Identifying Entrepreneurial Opportunities

This project examines the process of identifying and evaluating entrepreneurial opportunities in the fast food industry in London. It analyzes various sources of entrepreneurial ideas, conducts a gap analysis to assess market potential, and utilizes SWOT and PESTLE frameworks to understand the competitive and market environment. The project also includes a detailed interpretation of data collected through a questionnaire, providing insights into customer preferences and market trends.

IDENTIFYING
ENTREPRENUEIAL
OPPORTUNITIES

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1-Various sources of entrepreneurial ideas and innovations................................................1
LO 2.................................................................................................................................................3
P2- Choice of specific entrepreneurial idea:..........................................................................3
LO 3.................................................................................................................................................4
P3 Presentation of the data in order to support the gap analysis to evaluate specific
entrepreneurial idea................................................................................................................4
P4 Interpretation of the data in terms to provide the evidence of market potential.............13
LO 4...............................................................................................................................................14
P5 SWOT framework to support objective framework........................................................14
P6 Competitive and market environment in which idea can be launched............................16
CONCLUSION:.............................................................................................................................18
REFERENCES:.............................................................................................................................19
Book & Journal.....................................................................................................................19

INTRODUCTION
` Entrepreneurship is one of the essential tasks and it is need to performed well as it is
helpful in order to bring number of opportunities. The entrepreneurs are helpful in terms to cope
up with rivalries in market (Chaston and Sadler‐Smith, 2012). The present report will focus over
the activities as are differed source of entrepreneurial ideas with the help of which profitability of
firm can be generated. In addition to this, assignment will focus over the entrepreneurial ideas as
to determine the market gap for fast food ventures. In this way, this report will also discuss about
the SWOT analysis of framework, market environments and evaluation of business activities.
LO 1
P1-Various sources of entrepreneurial ideas and innovations
Sources of business ideas:
A business idea can come anywhere to name a few from personal skills, experience, mass
media, surveys, hobbies, talents and many more.
Various sources of opportunities
Peter Drucker is modern management investors who have effective knowledge of the innovation,
entrepreneurship and leadership (Audretsch, 2012). The following are seven sources of
innovative opportunity by Drucker:
 The unannounced-
The enterprise world is inundated of unexpected success and failures. It involves both
success and failure of the organization. In order to invent the success, organization have to bring
some innovation and invention.
2. Incongruities-
Understanding what actually consumer wants and what it has or the difference between what is
and what it is supposed to be can become a great source of inspiration of innovation.
3. Industry and market structure changes-
The leaders are required to keep an eye on the change within the industry and to treat such
changes not as threats but more like as opportunities.
4. Change in the perception-
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With the involvement of technology and power of social networks the perception of people about
certain industry, brand or product changes overnight. This change in perception opens a road to
innovation of development of new products and services.
5. New knowledge-
With help of new knowledge and idea, organization can bring innovation and invention along
with product and services. New knowledge helps to company in develop new product and
services
6. Demographics-
A change in the demographics affects the company in one way or another. These changes
affect the demand, buying habits and quantity of the commodity. The sociology change in
employment age, education, affect the business and open new doors of innovation.
7. Process need-
The innovation is much project focuses on the specific situation. The chance for invention
ejaculate after looking into the process of the organization and clearly distinguishing he fail
points.
Role of entrepreneur:
Entrepreneur seeks a spread between the requirement of customers and deliver services to
them accordingly. He/she has various skill, knowledge and quality of carry out various functions
and activities of business. They are flexible and willing to move forward by adapting the changes
and new information (Chaston and Sadler‐Smith, 2012). They grab every opportunity be it
change in technology or any demo-graphical change or a change in the perception of the
consumers. Convert such threat into a business opportunity.
Types of innovation:
Product innovation, process innovation, architectural innovation, radical innovation,
incremental innovation, disruptive innovation, big bang and Schumacher's 5 source of
innovation.
Difference between product and business idea-
A business idea revolves around a product for selling and making money while a product
idea means to develop and innovate a new product.
Exploring Creativity:
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To identify and innovate an idea is not enough its understanding and practice is necessary. It can
be done through by mind mapping, six thinking hats, lateral thinking and picture association.
LO 2
P2- Choice of specific entrepreneurial idea:
Here we are have decided to start a new business as fast food services to establish in
London. For implementing the fast food outlet in new market at new place it is essential to
identify the need and wants of customers. The one of the crucial decision is about to have
selection of the place, the entrepreneur needs to select the posh area of London where Large
volume of Tourist uses to visit. For attracting the buyers the entrepreneur has decided to offer
attractive discount facilities so they can able to earn long term profitability and productivity. The
food outlet will be named as frying out load, London, UK.. This will be famous for fries and that
would be available in different flavors.
