[PDF] Identifying Entrepreneurial Opportunities : Assignment sample

Identifying Entrepreneurial
Opportunities

Table of Contents
Identifying Entrepreneurial Opportunities ......................................................................................1
INTRODUCTION...........................................................................................................................1
P1 Evaluate different methods of entrepreneurial ideas and innovation.....................................1
TASK 2............................................................................................................................................2
P2 Rationale and market gap for specific entrepreneurial idea...................................................2
TASK 3............................................................................................................................................3
P3 Gap analysis in the evaluation of a specific entrepreneurial idea..........................................3
P4 Interpret data appropriately to provide evidence of market potential....................................6
TASK 4............................................................................................................................................6
P5 SWOT framework to support an objective...........................................................................6
P6 Evaluate the competitive and market environments..............................................................7
CONCLUSION................................................................................................................................8
REFERENCES .............................................................................................................................10

INTRODUCTION
In market there are variety of opportunity available which convert mindset of many
people to become entrepreneur and serve in market. Hence, there are many products and services
not available in market place even in quality too. Moreover, an entrepreneur is that who takes
risk out of other people and analyse market for introducing a new business, so that he/she can
satisfy the needs and wants of customer in effective way in any manner they want. Different
people shift there choice from one firm to another just because they are not getting quality in
product (Block and Wagner, 2010). The report is based on a cafe which is introduced in market
with having an generation of idea as to provide proper satisfaction to customer, so the name is
that which invites people. MAX cafe, serves variety of food items of across countries and satisfy
people with there product in right contrast. Assignment undertakes segmentation of market.
Analysing internal and external aspects and so on.
P1 Evaluate different methods of entrepreneurial ideas and innovation
There are different sources which can provide entrepreneurial ideas because they need to
make proper changes or alterations. In simple words, such type of ideas has started business
which need certain innovation that can revealed by buyers interviews and examination. Such
sources of ideas that can discussed as under:
Customers – Customers are the one who provide effective evaluation of goods and
services for driving sales, there is no doubt that this is most appropriate method of ideas. When
they utilise the power of customers, so innovative leader should put in that point, sources for
collecting new ideas relates to customers. MAX cafe main priority is to attracting large number
of customers towards their new food items (Dimov, 2011).
Competitors – It is that factor which assist in increasing sales because there are various
existing cafes who are also serving similar type of food products in front of their clients. MAX
cafe is going to introduce some extinguish products which can dramatically impulsive for sale.
Looking at the past and future – While talking about to open a cafe so they should
analyse others what they need to be done before the mistake they had made, that will avoiding to
arise and put business in pitfalls.
Macro environment factors
Macro environment factors are such that will directly impact on external business environment:
Legal factors – It is one of the most essential criteria which has to be followed. For
starting business, MAX cafe need to approve their license for easily running the business
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operation and its functions in United kingdom. So this is necessary for them is to follow all
government made rules and norms (Ekpe, Mat and Razak, 2010).
Social factor – Social factor are such that developing impression on both the community
and business. MAX cafe required to analyse all customers needs and demand before serving
them some food item. Business have ethics which does not violate buyers feeling.
Technological factor – This is required for MAX cafe is to adopt effective method and
techniques for smoothly running all business activities in proper manner. If company putting
their business on internet that will help in attracting large number of customers for developing
good reputation.
TASK 2
P2 Rationale and market gap for specific entrepreneurial idea
At that time, when business is going to enter into new market place so there is need to fix
that market gap which enhancing buyers buying nature. Along with this, there are certain
techniques and methods that are very important for conducting new market research which can
be launched in the business in appropriate manner. For MAX cafe, it is necessary for them is to
identifying gap within entrepreneur who can take advantage related with skills and abilities. For
taking benefits of such gap, it is required for cafe is to explore all people requirements and needs
in proper manner (Foo, 2011). There is always one questions that arise while finding out such
type of gap, where to look for gaps, so there are certain moment in which person can acquire
gaps which can be noticed that are described as under:
 Trends and new application – There are high level of trends and effective technology
because they are getting opportunities are popping up in the market, they will keep eye on
such changes and also analyse what type of effect face by business.
 Develop the world topical – If one can analyse the environment so they will noticed that
there is loads of creativity, everyone is increasing the opportunities with their creative
work. They required to make creative and imaginative doorway of fascinating trends.
MAX cafe is that where any thing will be happened because they are going to be
compositor not a follower.
