Identifying Entrepreneurial Opportunities

Identifying
Entrepreneurial
Opportunities

Table of 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 .........................................................................................................................................10
P5 Apply a SWOT framework to collate evidence to support an objective assessment of a
specific entrepreneurial idea.....................................................................................................10
P6 Evaluate the competitive and market environments in which the idea will be launched to
assess potential viability............................................................................................................12
CONLUSION ...............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Entrepreneurship is basically a process which primarily deals with designing as well as
launching new business. It is described as the capacity as well as willingness to manage and
develop a business venture along several risks in to make profit. In today' s competitive world
there are several entrepreneurial opportunities which are potentially available in marketplace.
Through these entrepreneurial opportunities products and services are usually sold at a price
greater than cost and profit is attained. Under this report a new bakery store is coming up in the
market of United Kingdom in order to significantly earn profit. The new idea which bakery is
planning is to provide chocolate cookies enriched with Tagatose which is a form of fructose that
is around 90 percent sweeter than sucrose. Tagatose has a low glycemic index and may support
the treatment of obesity. It is beneficial for people with diabetes and who are following a low GI
diet. Outcome of this report is based on several ideas through which innovation invented by The
Baking Room becomes successful. Determination and evaluation of different sources of
entrepreneurial ideas and innovation will be done. Furthermore, identification of market gap
would be considered in order analysis relevant tools and techniques. SWOT Analysis and
evaluation of competitive market environment will be conducted in order to identify potential
viability.
TASK 1
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation.
With increase competitiveness in almost all business sectors each and every entrepreneur
in marketplace is coming up with new and creative business ideas in order to significantly
capture a new market share (Autio and et.al., 2014). Prime motive of Entrepreneurs is to
innovate a product which is exactly different from company's potential competitors and new
customers by respective firm is captured through desired business objective is achieved. Herein,
the entrepreneur has adopted Drucker's source model in order to identify ideas and innovation.
Following are some steps which are considered under this model:
 The Unexpected: Innovation usually take place within an organisation unexpectedly.
However, marketers usually need to make a proper analysis in order to identify the actual
demand of targeted customers. Through this analysis and unexpected idea is basically
inherit. For instant, it is effective for the company because if the company ant to make
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innovation and suddenly any innovation take place then it help in organisational growth
and development. If idea did not effective and good then negatively affect the growth of
the firm. In this their collected new idea generation which is implemented and happened
by chance.
 Incongruities: It is a process under this entrepreneur usually aims at thinking differently
and going out of the box. This a method which is never introduced in potential market.
Business idea is developed by resolving incongruities as well as make an accurate
identification that health and social care products.
 Process Need: Innovation highly requires process need. Under this determination is
made to identify the exact requirement and then implementation is adopted accordingly.
Several aspects are considered under this stage of innovation. For example, in this
innovation source, innovation are made due to fulfilling needs and requirements of
organisation's target audiences. It is beneficial because it assist in fulfilling customers
needs which help in improving profit and productivity of the firm. But it can be
unfavourably affect to the company if innovation did not adopt by its potential customers.
 Industry and Market Structure Change: Existing market structure which an
organisation usually follows generates several steps through which several chances of
innovation are witnessed. Sometimes due to change in market structure and industrial
change innovation is invented. If can be favourable fro the company when the innovation
is take place as per market structure. But if it is not able to satisfying customers
requirements then it affect negatively in term of economic loss to the firm.
 Demographics: Lifestyle adopted by people living in UK enormously affects the kind of
innovation which is be adopted by an organisation. Furthermore, demographic factor
highly impacts the over-sales within an organisation (Davidsson, 2015). Eventually under
this step identification of target consumers is made on the basis of income group, age and
several other such factors. For example, It positively affect the firm if the production
department of the company manufacture chocolate cookies by using Tagatose in UK.
Because the people of that place have need to sugar free cookies due to diabetes. But if
the management of the company use another ingredients like brown sugar then it
unfavourably influence the business of the company. It is one of the best source that
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motivated or encouraged an entrepreneur for satisfying requirement according to lifestyle
as well as sometimes leading with best opportunities.
 Changes in Perception: Change in perception of company's potential consumers
enormously impacts the overall growth of entrepreneurial business. Through this change
in perception birth of innovation becomes necessary. Herein innovation is made possible
because of changing perception of company's potential customers. For example, if the
way of perceiving things are change people change the thought regarding products and
services. Such as, people think that sugar is the diabetes but it is not totally based on
sugar. Due to which they change their perception and use sugar free products. This
respective innovation can be beneficial to the company because it help in fulfilling
consumers needs and help in the growth of the firm. But it can be favourably affect the
company when the people do not buy the product due to their perception regarding sugar
products.
 New Knowledge: This is an information source through which marketers are made aware
about the trends which are being followed in potential market. It is a prime source
through innovation is invented. New knowledge can be both scientific and non-scientific
in nature. For example, this innovation favourably affect the firm when the company
manufacture product by getting knowledge that Tagatose does not create heath issues for
diabetes people.
In context to The Baking Room, major source of innovation is change in perception of
people living in UK. Now-a-days people have become highly health conscious and aims to
follow healthy diet. Moreover, due this change in perception The Baking Room is significantly
planning to launch chocolate cookies enrich with Tagatose. Through this model idea adopted by
The Baking Room can successfully become popular and desired business objective can be
significantly achieved (Godley, 2013).
TASK 2
P2 Explain the rationale and the market gap for a specific entrepreneurial idea using relevant
tools and techniques to support your choice.
Currently bakery store is serving its products on wheels and major innovation invented
by them is that it will potentially provide chocolate cookies enriched with Tagatose to the people
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living in United Kingdom. The basic idea to come-up with this innovation is because people are
becoming health conscious and it has been observed that there are number of diabetic patients
under UK market. However, through this invention The Baking Room can potentially capture
new market and enhance their overall productivity.
Gap Analysis is a strategic tool which is essentially used by management of a firm to
identify where a company is going and what is the actual potential of that respective firm. At
glance gap analysis basically compares actual achievement with potential achievement (Hsiao,
2013). However, there are several reasons due to which this kind of gap within an organisation is
witnessed. Whereas market gap analysis is a way under which analysis is conducted in order to
identify opportunities where demand is greater than supply.
With reference to current innovation launch by The Baking Room there is market gap
which is significantly analysed. However, measures might to implemented in order to overcome
this gap. It this witnessed that there are several other competitive bakeries store which are
providing similar product with premium prices and wherein The Baking Room is providing same
products with moderate pricing. The market gap is that the company will offer sugar free product
which is produce with the help of Tagatose and other ingredients like, flour, oil and others. But
in market some individual has need of oil free food. This generate market gap within the
company. It can be fulfilled by the company by offering oil free products like bake cookies etc.
In order to effectively overcome the market gap faced by The Baking Room company can
effectively make use of Fishbone model. It is basically identified by manufacturing team in order
to understand periodic iron contamination. Under these six generic headers are used to prompt
business ideas.
Under fish-bone model firstly the major reason for problem is significantly analysed, then
major cause of these problems are further considered. This is primarily concerned with machine,
methods, materials and several other such aspects. After listing causes of categorizing is
eventually done on the basis of nature of problem. Furthermore, identification of keeping and
root causes are identified. Through adoption of this model the major reason behind problems
within an organisation is identified.
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