Unit 27 – Assignment on Identifying Entrepreneurial Opportunities

Unit 27 – Identifying
Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION...........................................................................................................................1
1. Background information about the sources which inspired to set- up new business.........1
2. Introduction of a business...................................................................................................2
3. Explaining the competitor analysis for a business.............................................................3
4. Presenting the gap analysis.................................................................................................5
5. Market researches to support the viability of a business....................................................6
6. Presenting why the business idea is viable and feasible.....................................................7
7. Presenting strategies in order to overcome the risk and potential opportunities................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Entrepreneurial opportunities are the central for a theory and it is a situation where an
entrepreneur can take action to make a profit for a firm. The present study main aim is to focus
on new business start- ups by the entrepreneurs. The new start up firm for this report is “Chow
restaurant” in UK and restaurant idea is unique as it will provide moon light rooftop facility and
a sense of pop culture. The report determines and evaluate different sources of an entrepreneurial
ideas and innovation and explain the rationale and the market gap for the business idea by using
technique. Further, report also describe the market research which supports the viability of a
business and also identifying the market potential. Moreover, report also justify why this
business is viable by identifying the strength and weaknesses and it also describes the strategies
in order to overcome the risk of competition and the potential opportunities for the growth and
development in a future.
1. Background information about the sources which inspired to set- up new business
The idea for start up a new restaurant is such that the restaurant is moonlight rooftop,
bringing people together, pop culture and others which helps to develop good relationship with
others. To set-up a new business, the seven sources of innovative opportunities help to motivate
me personally in wishing to set up a business. These are as follows:
The unexpected: in this, the market place has a number of opportunities and through
constantly studying the market, it has been realised that the demand of the customers are
increased regarding food and that is why I start opening a new food restaurant name Chow.
The incongruity: By good market research, it has been found that the market did not
offer products as per the customers needs and that is why this concept also motivates me to
provide those services which none of the small firm offer (7 sources of innovative opportunities,
2018).
Process need: This is a task focused rather than situation focused such that as my
concept is to start up a new restaurant and generally it has been found that customers have to
wait so long and to overcome this, can hire new chef to speed up a creation times.
Industry and market structure change: As the regulations change, then many existing
products lines will expand while other shrink. Therefore, a firm should continually be on watch,
in the same way, by analysing the market it has been realised that Chow Restaurant should be
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focused on new technologies because the existing firm did not easily opt those because of
incurring extra expenses. Thus, the industry and the market are in constant flow.
Demographics: As it is another source which also motivates to start up this particular
concept such that during market research, constantly changes occur in population, income levels
and education (Horkoff, Maiden and Asboth, 2019). Thus, the new restaurant concept helps to
meet out these changes because it did not require high investment and it provides low rates of
delicious food as compared to other firm.
Changes in perception: In this modern and competitive world, the people's mood
constantly changes and whenever they find a new concept, they easily switch their mind. Thus,
this idea also motivates me to draw attention of many towards my new Chow Restaurant.
New knowledge: It is one of the most affecting idea, such that a new business is entirely
based upon the new techniques and it will also help me to increases number of opportunities.
Through this, it will help to gain new knowledge to start a firm with new chances. Thus,
innovation and coping with new techniques also help to take a business at further level ODF
success.
2. Introduction of a business
Chow restaurant is a new restaurant which is introduced by identifying the needs of the
customers. The restaurant is quite different from other it has a moonlight concept in which the
customers are seated on roof- top and enjoy draft coffee. The restaurant also has a separate
places for couples and common area for old age group peoples. The main concept of Chow
Restaurant is to start creating interaction of different caste people and creates a family
environment. Moreover, the restaurant also offer the self serve beer for those who are interested
and also provided a separate place for it as well. Apart from this, the Chow restaurant also have
pop culture in which all caste peoples are allowed to enjoy and they can share their experience
and can feel like a family environment (Knackstedt, Bräuer and Schoormann, 2019).
The target audience for this restaurant are young people, old age group peoples and
families because it has separate places for all kind of people and also offer new Peruvian Marries
Asian and Latin flavour dishes which differentiate it from others. For this, the potential
customers are youngsters.
