Sample Identifying Entrepreneurial Opportunities Assignment PDF

Identifying
Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation..............1
TASK 2 ...........................................................................................................................................3
P2 Explain the rationale and the market gap for a specific entrepreneurial idea using relevant
tools and techniques to support your choice...............................................................................3
TASK 3............................................................................................................................................4
P3 Present data needed to support gap analysis in the evaluation of a specific entrepreneurial
idea..............................................................................................................................................4
P4 Interpret data appropriately to provide evidence of market potential....................................6
TASK 4 .........................................................................................................................................10
P5 Apply a SWOT framework to collate evidence to support an objective assessment of a
specific entrepreneurial idea.....................................................................................................10
P6 Evaluate the competitive and market environments in which the idea will be launched to
assess potential viability............................................................................................................12
CONLUSION ...............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Entrepreneurship is basically a process which primarily deals with designing as well as
launching new business. It is described as the capacity as well as willingness to manage and
develop a business venture along several risks in to make profit. In today' s competitive world
there are several entrepreneurial opportunities which are potentially available in marketplace.
Through these entrepreneurial opportunities products and services are usually sold at a price
greater than cost and profit is attained. Under this report a new bakery store is coming up in the
market of United Kingdom in order to significantly earn profit. The new idea which bakery is
planning is to provide chocolate cookies enriched with brown sugar and serve on wheels.
Outcome of this report is based on several ideas through which innovation invented by The
Baking Room becomes successful. Determination and evaluation of different sources of
entrepreneurial ideas and innovation will be done. Furthermore, identification of market gap
would be considered in order analysis relevant tools and techniques. SWOT Analysis and
evaluation of competitive market environment will be conducted in order to identify potential
viability.
TASK 1
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation.
With increase competitiveness in almost all business sectors each and every entrepreneur
in marketplace is coming up with new and creative business ideas in order to significantly
capture a new market share (Autio and et.al., 2014). Prime motive of Entrepreneurs is to
innovate a product which is exactly different from company's potential competitors and new
customers by respective firm is captured through desired business objective is achieved. Herein,
the entrepreneur has adopted Drucker's source model in order to identify ideas and innovation.
Following are some steps which are considered under this model:
 The Unexpected: Innovation usually take place within an organisation unexpectedly.
However, marketers usually need to make a proper analysis in order to identify the actual
demand of targeted customers. Through this analysis and unexpected idea is basically
inherit.
 Incongruities: It is a process under this entrepreneur usually aims at thinking differently
and going out of the box. This a method which is never introduced in potential market.
1

 Process Need: Innovation highly requires process need. Under this determination is
made to identify the exact requirement and then implementation is adopted accordingly.
Several aspects are considered under this stage of innovation.
 Industry and Market Structure Change: Existing market structure which an
organisation usually follows generates several steps through which several chances of
innovation are witnessed. Sometimes due to change in market structure and industrial
change innovation is invented.
 Demographics: Lifestyle adopted by people living in UK enormously affects the kind of
innovation which is be adopted by an organisation. Furthermore, demographic factor
highly impacts the over-sales within an organisation (Davidsson, 2015). Eventually under
this step identification of target consumers is made on the basis of income group, age and
several other such factors.
 Changes in Perception: Change in perception of company's potential consumers
enormously impacts the overall growth of entrepreneurial business. Through this change
in perception birth of innovation becomes necessary. Herein innovation is made possible
because of changing perception of company's potential customers.
 New Knowledge: This is an information source through which marketers are made aware
about the trends which are being followed in potential market. It is a prime source
through innovation is invented. New knowledge can be both scientific and non-scientific
in nature.
In context to The Baking Room, major source of innovation is change in perception of
people living in UK. Now-a-days people have become highly health conscious and aims to
follow healthy diet. Moreover, due this change in perception The Baking Room is significantly
planning to launch chocolate cookies enrich with brown sugar. Through this model idea adopted
by The Baking Room can successfully become popular and desired business objective can be
significantly achieved (Godley, 2013).
2

