Identifying Entrepreneurial Opportunities

This document discusses the process of identifying entrepreneurial opportunities and evaluating different sources of entrepreneurial ideas and innovation. It also explores the rationale and market gap for an entrepreneurial idea and provides a detailed evaluation of Drucker's 7 sources of systematic innovation. Additionally, it covers the application of the SWOT framework for collecting evidence to support the assessment of an entrepreneurial idea.

Identifying
Entrepreneurial
Opportunities

Table of Contents
TASK 1............................................................................................................................................3
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation providing
specific examples .......................................................................................................................3
M1 Provide a detailed evaluation of Drucker’s 7 sources of systematic innovation providing
specific examples........................................................................................................................5
D1 Critically evaluate the benefits and drawbacks of different approaches and sources that can
lead to the identification of entrepreneurial ideas.......................................................................5
TASK 2............................................................................................................................................6
P2 Explain rationale & market gap for a entrepreneurial idea by use of relevant tools &
techniques....................................................................................................................................6
M2 Provide justification of how entrepreneurial idea can fill market gap by use of various
techniques and competitive analysis...........................................................................................7
D2 Critically evaluate a specific entrepreneurial idea based on appropriate interpretation and
investigation of the competitive marketplace.............................................................................8
TASK 3............................................................................................................................................8
Covered in PPT..........................................................................................................................8
TASK 4............................................................................................................................................9
P5 Apply SWOT framework for collecting evidence for supporting assessment of
entrepreneurial idea.....................................................................................................................9
P6 Evaluation of markets and competitive environment where idea has to be launched...........9
M4 Critical evaluation of specific entrepreneurial idea in the present market scenario...........11
D4 Formulate conclusion & recommendation on how specific entrepreneurial idea can be
developed, managed & sustained in the competitive environment...........................................12
CONCLUSION..............................................................................................................................13
REFERNCE...................................................................................................................................14

INTRODUCTION
Entrepreneurial opportunity refers to an idea of developing a new business which is
economically feasible and can generate benefits for the stakeholders. The business idea can
include any new product, service, market,raw material, processes of production etc. For carrying
on these businesses a lot of capital is required (Boyd and et.al, 2017). Virgin Money is a
financial company which provides financial services to new budding entrepreneurs. The business
idea provided in this report is on a food truck. This report also contains plan of business idea
which will be submitted to Virgin Money. This report has a full study of the new concept
introduced along with SWOT analysis, Porter's framework etc. Following report also mentions
forthcoming risk for the new venture and ways to overcome those risks. The new venture will be
called “FOOD on WHEELS”.
TASK 1
P1 Determine & evaluate various sources of entrepreneurial innovation & ideas with specific
examples
Every young entrepreneur is in search for good opportunities which will support their
idea financially . The United Kingdom government makes sure that young entrepreneurs are
provided the opportunities to showcase their talent. This assists ample number of young people
to introduce new and innovative ideas into the world (Zaitseva, . and Bedirkhanova, 2019).
Virgin Money has generated a scheme in which they provides capital to new businesses. They
give the entrepreneurs an opportunity to pitch their idea. For identifying great opportunities
Drucker's 7 sources of opportunities model is adopted which is mentioned below:
This model was introduced by Peter Drucker. It consists of following seven sources of
innovation Unexpected- Innovations are happen unexpectedly. They happen by chance. They are
not always well thought of or planned. It has been very evident in human history that
great inventions were actually unexpected. Fire can be stated as the most unexpected
innovations that human race have invented.
 Incongruity- Whenever any need is not compatible with the actual goods or services
provided, it might lead to an innovation. We can take an example of smart cars. When
the number of cars was increasing rapidly parking spots were short. So in place of

