect to business idea. Apart from
this Pestle and Porter's five force analysis is used to have analyse competition.

REFERENCES
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