TASK 2
P2 Explain the rationale and the market gap for a specific entrepreneurial idea using relevant
tools and techniques to support your choice.
Currently bakery store is serving its products on wheels and major innovation invented
by them is that it will potentially provide chocolate cookies enriched with brown sugar to the
people living in United Kingdom. The basic idea to come-up with this innovation is because
people are becoming health conscious and it has been observed that there are number of diabetic
patients under UK market. However, through this invention The Baking Room can potentially
capture new market and enhance their overall productivity.
Gap Analysis is a strategic tool which is essentially used by management of a firm to
identify where a company is going and what is the actual potential of that respective firm. At
glance gap analysis basically compares actual achievement with potential achievement (Hsiao,
2013). However, there are several reasons due to which this kind of gap within an organisation is
witnessed. Whereas market gap analysis is a way under which analysis is conducted in order to
identify opportunities where demand is greater than supply.
With reference to current innovation launch by The Baking Room there is market gap
which is significantly analysed. However, measures might to implemented in order to overcome
this gap. It this witnessed that there are several other competitive bakeries store which are
providing similar product with premium prices and wherein The Baking Room is providing same
products with moderate pricing.
In order to effectively overcome the market gap faced by The Baking Room company can
effectively make use of Fishbone model. It is basically identified by manufacturing team in order
to understand periodic iron contamination. Under these six generic headers are used to prompt
business ideas.
Under fish-bone model firstly the major reason for problem is significantly analysed, then
major cause of these problems are further considered. This is primarily concerned with machine,
methods, materials and several other such aspects. After listing causes of categorizing is
eventually done on the basis of nature of problem. Furthermore, identification of keeping and
root causes are identified. Through adoption of this model the major reason behind problems
within an organisation is identified.
3

TASK 3
P3 Present data needed to support gap analysis in the evaluation of a specific entrepreneurial
idea.
Gap Analysis is technique which essentially used to analyse gap between targeted and
anticipated results. It basically involves a comparison between present business performance and
standard which are previously established (Kacperczyk, 2013). Therefore, gap analysis is a
foundation which significantly measures investment time, money and human resources which
required to achieve desired objective.
This gap shall be analysed using primary as well as secondary data approach through all
the major points relating to respective business are eventually made clear.
 Primary Data: Primary research is basically defined as a methodology under which
marketers collected all the necessary data directly rather than depending on previously
collected data. Furthermore, primary research is basically carried out to address solution
to a particular problem (Karimi and et.al., 2016). With respect this report entrepreneur
have prepared questionnaire in order to identify reason behind market gap. Moreover, it
has been significantly noticed that there are several number are people within UK market
4
Illustration 1: Fish-Bone Model
Source: Fishbone Model Template, 2019

who have highly appreciated this idea invented by The Baking Room as it has been
identified by introducing questionnaire.
Questionnaire
Name:
Email ID:
Contact No.
Q1. Are you aware about the concept of Bakery on wheels?
 Yes
 No
Q2. Does chocolate cookies enriched with brown sugar assist in providing desired satisfaction
to customers?
 Yes
 No
Q3. Does Bakery on wheels can provide desired services to different customers at the same
time?
 Yes
 No
Q4. Will chocolate cookies enriched with brown sugar be able to gain competitive advantage
for respective bakery?
 Yes
 No
Q5. Is there any requirement of implementing promotional activities to introduce services of
The Baking Room?
 Yes
 No
 Secondary Data: Secondary research primarily includes the data which is already
collected by some other individual. It basically includes material published in research
reports and many other similar documents. However, this type of data collection
technique is cost effective in nature. In order to analyse market gap, it is essential to
identify market value of bakery industry in UK. Through this, The Baking Room can
5

introduce their services at targeted locations easily. Contribution of bakery industry in the
economy of UK aid in determining appropriateness of The Baking Room’s strategic
option as to introduce their services at moderate and low prices.
Figure 1Bakery industry UK
Sources: Bakery Product Production Industry, 2019
As per the above graphical representation it has been analysed that bakery industry in UK
getting a desired growth this is because the predictions are also in the favour. Therefore, it can
denote opportunity for The Baking Room.
P4 Interpret data appropriately to provide evidence of market potential.
Following is the questionnaire which is prepared by entrepreneur in order to exactly find
out the situation of bakery in potential market place.
Theme 1: Awareness concept of Bakery on wheels
Are you aware about the concept of Bakery on
wheels ?
Frequency
 Yes 20
 No 10
Mean 15
Mode 0
Median 15
6

