Identifying Entrepreneurial Opportunities

This project examines the process of identifying and evaluating entrepreneurial opportunities using the case study of Anarchy Beverages, a hypothetical company specializing in organic drinks. It analyzes various sources of entrepreneurial ideas, conducts a market gap analysis, and applies the SWOT framework to assess the company's strengths, weaknesses, opportunities, and threats. The project also includes a detailed interpretation of data collected through a questionnaire to provide evidence of market potential.

Identifying Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different sources of entrepreneurial ideas and innovation....................................................1
P2 Rationale and the market gap for a specific entrepreneurial idea..........................................4
TASK 2............................................................................................................................................5
P3 Data required to support gap analysis in the evaluation of a specific entrepreneurial idea...5
P4 Interpret data appropriately to provide evidence of market potential....................................7
TASK 3..........................................................................................................................................10
P5 SWOT framework to collate evidence to support an objective assessment........................10
P6 Competitive and market environments in which the idea will be launched........................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
An entrepreneurship refers to an activity of setting up business by taking the risk in hope
of profit. To carry out business, there is a requirement of an entrepreneur to find innovative ideas
related to better development of business in an effective manner. Opportunities refer to set of
chances that are present for an individual that may help in the development if exploit properly.
Entrepreneurial opportunity emerges at nexus of aspirations of an individual with social as well
as economic situation perceived as favorable in order to develop new service or product (Bolton
and Thompson, 2013). This present report is based on Anarchy beverages. It provides hot
chocolates, coffee, tea, water etc. Under this mention report will be discussion about the various
sources related to entrepreneurial innovation and ideas. Rationale and market gap analysis for
particular entrepreneurial idea by using relevant techniques and tools will also be mention in
present report.
TASK 1
P1 Different sources of entrepreneurial ideas and innovation
An entrepreneur is a person that set up own business as comparison to working as
employees. It runs small business, assuming all risks as well as rewards of venture. An
entrepreneur is seen as innovator, creator, source of new ideas or thoughts etc. This individual
plays a necessary role in an economy of country because it has capabilities as well as skills in
context to anticipate existing and future requirements. An entrepreneur has an ability to think or
find innovate ideas for making business process, products and services more attractive. An
entrepreneur starts business at small scale but their main focus is to conduct business operations
at large level. Under this, innovative idea is to provide organic coffee to people which can be
helathy for them. STEEP factor is an effective tool that Anarchy beverages uses in marketing to
examine the various external factors which can effect on business (Bridge and O'Neill, 2012). It
is necessary for each business firm to include some better external forces before taking any kind
of decisions. It will be helpful in provide better opportunities to entrepreneurs. Under this,
STEEP factors are mention below:
Social factor - The social forces influence on interests, attitudes, opinions of an
individual. The tastes and preferences of consumers changes with in short period of time. So, it is
necessary for an entrepreneur to be aware about the current market trends and also conduct
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research to know about preferences of customers at market place (Bridge and O'Neill, 2012). It
will be helpful in provide better entrepreneurial opportunity. In this present time, there is a
culture of coffee and every one like it so it is an opportunity to Anarchy beverages.
Technological factor- It is pertain to innovation and creativity in technology that may
impact on operations of firm. In this present time period, advancement in technology is helpful in
creating better opportunities for business. Through using latest technology, entrepreneur can
make its business more attractive and as well as productive. The opportunity that has Anarchy
beverages is that there is no need to more investment on technology.
Economical factor- Under this factor, compromising along arranging economical sources
is necessary because these are helpful in conducting business operations in an effective manner.
United Kingdom has strong economic position as comparison to other countries. It has high GDP
with few problems. So, from this an entrepreneur does not need to face any kind of issues in UK
at the time of conducting business (Burns, 2016). Anarchy beverages has an opportunity by
provide its beverages on less cost.
Environmental factor- It impact on environment and United Kingdom has significant
improvement in minimizing negative impact. Local councils, charities, government etc, have
taken many initiatives to develop environmental awareness and minimize negative affect of
economic development. At the time of performing business activities, it is necessary for an
entrepreneur to take care environment and take correct measures. It will be helpful for an
entrepreneur to gain better opportunities related to business. There is an opportunity to Anarchy
beverages that it can provide organic coffee to consumers and use the disposable glasses.
Political- United Kingdom is constitutional monarchy that manage and run in influence
of parliamentary system. It is a stable country with more opportunities for firms to conduct their
business operations in an efficient manner. It is necessary for company to follow all rules and
regulations which are made through government of UK. In United Kingdom, there is no political
intervention so it has a better opportunity to Anarchy beverages (Ceci and Prencipe, 2013).
Drucker’s 7 sources of innovation give a purposeful way to find out opportunities along
with mitigate risks. It is helpful in making the drinks of Anarchy beverages more attractive with
new flavors. Drucker’s 7 sources of innovation given below:
The Unexpected- Under this, market place is better area to look towards opportunities. It
is important for manager to constantly focus on market and determine new things. So, it helps in
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providing opportunities to business by making innovation in its products.
The Incongruity- It is concerned with production gap for offering the proper services
with the help of determining their needs and wants of customers. Anarchy beverages fall in to
trap of manufacturing products or services without to do proper investigation by identifying
needs of target. Feedback, complaints and reviews of consumers are better way to identify