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Rationale: The reason for choosing this restaurant because it helps to maximizes the profit
as it has been realised that food industry helps to earn great profit for many businesses.
Therefore, it is quite beneficial to start up this business.
3. Explaining the competitor analysis for a business
Competitor analysis is the marketing and strategic management tool that helps to analyse
strength and weaknesses of current and potential competitor. Thus it is an essential component
for a corporate strategy. Chow restaurant also have competition from other company and it is
mentioned below:
Basis Chow Restaurant Leon Restaurant Harvester Alwalton
Features The quoted firm offer new
Peruvian Marries Asian
and Latin flavour dishes
with beer bar and soft
drinks.
The Leon restaurant offer
famous mushroom
flavoured dishes with great
variety of lunch and dinner
facility.
This offer global menu to
their customers, though the
price of the product is high
but it offers the best quality
of food, it includes all
dinner and lunch facility.
Price The firm uses cost
leadership pricing strategy
in which it offer the
products and services at
low and affordable prices.
Leon Restaurant uses
competitive pricing strategy
in which it offers the
products after analysing the
prices of their rival firm.
Harvester uses seasonal
pricing strategy and also
offer variety of discount to
their food products.
Online
Advertis
ing
Chow Restaurant uses
modern form of
advertisement such as
social media, website.
Leon Restaurant uses both
modern and traditional form
of advertisement such as
brochures, social media and
Internet.
The restaurant uses modern
form of advertisement in
order to promote their food
products into a market.
Quality The offered product's
quality is good, as the
firm is starting at its initial
stage.
The quality of its offered
goods are also good.
It offers the best food
quality as compared to other
restaurants.
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Compan
y
reputatio
n
As it is a startup company,
that is why it takes some
time to make brand image
in market.
As it operates its branch in
other country, that is why
the firm have good
reputation in market.
Because of having a best
quality of its food products,
it has good brand image in
market (Smith, Whitener
and Brimer, 2015).
Location The company have its
only unit in UK.
Leon restaurant is located in
53 location
It has 220 restaurants in
UK.
General
Marketi
ng
strategy
Chow Restaurant uses
brochures and newspaper
as a marketing strategy.
The firm uses blogging as a
general marketing strategy
in which entire menu card is
published and a new
products ideas can be easily
posted on it.
The firm uses e-mail
marketing strategy in order
to reach wide range of
public.
Target
audience
For Chow Restaurant, its
target audience are young
people, old age group,
family members and
students.
Its target audience are
youngsters and family
members whose age is in
between 25 to 55.
For Harvester, the target
audience are the rich people
whose age is in between 30
to 50 and youngsters whose
age is in between 22 to 30
who can afford the products
price.
Risk At initial stage, the firm
may faces some risk
during its growth such as
searching for staff, chef,
location (Bloemer, Day
and Swan, 2017).
Leon still faces some risk
related to its cleanliness and
food storage which
somehow creates obstacles
in the path of a success.
The restaurant faces low
risk because it has all the
facilities and have great
customer services which
helps to lead a business
towards success.
In order to gain high competitive advantages in the business, Chow restaurant uses
different promotional advertisement and also start offering discount on their various products so
that it easily increases the sales of the company.
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This particular idea has low risk because it is a start up of new restaurant and it does not
require high investment and material as they are easily available in the market.
It has been analysed that the industry is successful because it earns high income in the
market.
4. Presenting the gap analysis
Gap analysis is used to identify the gaps between two states of a business performance
such that its current state and its desired state. As through this, the gap is easily analysed and
further the firm also develop strategies in order to overcome it. For the Chow Restaurant, the gap
analysis is as follows:
Strategic
objectives
Current standing
of market
Desired state Gap identified Action to be taken
Time
required by
the firm to
serve the
customers
Customers have
to wait for long in
order to receive
the order
The objective of
Chow restaurant is
to provide the food
within 5 minutes
service
Yes gap is
identified
In order to overcome
this, proper staffing
should be developed and
training session should
be provided in order to
overcome the
challenges. Managers
should also hire proper
trainer who help their
staff and helps them to
serve in better manner.
