(PDF) Identifying Entrepreneurial Opportunities - Assignment
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INTRODUCTIONEntrepreneurship is converting an idea into business, hence the core of entrepreneurshiplies in creating or identifying opportunities that it is said that there will not be any business if onecan not recognize opportunity (Aliaga-Isla and Rialp, 2012). The concerned process completelydepends on the ability of entrepreneur. It requires creativity and imaginative power in order toturn idea into reality. In the following report the idea which has been considered for starting upbusiness is of selling tea. With respect to this idea there are different aspects which has beencovered such as determining and evaluate different sources of entrepreneurial ideas andinnovation, explain the rationale and the specific market gap with use of tools and techniques,presenting data to support the gap analysis along with interpretation of providing evidence ofmarket potential. In the end application of SWOT framework that support specificentrepreneurial idea along with evaluation of competitive market to assess the potential of ideaare also discussed in detail.Overview:Developing ideas is not an easy task and being an undergraduate studentstarting up business would require presenting ideas to the potential investors. Thus the in contextof the subject the detail about the idea is given below:Tea might sound like basic idea but it has huge potential in the markets of UK, withincreasing consciousness of maintain health many people are now switching from coffee to thetea. Expansion with regards to including different flavors and modes of selling has also beenconsidered. Customers will have several options like cinnamon, ginger, green, blue and blackalong with the option of buying it online as well offline.P1 Determine and evaluate different sources of entrepreneurial ideas and innovationFrom the book written by Peter Drucker, there are seven sources of entrepreneurshipthrough which ideas can be developed. These are the ways that allows young entrepreneurs togain knowledge about how to recognize opportunities. The seven sources are explained below:The unexpected:In order to identity the opportunities the first and the easiest way is toconduct market research. It is essential to constantly analyses the market as there are times whenentrepreneur missed potential opportunity due to negligence. The idea of startup of tea businesscame into mind in the same way, while studying about the market beverage pattern suddenly
realization came that tea market has not been taped into in detail. If right measures are taken thislarge amount of profits can be generated.The Incongruity:In simpler words these are the situations that gives birth to innovation,while solving unusual situation the entrepreneur might see something that leads to creation ofsomething new. It analyses the situation between what is and what should, for example Facebookthat successfully analysed there the world needs to become more connected. Thus it can be notedthat the key to success is taking the problems into account and then bringing change so thatsociety will found new ways to live.Process Need:This is the source which involves recognizing organization’s weak pointsand reshaping them in order to make the process more effective. There were not many authentictea outlets which are selling healthy flavoured tea thus taking the idea and converting it intobusiness is profitable as the customers have not experienced different attributes of tea. ThusChanging the way of doing business can also lead to innovation (Alvarez, Barney and Anderson,2013).Changing perception:Trends are therefore considered as potential outcomes by manyentrepreneurs, these are the situations that brings change in the mindset of people. For example,fashion of baggy jeans coming back because now they considered cool and comfortable, this isthe change in the perception of people which gives entrepreneurs reason to start up business.New knowledge:The advancement of technology also provides several opportunities topotential entrepreneurs. Customers are now becoming increasing aware about the issues throughinternet, this new found knowledge should be explored in order to develop ideas. For example,Customers becoming aware of side effects of coffee like heart attacks, low and high bloodpressure etc.Industry and market structure change:Changes made by the government in regulatingthe industry can be beneficial for the entrepreneurs as it gives them freedom to run their ideasthrough business. For example, relaxation made by the government in the sale of tea has givenlucrative opportunity to freely conduct business.Demographics:This source is connected with the change in the population, incomelevel, etc. this helps in determining the right target audiences. In context of tea business there arelarge number young students and business professionals are its customers.
Critically evaluationFrom the above resources it has been evaluated that entrepreneurial sources are importantfor business organisation that helps to know what actions should be taken further in order to runa business. An entrepreneur innovate new products and services which is not come in market andwill attracts customers. Such as the management of tea business has evaluated the market thatcustomers are interested to get tea. The management has decided to sell new taste of tea that willinfluence customers. Sources are needed to start a business in business environment that analysisthe needs and complete it within particular period. Organisation covers different sources likeunexpected, incongruity, process need, changing perception, new knowledge, industry andmarket structure change and demographics that helps to make decision to start a new business.Organisation should focus on such sources that can help to run a business successfully.P2 Explain the rationale and the market gap for a specific entrepreneurial idea using relevanttools and techniques to support your choice.From the business perspective customers are the god, therefore identifying the potentialbuyers should be the first priority for every businessman. Tea markets in UK are unexplored,there is large section of people who are consuming tea. There is need to identify the wants ofcustomers in order to increase their satisfaction level. There are many advantages of tea such asmate tea that help in improving the appetite apart from that that unlike coffee drinking too muchtea does not have any consequences. The segmentation of the markets are as follows:Behavioural:As per this factor customer are put into group on the basis of their buyingbehaviour, analysing the buying habits of people shows whether the market is attractive or not.As it was noticeable that behaviour of customers towards tea consumption was favorable thus theidea is selected.Demographic:Based on this factor grouping of customers involves age, status, incomeand profession of people. This is used as tool to identify the target audience, in case of teabusiness it was found most younger generation is devoid of the advantages and are considered aspotential market.Geographical:grouping customers on the basis of country, region, location etc. alsogives effective insight about the market, for example there are many immigrants coming fromsouth Asian country which consumes high amount of tea thus this the scope of tea business islarge (Davis, 2012).