Market segmentation
Before introducing a new food item which analyse and examine the whole market needs
and requirements that will identify the customers needs and demand in better manner. Along
with this, there are various needs of buyers regarding new products that will fulfilling their
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preferences and taste by conducting market research on segmentation basis which are described
as follows:
Demographic segmentation – This is that segmentation which divide whole market on
the basis of age, gender, martial status, income religion, race, occupation, nationality, etc. There
are different type of people who have different needs and demands (Heinonen, Hytti and
Stenholm, 2011). MAX cafe required to analysing their customers requirements and taste
according to this, they are making these type of food products.
Geographic segmentation – It is that segmentation which is totally based on those
people who are living in remote areas. This cafe are delivering various food items to the people
who are living in different region.
Behavioural segmentation – In this segmentation, research is totally based on
population, lifestyle, thoughts, preferences, decision, attitude, decision making. Different type of
people are come in the cafe for consuming such new food products so MAX cafe required to
analyse their behaviour and taste towards their services and provided items.
TASK 3
P3 Gap analysis in the evaluation of a specific entrepreneurial idea
Gap analysis is defined as the study or research for identifying difference between actual
and standard performance within an organisation. In this consider qualitative and quantitative
comparison of company. It can be describe as the principle for recognising the actual
requirements and find ultimate solutions for defining problems. This is an essential in explaining
some desired expectations or particular place where the firms wants to go or achieve (Renko and
Shrader, 2012). It is also beneficial for every firms to attain set targets with improving
performance in well manner. In this consider several steps that must be undertake for reaching at
desired place so it is necessary to analyse that gap which occurs while running business ans its
operations.
In the first phase, it undertake several aspects regarding firms such as company's
goodwill or brand image, financial positions, its market shares, profitability and business
performances and employees relations within an organisation. In the second phase, company
undertake future aspects such as benchmarking and set standard that are to be achieved for
gaining best possible outcomes in well manner (Short, 2010). Therefore, after performing entire
tasks or works, organisations wants to analyse the gaps if occurred while attaining targets. These
gaps can create barriers in increasing profits or productivity as well. This is also known as gap
analysis which is must be required to find actual problems so that they can make better decisions
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regarding selecting best alternatives for resolving issues or problems in an appropriate manner.
There are define two basic points that addressed by the gap analysis such as:
 Potential
 Performance
On the other side, gap analysis is a 360 degree analysis which is beneficial in performing
several level as strategic as well as operational in any critical environment so that company can
find actual or current situations of the firm in an efficient manner (Simon, 2012). It can be
consider as the first stage in which analyse the performance versus potential so that appropriate
results can be find out that may exceeds the expectations.
Conducts a gap analysis
The gap analysis is generally conducted for identifying the major differences in a big
brands as what situations or problems occurred to resolve such types of issues. Therefore, it
would be better that to undertake several host factors by an individual for analysing particular
gap such as:
 Sales number
 customers satisfaction
 manufacturing costs or expenses
 time factors for production and shipments
 international expansions
 Retentions rates
there are defined number of host factors that can be considered bys the organisation for
getting better outcomes while analysing several gaps in performance in an effective manner
(Tang, and Kacmar, 2012).
Identify states
This is an another aspects or next phase where an entrepreneur selects the particular area
for the purpose of identifying the current level of performances and the future expectations.
These are as followings:
 Focus on selling attributes and several channels
 Current monthly sales as per performances
 Industry Potentials
 Peculiar result or outcomes as per the networks
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[source : Gap Analysis: A Template for Connecting Potential with Performance, 2017]
The states can be classified into three major areas such as:
 Performance
 States
 Analyse Gaps
Describe the gap
After identification of the gaps, the next step which have to considered is that to find and
understand particular reason behind occurrence of problems. If a business undertake such
situations for the purpose of analysing the exacts solution or things to do to achieve
predetermined goals or objectives in more appropriate manner (Busenitz, 2012). It is an essential
for The Max restaurant that they can grab opportunities for improving their performances and
increase profitability or productivity. Here are some pattern given for describing the gap such as:
 Gap: The place where gaps are founded
 Gap Description: Gather informations and keep records to them which will support in
contributing gaps in well manner. It can be quantitative and qualitative as well.
 Why: in this consider the reason behind occurrence of particular gaps.
Bridge the gap: The final stage is brainstorming activities which is beneficial in identifying the
possible solutions through analysing gaps in an appropriate manner (Vaghely and Julien, 2010).
In this defines that the particular solutions must be specific and relevant so that company can
achieve best possible outcomes in an effective manner.
It is necessary to have good knowledges and informations about specific market for starting and
running business operations in well manner.
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 Primary market research: It is best method for gathering information regarding market
as company conduct the research and collect data to improve its particular products and
services. in this consider several methods as feedbacks, questionnaires, observation,
surveys and interviews so that customers can respond and give their opinions regarding
products or services.