Identification of customer-
To identify the target market is of key importance by which organization can focus on the
specific group of customers. By select some specific group of customers, organization can meet
needs and wants of the customers in effective manner. This is more effective, affordable and
efficient (Chell, 2013).
By focus on the specific customers, organization can easily deliver appropriate services and meet
their demands.
Interpretation: It can be done by interpreting following
 Quality- the quality and the dedication shown by firm to its customers.
 Identification- how much the firm is known in the market place and what position it
holds.
 Image- what is the image of the firm among the competitor’s weather it is positive or
negative.
 Issues- how the firm handles any bad scenario in the market place.
Investigation:
it can be done by following-
 Know how- how much the manager is enabled to probe into critical area of ambiguity.
 Experience- how much experience does the manager and other top-level employees
holds.
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 Competition- how the firm deals with the healthy and sometimes the unethical
competition.
Customer segmentation:
 Demographically:This segmentation can be done on the basis of age, culture, income,
education, culture etc.
 Behavioral: This segmentation can be done on the basis of personality, attitude, values,
interests, hobbies, lifestyles and behavior.
 Geographical: This segmentation can be done on the basis of product based on seasons,
size and type of region, food inclinations, launch product and service in new region
(Dimov, 2011).
Understanding the business environment-
A business operates in an industrial environment which is both macro and micro.Both the
environment affects the firm simultaneously. Thus, firm has to identify the major environmental
factors that affects it can than it to prepare a strategy and plan to respond to such factors.
Porter's five force model:
 Industrial rivalry: The competition and the rivals the same industry makes it tough for a
new firm's survival.
 Threats of new entrance: This always boost up the competition and makes it tough.
 Threats of substitutes: A similar product in market reduces the sales.
 Power of suppliers: Number of suppliers, availability and uniqueness of product with
them, more the number of suppliers more it is easy to switch.
 Bargaining power of buyer: More the bargain less you earn.
Mckinsey 7S frame- It is approach that id comprised of hard and soft elements. This, this defined
in following manner as are-
HARD ELEMENTS-
Strategy- This is framework that aids to define vission and mission of the new enterprise so that
proper action can be carried out.
Structure- Under this, structure of the enterprise represents in hierarchical layers.
Sysytem- It is process that is inckusive of formal and informal method of operations, procedures
and communication flows.
SOFT ELEMENTS-
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Style- To undertake enterprenuerial activities effectively, the differ style must have been used as
leadership and management style.
Shared values- At this stage, standards and values used to be framed so that vision, corporate
culture and identity can become key elements.
Skills- At this level, skills of organisation and employees both will be considered.
Staff- It is about the employees, competence and job description.
LO 3
P3 Presentation of the data in order to support the gap analysis to evaluate specific
entrepreneurial idea.
Questionnaire
1. What kind of factors can influence customer at time of making purchase decision?
 Quality
 Quantity
 price
 Services
2. 2. How can customer access to information about products launched by manufacturers?
 Social media
 Mobile marketing
 Television commercial
 With use of technical advancement
3. 3. Do customers buys innovative products?
 Yes
 No
4. 4. Do you prefer to buy at the time of discount facilities offered by enterprise?
 Yes
 No
5. Do you think gap analysis approach assist to improvise profitability and productivity?
 Yes
 No
6. Is McKinsey approach supports to formation of appropriate plans for gaining
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competitive advantage?
 Yes
 No
 May be
Statistics
Whatfactorsinflu
encecustomeratt
imeofpurchased
ecision
Howcancustome
rcanaccesstoinfo
rmationaboutpro
ductslaunched
Doyoulovetobuyin
novativeproducts
N Valid 20 20 20
Missing 0 0 0
Mean 2.1000 2.2500 1.2500
Median 2.0000 2.0000 1.0000
Mode 1.00 1.00 1.00
Std. Deviation 1.11921 1.16416 .44426
Variance 1.253 1.355 .197
Sum 42.00 45.00 25.00
Interpretation- This is on interpreting the above conducted analysis which is descriptive in
nature and involves the calculation of 4 vital findings named mean, median, mode and standard
deviation. On considering the foremost query of factors influencing customers while making
decisions, it has been found that its mean value is supporting the 2nd option, which is Quantity.
Similarly, the median value is also found to be 2. This means that more than 50% of participants
have somewhere favoured the factor of quantity. However, the mode value, i.e., 1 signifies the
fact based on acquired frequency that has mainly supported the 1st alternative, i.e., quality.