making new parking smart car were introduced as they covered relatively less space in
parking.
 Market Structure- Market structure, plans and policies of competitors and weaknesses
of competitors also provide hints to bring in innovation (Nijssen, 2017). The best
example of it can be google. Before google all the information in search engines were
scattered. Google worked on those informations and arranged them in such a manner so
that it can be used by people without any hassle. Necessity- Necessity can be said to be mother of invention as well as innovation. For
instance a microscope was invented in order to learn deeply about microbial world.
Innovation can be said as thinking of new things which can fulfil the existing needs in a
better manner. Demographics- Lifestyle also supports innovation (Ram, , 2018). It is necessary for a
company to mould itself with the changing demographics. For example the innovation of
fan was done in order to protect people from heat. Refrigerators and air conditioners are
another such examples. Changing perception- Changing perception of people around the world is also one of the
reason of many new innovations. Today's children prefer playing indoor rather than
outdoor. This changed perception have led to innovation of number of indoor games.
Gymnasiums are also a result of people's changing perception about their health and
healthy living,
 New Knowledge- New knowledge about a subject has also led to many innovations, how
laptops were introduced after computers, then palmtops, tablets and cellphone. Each
innovation leads to a new and better innovation. Healthcare is another segment which
has witnesses a number of excellent innovations through increasing their knowledge
about various diseases and treatment for them.
M1 Detailed evaluation of systematic innovation by use of Drucker’s 7 sources
Drucker's 7 source of systematic innovation model helps in evaluating the sources
responsible for innovation. Taking it into consideration for “Food on Wheels” it can be
concluded that the sources from which this idea was developed are more than one. This idea was

based on demographic as well as changing perception of people. People have generated good
taste for fast food. They find it easy to get food in their locality rather than going to far away
dine ins. This change in perception of people gave birth to idea of a food truck.
D1 Critically evaluation the benefits and drawbacks of different approaches and sources that
lead to emergence of entrepreneurial ideas.
Identification of entrepreneurial ideas is a very complicated process. Study of every small
detail which may directly or indirectly effect the business is to be done. Sources which lead to
emergence of entrepreneurial ideas helps an to earn profit through a new business (Blitz,. and
Kazi, , 2019). It also introduces in society something new & innovative. There are also some
major drawbacks of such ideas like it requires huge investment of money and time and in case
business is not generating enough profits all the efforts will be wasted. It also affects the
traditional business practices.

TASK 2
P2 Explain market gap & rationale for development of entrepreneurial idea by use of relevant
tools
Rationale behind a business idea
A new business idea is build up only after identification of needs & requirements of
customers. It is also necessary for a entrepreneur to make a detailed analysis of external market
conditions & trends before implementation of the new plan (Engelken, and 2016). In present
scenario, Food on Wheels is willing to expand their market share by making a analysis of of
various market trends. The idea is that this brand has been operating since three months in
London with one truck and now are willing to plan their expansion to other different parts of the
city. Various factors used for making a analysis is discussed below:
Determination of various opportunities: It can be said that it is crucial for
entrepreneurs to identify various opportunities to achieve development & growth. For smooth
operations of a new idea it becomes essential for every entrepreneur to identify who are various
competitors and ensure resources are available to be utilised in a effective manner (Kim, 2017) .
Food on wheels is based on a innovative idea of mobility of restaurant according to demand and
response of customers at a particular location. There are many opportunities in some streets of
London where there is no availability of restaurants or street food outlets , it can be utilise by
Food on wheels by making a detailed analysis of appropriate locations for new trucks.
Technological opportunities: Technology is playing a very important role in achieving
success by implementation of a innovative idea in market. Advanced technologies are playing a
very crucial role in changing behaviour patters of customers. With new technology adoption
overall way of preferences for customers have changes such as there has been evolution of new
applications that allows food delivery to people anytime from anywhere (Pollari, 2016). It also
allows in building up of effective and different market position for achievement of higher sales
in coming next quarter.