incongruity.
Process Need- It is task- focused as comparison to situation focused. It consists
determining process weak spots of firm as well as correcting them. Anarchy beverages need to
analyze process and search an effective way to improve them (Fisher, 2012). With the help of
determining weak points after evaluation capabilities, an entrepreneur will able to develop
effective and innovative solutions.
Industry and Market Structure Change- The market structure and industry both can be
stable with the help of technological development. There is a requirement to an entrepreneur of
Anarchy beverages to focus on changes at market place because it will be help in providing
better opp' to business.
Demographics- Anarchy beverages can be impacted by change in demographics. The
changes impact market by identifying demand for services and products. Change in income level
of an individual can impact on its purchasing power.
Changes in Perception- Perception of every person is different from each other.
Perception change over a period of time but now a days because of involvement of technology as
well as power of the social networks can happen the changes faster (Grégoire and Shepherd,
2012). Under this, perception of people can be change for certain services or brands.
New Knowledge- It is used as for innovation and under this scientific as well as
technological breakthroughs are main source of innovation that cannot be overlooked through
businesses. In order to run business smoothly, Anarchy beverages should use new tools and
techniques.
Anarchy beverages uses innovation as well as creativity in its business in context to
make its drinks better. Anarchy beverages is using innovation as deals in beverages by using the
tastes and flavors of drinks better. This firm uses innovation in its business on continuous basis.
It uses various ideas where it transformed them in development of business. An innovation is
related with invention which mention below as above:
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Comparison among Innovation and Invention:
Innovation Invention
An innovation is defined as new method,
device and idea. It is viewed as an application
of the better solutions which meet with new
needs, current market requirements etc.
Generally, it is a procedure of converting idea
in to service or goods which develop value
for which consumers will pay.
It refers to unique method, process, novel
device etc. It refers to technical and scientific
idea it accomplishments or embodiment. IT is
necessary that idea should be economic and
also should helpful in satisfying needs and
wants of consumers.
P2 Rationale and the market gap for a specific entrepreneurial idea
It is necessary for company to know about information or details where it is going to
launch its business (Kirzner, 2015). It should conduct investigation to analyse behaviour of
targeted consumers. Firm can segment its market on the basis of given factors:
Demographic segmentation- Under this, market is segmented on the basis of age,
income level, family size, education etc. The main focus of Anarchy beverages is on young
people because they are different flavors drink.
Behavioural segmentation- It is a procedure of segmenting total market in small groups
that depends on behaviour of consumers. They mostly prefer high quality products in less cost so
it need to be case care of company.
Porter's five force model
It is tool for evaluating competition of business. Through this, firm can identify
competition in industry along with profitability.
Bargaining power of customers- Anarchy beverages should make innovation in its
beverages to make them attractive. The bargaining power of consumers are high because they
can switch firm easily. Innovation is most effective way to attract large consumers towards firm.
Bargaining power of suppliers- Under this, Bargaining power of suppliers is less
because entrepreneur can switch suppliers. Anarchy beverages purchases materials from one
supplier on reasonable cost (Lavoie, 2015). It is helpful for firm to provide its beverages on less
cost to consumers.
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Competitive rivalry- At market place, there are more rivals of Anarchy beverages
which deals in same product line. In context to retain in competitive market, it is essential for
this company to make innovation and provide good at minimum cost.
Threat of new entrants- It is easy for new entrants to enter in market. So, for Anarchy
beverages, it is essential to maintain its quality and provide organic products. It need to develop
its better strategies to sustain at market.
Threat of substitute- In market, there are same products already available and if cost of
its product will be high then target consumers can go towards the substitute products.
TASK 2
P3 Data required to support gap analysis in the evaluation of a specific entrepreneurial idea
Entrepreneur is a person that responsible for undertaking social elements and manage
business in a community. There are various factors which directly effect on perceptions and
views. In order to run business in successful manner, it is essential for an entrepreneur to
determine all negative factors which effect on performance of business. With the help of this,
company can run or manage its business in successful manner (Mitchelmore and Rowley, 2013).
At market place, there are competitors of Anarchy beverages which it need to be identified.
Under beverage industry, Anarchy beverages has wide scope in large market. The data of
Anarchy beverages given below as above:
Basis Firm Competitive firm
Competition in market The cost of this company is
not much high as comparison
to its competitors. It will aid in
increasing development as
well as growth of its business.
The competitor company
offering substitutes of their
products is almost 5%. The
consumers are more focused
towards better quality of
products at minimum cost as
comparison to high cost.
New entrance in industry Anarchy beverages provides
different types of beverages at
reasonable cost that helps in
On the basis of new market
entry, cost is £900 that is more
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attract more consumers
towards firm. In context to
gain attention of consumers, it
also provides discounts on its
drinks.
than Anarchy beverages.
Power of supplier This company has suppliers
which provide materials in less
amount as comparison to other
firms.
In this, suppliers of competitor
organisation are charge high
cost that is not beneficial for
company because cost of
materials will be high then
firm will provide expensive
products which will not be
beneficial for business.
Power of consumers The power of customers is
high because they can switch
in an easy manner. The main
aim of this firm is to satisfy
demands and needs of
consumers by providing them
better quality and healthy
drinks.
The main aim of other
organisations is to enhance
their profit level and operate
their business at large scale.
Threat of substitute At market place, there are
many substitute products so it
is essential for Anarchy
beverages firm to provide its
beverages that develops
positive impact on health of
people.
The competitive firms make
changes in their goods by
adding some additional
substances which help in
attract more people.
6

