Innovation and Entrepreneurship: Business Idea Development and Business Plan

This report explores the concepts of innovation and entrepreneurship in the context of a new restaurant called Craving Feed. It discusses the development of a business idea and the creation of a business plan for the restaurant. The report also analyzes the market and competition, as well as the operational details and financial requirements of the restaurant.

Innovation and
entrepreneurship
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CONTENTS
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Business idea development..........................................................................................................3
TASK 2............................................................................................................................................4
Business plan...............................................................................................................................4
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9
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INTRODUCTION
Entrepreneurship is defined as the process used by an individual entrepreneur in order to set up
business with some innovative idea or bring a improvement over the existing product or services
in order to cater the need of people and expectation rise in market along with macro
environmental challenges (Edwards-Schachter and et. al., 2015). The current report is based on a
new restaurant named as Craving feed which is based on a theme of tree house that help in
attracting larger number of tourist as well as local people to avail services. This report explains
about business idea in term of new innovation and business plan.
TASK 1
Business idea development
The entrepreneurship and innovation conceits are quite interlinked, as entrepreneurs are known
for their capability brings something unique in market to cater the need of particular segment and
at the same deal with the competition in more effective manner to outshine. As the hospitality
industry is growing at a rapid pace it is generating more and more business opportunities for the
people who come up with new ideas that have the capability to provide maximum satisfaction to
the customers and contribute toward the economy of country. London is one of the most
attractive city of UK which brings up number of tourism each year that are also support in
enhancing the sales of restaurant businesses too (Eesley and Miller, 2017). But this is only
possible when a restrict would have some unique features that have the capability to attract
people toward it through word of mouth publicity. The competition is restaurant sector is
reactively higher in London as larger number of restaurant are already established with some
unique service or culture they are offering.
So, to avail the opportunity of growth in restaurant sector while dealing with the
competition in market. It has been decided by entrepreneur to establish a tree house themed
restaurant names as “Craving feed” which is totally unique concept for the London street which
will become a place in the list of tourist and also remain point of attraction for local people. The
idea behind this theme restaurant is to establish a restaurant that is designed in a shape of
treehouse, which are basically some cabins that look alike it is constricted over tree. Other than
this the utensils and furniture used within the restaurant will also be of wood and each cabin
contains certain vines and small plant of flowers which instantly refresh the mind of people and
provide them with positive vibes. This theme will support in attracting more and more people to
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spend their time in such place where they get a natural touch while having a meal along with
flower fragrance and fresh area which instantly make them happier.
This theme will support in achieving the competitive edge, as this is new to market which
is not being adopted by other restaurants till now. Another factor is that it is more focused toward
green environment which is a major concern of government and people also. So this idea will
likely to attract people to the restaurant as they get a place where they can relaxed while having a
nature touch that always remains favourite for the people (Etzkowitz and Zhou, 2017). Other
than this the unique structuring, interior and use of equipment’s and utensils hat give illusion of
tree house, if get promoted effectively will also become a part of tourism activities as tourists
mainly seek for the things or places which are different and help in aiding toward improving
their experience for a particular visit at a places. Hence, it can says that it help in attracting
customer and at the same time will contribute toward attaining the competitive edge within this
competitive world.
TASK 2
Business plan
Business plan is defined as the formal document that contains the detail about the
business goals along with the methods that help in guiding the actions to be adopted for
achieving these objectives in a particular time frame (Zhou, 2015). The Business plan is mainly
prepare to provide a direction of work in order to bring consistency and reliability in work
performed toward achievement of set of goals and objectives. The business plan for this
restaurant is mentioned below:
Executive summary:
The Craving feed restaurant is treehouse theme-based restaurant which is developed over
an idea of setting up a place by focusing ion green environment concept where people can spend
their time and get positive energy by surrounding them with nature (Galindo and Méndez, 2014).
It is structured in the form of tree house where several cabins are created where furniture,
utensils or other equipment’s are arranged in such a manner that it truly represent the
environment.
Mission: To become a tourism attraction place by offering unique ambience to have a
meal.
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Vision: To create a place where people get rich experience and found peace to get
relaxed.
Objective:
The main objective of Craving feed is to get market competitiveness for its unique
offering but to achieve this it is required to set up smart objectives that Specific, Measurable,
Achievable, Reliable and time bound. These are mentioned below
 To successfully launch a themed restaurant in market of London
 To enhance its sale by 20% in 4 months i.e. by October 2020.
Market analysis
The customers always seek for a restaurant or café which is full of peace, privacy and
provide a vibes to feel happy so that they get relaxed and enjoy their moments or certain kind of
celebration. The Carving feed restaurant is catering this need, as nothing could be better place to
get relax which is surrounded by nature as it gives instant happiness to people and calm them
down from the whole day tiredness (González-Pernía, Jung and Peña, 2015). So Craving feed
restaurant would be able to cater this need of people which will become a major factor to achieve
competitive edge and provide maximum satisfaction to them.
In order to have a clarity about the customers to be approached to cater this services of
restaurant STP model is used which is mentioned below:
Segmentation: This involve the method of dividing a big market into small group as per
their homogeneous characteristics which allow the restaurant to separate a area over which it
must focus. So, the segmentation of customer market will be performed on the bases on
demographic segmentation for Craving feed restaurant.
Targeting: - After segmenting the market the next is to target a particular set of people
who actually want services offered by the Craving feed restaurant. In this the targeted people of
all age group that would be both tourist as well as local people of London (Schmitz and et. al.,
2017).