Interpretation: From the above graph it can be interpreted that out of 30 respondents 20 of them
are aware about the concept of Bakery on Wheels whereas remaining 10 of them are not aware
about this concept.
Theme 2: Desired satisfaction
Does chocolate cookies enriched with brown
sugar assist in providing desired satisfaction to
customers?
Frequency
 Yes 19
 No 11
7
20
10
Yes
No

Mean 15
Mode 8
Median 15
Interpretation: From the above graph it can be interpreted that 19 of the total 30 respondents
thinks that chocolate cookies enriched with brown sugar assist in providing desired satisfaction
to customers whereas remaining 9 of them disagree with this.
Theme 3: Services provided at same time
Does Bakery on wheels can provide desired
services to different customers at the same
time ?
Frequency
 Yes 16
 No 14
8
19
11
Yes
No

Mean 15
Mode 2
Median 15
Interpretation: It can be observed from the graph that 16 out of 30 respondents are in favour that
Bakery on wheels can provide desired services to different customers at the same time. Whereas
the remaining 14 are not in favour of this concept.
Theme 4: Chocolate cookies enriched with brown sugar be able to gain competitive advantage
Will chocolate cookies enriched with brown
sugar be able to gain competitive advantage for
respective bakery?
Frequency
 Yes 21
9
Yes No
13
13.5
14
14.5
15
15.5
16
16
14
Column C

 No 9
Mean 15
Mode 3
Median 15
Interpretation: From the above chart it be interpreted that out of 30 respondents 21 thinks that
chocolate cookies enriched with brown sugar be able to gain competitive advantage for
respective bakery whereas remaining 9 disagree with this.
Theme 5: Promotional Activities
Is there any requirement of implementing
promotional activities to introduce services of
The Baking Room?
Frequency
 Yes 25
 No 5
10
21
9
Yes
No

Mean 15
Mode 0
Median 15
Interpretation: It can be observed from the above pie chart that 25 out of 30 respondents thinks
that implementing promotional activities to introduce services of The Baking Room is essential
and the remaining 5 of the respondents are not in favour of this.
TASK 4
P5 Apply a SWOT framework to collate evidence to support an objective assessment of a
specific entrepreneurial idea.
SWOT Analysis of Cafe
11
25
5
Yes
No

It is a technique used to assess performance, competition, risk and potential of a business
and its product or services. SWOT is defined as an analysis of both internal and external factors
of business environment which identify needs of an organisation to improve and develop
strategic plans. This bakery is providing products and services to its customers on wheels or at
their door and creating awareness among people to buy chocolates and cookies made with brown
sugar. By conducting this analysis bakery can find a way to improve quality of products and
achieve desired targets (Kohlbacher, Herstatt and Levsen, 2015). Threats or weaknesses assist
firm to overcome from negative aspects and competitors at marketplace. It can help in
identifying strengths and opportunities of bakery for future development and improvement in
market position. SWOT analysis of bakery is described as:
STRENGTHS: The biggest strength of this bakery is that it reaches to customer by their
own. Products and services of this cafe have high quality products and amazing taste. It provides
door- to- door and online ordering facilities which helps to enlarge its customer base. Customers
are getting products and services with less efforts this can be helpful to build its position in eyes
of customers. Due to health consciousness among people and awareness of harms caused by
normal sugar, it is providing chocolates and cookies of brown sugar.
WEAKNESSES: Small customer base can affect its growth and future aspects. There is
low brand awareness among people which means lack of presence in markets as it has no fixed
place to render its services and products. It cannot be available for everyone at a time. Organic
products provided by this cost higher than others so customers with low purchasing power can't
afford expensive products (Koryak and et.al., 2015). This bakery product will be limited to only
high standard and wealthy customers. Limited funds are available for this business as costs is
also rising with increase in food and petrol costs.
OPPORTUNITIES: There is large scope for expansion in relation to menu and
locations. It can expand number of bakery trucks in various countries at different places. By
online ordering and serving at various places this can create large customer base to grow.
Nowadays people are health conscious and focusing on organic food items. It has an opportunity
to provide healthy and organic bakery products with brown sugar menu.
THREATS: Baking Room will face strong competition in market offering similar
products. Frequent change in customer’s taste is also a threat for this. Modification in rules &
regulations and government policies can impact facility of providing products to customers at
12