Although, the value of standard deviation has been found to be 1.11 which signifies no much
deviation of mean value.
Likewise, another query is in regard to identify the way by which, customers can easily
access the information about any newly launched product and services. Herein, both values of
mean as well as median have signified a major preference towards mobile marketing. However,
the value of mode being 1 has indicated a huge emphasis on the use of social media by the
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consumers to determine such type of information. Lastly, any change in the value of above
acquired mean does not seem to change much on referring to the attained value of standard
deviation, which is 1.64.
Finally, the urge to buy innovative products by the customers was tried to be
acknowledged. At this point, all values of mean, mode and median depicts the value 1 and hence,
supports the 1st alternative stating Yes by most of the consumers. Also, the value of standard
deviation represents negligible chances of changing the above calculated values.
Theme 1: Quality affects at time of making purchase decision.
What kind of factors can
influence customer at time of
making purchase decision? Frequency %
Quality 8 40.00%
Quantity 5 25.00%
price 4 20.00%
Services 3 15.00%
Total 20 100.00%
Frequency Table
Whatfactorsinfluencecustomerattimeofpurchasedecision
Frequency Percent Valid Percent Cumulative
Percent
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Valid 1.00 8 40.0 40.0 40.0
2.00 5 25.0 25.0 65.0
3.00 4 20.0 20.0 85.0
4.00 3 15.0 15.0 100.0
Total 20 100.0 100.0
Interpretation- As per above frequency table it has been interpreted that 8 respondents said that
they makes purchase decision as per quality of commodities. 5 said they prefers quantity, 3 said
they prefer product on basis of it price and 3 said that thy prefers services to buy commodities.
Theme 2: Social media helps to access information of products.
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2. How can customer can access
to information about products
launched by customers? Frequency %
Social media 7 35.00%
Mobile marketing 5 25.00%
Television commercial 4 20.00%
With use of technical
advancement 4 20.00%
Total 20 100.00%
Howcancustomercanaccesstoinformationaboutproductslaunched
Frequency Percent Valid Percent Cumulative
Percent
Valid 1.00 7 35.0 35.0 35.0
2.00 5 25.0 25.0 60.0
3.00 4 20.0 20.0 80.0
4.00 4 20.0 20.0 100.0
Total 20 100.0 100.0
Interpretation- As per above stated frequency table it can be stated that there are total number fo
20 respondents. In which 7 said yes they relay on social media, 5 said they laid over mobile
marketing, 4 depends over television commercial and 4 said they related with technical
advancement.
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Theme 3: Most of respondent like to purchase innovative commodities.
3. Do you loves to buy
innovative products?
Yes 15 75.00%
No 5 25.00%
Total 20 100.00%
Doyoulovetobuyinnovativeproducts
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Frequency Percent Valid Percent Cumulative
Percent
Valid 1.00 15 75.0 75.0 75.0
2.00 5 25.0 25.0 100.0
Total 20 100.0 100
Interpretation- Based on above frequency table it can be interpreted that 15 candidates said yes
they purchase innovative commodities and 5 said they don't like to buy innovative stuffs.
Theme 4: Yes, discount offers attract maximum buyers.
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4. Do you prefer to buy at the
time of discount facilities
offered by enterprise? Frequency %
Yes 17 85.00%
No 3 15.00%
Total 20 100.00%
Theme 5: Yes, gap analysis helps to improvise firm profitability and productivity.
Do you think gap analysis
approach assist to improvise
profitability and productivity. Frequency %
Yes 18 90.00%
No 2 10.00%
Total 20 100.00%
Theme 6: Yes, it aid to gaining competitive advantage.
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Is Mc Kinsey approach supports
to formation of appropriate
plans for gaining competitive
advantage? Frequency %
Yes 10 50.00%
No 7 35.00%
May be 3 15.00%
Total 20 100.00%
Gap analysis is required for every business as it is useful to make effective comparison of
actual performance with potential or desired. The gap analysis reports are used to verified by
project manager under sectors of IT. In order to setting up of business operation in London as
Fast food outlet, it is crucial to know about the condition of selected market. It can be done
effectively with help of gap analysis approach. With help of it, profitability and productivity can
be identifying so that there can be improvement in performance of an enterprise. To make it
proficient, I have selected McKinsey approach so that actions can be measured out effectively.
Due to it, best location for fast food outlet can be known. Thus, it has been divided into
approaches as hard and soft. It is important to have formation of appropriate plans of action so
that competitive advantage in market can be build. The main aim behind this is to
accomplishment of objectives. In order to run business successfully it is essential to develop
innovative ideas so that customers can get attracted towards working of an enterprise.
