Identifying Entrepreneurial Opportunities Assignment Solved - Coffee Delight
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Added on 2020-11-12
Identifying Entrepreneurial Opportunities Assignment Solved - Coffee Delight
Added on 2020-11-12
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IdentifyingEntrepreneurialOpportunities
Table of ContentsINTRODUCTION ..........................................................................................................................11. Background information about those sources that inspired your idea and what motivatedyou personally in wishing to set up your own business..............................................................12. Introduction of business idea and the potential customers and targeted market.....................33. Competitor analysis for closer look at the competitive marketplace......................................35.Market research to support viability for your business idea and identify market potentialusing a range of sources that could be both primary and secondary...........................................7.........................................................................................................................................................96. Why your business idea is viable and feasible and how you qualify this belief. What are thestrengths and weaknesses? .......................................................................................................147. Ways to overcome the risks of competition .........................................................................158. Also prepare your business plan and your cash flow............................................................16CONCLUSION .............................................................................................................................17REFERECES................................................................................................................................18
INTRODUCTION Entrepreneurship is defined as the process of developing, designing and launching a newbusiness plan. Individuals who develop their own ideas and starts business are known asentrepreneurs. This significantly helps in the growth and development of the national economy.This project focuses on launching a new business venture by determining the availableopportunities in UK, new business idea developed under the report is Coffee Delight which willmade with natural and organic ingredients in order to increase customer health awareness(Baldacchino, 2013). In addition to this it also determines the target customers and the market inorder to gain market share and also evaluates gap and risk analysis. Along with this it signifiesthe potentiality of the project through collection of primary and secondary data.1. Background information about those sources that inspired your idea and what motivated youpersonally in wishing to set up your own business.Expanding business is of crucial importance which assist in the development of thenational economy. As in the given scenario, UK government has started initiative which isencouraging young graduates to start their entrepreneur business and helps in the growth ofeconomy. By analyzing the available opportunities new business developed is Coffee delightwhich will be organic in nature and targets health conscious people. As this market idea willreduce market dominance and provides customer satisfaction. Below is the seven sources ofPeter Drcuker for innovative entrepreneurship ideas - The unexpectedBusiness idea is developed is unexpected whether they can achieve success or leads tofailure. This creates a source for more innovative ideas. This may prove useful for the youngentrepreneurs to create a new business ideas and develops their own business. As the ideadeveloped of organic coffee will achieve high success in UK market (Elenurm, 2012).IncongruityBefore introducing or launching a new product it is necessary for the company to launcha new product. Normally the business idea fails when there is inappropriate information iscollected. While developing a new product customers needs and preferences should beprioritized , as customers showed interest in coffee it led to the developed of the organic coffeeto satisfy their demands.Process need
It is a source of innovation as by identifying the weakness and developing theopportunities, this inspire entrepreneurs to develop a new idea. Market analysis identified theneed of change in coffee for health conscious customers and want something new that couldfulfill their needs. Industry and market structure changeWith the technological advancements there is a change in market structure. This changeshould be carefully analyse in order to develop a new business idea. Even with the change inrules and regulations Coffee delight should keep pace with this changes in order to launch newproduct (Grégoire and Shepherd, 2012).DemographicsDemographic includes factors such as age, gender, education, employment etc. Changesin the demand of such demographic factors leads to the innovation of new idea. As healthconscious people demand changes in Coffee which leads to the development of new businessidea that is organic Coffee.Changes in perceptionPerception of the customer about the product changes from time to time. Entrepreneurshould be well aware about the changes in perception of the customers. Demand for the organiccoffee has increased, so this business idea can be successful.New knowledgeAdopting new ways and technology gives the source for developing the new businessidea Changes in the consumer demand leads to the development of organic Coffee.Critically evaluate the benefits and drawbacks of different approaches and sources of entrepreneurideasAs the company has used Peter Drcuker seven sources for identifying entrepreneur ideas itsmain advantage is that it gives company an idea of customer needs and wants and also providesan insight to the changes in industrial and market change (Hang, Garnsey and Ruan, 2015). Thisallows Coffee Delight to develop business idea properly but it lies with the major drawback as ithas seven sources for developing ideas which makes the entrepreneur very confusing regardingdeveloping entrepreneur ideas.
2. Introduction of business idea and the potential customers and targeted market.Business idea is developed by collecting proper market information and analyzingcustomer demands properly. This will assist to gain higher financial income and achieve longsustainability in market. In context to Coffee Delight it is aiming to launch a new product thatwould be a organic Coffee and would target mainly health conscious people. This new businessidea is developed by analyzing the market as well as analyzing past experience of the customer’s.This new product developed will satisfies the need for health conscious people and will capturemaximum market share (Hansen, Monllor and Shrader, 2016). It is a very innovative and a freshidea that will be financed by the UK government in order to enhance growth of economy.Government has decided to sanction the project value of £150,000 out of which £90,000 will bein the form of a low-interest loan with an interest rate of 1.5% payable in 10 years. Theremaining £50,000 will be in the form of grant and £10,000 need to be brought by entrepreneur. Target audience- As the Coffee Delight is aiming to introduce a organic coffee it will mainly target healthconscious people. New product awareness can be increased advertisement and promoting onsocial media tools. Mainly it targets old aged people and young generations who are very healthconscious will definitely purchase the product and satisfies their needs. Providing customerssatisfactions is the main motive for developing this new product idea as well as customerssuggestions would be taken to make the product more innovative an better. Moreover throughcollecting appropriate information changes can be made accordingly to existing trends andcustomer perception regrading the product.3. Competitor analysis for closer look at the competitive marketplaceCompetitors analysis should be conducted effectively in order to develop the idea forentrepreneurship. Moreover company's products and the strategies adopted by them provides acloser view to make changes in the business idea developed. Effective strategies are adopted bythem to identify and grab the available opportunities. Competitors mainly would be Costa Coffeeand Starbucks and other competitors could be Green tea available by many other companies(Kohlbacher, Herstatt and Levsen, 2015). The most important strategy would be adoptingPorter's five forces model which will provide Coffee Delight a complete analysis of competitors.It is described as follows- Porter's five force model
This model provides a complete analysis of competitive environment and shows theattractiveness of the business idea in term of profitability.Source: Porter's five force model, 2018Threats of new entry- In order to maintain long term sustainability in market it is necessary forCoffee Delight to keep its products upgraded and changing with the changes in consumersdemands and preferences. Company should make a huge investment and allocate the resourcesproperly so as to gain profitability and capture larger market share. Thus when company willintroduce organic coffee there would be little chance of the threat of the new entry as with thechanges in consumers demand company keeps on changing their products. Coffee Delight shouldfocus on the quality of the drink so as to gain competitive advantage.Threat of SubstitutesCompany producing similar products can be a great competitor to each other. When thesubstitute of the product is there it lowers the profit margin of the company's products. As fororganic coffee substitute is the organic tea, such substitutes leads to higher switching of theIllustration 1: Porters Five forces model
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