STP Model:
This model is applied by various entrepreneurs for defining segmentation, targetting and
positioning of a particular business idea and product in the market. STP model for used by Food
On wheels while they are planning their expansion to 20 trucks:
Segmentation: Segmentation is related to dividing of market in various prats or segment
that is base don similar characteristics or features they share. These factors include age, gender,
education, nationality, occupation and many such type of factors. Customers are segmented
according to various geographical factors also such as city, country, state etc. in Food on Wheels
entrepreneur has segmented the market based on geographical locations (Shafir, 2018).
Targeting: It is referred to as specific group of people who are selected by target group
of companies for launching various new products or adding in exiting variants (Bajic 2018,). For
targetting a particular market it becomes crucial to make a detailed analysis of expectations of
customers and according to that further target market will be decided by food on wheels, in
present case the target market is of office going people or students who are having preference for
mobile sources of food outlets.
Positioning: This strategy is in concern with making a positive image of products or
services for their target customers (García-Gusano, Iribarren. and Dufour, 201). This is last step
where entrepreneurs are willing to attain customer loyalty. For Food on wheels, managers are
focussing on using their mobility structure as a medium for creating a distinguished position in
the market.
Primary research: It is being conducted for the purpose of developing a detailed understanding
of the requirement of target market where there is a sample drawn that consist of 10 respondents
and then development of a business idea according to results drawn from such primary analysis:
Questionnaire:
1. Are you a frequent outside eater or you prefer home made food?
 Home made
 Outside
 Sometimes both
2. Do you have a fixed meal that you are regularly following?
 Yes
 No

3. Do your family members prefer street food
?
 Yes
 No
4. Average money you can spent monthly in pounds on street food?
 50
 100
 200
 more than 500
5. Do you feel that fast food or street food can negatively affect your health?
 Yes
 No
 Sometimes
6. Will you be attract towards any attractive offers in case of street food?
 Yes
 No
7. Will you be interested in having a street food cart that will be offering you large variety of
different cuisines?
 Yes
 No
 Depends on price
 Depends on quality of food
 Both on high quality and prices
8. Do you get influenced by promotions of fast food chains on different platforms like social
media?
 Yes, always
 No, Never
 Yes but occasionally
 No I depend on my personal experiences only
9. What is your prosperity prices or quality offered by a particular food chain?
 Prices

 Quality
 Both
10. Please provide some Valuable suggestions for a street food chain to be launched in
London.....................................
From the above survey it can be clearly seen that when it was questioned to 10
respondents about their preferences about quality and prices of food products there was a
majority response towards both that is people will have a preference for high quality and
Yes
No
Depends on price
Depends on quality of food
Both on high quality and prices
0
1
2
3
4
5
6
7
Column C

reasonable products as street food is not offering other amenities like restaurants and cafe.
Majority of respondents that is 6 out of 10 were on favour of both quality and prices of products.
From above chart it can be observed clearly that when iot was questioned to 10 respondents
about whenever they prefer home made or street food. It can be seen clearly that 3 respondents
clearly prefer outside food and 50 percent that is 5 out of 10 have a preference for both the type
of food products. Hence, it can be concluded that there are very high chances of growth for any
new street launch and also “FOOD on WHEELS” has a profitable opportunity to launch their
business.
Porters five force analysis:
It is used for making a competitive analysis of the service industry to which “FOOD on
WHEELS” belongs:
Home made Outside Sometimes both
0
1
2
3
4
5
6
2
3
5
Column F

