Translating Opportunities into Business Ideas

The assignment discusses the importance of proper research in starting a business, highlighting various sources of entrepreneur ideas and innovation. It emphasizes the need for entrepreneurs to conduct market analysis, analyze potential customers, and assess risks involved in turning opportunities into business ventures.

Translating an Opportunity
in to Business Idea

INTRODUCTION.....................................................................................................................................3
TASK 1....................................................................................................................................................3
P1. Determine and evaluate different sources of entrepreneurial ideas and innovation..................3
TASK 2....................................................................................................................................................5
P2. Rational and market gap for specific entrepreneurial idea using relevant tools and techniques 5
TASK 3....................................................................................................................................................6
P3 Data needed to support gap analysis in the evaluation of Green Herbs.......................................6
P4 Interpret data appropriately to provide evidence of market potential.........................................8
TASK 4....................................................................................................................................................9
P5 Apply a SWOT framework to collate evidence to support an objective assessment of Green
Herbs.................................................................................................................................................9
P6 Evaluate the competitive and market environments in which the idea will be launched to assess
potential viability.............................................................................................................................11
CONCLUSION.......................................................................................................................................12
REFRENCES..........................................................................................................................................13

INTRODUCTION
Most crucial part related to starting a business is more passionate about the idea as well as
translating that message to the people at large (Li, 2018). Moreover, entrepreneur is the
person who play important role in starting business and he/she is the one manage and control
day to day operation. Along with this, bring innovative ideas for further improvement and
responsible for the success and failure of organisation. This project will going to discuss
point related to translating opportunities within business ideas and role of an entrepreneur,
various sources of entrepreneurial innovation ideas and several data collection methods on
behalf of Green Herbs which is an start up in United Kingdom it deals in herbal products.
Apart from this, respective report will analyses and investigates market to assess potential
viability of the developed idea through SWOT and competitive study. Study and assessment
of various market researches for analysing opportunities as well market gap are also that will
enable entrepreneur in attaining a rationale by using several tools and techniques.
TASK 1
P1. Determine and evaluate different sources of entrepreneurial ideas and innovation
STEEP analysis is the common tool utilise in the marketing process for evaluating
various external factors that have impact on the company. It is important for Green Herbs to
consider few external forces before taking decisions for long term sustaining in market.
Along with this, respective framework will help in identifying what will happen in the future.
Green herb is the start up and they have to analyse all the external factors time to time for
continuing their business in better manner. Here, STEEP stands for Social, Technological,
Economical, Environmental and Political. Explanation of these in relation of Green Herbs are
as follows :-
 Social – It is the term which involve factors such as consumer behaviour
demographics, lifestyle, religion, values, advertisement and so on. Green Herb in
launching their business in United Kingdom where people are more health conscious
and their life style allow them to purchase new latest products and services. But

respective organisation has to continuous analysis social factor before entering in
market so they can provide products as per the targeted population. Because such
practices will result in generating revenue and sustaining in market for long duration.
 Technological – This focus highly on technological advancement and involve factors
like new technology, enhancement in existing, innovation etc.. As it is wide factor and
due to high level competition technology is getting update day by day. Thus, Green
Herbs have to implement latest technology in their production so that product will be
manufactured through advance technology (Peterson, Jaret and Schenck, 2016).
Along with this, such practices result in attracting large number of customers from
market area.
 Economic – It is the factor which include customer spending, disposable income,
inflation, taxation, unemployment, taxation, monetary issues and son. Green Herbs
have to analyse all these factors in effective manner before expanding or starting their
business in any nation. Along with this, it is necessary to set price of offering after
identifying economic condition of that particular economy.
 Environmental – It is the factor which mainly focused by organic offering
organisations. Now a day’s consumers get more aware of healthy food and their needs
toward it. Along with it, company have to take all the major steps which will not harm
environment while doing production because all these result in attracting customers
and gaining competitive advantages.
 Political – It have major influence on the regulation of business as well as the
spending power of consumer and other business. For Green Herbs it is necessary to
follow all the rule and regulation given by government while starting up a new
business.
There are several types of innovation explanation of these as follows :-
 Product and process innovation – It is most popular kind of innovation in
which product innovation is related to changes in the good. It can be in 2 form
i.e., modification in product and second is adding new features in product.
Whereas, process relate to improvement in the producing products (Rae,
2017). Apart from this there are some significant like product innovation is
visible to the customers but process not. Product innovation target goods but

