Sources of Entrepreneurial Ideas and Innovation

Unit 27
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Table of Contents
TASK 1............................................................................................................................................3
P1 Determine & evaluate different sources of entrepreneurial ideas & innovation with
examples......................................................................................................................................3
TASK 2............................................................................................................................................7
P2 Explain rationale and market gap for a specific entrepreneurial idea using relevant tools
and techniques.............................................................................................................................7
TASK 3..........................................................................................................................................11
P3 Present data required to support gap analysis in evaluation of a particular entrepreneurial
idea............................................................................................................................................11
TASK 4..........................................................................................................................................17
P5 SWOT framework to collate an objective assessment of a particular entrepreneurial idea.
...................................................................................................................................................17
P6 Evaluation of competitive and market environments in which idea will be launched to
assess potential viability............................................................................................................19
CONCLUSION..............................................................................................................................20
REFERENCES..............................................................................................................................22
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INTRODUCTION
Entrepreneurial opportunities are usually referred as a situation where products and
services could be sold at a higher price greater than cost of their production. An entrepreneurial
opportunity is defined as a situation and an opportunity where entrepreneurs could take actions to
earn profits. Entrepreneurial opportunities come in various forms and are being influenced by
socio, economic conditions. As increasingly entrepreneurs are being asked to take a more
balanced approach between financial and environmental considerations when they are assessing
an opportunity. As there are various to identify various entrepreneurial opportunities by various
ways such as listening to potential clients and past leads, listening to needs and requirements of
customers, identifying wants and needs of markets and identifying various company trends and
insights to build various opportunities of markets. This report is based on identifying
entrepreneurial opportunities of Virgin money, which is a banking and financial service company
operating in United Kingdom. Virgin money is a financial brand which is used by three
independent brand licenses globally. Virgin money branded services which are presently
available in Australia, South Africa and United Kingdom. This report includes possible sources
for new and innovative business ideas, entrepreneurial idea for investigating and market gap,
identification of primary and secondary data, evaluation of entrepreneurial idea in terms of
market and competitors and make an assessment of potential viability along with its conclusion.
TASK 1
P1 Determine & evaluate different sources of entrepreneurial ideas & innovation with examples.
As per the latest market scenario, organisation need to adopt new marketing strategies
and use new & innovative business strategies and ideas so that organisation can easily encourage
to their employees to use current marketing trends. On the basis of relevant resources and
research, organisation identify their customers’ needs and also understand the various resources
that can help to implement their ideas. With the help of proper skills and knowledge,
organisation usually convert their innovative idea in to reality (AHMADI, AKHAVAN and
MOKHTARI, 2018). To execute the idea, organisation focus on the internal and external
environment so that organisation will get high level of opportunity. The description of external
environment, Drucker’s sources of innovation of Virgin money are discussed below-
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External Environment
Macro environmental factors are also known as external environmental factors that can
help to analyse and evaluate the whole outside marketing situation and also useful to maintain
the external elements that directly influenced the organisation. Virgin money is a famous
financial service provider and expand their business operations all around the world (Bolzani, et.
al., 2019).Virgin money mainly analyse and evaluate the macro environment factors and it is
identified that social and technological factors directly influence the performance and
productivity of the organisation. On the basis of economical consideration, Virgin money take
various types of challenges so that organisation can easily adopt the innovative features to make
easy access of the financial services. Social Factors – These factor involved culture, religion, customer behaviour, education
level and purchasing power behaviour of the customers. The main motive of the
organisation is to focus on the customer services so that organisation easily attracts the
people toward their products and services. Virgin money can focus on the preferences of
the people so that it make easy for the organisation to target the large number of
customers. With the help of useful consideration of the services, Virgin money easily
reduce the socio- culture barrier and also diminish the negative impact on the external
environment of the organisation. It can help for the entrepreneur to motivate and
encourage their employees and also introducing the innovative products and services.
 Technological Factors – This factor mainly consider the technological advancement and
modification in the technologies. This factor can provide the directly impact on the
operations of the organisation (Buli, 2017). New technological development will be
helpful to maintain the whole performance of the organisation and also useful to evolve
the market position of the Virgin money. With the help of technology, organisation can
expand their business effectively all around the world and create the positive brand
image. Virgin money can use some advanced technologies so that organisation can easily
attract the large number of people. Through technological advancement, Virgin money
can promote their products and financial services easily and also address the requirement
of the customers via digital technologies.
Drucker’s Sources of Innovation
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Every organisation need to some kind of sources of innovation which can helpful for the
entrepreneurs to identify the specific opportunities and also aid in the development of the
organisation. Source of innovation are essential for the growth of the organisation. Virgin money
also used specific source of innovation of that organisation can easily maintain their business
operations effectively (Chang and Rieple, 2018).Virgin money use Drucker’s Sources of
Innovation that is mainly given by the Peter F Drucker. There are seven sources of innovation
considered by the Virgin money which are given below- Unexpected – This type of innovation mainly take place undoubtedly that happened by
chance and this innovation generally come with the emerging the specific innovation.
Virgin money consider this predictable innovation that mainly occur accidently. This
innovation can help to mention the new ideas that is required for the implementation and
all the things come up randomly and accidently.
 Incongruities – This innovation comes under the inside source and also known as per the
concept of human nature. An entrepreneur who is responsible to solve the incongruities
that mainly occur in the organisation with the new source of innovation. With the help of
new source of innovation, entrepreneur can stay motivated and constantly search new
opportunities so that they can easily introduce new products and services in the Virgin
money. Through solving the incongruities, organisation need high recognition of ideas so
that they can take more market opportunities (Clark and Ramachandran, 2019).
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Figure 1Searching for innovative opportunities? These 7 sources will boost your creativity, 2019 Industry Structure – This innovative source provides the high level of opportunity to see
the market innovativeness by which the entrepreneur can proceed the upcoming business
growth. As per this scenario of the Virgin money, entrepreneur is utilising the “World
Wide Web” to investigate the different information through Google Brower. This can
helpful for the cater market & also grab the market opportunities that can be helpful for
the development of the organisation (Di Muro and Turner, 2018). Necessity – This source of innovation can useful for the business and help to set the
thinking of the entrepreneur in deep manner. This source mainly concerned on consider
those opportunities that maintain high success at the marketplace. Virgin money provide
financial services nationally and internationally so it is essential for the organisation to
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