door-to door in different countries. In food truck businesses vehicular traffic can be a threat in
big cities. This can result in delay in delivery of food items and drinks.
SWOT Analysis is a strategic planning tool through all the major strengths as well as
weakness are significantly identified. However, with context to The Baking Room this analysis
will be significantly helpful in order to find out areas where improvements are necessary.
P6 Evaluate the competitive and market environments in which the idea will be launched to
assess potential viability.
There are several external environment factors which significantly helps an organisation
to identify areas where improvements are essential important. Moreover, in context to The
Baking Room, entrepreneur have conducted a market analysis in order to identify factors which
impacts overall growth of respective firm (Mitchelmore and Rowley, 2013). PEST Analysis and
Porter's Five Model is used to determine the factors which effectively impacts working
conditions.
A PESTLE Analysis is a framework tool which basically used by marketers to analyse
and monitor external macro environmental factors that impacts an organisation. This analysis
especially useful when an organisation is expanding its business operation or is entering into
foreign market.
 Political Factors: Political Factors basically includes all the legal rules and regulations
which are implemented by government. However, these factors play a significant in
determining the factors which enormously impacts The Baking Room business
operations in long run. Tax policies and Employment laws influences the business
activities of bakery under UK market.
 Economic Factors: These factors primarily include inflation rate, interest rate, foreign
exchange rate ans several other such factors through determination of aggregate demand
and aggregate investment is made. With reference to The Bakery Room, firm can
effectively make use of UK's economic factors in order to significantly attain business
objective.
 Social Factors: These factors basically include the shared beliefs as well as attitudes of
population living within UK. With reference to The Bakery Room, company shall
effectively aim at understanding needs as well as desire of potential customers and
should introduce, the product keeping in mind guidelines provided. People are becoming
13

health conscious so therefore the launch of chocolates cookies enrich with brown sugar
would become successful. Furthermore, target customers of new launch product are set
on the basis of this macro environmental factors.
 Technological Factors: Technological advancement in today's competitive business
world is every essential. These factors basically include innovation, invention and
several others (Nijssen, 2017). However, in context this Bakery store, all business
activities are basically carried on wheels due to which several numbers of customers
would be attracted.
However, this analysis will significantly help The Baking Room to know the impact of each
micro environmental factor on overall business performance.
Porter' five force model is an analysis which is done to understand the competitive
environment. Through this model several industries are able to sustain different level of
profitability. This model was given by Michael E. Porter. Following factors are considered under
porter five force model:
 Bargaining Power of Suppliers: Low bargaining power for suppliers under bakery
industry is observed. Suppliers do not negotiate under bakery business because market is
well developed. In context to Baking Room, firm eventually purchases at high prices in
order to successfully carry out business with proper efficiency.
 Bargaining Power of Buyers: Bakery industry faces high force of bargaining power of
buyers this basically because there are several buyers and cost of switching is low. With
reference to The Baking Room there is high power of buyers in order to capture good
market in potential market.
 Competition in industry: There are several number of players under bakery industry.
However, under UK market The Baking Room enormously faces tough competition in
order to attain desired business objective. However, competitive rivalry strongly impacts
overall business operation of this respective bakery. This is basically because cost of
switching under this industry is low (Pollard and Wilson, 2014). In order to overcome
this, bakery shall adopt several strategies and gain competitive advantage.
 Threat of Substitute Products: There are several substitutes which significantly exist
under UK market. There is moderate force of this factor. In context to The Baking Room
14