in process cost improvement ill be targeted. Green Herbs in using product
innovation because their offerings are different compare to other organisations
in market.
TASK 2
P2. Rational and market gap for specific entrepreneurial idea using relevant tools and
techniques
When an organisation is entering in the market at that time they have to fix market
gap for increasing sales volume by attracting customers. Moreover, there are few tools that
are needed for conducting market research for introducing business within effective manner.
There is requirement of analysing gap so that entrepreneur can take benefit with skills as well
as resources. Explanation of these tools and techniques are as follows :-
Marketing segmentation - Entrepreneur have to analyse market requirement before
launching new products in the market area so that customers requirement can be identified.
Because everyone have different demand related to beauty products so company have to
analyse market before launching products.
Demographic segmentation – It is a segmentation in which market is divided on the basis of
demographic variables such as income religion, age, gender, marital status, race, nationality,
occupation and so on. Because there are several people whose products purchasing habit
depend on the religions (Thrane and et.al., 2016). Moreover, there are some people who
spend money on purchasing as per the income level.
Behavioural segmentation - It is the segmentation which involves nature of population,
lifestyles, attitudes, choice as well as decision making thoughts, preferences and so on. All
these give wide impact on the sales of Green Herbs because if an individual will have lavish
lifestyle then for them it will not difficult to purchase expensive products. But middle class
people will face difficulty in purchasing these products. Thus, before launching business
company have to analyse behaviour segments in effectual manner.
Apart from this, for analysing competition within the industry Green Herbs have to
implement Porter’s Five force model. It shows factors which may increase the chance of exit
option of a new launched company from competitive marketplace. Explanations are as
follows:-

Threats of New Entrants- In relation of Green Herbs threats of new entrants is low
because there is requirement of huge investment while entering in the market of organic or
natural products.
Bargaining Power of Suppliers- For Green Herbs bargaining power of suppliers is
high because there are less number of suppliers. So company have to purchase from them and
they are not able to bargain on that.
Bargaining Power of Buyers- Buyers bargain power is low because in the market
area there are no such organisation who are offering green herbs products.
Threats of Substitutes- For Green Herbs organisation threats of substitute is high
because in market area there are several companies who are offering same range products
(Qin and et.al., 2016). Along with this, customer are not brand loyal now a days they easily
switch so in this situation same company face high level threat from substitute products.
Rivalry among existing Competitors- There are many competitors present in Green
Herbs business which gives a tough competition to same company also. To get an edge from
over them, there is requirement of developing more effectual strategies to create innovation in
products and services.
TASK 3
P3 Data needed to support gap analysis in the evaluation of Green Herbs.
Gap analysis is qualitative as well as quantitative comparison of present organisation’s
performance that means to know exact current state with the possible performance that is the
target state. There are two core principle which are required for recognize the needs and assist
in finding out the solutions. The two point addresses are performance and potential.
Moreover, Gap analysis is a 360 degree analysis tool which performs strategic or operational
levels in inward and outward environment and one can run a company in a direction through
several procedure or departments. After passing through the first phase of analysing
performance v/s potential particular person is able to get outcomes that, it is exceeding the
expectation or not.
Conducting Gap Analysis - It is the method which utilise for assessing the
differences in performance. The gap analysis is generally conducted to be big brand but if so
several things are tried to be handle within particular time at that situation resources will get

stretched. Thus, it will be better if an particular person will consider one of the host factor for
conducting gap analysis such as Sales number, Customer contentment, Retention rates,
Transportation times, Manufacturing costs, Marketing returns and International
expansion.Gap anlysis is conducted by the Green Herbs so taht market scenario can be
exaimed properly in the cut throat competitive world. It aid the organization to study the past
and present market scenario so taht improvement can be examined accordingly. By doing so
organization can make strtaegies for the product so taht sales volume can be raised.
Identify states – After selecting the focus area by entrepreneur then first step is to
determine the area where performance is and what will be in the future. For an instance,
 at present what the sales performance
 sales channels as focus
 peculiar nodes as the channel
 industry average potential
Figure 1Gap Analysis: A Template for Connecting Potential with Performance
(source : Gap Analysis: A Template for Connecting Potential with Performance, 2017)
The states goes through three iterations which are as follows :
 Current performance
 Potential state
 Gaps