 Secondary market research: This is another suitable method where data are gathered
form other resources. These are based on quantitative methods rather then qualitative and
it undertake various sources such as official data, government policies, internet,
newspapers and magazines for collecting informations that support in finding best
outcomes. It is very beneficial in data gathering because it takes less time as well as cost
effective techniques for the organisation.
1. What is your most preferable edible product at Max cafe?
a. Coffee
B. Snacks
C. Meal plan
Particulars Frequency
Coffee 15
Snacks 10
Meal plan 5
2. How would you rate the Max cafe?
a. Satisfy
b. Dissatisfy
c. Good
d. Excellent
6
0
2
4
6
8
10
12
14
16 15
10
5
Coffee
Snacks
Meal plan

Particulars Frequency
Satisfy 10
Dissatisfy 2
Good 7
Excellent 11
3. Are the products of cafe available at reasonable price?
a. Yes
B. No
Particulars Frequency
Yes 18
No 12
7
0
2
4
6
8
10
12
Satisfy
Dissatisfy
Good
Excellent
0
2
4
6
8
10
12
14
16
18
18
12
Yes
No

P4 Interpret data appropriately to provide evidence of market potential
The Market research play an important role in identifying particular market and its
situations so that firm can make appropriate decisions or strategies for producing goods or
services. it is an essential to define target customers by analysing their choices tastes and
preferences towards goods or services. The Max Cafe has opportunities to develop business and
increase its goodwill by providing best quality and varieties of coffees in the marketplace.
Market research can be conducted for finding better target market and potentials customers
during the stage of pre launch and post launch as well (Wang and Ellinger, 2013).
1. Most preferable edible product at Max cafe
Particulars Frequency
Coffee 15
Snacks 10
Meal plan 5
Total 30
Mean 10
Median 10
Mode 0
Interpretation : As it is clear from the above table, which shows the interested most
customer preferable customer products. There are average 10 percent people out of 30
respondents who favours the coffee than other items.
2. Rating for Max cafe
Particulars Frequency
Satisfy 10
Dissatisfy 2
Good 7
Excellent 11
Total 30
Mean 7.5
Median 8.5
Mode 10
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Interpretation : The average 7.5 percent people voted towards the excellent and satisfy
products regarding their choice of the food items and ambience. People are satisfy with the
quality and taste of the coffee and snacks.
3. Cafe products at reasonable price
Particulars Frequency
Yes 18
No 12
Total 30
Mean 15
Median 15
Mode 6
Interpretation : From the above table it can be concluded that the out of 30 people ,
average 15 percent people get the products at reasonable cost. On the other hand, 12 percent
people are not satisfied with prices of the products.
TASK 4
P5 SWOT framework to support an objective
SWOT analysis is used to embrace the market situation of an enterprise by using internal
factors of firm. It focused on a company's strength, weaknesses opportunities and threats to know
the critical and important aspects that can aid to explore the business. Max Cafe is a small cafe
which offers the snacks and three meal plan for every one. The interior and exterior designing of
the cafe plays a major role to grab the customers (Quan, 2012).
Strength
 Max Cafe is a new entry in the market which serves innovative relish food and beverages
to attract the customers.
 It is situated in the most accessible and crowded place where the people can reach easily
so it is a to feast themselves and their friends.
 The cost of the menu is affordable for everyone without any differentiation in their living
status.
 The cafe also has some discount promotional schemes that supports to encourage the
business.
 There are occasional vouchers and coupons are also available so that the customers can
easily join the cafe events while ordering the savour food.
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Weaknesses
 Max cafe is only focused on the French and Spanish cuisine as it is in the United
Kingdom.
 It is not investing excess dollars on the marketing so there may be a chance that weak
marketing can impact on the business.
 It is putting up small investment so it take a long time to get the customers in mass.
Opportunities
 If Max cafe would be launch with a variety in menu plan then it can get a huge popularity
among the customers as it will come with a bang in the marketplace.
 After establishing a cafe at one place it can start with the new cafes at several locations
with customer satisfaction.
 As it has a affordable price so it can penetrate the market with taking the competitive
advantage.
 The way it carry out the business operations it can earn the maximum profits by using
various resources and techniques (Renko, Shrader and Simon, 2012S).
Threats
 Max Cafe is a new entry so it tough for this to stand in a market as there are already
giants performing their business.
 Cafe has intensive competition with existing brands so it has a biggest fear to establish its
goodwill in the market.
 As it has a small business and if it does not spend high amount on the marketing then it
can decay within less time.
 Making loyal customers in small amount of time is difficulties (hort and et. al., 2010).