there are several substituent of chocolate cookies which is being provided. For example:
pan cake, brownie, cream roll is some of the major substitute products.
 Potential of New Entrants into industry: Moderate force of threats of new entrants is
witnessed under bakery industry. This basically because there is low entry barriers and
competitors easily entry into market. Overall profitability of The Baking Room is highly
impacted due to this factor.
CONLUSION
From the above report it can be concluded that in order to effectively carry out business
activities with efficiency it very essential to properly conduct marker research. Through this
identification several opportunities available in potential market are identified. Herein
entrepreneur is coming up with new idea in order to significantly capture new market share so as
to attain business objective. It has been observed that entrepreneur can make use of SWOT and
PEST Analysis in order to attain sustainability in marketplace. Lastly porter's five force model is
considered in order to know competitive position of respective firm.
15

16

REFERENCES
Books and Journals
Autio, E. and et.al., 2014. Entrepreneurial innovation: The importance of context. Research
Policy. 43(7). pp.1097-1108.
Davidsson, P., 2015. Entrepreneurial opportunities and the entrepreneurship nexus: A re-
conceptualization. Journal of Business Venturing. 30(5). pp.674-695.
Godley, A.C., 2013. Entrepreneurial opportunities, implicit contracts, and market making for
complex consumer goods. Strategic Entrepreneurship Journal. 7(4). pp.273-287.
Hsiao, A., 2013. Developing an entrepreneurial mindset in engineering students. Proceedings of
the Canadian Engineering Education Association (CEEA).
Kacperczyk, A.J., 2013. Social influence and entrepreneurship: The effect of university peers on
entrepreneurial entry. Organization Science. 24(3). pp.664-683.
Karimi, S. and et.al., 2016. Fostering students’ competence in identifying business opportunities
in entrepreneurship education. Innovations in education and teaching international.
53(2). pp.215-229.
Kohlbacher, F., Herstatt, C. and Levsen, N., 2015. Golden opportunities for silver innovation:
how demographic changes give rise to entrepreneurial opportunities to meet the needs
of older people. Technovation. 39. pp.73-82.
Koryak, O. and et.al., 2015. Entrepreneurial leadership, capabilities and firm growth.
International Small Business Journal. 33(1). pp.89-105.
Mitchelmore, S. and Rowley, J., 2013. Entrepreneurial competencies of women entrepreneurs
pursuing business growth. Journal of small business and enterprise development. 20(1).
pp.125-142.
Nijssen, E.J., 2017. Entrepreneurial marketing: an effectual approach. Routledge.
Pollard, V. and Wilson, E., 2014. The “Entrepreneurial Mindset” in creative and performing arts
higher education in Australia. Artivate: A Journal of Entrepreneurship in the Arts. 3(1).
pp.3-22.
Renko, M. and et.al., 2015. Understanding and measuring entrepreneurial leadership style.
Journal of Small Business Management. 53(1). pp.54-74.
Sahut, J.M., Gharbi, S. and Mili, M., 2015. Identifying factors key to encouraging
entrepreneurial intentions among seniors. Canadian Journal of Administrative
Sciences/Revue Canadienne des Sciences de l'Administration. 32(4). pp.252-264.
Santos, S.C. and et.al., 2015. Prototype models of opportunity recognition and the decision to
launch a new venture: Identifying the basic dimensions. International Journal of
Entrepreneurial Behavior & Research. 21(4). pp.510-538.
Schmidt, J. and Keil, T., 2013. What makes a resource valuable? Identifying the drivers of firm-
idiosyncratic resource value. Academy of Management Review. 38(2). pp.206-228.
Wood, M.S. and McKelvie, A., 2015. Opportunity evaluation as future focused cognition:
Identifying conceptual themes and empirical trends. International Journal of
Management Reviews. 17(2). pp.256-277.
Online
Fishbone Model Template. 2019. [Online]. Available through:<http://wovensheet.co/fishbone-
model-template/>.
17