Green Herbs needs to study the area where they actually want to expand their business
in the market. Buiness associates need to study deeply where currently they are styanding in
the market what is their position in the market and in the coming year in which position they
want to be. The tactics, distribution channels and objectyives can be prepared accordingly in
the competitive world.
Describe the gap - After analysing the stage second step is to explain the gap for better
understanding the causes behind their happening (Klincewicz, 2017). If a organisation is
looking for accomplishing target or objectives then it will be perfect time for analysing what
exactly to be done for accomplishing these targets. If there are various ways to utilize the
same principles in other areas of a natural products. For describe a gap there is a pattern
which must be followed explanation area as follows :-
 Gap – where the gap find.
 Gap description - Record each and every information or data which is contributing to
gap. These gaps can be quantitative as well as qualitative.
 Why – The reason for gaps why they came in existence.
Green Herbs examine the past and prest position in the cut throat competitive world. And
frame out effective strategies to fill the gap prevailing in the market. It can be filled by
designing strtegies to incerase sales, profits and customer base. By doing so the difference
can be measured by improving the present position of the business in the cut throat
competitive world.
Bridge the gap - The last stage is brainstorming for knowing all the likely solutions which
can be utilise for recovering the gap as well as to identify reasons behind it. But these
solutions should be specific and must give straight impact on the problem which has been
analysed in the last two steps (Joseph, 2016). As the entrepreneur is creating exhaustive
solutions to the gap description summary, they are enabling to think in wider context and
position the practical carrying out. While hypothesize the possible solutions one must to be
keep in mind that the implementation can be costly in terms of time, money as well as human
resources.

P4 Interpret data appropriately to provide evidence of market potential.
Marketing research is important part while starting business and it help in long term
sustain within market area. The market research pinpoints the target market, consumer
problems, realistic competitors and so on. It can be carried out from several stages during the
pre – launch and post – launch. Because if particular person have good knowledge related to
the marketplace then they are able to commence a beyond belief business in competitive
environment. There are some techniques of marketing research such as –
 Primary market research – It is a kind of research which is conducted by researcher
own for gathering data. Through primary research data collected has not been
published in any book, journal, magazine before. There are several sources of
gathering data and information such as Questionnaire, feedback form, interview and
so on. Organization conduct primary reserch in their investigatuion as it is completely
fresh and authentic in information. In thsi case data rae not utilioze by any other
resercher so far so it will aid the firm to use this avialble information as their growth
opportunity in the cut throat competitive world. The data gathered craetes more
market potential for the enterprise as well as generate opprtunities for sucess.
 Secondary market research - Secondary method of data collection is the using of
information which was already collected by someone else earlier or from published
and unpublished data (Bendell, 2017). It is quick and easy also economical. This can
be obtained from government publications, websites, books, journals, articles and
internal records. Here, the data gathered may not be reliable as many times it has been
used by different researcher in the project. This does not provide reliable and accurate
data information to the business associates in the competitive world. Moreover,
market potential is less in this case as data are used by researcher so it may not be
feasible for the company.
To find out the demand and supply needs of the herbal products in UK the use of both
primary and secondary data collection methods are implemented by Green Herbs. Along with
this, for conducting the market research there are several new technologies also which can be
adopted by respective company like forums and social media platforms for identifying the
demand of customers what they are looking for and what would be there reaction for the new
products. This combination helps the firm attain maximum relevant data which may assist the

firm in understanding the market availabilities, scope of the products, competitor information
and trends of the economy (Stott, Stone and Fae, 2016). There is a huge need of herbal
products in UK as the people are health conscious and the market is lacking good quality
genuine products. The need of the customers is not fully supplemented with such products
offering a reach for Green Herbs to the economy. Rise in demand for such goods are not met
in the market by needed supply which also gives a positive attribute to Green Herbs to render
their services and gain competitive advantage.
TASK 4
P5 Apply a SWOT framework to collate evidence to support an objective assessment of
Green Herbs
Business environment is competitive in nature for sustaining in that it required do
conduct competitor analysis. This can be possible with the assistance of SWOT analysis i.e.,
identifying strength, weakness, opportunity and threat. In this, Strength and weakness are
internal apart of the organisation whereas, opportunity and threat are external. SWOT
analysis of Green Herbs are as follows :-
Strengths – Strength of an organisation are the factors which utilise for gaining
competitive advantages. One of the major strength of Green Herbs is their innovative idea
because now a day’s people are more conscious about their health. Along with this, their
promotional activity is also strength for them such as advertisement, promotional activities,
building public relation, mouth publicity and so on. Moreover, patents Green Herbs
understands the need habits of the customer as well as the issues that they face in products
that they are using currently. Their products are capable of removing problems which are rise
due to in pollution, UV rays and climate change. Using of natural ingredients and herbal
materials after the proper research and testing is an added advantage to Green Herbs. They
also have a plan of effective pricing as the products available in the market are of low quality
and high priced which Green herbs can overtake, while providing better goods. The firm also