P6 Evaluate the competitive and market environments
Max Cafe is fresher in the market and every business establishes to gain the profit
against the investment they made. When it comes to gain the profit there is a simple to trick to
reach on peak is to defeat your rivals who stand against the Cafe. It is not easy to get victory over
others this needs to lot of efforts and to commit the action. It needs to peep in the competitors
resource in order to identify what kind of strategies they are utilizing. It can improve the
competition strategies of the cafe. Because the cafe will be aware about the services that are
providing by the other restaurants and cafes to maintain the satisfaction level of their customers
and making them loyal clients. As much as the cafe is retrieves the information of their
competition partners they can put new strategies to catch prospect customer's attention through
offering the extensive services and delights. They can recognize the customer requirements and
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expectations from the cafe so they can establish an impactful plan that can meet their desires and
also aid to fulfil the objectives of business (Tang, Kacmar and Busenitz, 2012).
To allure the customer's cafe can can apply marketing tools that can be advertising, sales
brochures, newspapers, magazines, discount deals, competitive pricing, etc. to launch with a
good hope to get a business on hike.
To evaluate the marketing environment for Max cafe there are some factors that are
viable to analyse the business concept market size, aimed customers, trending approaches.
Keeping specific eye on the changing market is not possible to analyse the exact demand
according to the market size but if one has a sense to target potential market size then they don't
need to gauge the every entity in the market. One should have a good understanding and sense of
potential size of the marketplace then they can earn the good business even in huge market
(Vaghely and Julien, 2010).
In the end of the year, business should also analyse the accounts books to figure out the
investment and earning and this will also tell about the sales in actual and what are the expected.
The foremost importance of the checking accounts is that it tells the profit and loss of the Cafe
on the basis of previous year (Wang, Ellinger and Wu, 2013).
It is good practice to aware about the competition level because business are always
strive to increase their sales and that is the main motive to gain the profit. The one who is getting
started a new business it will good for them to investigate about their existing rivals in the
market and that how they can see their growth in the market by enhancing the sales (Wood and
McKinley, 2010).
CONCLUSION
The resort is about the identification opportunities of entrepreneurial which comprises the
opportunities that are already existing in the market. Max Cafe is launching a small cafe in
London that offers a French and Spanish cuisine for every standard with affordable price. This
report includes the macro environment factors and opportunities, marketing segmentation and
research, gap analysis and Swot analysis along with market environment.
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REFERENCES
Books and Journals
Block, J.H. and Wagner, M., 2010. Necessity and opportunity entrepreneurs in Germany:
Characteristics and earnings differentials.
Dimov, D., 2011. Grappling with the unbearable elusiveness of entrepreneurial opportunities.
Entrepreneurship Theory and Practice. 35(1). pp.57-81.
Ekpe, I., Mat, N.B. and Razak, R.C., 2010. The Effect of Microfinance Factors on Women
Entrepreneurs' Performance in Nigeria: A Conceptual Framework. International
Journal of Business and social science. 1(2).
Foo, M.D., 2011. Emotions and entrepreneurial opportunity evaluation. Entrepreneurship
Theory and Practice. 35(2). pp.375-393.
Heinonen, J., Hytti, U. and Stenholm, P., 2011. The role of creativity in opportunity search and
business idea creation. Education+ Training. 53(8/9). pp.659-672.
Quan, X., 2012. Prior experience, social network, and levels of entrepreneurial intentions.
Management Research Review. 35(10). pp.945-957.
Renko, M., Shrader, R.C. and Simon, M., 2012. Perception of entrepreneurial opportunity: a
general framework. Management Decision. 50(7). pp.1233-1251.
Short, J.C and et. al., 2010. The concept of “opportunity” in entrepreneurship research: Past
accomplishments and future challenges. Journal of Management. 36(1). pp.40-65.
Tang, J., Kacmar, K.M.M. and Busenitz, L., 2012. Entrepreneurial alertness in the pursuit of
new opportunities. Journal of Business Venturing. 27(1). pp.77-94.
Vaghely, I.P. and Julien, P.A., 2010. Are opportunities recognized or constructed?: An
information perspective on entrepreneurial opportunity identification. Journal of
Business Venturing. 25(1). pp.73-86.
Wang, Y.L., Ellinger, A.D. and Jim Wu, Y.C., 2013. Entrepreneurial opportunity recognition: an
empirical study of R&D personnel. Management Decision. 51(2). pp.248-266.
Wood, M.S. and McKinley, W., 2010. The production of entrepreneurial opportunity: a
constructivist perspective. Strategic Entrepreneurship Journal. 4(1). pp.66-84.
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