Questionnaire refers to written or printed questions with choice of answers related to
specific subject. It is most effective way to gather necessary or relevant information.
QUESTIONNAIRE
Age:
Email:
Contact no:
Address:
Q1) Does Anarchy beverages provides healthy drinks to people?
 Yes 30 No 20
Q2) What are main attractive factor of Anarchy beverages?
 Costs 10
 Quality 15 Suitability 25
Q3) Are you satisfied from the beverages which are provided by Anarchy beverage?
 Yes 20
 No 18 Can't say 12
Q4) Does cost charged through Anarchy beverages is affordable for consumers?
 Agree 35 Disagree 15
Q5) Does the quantity offered against the charged price is satisfactory or not?
 Yes 38
 No 12
P4 Interpret data appropriately to provide evidence of market potential
There is analysis and interpretation of data given below: At market place, there is high competition, so it is essential for Anarchy beverages to
understand needs of consumers in better manner and gain competitive position.
 Anarchy beverages provide its beverages on discounted costs. It will help consumers to
be loyal.
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Under this, representing interpretation through gathering data mention below:
Q1) Does Anarchy beverages provides healthy drinks to people?
Particulars
No. of
respondents
Yes 30
No 20
Total 50
Mean 25
Median 25
Mode 10
Interpretation: It is interpreted from the above graph that out of total number of
respondents, 30 are in support of the statement that healthy beverages are provided by Anarchy
Beverages But on the other hand 20 respondents having the opinion that the quality of beverages
is not up-to the mark.
Q2) What are main attractive factor of Anarchy beverages?
Particulars No. of
8
Yes No
0
5
10
15
20
25
30
30
20
Column B

respondent
s
Costs 10
Quality 15
Suitability 25
Total 50
Mean
16.6666666
667
Median 15
Mode 10
Interpretation: It is interpreted from the above graph that suitability is the most
important factor which present with Anarchy beverage which attracts the customers most in
number. After the respondents having the opinion that quality and costs are such perspectives
which are best in organization.
Q3) Are you satisfied from the beverages which are provided by Anarchy beverages?
Particulars No. of respondents
Yes 20
No 18
9
Cost Quality Suitability
0
5
10
15
20
25
30
10
15
25
Column B

Can't say 12
Total 50
Mean 16.6666666667
Median 18
Mode 8
Interpretation: It is interpreted from the above graph that 20 respondents having the
opinion that the beverages provided by organization are satisfying in nature. After that 18
respondents said quality of beverages is not up to the mark. In last, 12 respondents not provide
their opinion.
Q4) Does cost charged through Anarchy beverages is affordable for consumers?
Particulars No. of respondents
Agree 35
Disagree 15
Total 50
Mean 25
Median 25
Mode 5
10
Yes No Can't say
0
2
4
6
8
10
12
14
16
18
20
Column B

Interpretation: It is interpreted from the above graph that most of the number of respondents are
satisfied with the pricing policy of organization and they feel satisfied.
Q5) Does the quantity offered against the charged price is satisfactory or not?
Particulars
No. of
respondent
s
Yes 38
No 12
Total 50
Mean 25
Median 25
Mode 2
11
Agree Disagree
0
5
10
15
20
25
30
35
35
15 Column B