It is one of effective way to understand and prioritize with identifying deficiency and
shortcoming and this all need to be overcome. This is supportive to decision makers to have
comprehensive overview about the functioning of an enterprise. With help of it all functions can
be overlooked as are Accounting, information technology and operational functions. It is helpful
for the department and organisations to meet business goals and objectives so that innovative
ideas can be established effectively. In addition to this, identification of business opportunities
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opportunity is built in terms to identifying gaps in market. The firm can able to get success if
entrepreneur is able to make proper evaluation of need and wants of customers.
In this term, Development of effective approach will lead to have success in market. With
help of systematic approach and effective coordination of marketing activities it is possible to
have completion of task successfully. There is need to control and monitor overall activities so
that better function can be performed. In order to run business successfully, I need to hire best
suitable employees who can able to carry out better research and can develop innovative
approach so that function of firm can be performed effectively.
In order to set up food outlet in new market it is essential to know about taste and preferences of
customers. To process business activities effective, it must to make modification so that
customer can get attracted towards it. As per the data analysis of London market, it is must to
hired skilled professionals so that they can able to understand exists competition. To deal with
rivalries they need to adopt suitable strategies so that they can make better modification in
existing food and beverages. The idea can be successful if there is any innovation which can
attract the customers of new market. With help of this kind of approach, it is possible to fulfil
desired aims.
P4 Interpretation of the data in terms to provide the evidence of market potential.
From the analysis, it can be interpreted that there are number of outlets which are running
their business function in Posh areas. To earn profitability, it is essential to develop strategies
which will helps to process business function systematically. To cope up with it, innovative
approaches are need to be developed so that operations can be carried out systematically. Being
entrepreneur, I have faced number of milestones at the time of developing new outlet in market.
From given data analysis of UK, in 2008 to 2008 and after decline in 2009 the number of fast
food chains are steadily increasing. Under it can be seen that, in the year of 2016 there were
almost 83, 634 restaurants and fast food business were operating. In order to compete it is
essential to include unique favours so that customer can get better taste. In order to sustain new
business, it is essential to make proper modifications. In addition to this, it can be said that
invention and innovation will be helpful in terms to attracting general pubic of London. The
selected location is in front of universities and most of student are seeking their demand for
Pizza, Burger, snacks, Sandwich etc. with some unique flavour.
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Furthermore, targeted audience are male and female between age of 25 to 30 year. With help of
proper segmentation, it is essential to understand the need and wants so that firm can able to
enhance its profitability and productivity after setting up of venture in new market. Thus, it can
be said that the consumption of fast food is rapidly increasing because there is rise in number of
populations. With help of unique and differed innovation from its competition the firm is able to
get success. The new venture is almost dependent over innovation approach and it should be
differed from existing products. This functioning will help to facilitates long term growth and
sustainability.
LO 4
P5 SWOT framework to support objective framework
SWOT is basically a technique to analyse strength, weaknesses, opportunities and threats
for any organization. By conducting SWOT analysis business planning becomes easier and
management can achieve goals examining external and internal factors. In this, SWOT is need to
be conducted on business idea as to open venture of food outlet in London. It will be defined in
following context as are-
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 Strength- The main strength is that London is among best tourist destination. With help
of establishing Fast food service in that particular location will be helpful to attend
competitive advantage in market.
 Weaknesses- The fast food outlet is yet to established. With help of limited funds
available, the innovation cannot be taken place effectively. It can be weakest point of fast
food restaurant.
 Opportunities- This firm can be established in the areas where new housing development
is being built, in area which is tourist attraction o may be in building new has became
available so expansion can be possible.
 Threats- The major threat exists is rivalries in market. Some of them can lower their price
and cab start price war, this kind of situation are tough to establish operation of new firm
in market.
Objective of SWOT analysis should be decided:
This analysis is done if there is launching of any new product or service or any kind of
change in management system (Blockeel, et al., 2016). Therefore, mind should be set to start this
analysis and objective or goal should be there at initial stage.
Research business, market and industry:
Research work should be completed in the targeted market and understood by the leaders
before starting this analysis. It helps in understanding of business position and market trends and
other perspectives regarding business partners, competitors and staff members. So fast food
industry should do primary and secondary research of the country before allocation of its
resources.
Listing Business strengths:
First stage is to list business strengths which includes financial resources, cost
advantages, and competitive structure of the firm. It is not necessary that list has to be definitive.
All types of thoughts and ideas are welcomed and encouraged. Main strengths of fast food
organisation are its effective and experienced employees who can bring change in the
environment and culture.