New entrants: In the food segment especially in case of service industry and street food
chains there is always presence of very high competition because of the low investment that is
required. So for food on wheels there will always be possibilities of high threat of new entrants.
Bargaining power of buyers: In present case in London there is limited bargaining
power of buyers as there are not much options that are available for people who are looking for
some street food options in London who offer a wide variety of cuisines. This requirement will
be fulfilled by “FOOD on WHEELS”.
Competitive rivalry: There is presence of strong competition in service sector Because
of some existing brands like street food union, Maize Blaze, Pepe Italian street food that can
lead to presence of high competitive rivalry and there is requirement to form certain effective
strategies like price penetration to effectively establishment of a strong customer base.
Threat of substitutes: The presence of strong competitors lead to high threat pf
substituin for the exiting customers. It might impact the future sales in case “FOOD on
WHEELS”. Is not able to develop a differentiation advantage that can b e major reason pf having
a preference for this new brand.
Bargaining power of suppliers: The main suppliers of fast food industry that is part of
the service indutryincludes dairy products, dough and meat vendors. The bargaining power is not
that high because of limited number of suppliers. It is a advantage of “FOOD on WHEELS” as it
will help in development of a reliable base of suppliers.
From the above made analysis of various competitive forces it can be said that for
“FOOD on WHEELS there is presence of very high competitive rivalry but there is a
requirement to understand the needs of customers in order to establish successfully a
competitive advantage and survive for long run in the organisation.
M2 Provide justification related to entrepreneurial idea can fill market gap by use of various
techniques and competitive analysis
A specific entrepreneurial idea plays a very crucial role in filling of gaps that arise in
market (Schweichhart, Weber and Hildenbrand, 2018). Many times there are problems being
faced by people and such problem are the major source of opportunity for any new
entrepreneurial idea. In present scenario, it can be said that Food on wheels has used this gap as
they felt that there is not much presence of good food options in many streets in London. So,

they started by one truck and after completion of three months they saw huge success and decide
to launch 20 trucks in different locations.

D2 Critically evaluate a entrepreneurial idea based on appropriate investigation & interpretation
in competitive marketplace.
The idea of food truck which is represented in this research have a number of positive
outcomes. Food truck is a profitable business and this will help the new individuals for creating
more profits. The main aspect which is to be focused upon for running a successful food truck is
finance and marketing (Wilson, 2017) . This is needed for managing food truck and expanding
business. For convincing Virgin Money, it is ensured that this business idea is profitable and is
helping individuals to make more money.
TASK 3
Covered in PPT

TASK 4
P5 Apply SWOT framework for collecting evidence for supporting assessment of entrepreneurial
idea
SWOT analysis
This framework is used by various entrepreneurs for making a analysis of weakness and
strength of a new business that is food on wheels. SWOT analysis is discussed below:
Strength: At the time of implementation of a new idea entrepreneurs are analysing how
can they reach to large number of customers. In the changing scenario of society there is very
less time that is available with people for sitting in a restaurant, ordering and then eating (Dasi,
and 2017). This problem is used as a opportunity by Food on Wheels as they have very fast
service and smart packaging facility for their customers if they are not willing to sit and eat. It
helps in saving of lot of time people who are having limited amount of time.
Weaknesses: Food on wheels is a new brand and people are not much aware of taste
they offer. Also, already established food outlets provide huge competition to Food on Wheels.
This creates a situation of threat on survival for Food on wheels as it is completely new venture
and has to make large number of efforts for acquiring market (Xu, Pined. and Xue, 2017).
Limitation of present variants of dishes offered by Food on wheels is also a weakness as in initial
stages it is not possible for them to have large variety of options as it leads to increase in cost.
Opportunities: In present scenario. Customer choices are continuously changing and
they are developing a preference for street food rather then spending huge amount of money in
fine dining restaurant (Rantala, Palomäki, and Valkokari, 2018). It leads to building up of
distinguished position in the market as the outlet food on wheels is based on this idea of street
food with best quality, less time and affordable prices.
Threats: There are many new ventures with similar concepts of street food and mobility
are merging in London. Hence, food on wheels has huge threat for emergence of such
competitors who can affect them in a negative manner.
P6 Evaluation of markets and competitive environment where idea has to be launched
Porter's analysis