Communica
tion skills
The staff are not
trained in order to
present
themselves in
front of the
customers.
Staff are well trained
and can easily
communicate in any
language so that it
helps to provide
better customer
The gap is
identified such
that currently
the staff are
not as
efficient as a
In order to overcome
this gap, the Chow
restaurant should assign
a trainer who provide
regular training session
to their employees for
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services firm wants
and in this
situation, the
entire
reputation of
Chow
restaurant
affected.
enhancing their
communication skills.
Meet out
the deadline
The employees
are not seriously
taking their
responsibility
such that if the
work is pending
then they shift it
to next day.
All the defined work
should be completed
on a particular day
whether it takes a
long duration.
The gap is
identified such
that the
employees of
the firm are
not taking
their
responsibilitie
s in serious
manner. Thus
the work got
affected.
To overcome, the
quoted restaurant should
structure its business
process in well manner
and also assign the
duties to individual and
keep monitoring them
well, whether the
deadline is met or not.
5. Market researches to support the viability of a business
Market research is the key element which helps to maintaining the competitiveness over a
competition. Through the market research, the information is easily gathered and collected about
the target market or a customer. Thus, it is considered one of the best market strategy in order to
identify different point of view. During market research it has been realised by the researcher
that the people in UK easily shift their point of view regarding food, such that they shift their
mind to those cafes or restaurant who offer them different food with discount prices. That is why
to open a restaurant with unique concept is considered the good ideas as it helps to meet out the
demands of their customers.
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Apart from this, it has been realised through secondary data, that the companies who are
working in this industry are easily generating high income. Thus, it is considered one of the most
profitable industry. Moreover, the research also shows that the demand of the customers toward
food is increasing and as they easily switch their mood towards another, this shows that peoples
are interested to check out new places and enjoy the foods. Beside this, through secondary data it
is further analysed that in many big restaurants and hotels, customers have to wait for so long
because of having the best quality of food products that the firm is offering (Babin and Zikmund,
2015). In the same way, if Chow restaurant is also starting which helps to attract some customers
towards them.
Beside this, from the secondary data it has been analysed that the introducing the new
concept of Chow Restaurant will helps to establish a good customer base and as it offer new
Peruvian Marries Asian and Latin flavour dishes which helps to keep attract new range of
customers towards it. Moreover, to start a new business, normally it requires high amount of
investment but as per the case scenario around 90 percent of the amount is paid by the
government and the owner has to pay only 10 percent amount. After analysing the needs of the
customers, it has been concluded that to start a new restaurant is helpful to maximizes the profit
and satisfy the customer needs. Thus, it shows that the business is quite viable and feasible.
6. Presenting why the business idea is viable and feasible
The above mention business idea is feasible because it will help to create a good
customer base and brand image in market. As the demand of the people is increases day by day
because of the increases the market of food and the target customers of Chow Restaurant are all
age group people from 25 to old age. This concept is not applied by any restaurant and on the
other side, the firm also have efficient workforce who keep interacting with the customers in
order to provide good customer service (Fill and Turnbull, 2016). As per the case scenario, it
also requires small amount of investment and by using secondary research it has been analysed
that the restaurant is earning good profit. This helps to create variety of new opportunity to
sustain in the market. That is why to start new restaurant is good and effective business idea and
quite viable as well as feasible too.
Strength: The Chow Restaurant offer new Peruvian Marries Asian and Latin flavour
dishes which is a unique concept of the firm. It also uses cost leadership pricing strategy such
that offer good quality of products with low and reasonable rates. As the firm is new established
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then it also uses new promotional method which includes “buy two meal, get one free before 5
P.M.” Apart from this, it also has effective customer service and a specific type of ethnic food
which is not served elsewhere. It also offers free Wi-Fi services to their customers and its
location is easy to reach (Tarka, 2019). The quoted firm also have convenient interior design
which keep attracting new customers.
Weakness: It did not have any branches that is why variety of customer did not reach to
it. The inventory system should be based upon the new technologies and if not then it can be
considered another weakness for it.