can gain a top position as per the demand for such products in the economy by gaining
popularity and market share.
Weaknesses - Green Herbs being a new start-up venture has low penetration in
foreign markets and may take time to gain popularity globally. Inadequacy of investment is
also a drawback for the company as it is a fresh business with low market share and
economic recognition may find hard to make an impression at the present (Cosenz and Noto,
2018). Their distribution channel is not much wider because of that company face issue in
supplying their offerings at some places. Such things result in negative impact on brand
image as well as also dissatisfying customers. Apart from this, competition level is increasing
in market and new companies are also entering which result in increasing substitute products
and customers also get choice in same product range.
Opportunities- UK's people are more health conscious which makes them choose
products that does not harm them in any way for that they are ready to spend more on high
quality and safer goods adding advantage to Green Herbs. Also there is a huge demand for
herbal and organic or natural supplements in the country, along with a majority preference for
such commodities is another possibility for the company. The main reason is increased level
of pollution in UK which have caused many serious health issues among people making
Green Herb's products a chance to help customers resist these consequences with their
superior quality commodities. Apart from this, respective organisation has opportunity to
expand their business in several other nations also. As well they can expand range of product
offering by them in United Kingdom.
Threats- Main factor which hinders growth and development of Green Herbs is
existing multinationals that have more demand than the present domestic products for
instance; Companies are 3M, A&H and Acorus. Every nation has their own laws and
regulation which can threat respective organisation when they are expanding their business in
other nations. Along with this, increasing trade barriers are also threat for company while
exporting their products.
P6 Evaluate the competitive and market environments in which the idea will be launched to
assess potential viability.
When entrepreneur is conducting depth investigation related to the competition and
market environment regarding an organisation in that situation they have to identify strength
and weakness of competitors. Because it will help entrepreneur in making their strategies

more strong and innovative by which they can gain competitive advantage. When Green
Herbs is analysing the level of competition within market area at that time they analyse what
rivals are offering to their customers and what they are expecting (Williams, 2015). All this
research will provide data for start up through which they can took better place in the market.
After that one have to conduct a research for getting knowledge related to the rivals as well as
their service methods along with satisfaction level of customers. As a businessman knows the
information then they should prepare the marketing strategies with the assistance of
advertisement, sales brochures, newspaper and so on for a grand opening so that targeted
audience can know about the restaurant and it will help in future by increasing sales. Apart
from this, when the business has been opened one have to analyse their annual report for
evaluate its potential sales as well as actual sales on the basis of previous year to get the
information about the business progress.
Regarding the market environment there are several variable that are used to be
evaluate the feasibility of the business idea such as targeted customers, market size, trending
trajectory and so on. It is not easy to measure the market size as well as demand but having
knowledge about these factors is good while investing time and money in start up. Moreover,
For Green Herbs it becomes easy to track the people who are talking about respective
company with the help of SEO and social media websites (Zhang and Wu, 2017). It is
important as well as good for the owner of Green Herbs to know about their competitors
because such practices result in enhancing their own sales and revenue. Along with this, one
must have knowledge about competitors before starting their business because that will give a
less surprise in order to see up and down within the graph of firm. It is also necessary to find
information or data related to their potential buyers along with their ability of purchase the
products.
CONCLUSION
From the above discussion on translating an opportunity into business idea it has been
summarised that, for starting a business entrepreneur have to do proper research. Because
opportunity involves several risks also so he/she has to conduct market research, target
audience, analyse potential customers and so on. It discusses several sources of entrepreneur
ideas and innovation that motivates them to set up their own business. In simple term,
entrepreneur is risk take so they have to do proper market analysis while starting a business.

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Online
Gap Analysis: A Template for Connecting Potential with Performance, 2017.
[Online].Available through<https://www.shopify.com/enterprise/gap-analysis>