Positioning: The restaurant will be positioned with the concept of natures place to make
the people enjoy their meal while having a experience to present in a forest. This help in
attracting more and more people to it.
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With these strategies it is being assumed that market will grow as it target both the local
as well as tourist which never left the business to get limited with the a particular season and
bring constant earning.
Industrial analysis
Before entering into market it is crucial for the Craving Feed restaurant to thoroughly
study about the industry in which it is going to operates so that it become able to set determine
all the favourable and unfavourable factor that can influence its business (Landström, Åström
and Harirchi, 2015). This can be done with the help of porter’s five force model:
Factors Description
Bargaining power of
buyer
The bargaining power of buyers is high as London is a house of lager
number of restaurant developed on different themes that give more
switching power to customers.
Bargaining power of
supplier
The bargaining power of suppliers is low as larger number of suppliers
are present I market so Craving feed restaurant can easily switch from
one supplier to another.
Competitive rivalry The competition is relatively higher in London market so that risk of
competition would eb higher for Craving feed that can also affect its
profitability if not managed effectively.
Substitute The substitute risk is moderate as the substitute of restaurant is online
food order but this is not always preferred by customers specially
when they visit place like Camley Street Natural Park.
Threat to new entry This threat is higher as the customers of London allow new set up of
restaurant with unique themes. But the theme of Craving feed is
different and unique this take up time for new entrant to come up with
more innovative theme. So, by regularly making changes in restaurant
it can beat the threat of new entrant.
Operation details
 Location: As the restaurant is set up over the theme of treehouse so it will be more
fruitful to set up it near to a place which is full of greenery so that people feel happy to
being in restaurant. So it is decided to set up the restaurant at King Cross in London,
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nearer to Camley Street Natural Park. This would be a better place as people get
surrounded with greenery and at the same time people who visit the this park can also
become the customers of Craving Feed restaurant. Addition to this, visit to location is
also very much comfortable as this Camley Street Natural Park is one of the most
prominent place to visit and highly in attraction, due to which range of transport mediums
are available and is also present in centre of London.
 Competitors: The competition for restaurants within London is relatively higher as the
number if restaurant are already present in market which offered better services and due
to which sustain in market from a longer period of time (Sahut and Peris-Ortiz, 2014).
Due to their experience in market they are better than Craving Feed as it is new to enter
in market. other than this the service which is more better by the side of their restaurant is
cuisines and continental food offering of different countries which is not possible for
Craving Feed at present time.
 Opportunity: The opportunity present in from of Craving Feed is to offer the organic
food that is healthier and also go with the theme of restaurant. Another opportunity
present is to set more branches in London if it get accepted by the market with first try.
 Threat: The biggest threat to Craving feed is competition present in market as tehre are
larger number of themed restaurant that are serving in London market from years and
also have huge popularity in marketplace (Sart, 2014).
Finance required
Before starting up the work over this busines plan it is crucial to firstly determine
the cost that will incurred so that appropriate arrangement for fund can be done prior to
execution of work. For the Craving Feed restaurant the start-up cost which involve the
amount of basic and crucial factors are mentioned below:
Particulars Amount
Initial money 14000
Equipment’s 3000
Furniture 4000
Building 9000
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Total 30000
CONCLUSION
From the above report it can be concluded that innovation plays a significant role in the
growth and success of a business by providing them with a medium through which the need or
want of customers can be served in more effective manner. other that this the innovation in
busines practices plays a significant role in keeping customers aligned with the business and at
the same time deal with the competition by offering the good and services better then rivalry. But
in order to effectively bring innovation in busines operations it is crucial for the business to
firstly prepare a business plan which provide direction to execute work and achieve main
objectives.
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REFERENCES
Books & Journals
Edwards-Schachter, M., García-Granero, A., Sánchez-Barrioluengo, M., Quesada-Pineda, H. and
Amara, N., 2015. Disentangling competences: Interrelationships on creativity,
innovation and entrepreneurship. Thinking Skills and Creativity, 16, pp.27-39.
Eesley, C.E. and Miller, W.F., 2017. Impact: Stanford university's economic impact via
innovation and entrepreneurship. Available at SSRN 2227460.
Etzkowitz, H. and Zhou, C., 2017. The triple helix: University–industry–government innovation
and entrepreneurship. Routledge.
Galindo, M.Á. and Méndez, M.T., 2014. Entrepreneurship, economic growth, and innovation:
Are feedback effects at work?. Journal of business research, 67(5), pp.825-829.
González-Pernía, J.L., Jung, A. and Peña, I., 2015. Innovation-driven entrepreneurship in
developing economies. Entrepreneurship & Regional Development, 27(9-10), pp.555-
573.
Landström, H., Åström, F. and Harirchi, G., 2015. Innovation and entrepreneurship studies: one
or two fields of research?. International Entrepreneurship and Management
Journal, 11(3), pp.493-509.
Sahut, J.M. and Peris-Ortiz, M., 2014. Small business, innovation, and entrepreneurship. Small
Business Economics, 42(4), pp.663-668.
Sart, G., 2014. The new leadership model of university management for innovation and
entrepreneurship. Eurasian Journal of Educational Research, 57, pp.73-90.
Schmitz, A., Urbano, D., Dandolini, G.A., de Souza, J.A. and Guerrero, M., 2017. Innovation
and entrepreneurship in the academic setting: a systematic literature
review. International Entrepreneurship and Management Journal, 13(2), pp.369-395.
Zhou, J., 2015. The Oxford handbook of creativity, innovation, and entrepreneurship. Oxford
University Press.
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