7. Presenting strategies in order to overcome the risk and potential opportunities
There are variety of strategies which help a Chow Restaurant to overcome from the risk
and some potential strategies, some of them are as follows:
 Provide proper training: The employees of the restaurant should provide proper
training sessions in order to achieve the success. Beside this, these training sessions
also keep the employees of the restaurant aware to avoid the risk in a working place
(Powell and Osborne, 2019). Therefore, it is quite essential for the Chow Restaurant
to provide different training sessions for equipment handling, safety procedures,
customer service and the alcohol service etc. such that if the employees are trained in
such activities then they can easily sustain brand image and can overcome the risk as
well.
 Use of advance technology: In this modern age, the use of advance technology is
one of the essential needs for a business. As Chow Restaurant can also use these
technologies in order to prevent a business from any risk. Such that it is quite
necessary to use security cameras and anti- virus software system which helps to keep
the data protected from any misuse. Apart from this, the quoted firm should also use
computer based inventory system which helps to save the time as well as labour work
too. As it has been already identify that the restaurant have poor inventory system and
this can be easily overcome by using some advance form of techniques. Using
advance technology into the working force will help to create further opportunities for
a business and brand image in market.
 Proper sanitation: There is always a risk for a restaurant to get injured and cause
any damage to it throughout the workday (Tulung and Ramdani, 2018). In order to
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overcome this situation, it is quite necessary to keep clean the system every day and
maintain all the necessary facilities. Proper cleaning of the floors and the equipment
which are used should be properly maintained so that it will helps to keep the system
up to date and attracting wider range of customers towards them.
Through this ways, the Chow Restaurant will also overcome from the risk and also
creates some potential opportunities for the business for its growth.
CONCLUSION
By summing up above report it has been concluded that innovative ideas play an effective
role in order to developing new business in a market. In the same way, report concluded that by
using Drucker's 7 sources of systematic innovative, helps to open a new Chow restaurant in UK
who provide new Peruvian Marries Asian and Latin flavour dishes to all kinds of group people.
Beside this, report also concluded the competition in a market by using competitor analysis and
further by using gap analysis, present study concluded the gap between current state and desired
state. Moreover, through secondary research, report concluded that the current business is viable
and feasible and also concluded company's strength and weaknesses. Further it also concluded
different strategies in order to overcome the risk of competition and some potential opportunities
for the company's growth and development.
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REFERENCES
Books and Journals
Babin, B. J. and Zikmund, W. G., 2015. Exploring marketing research. Cengage Learning.
Bloemer, W., Day, S. and Swan, K., 2017. Gap Analysis: An Innovative Look at Gateway
Courses and Student Retention. Online Learning.21(3). pp.5-14.
Fill, C. and Turnbull, S. L., 2016. Marketing communications: brands, experiences and
participation. Pearson.
Horkoff, J., Maiden, N. A. and Asboth, D., 2019. Creative goal modeling for innovative
requirements. Information and Software Technology.106. pp.85-100.
Knackstedt, R., Bräuer, S. and Schoormann, T., 2019. Tool Support for Designing Innovative
Sustainable Business Models. In The Art of Structuring (pp. 87-100). Springer, Cham.
Mineraud, J. and et.al., 2016. A gap analysis of Internet-of-Things platforms. Computer
Communications. 89. pp.5-16.
Powell, M. and Osborne, S. P., 2019. Social enterprises, marketing, and sustainable public
service provision. International Review of Administrative Sciences, p.0020852317751244.
Smith, W. S., Whitener, M. D. and Brimer, M., 2015. Revising the Competitior Collaboration
Guidelines: Three Easy Pieces. Antitrust. 30. p.47.
Tarka, P., 2019. Managers’ cognitive capabilities and perception of market research
usefulness. Information Processing & Management.56(3). pp.541-553.
Tulung, J. E. and Ramdani, D., 2018. Independence, Size and Performance of the Board: An
Emerging Market Research.
Online
7 sources of innovative opportunities. 2018. [Online]. Available through:
<http://www.incrementalinnovation.com/innovation-management-development/7-
sources-innovative-opportunity>.
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