Interpretation: It is interpreted from the above graph that large number of respondents
are in support that quantity that is provided by firm is better against the charged price . Around,
38 respondents are support in this statement.
TASK 3
P5 SWOT framework to collate evidence to support an objective assessment
SWOT analysis refers to framework that is used to evaluate competitive position of firm
through determining strengths, weaknesses, opportunities and threats. It is an assessment model
that help in measuring what a firm can do and cannot (Zahra and Nambisan, 2012). With the help
of using the SWOT analysis firm can identify its opportunities and threats in an effective
manner.
Strengths
 Anarchy beverages is using effective
techniques to attracting large number of
people towards firm.
 On the basis of changing demands and
preferences, Anarchy beverages also
make changes in its drinks.
Weaknesses
 It does not focus on making changes in
technology.
 The cost of this company drinks is high
as comparison to others.
12
Yes NO
0
5
10
15
20
25
30
35
40 38
12
Column B

 It provides better quality and healthy
drinks to people.
Opportunities
 It has an opportunity to provide training
to employees so that their skills can be
enhanced.
 Anarchy beverages can increase flavors
in its drink for development of
business.
Threats
 Large number of competitors.
 Changes in demands and needs of
customers.
P6 Competitive and market environments in which the idea will be launched
It is necessary for an entrepreneur to evaluate market with the help of using effective
strategies. It will be helpful in determining demands of consumers and also know about policies
of competitors at market place. In this present time period, people are more health conscious so,
Anarchy beverages will launch the organic drink (Zikmund and et. al., 2013). For this, it is
necessary for firm to evaluate market.
Market environment- It refers to forces and factors which impact on ability of company
to develop as well as maintain successful consumer relationships. There are two different market
environment:
Macro environment- It refers to condition that exist in an economy as whole rather than
in specific sector. Under this, firm operates and it develop influence on performance.
Micro environment- It refers to elements or factors in an organization which impact on its
performance along with decision making. Under this includes suppliers, general public,
consumers etc.
Competitive environment- It refers to changing external system under which business
functions and also competes. At market place, there are many sellers which sells same line
products in which Anarchy beverages is already competes (Bolton and Thompson, 2013). Under
this some factors are included:
Target Audience: The main target audience of this firm is young people.
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Substitute Products: At market place, there are many firms which deal in similar line
product. So, it is necessary for Anarchy beverages to make innovation and use the effective
promotional techniques. It can make make changes in costs of beverage by reduce them. It will
be helpful in attract more consumers towards firm.
Demand: In this modern era, every person is health conscious and they line the healthy
drinks which can not harm their health. So, on the basis of demands of consumers, Anarchy
beverages focus on launching organic drinks.
CONCLUSION
It has been concluded from above mention report that entrepreneurs play necessary role
in enhancing economy of country. They run their business by thinking new and innovative ideas
for making their products more unique. In order to identify the best suitable option to opt for
business there are different tools that may provide knowledge about which can give maximum
returns. By doing the analysis chances of maximizing the profit margins can be raised.
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REFERENCES
Books & Journals
Bolton, W. and Thompson, J., 2013. Entrepreneurs: talent, temperament and opportunity.
Routledge.
Bridge, S. and O'Neill, K., 2012. Understanding enterprise: Entrepreneurship and small
business. Macmillan International Higher Education.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Ceci, F. and Prencipe, A., 2013. Does distance hinder coordination? Identifying and bridging
boundaries of offshored work. Journal of International Management. 19(4). pp.324-
332.
Fisher, G., 2012. Effectuation, causation, and bricolage: A behavioral comparison of emerging
theories in entrepreneurship research. Entrepreneurship theory and practice. 36(5).
pp.1019-1051.
Grégoire, D. A. and Shepherd, D. A., 2012. Technology-market combinations and the
identification of entrepreneurial opportunities: An investigation of the opportunity-
individual nexus. Academy of Management Journal. 55(4). pp.753-785.
Kirzner, I. M., 2015. Competition and entrepreneurship. University of Chicago press.
Lavoie, D., 2015. The discovery and interpretation of profit opportunities: Culture and the
Kirznerian entrepreneur. Culture and economic action. 48.
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.
Morris, M. H. and et. al., 2013. A competency‐based perspective on entrepreneurship education:
conceptual and empirical insights. Journal of Small Business Management. 51(3).
pp.352-369.
Shane, S., 2012. Reflections on the 2010 AMR decade award: Delivering on the promise of
entrepreneurship as a field of research. Academy of Management Review. 37(1). pp.10-
20.
Zahra, S. A. and Nambisan, S., 2012. Entrepreneurship and strategic thinking in business
ecosystems. Business horizons. 55(3). pp.219-229.
Zikmund, W.G. and et. al., 2013.Business research methods. Cengage Learning.
Online
SWOT Analysis Helps Businesses Plan for Growth. 2017. [Online]. Available through:
<https://financenewmexico.org/articles/general-business-advice/swot-analysis-helps-
businesses-plan-growth/>.
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