Report on Identifying Entrepreneurial Opportunities - Natural Essence
Added on 2020-06-04
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Identifying Entrepreneurial Opportunities
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1 Identification and assessment of different sources of entrepreneurial ideas..........................1TASK 2............................................................................................................................................3P2 Rationale and market gap for particular entrepreneurial idea by using appropriate tools ....3TASK 3............................................................................................................................................5P3 Data needed that help in evaluating entrepreneurial idea .....................................................5P4 Interpretation of the data .......................................................................................................6TASK 4............................................................................................................................................7P5 Application of SWOT analysis to measure entrepreneurial idea...........................................7P6 Evaluation of market and competitive environment to assess potential viability .................8CONCLUSION................................................................................................................................9REFERENCES .............................................................................................................................10
INTRODUCTIONIn today's competitive market, there are ample number of opportunities prevails in themarket that needs to be properly exploited by entrepreneur so as to gain high competitiveadvantage over other rivals (Block and Wagner, 2010). It is the willingness and capacity ofentrepreneur to develop, manage and organize a new business venture along with any type ofrisk associated with it in order to make profit. They carried out their business activities in such amanner that contributes significantly towards the growth and development of the country. Theselected company for this report is Natural Essence which is a skin and health care industry. Thecompany has decided to launch new range of cosmetic product that are made up of organic andnatural ingredients. This business will commercially viable with the help of new and innovativemethods of marketing. Natural essence can expand business with the help of partnership orfranchise business. IT includes assessment of various sources of entrepreneurial ideas, SWOTanalysis, rational deciosn taken and interpretation of data. TASK 1P1 Identification and assessment of different sources of entrepreneurial ideasAn entrepreneur is the one who instead of working as an employee, found and run a smallbusiness taking on financial risk in the hope of making profit. In order to determine the impact ofexternal factor on business operation and activities, STEEP tools is taken into consideration. It isimportant for every company to consider some external forces before taking final decision. Thisanalysis is often conducted by entities so to get a detailed overview on what external elementsdetermine the trend. STEEP stands for social, technological, economical, environmental andpolitical. Social Factor: It include factors like demographics, lifestyles, values, purchasing pattern ofcustomer etc. Needs and wants of customers are rapidly changing, therefore it is essential forevery firm to identify what are the current like and dislikes of customer. For example: Naturalessence is introducing new range of cosmetic product made up of organic and naturalingredients. So they need to investigate whether it will liked by customer or not keeping in mindtheir current requirement. Technological Factor: This factor highly focuses on technological advancement. It encompassesinnovation, research and development, life-cycle of product, transport etc. Everyday newinnovation or invention takes place which creates an urge among entities to update their current1
technology with the latest and advance one (Dimov, 2011). High end technology creates lots ofopportunities for the company and provide them the advantage to gain high competitiveadvantage in the market. For example: With latest and innovative technology, Natural Essencecan manufacture their product in a cost-effective and timely manner. Economical Factor: The economic condition of respective country is strongly inter-linked withcustomer's buying position. It include factors like savings, international trade, inflation, interestrate, subsidies etc. The company is introducing new organic range of cosmetic products in themarket. The cost of organic product is little higher as compared to other product. Now if inflationarises in the economy, prices of these products automatically increases. With such high pricesthere might be chances that customer may shift to some other local brand (Ekpe, Mat and Razak,2010).Environmental Factors: Such factors are associated with ecosystem factors like water,pollution, environment regulation, pollution etc. The company indirectly benefits theenvironment as they deal in offering new range of cosmetic product that is made up al naturaland organic ingredients. Political Factors: Such factors determine the extent of government in terms of impactingbusiness activities and operation. It include factors like political stability, tax policies, priceregulation etc. Before launching new business venture in the market, entrepreneur needs toanalyse the political situation of respective country in which they are planning to introduce itsproduct. 7 Drucker's Source of Innovation: It includesThe Unexpected: It is an outside event that mainly takes place independently of what thecompany is working on. There are large number of opportunities exist in the market, only theentrepreneur must know how to exploit it in an appropriate manner. Incongruities: It is a disconnect between what it actually is and what people assume to be. Forexample: The demand of organic product increases but the economic performance of company isnot. It mainly outlines the difference between reality and assumption. Process Needs: Firms tries to implement new innovative methods that help in carrying outbusiness operation and activities in an effectual manner. 2
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