Listing business weaknesses:
At this stage weaknesses of fast food employees are considered which can be
absenteeism of staff members, poor coordination among them, absence of new and innovative
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products or clients, lack of intellectual property, decrement of market share. These disadvantages
show the rate of business growth in few years. While some business weaknesses are resolved in
past few years. Fast food industry should list all these weaknesses and make improvisation so
that more profit can be gained.
Opportunities should be listed:
These include external opportunities of any organisation. Any opportunity of a firm can
become threat of another (Hartmann and Vachon, 2018). If the business is launching a new
product in market then it should firstly make research that the particular product is already in the
market or not. Else launching would definitely fail further. Fast food organisation should grab
opportunities like joint ventures, diversified marketplace and technological aspects to increase
productivity.
Potential threats of business
Threats include unemployment in communities, increasing competition, uncertainty of
global market and change in government policies. These all have adverse effect on functioning
of business. Various operating departments are badly affected from these external threats. So
any organisation has to be prepared for future threats and should avail opportunities on period.
When any organisation set up its branch in other country then it should look into its rivalries or
upcoming threats. This helps in managing its sustainability in the market. Thus, this SWOT
analysis would help organisation in establishing its branch in new country. Finally, a review is
done and strategy is followed regarding SWOT analysis.
P6 Competitive and market environment in which idea can be launched
In today's era environment is nearly competitive for every organization. There is
competition from local firm to national and international firms. With the emergence of new and
innovative products competition is increasing enormously. By applying Porter's five forces it can
be easily understood and verified. An environment can be competitive or complex among
industries which results in generating profits and sales. Strategic decisions are made by company
to analyze new entrants for any reason and that area can be under served on the basis of profit
margin. Company gains advantage from patent process which is permanent (Jaber, et al., 2015).
In industrialized economy there can be number of buyers and few suppliers which make market
supplier dominant and large share of profit goes under them. But reverse happens when many
suppliers are present and only few buyers are there due to which control transfers to supplier.
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While market environment is controlled by political, economic, competitive, technological,
consumer behavior and social environment. Competitive environment is one of the parts of
market. Various external factors of market affect operations of business. Micro, internal and
macro are major levels of environment. Community forces affect small forces but internal
environment is influenced and controlled by external environment. Macro environment consists
of green technology, inflation rates, population change, media sources, recession period while
micro environment includes customers, suppliers, trade unions, distributors, banks. All capital
assets, organizational firms, its policies and activities are considered as internal forces.
Organization is aware these forces and can control them in the future (Keller, 2016). Social and
political, demographic, legal aspects are considered in macro environment. They affect various
market segments like cultural norms and values, country age, ethnic lifestyle. Any product or
production procedure which is harmful to community should be avoided.
PESTLE analysis of fast food organization:
Political factor: Political factors influence business organization to great extent. Organizations
should be prepared to deal with the risk associated with international and local politics. It
includes decrease or increase in tax, change in policies, bureaucracy, tariffs etc. Business
operations of fast food are affected by lack of political stability, legislation and various other
laws.
Economic Factor: Economic factor also affect organizational management to great extent. It
includes inflation rate, recession, increase and decrease in interest rates, demand and supply of
fast food organization.
Social factor: Social factor of the country include population growth rate, income statistics and
education level. Organization should satisfy customer needs like buying habits, religion and
beliefs and their investing power. Thus, it should follow customs and trends of that country so
that it can achieve its goals.
Technological factor: Technological factor in today's era play an important role. Social sites
like Facebook, Twitter have become popular for promoting things and brands (Hartmann and
Vachon, 2018). So, firm should take its positive use and increase its marketing level.
Legal Factor: Legal factors include consumer, discrimination, employment and import/export
laws. They play in deciding profits and business operations of the firm. Consumer behavior is
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also affected through legal laws. Therefore, organization should follow particular country's
governing rules and regulations.
Environmental factor: Mostly in companies emphasize on climate and weather of that country
like London. Organization should make use of renewable resources because customers are more
attracted towards such firms who follows waste disposal laws and make less use of energy. They
should move towards green environment and set their branches according to geographical
location because changes in climate can impact trade in the future.
CONCLUSION:
Finally, it is concluded that to determine opportunities and threats SWOT analysis should
be conducted and data is presented to analyse market potential and evaluation has been done to
provide entrepreneurial information. Any organisation should confirm its external and internal
forces so that future consequences are clear to it. Competitive market is increasing which is
prime factor of market environment and affects business to much extent. Research should be
done by organisation before coming in the competitive world as many new arrivals are there
whether it is small scale or large-scale industries.
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