This framework was developed in the year 1979 and Michael porter laid the foundation
of this model. This model consist of basic five forces that has a impact on overall performance of
industries. Such five forces include bargaining power of suppliers, bargaining power of buyers
threat of substitutes, threat of new entrants and industrial rivalry (Yang,, 2018). These forces are
very important to develop an understanding of impact of such forces on achievement of
organisation's objectives. Entrepreneur has to make a detailed analysis of ideas developing an
understanding of new addition of trucks that is being done in Food on wheels. There is a
requirement for identification of various market situations which can arise in future so that
marketing department of this food outlet can plan their strategies accordingly. Below discussed is
the overall impact of such five forces on business decisions.
Threat of new entrants: Company's productivity is always affected by new entrants in
their industry. Competition level is always increasing that has a impact on overall performance
of a organisation. In case of Food on wheels there is a threat of new outlets which can start with
a similar concept and enter the market (Fearon, Furlotti, van Vuuren, and McLaughlin, 2019).
For having a competitive advantage it is very important to have some differentiation advantage.
It will help in present customers from shifting to new outlets.
Threat of Substitutes: substitutes are those that can be used by customers in place of
their present products (Rauter, and et.al 2019). This can also be a big threat for organisations. In
present scenario, for Food on wheels existing outlets posses a huge threat as they can easily be
substituted by their customers if they are not possessing adequate satisfaction level with the
quality, taste or prices of products offered by Food on wheels.
Bargaining power of buyers: This power is of buyer if they posses high bargaining
power then they can easily shift between products and put pressure on organisation to lower
down their prices. Bargaining power of byers is high in the present case of Food on wheels as
there are large number of options that are available for customers (Mrożewski, and Kratzer,
2017) .
Bargaining power of suppliers: This power of suppliers is related with power to easily
they are bale to shift to other customers or put pressure for increasing prices of raw materials. It
is very necessary for Food on wheels to lower down the bargaining power of suppliers is that
they are able to increase prices of raw material being supplied. In the initial stages it is very

important to keep the prices of products low so that more customers can be attracted & Food on
wheels posses advantage of cost leadership.
Competitive Rivalry: This function is related to number of competitor present in
industry it includes already existing outlets offering same services at competitive prices that can
posses huge competition for Food on Wheels. So, to survive in this industrial rivalry it is
necessary to focus on overall quality of food, prices, meeting expectation of customers so that it
gives Food on Wheels required competitive advantage (Schröder, 2019).
From above discussion it can be said that it is necessary for Food on wheels to make
attempts to reduce negative impact of aspects of porters five forces models. As they are wiling to
implement their expansion plans to 20 trucks and for this there is a need to reduce the negative
impact and maximize positive effects of such market forces (Haas, 2016).
M4 Critical evaluation of a entrepreneurial idea in the present market scenario
In the present scenario, it can be said that the idea behind Food on wheels is very
attractive and innovative at same time as it is a great platform which can solve the issue of great
taste with affordable range. Customers in the target market of Food on wheels is looking for a
option which is good in taste and available at reasonable prices at same time there is not much
time spend on preparation of food. Reason behind is the target customers are propel who are in
hurry that they do not want to waste extra time on between placing of order and receiving.

D4 Formulate conclusion & recommendation on how a entrepreneurial idea is managed,
developed & sustained in the competitive environment
Each entrepreneur has to face high competition from already existing organisation while
they are entering in new markets. It is a requirement that particular idea has to be managed in a
effective manner so that Food on wheels is able to sustain in the market for a longer duration of
time. so that Overall innovative idea is always associated with huge risks and for achievement
of growth it becomes more important to consider such associated risks (Nogueira, ., 2016).
Entrepreneur should posses adequate ability to manage risk and achieve higher growth in market.
For this there is requirement for development of effective strategies that assist in competing with
rival firms in a effective manner.
 Cost leadership strategy can be adopted in Food in wheels so that at initial stage
customers are attracted because of price range at which they are providing their products.
 Differentiation strategy must be use for avoiding of risks by offering some unique and
best taste to their customers. In today's changing scenario people are having high
preference for something different.

CONCLUSION
From above report it is concluded that entrepreneurs are the ones who are involved in
developing new ideas and plans in a business for making it operate in a more effective manner.
They posses capability & skills required for launching of a new or innovative idea in market.
Various models such as STEEP model, SWOT analysis can be applied by such organisation and
can use them in further formation of strategies. Porters five force model is also a great tool that
can be used for making a analysis five major forces present in the environment. For examining
overall competition and threats present in market it becomes very essential for entrepreneurs to
make mitigation strategies to reduce risk of such threats.

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