Turning creativity to cash

Turning
creativity
to cash
1

2

INTRODUCTION
An entrepreneur is considered as an individual who establish a business unit by taking
financial risk in order to earn profit. For becoming a good entrepreneur a person required
numbers of specific skills as that will help them in conducting business effectively such as
communication, understanding, leadership, creativity and many more. Before taking any decision
for establishing an enterprise an individual need to conduct market analysis so that they can
identify proper opportunity (Aliabadi, Ataiee and Movahedi, 2016). Respective assignment is
based on organisation i.e. Lush and Blush Cosmetic store which offer organic cosmetic products
made up of leaf, flowers and other organic material. Respective company is conducting this
business operations at United Kingdom. Topics covered in this report are different sources of
entrepreneurial idea and innovation as well as it will also include rationale as well as market gap
for a particular entrepreneurial idea. Along with this it will also include evaluation of market
potential through primary and secondary data as well as report will also explain about
determination evaluation of market as well as competitions related to entrepreneurial idea.
TASK 1
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation.
There are different types of sources that is help in starting and running new or innovative
business concept. It is crucial for Lush and Blush to analyse or evaluate these resources in order
to conduct all task and activities in better manner (Davidsson, 2015). In order to determine
analyse and determine different sources can be determined through Peter F Drucker model. This
is very effective model in order to analyse valuable resources for innovation and
entrepreneurship. Various sources for enhancing innovation opportunity for this respective
company is mention below.
The unexpected – This includes all those innovation that has taken place by chance and
this is also known as unexpected implementation of innovation. Unexpected situation will lead to
development of new and innovative products and services. Unexpected failure and unexpected
success will lead to creation on innovative products that will helps in meeting with desired goals.
Incongruities – This consist of those innovation of product or service that is developed
when needs are incongruity as per the supply. It includes creation of new product and services
with the motive of resolving current incongruities. In order to meet with the needs of targeted
3

customers and analysing the difference between what consumer want and what it is suppose to
be. This will help in inspiration of innovation of products.
Process need – In this Drucker has more focus on organisational situations as well as
task of business. Process needs includes development of new products while meeting with the
organisation needs and requirements. Identification of business process clearly as well as
determine the weak spot of business process. Improvement in process of business can be
consider as opportunity for development of innovative products.
Market and industry structure changes – It has been analysed that existing or current
market structure can help in rising the innovation. Industry and market structure will lead to have
great impact on performance of business as well as development of new and creative products. It
is opportunity to create and enhance innovation with the changes in the structure of market and
industry.
Demographic -This includes various factors such as attitude, lifestyle, behaviour and
many other demographic components (Wood and McKelvie, 2015). Changes in demographic is a
opportunity for innovations as it is crucial for organisation to create products and services that
will lead to meet with the needs of customers. Rise in innovation for full fulling the demographic
needs as well as meeting with the lifestyle is essential factor.
Changes in perception – Changes is perception will lead to have influence on
innovation. It has been analysed that change is a continuous process and it is required for
company to design products and services that fill best as per customer perception. Innovation in
commodity and services by considering perception changes is an opportunity.
New knowledge - New and better knowledge can be consider as the source of
innovation as this will lead to create better products and services. Implementation of updated and
advance technology is an opportunities for innovations. It has been analysed that new knowledge
will lead to create better and effective ideas which is an opportunities for innovation.
Thus, changes in perception source is considered as opportunities for innovation for Lush
and Blush company. Nowadays customers prefer cosmetic products which does not includes
chemical ingredients. This organisation is creating products that is natural and organic. This will
lead to develop innovative products which is as per perception of customers.
4