Identifying Entrepreneurial Opportunities

This report focuses on understanding the essentialness of entrepreneurial options in respect to gain more profitability with the help of creative thoughts. It includes determining and evaluating different sources of entrepreneurial ideas and innovation, presenting data required to support gap analysis, and interpreting information effectively to offer evidence of market potential.

Identifying Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................3
P1. Determine and evaluate different sources of entrepreneurial ideas and innovation.............3
TASK 2............................................................................................................................................5
P2. The rationale and the market gap for a specific entrepreneurial idea...................................5
TASK 3............................................................................................................................................8
P3. Present data that required to support gap analysis................................................................8
P4. Interpret information effectively to offer evidence of market potential.............................10
TASK 4..........................................................................................................................................12
P5. Apply SWOT framework to aggregate evidence to support an objective assessment........12
P6. Evaluation of competitive and market environments in which the idea will be launched to
asses potential viability.............................................................................................................13
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................15
.......................................................................................................................................................16

INTRODUCTION
Entrepreneurial require find out the growth option by listening possible consumers and
past leaders in their region. For this, they have to conducted research that assists person to find
out market trends and customer's need. They need to determine existing marketplace trends,
rivalry, policies of the country in reference to their business and the components which can
influence the business of the firm (Aghajani Afrouzi and Alizadeh, 2017). The underlying
purpose of this report is to understand the essentialness of entrepreneurial options in respect to
gain more profitability with the help of creative thoughts. In order to understand entrepreneurial
opportunities, Organix Chocolates is launching new fresh and organic chocolate drink at
Wembley, UK. This report consists potential sources for a new and creative business idea,
competitor analysis, gap analysis and market investigation with the assistance of effective
techniques. Moreover, it explains utilisation of primary and secondary information to finding out
market possiblility along with analysis of entrepreneurial idea regarding market and rivals.
TASK 1
P1. Determine and evaluate different sources of entrepreneurial ideas and innovation
In changing world, there are different sources that are reliable and effective with
entrepreneurial ideas in addition to creation which encourage to establish and start a new
business enterprise. Appropriate formation of a creative business make contribution in
economical development of the nation. A new business generate job opportunities, infrastructural
development and make improvement in the living standard of individuals.
Organix Chocolate is a new creation whose businessperson is looking forward to launch
such business in the city of Wembley, London. The dynamic perception of market regarding
healthy and organic drink and bakery goods encouraged him to set up this kind of business. The
possible clients are population of respective city of London and along with surrounding regions.
The targeted customers are youths, collage students, children etc. The growth area is high
because there are less number of bakers who offer organic commodities affiliated with
chocolates or drinks in such area (Andersson, 2018). In reference to get attention of numerous
people, there are several ways that can be accepted by the firm like offering free samples etc.
Different sources of entrepreneurial thoughts and creation which encouraged businessperson to

launch Organix Chocolates are STEEP factors and Ducker's 7 sources of innovation. The
detailed description of them mentioned as under:
STEEP factors
It is a tool that is utilised by organisations to measure extrinsic macro factors in reference
to consider critical determinations. It consists social, economical, technological, political and
environmental components (Evansluong and Ramírez Pasillas, 2019). Analysis of these
component is most crucial before establishing a new business.
Social factor- It includes lifestyle, demographic impact, education, consumers needs,
income, occupation culture and many more. Change in consumer needs is the main factor that
affect product demand by new and present business. When changes are generated in customers
needs, trends and attitude then it assist in understanding the demand and perception of them
regarding new business product. It will assist Organix Chocolates to make effective and required
changes in its product with the purpose of providing satisfaction to customers so that the firm can
retain them till long term.
Technological factor- This components consist new technologies, technological
innovation, R&D, Advance technology, artificial intelligence, technological investment and
many more. Distinct technology implementation directs to create more growth options to
respective company. When the company make creation by implementing new ideas then it
connect with technological advancement which impacts on reaching more segment of
marketplace.
Economical factor- It includes inflation, economical growth, interest rates, currency rate,
taxation and exchange rate etc. Arranging and compromising sources are most crucial to perform
operations and activities of the business. In UK, there is stability in economic situation that will
assist Organix Chocolates in investing fund and performing activities of business to large
segment.
Environmental factor- It consider weather, climate, material transportation ways,
emission laws environmental act and many more. These elements assists in offering services to
target audience by creative ideas (Ezeahurukwe and Ameh, 2018). Businessperson of Organix
Chocolates must consider different environmental components at each phase at the time of
performing business activities and operations.

Political factor- This component is affiliated to government laws and policies, taxation
policies, security requirements and others. Understanding and following each aspect protects by
political system and considering rules and regulations that provide outcomes in form of effective
implementation of new creative idea of Organix chocolates.
The sources that provided by Peter F Drucker are innovative and offer options for
creative thoughts that are administrated in reference to Organix Chocolates (Ilonen, Heinonen
and Stenholm, 2018). The explanation of this concept is as beneath:
Incongruity- It is connected with manufacturing gap among supply of goods in reference
to demand by consumer. The term is utilised for developing mechanise in addition to product as
per requirements. In other forms, the product of Organix chocolates are effective and productive
in fulfilling consumer's needs.
Process requirement- the chosen company should use creative technique and tool to
make coordination among other business operations of the company.
Industry as well as market structure requirement- Current market and business sector
framework also provide rise to new creation and thoughts. It assists in scattering data about a
new selected company and making required modifications according to need.
Demographic- It is affiliated with lifestyle of people which is great source of new
creations. Understanding demands and executions of individuals assists in attaining goals of new
business.
Changes in perceptions and mood- when changes are occurred in perception then it
generate creative thoughts, by making concentration in moods and demands of consumers assist
businessperson to devise changes in the new innovative business and fulfilling consumers needs.
New knowledge- Speed of creation maximises with new knowledge that offers different
options to establish a new business in competitive world (Korte, 2018). New knowledge assist in
identifying new ways to execute operations and developing process of Organix Chocolates.
Unexpected- Innovation takes place unfortunately that generates by chance. The
unexpected threat and risk related with chosen business is more that assist administrators to
frame different plan of action in advance for upcoming time.

TASK 2
P2. The rationale and the market gap for a specific entrepreneurial idea
Market gap is a method that utilised to determine differences among need of the good and
supply of company's products. It is not required that necessities of all consumers are satisfied or
target segment purchase the commodities of particular firm (McDermott, Kurucz and Colbert,
2018). In changing scenario, every firm want to accomplish growth so for this adopt different
strategies and make innovation in their working style. There are several growth options that can
be adopt by Organix Chocolates to launch new business.
Objective Current
State
Future
State
Gap
Identificati
on
Gap
Description
Factors Remedial
Action
To make
better
reputation
and
maximised
consumer
base.
No sales as
businessper
son is
making
plan to
launch a
accretive
business.
Businessper
son is
desiring to
maximise
the sales of
new
innovative
chocolate
product
approx
150000.
 With
the
help
of
cond
uctin
g
com
petit
or
anal
ysis
 By
usin
g
maki
ng
adva
nce
Individual
want
organic
drink that
are healthy
and tasty.
Awareness
affiliated to
health and
flavour
creation of
organic
chocolate
drink
(Nijssen,
2017).
 Publi
city
 Avai
labili
ty in
wide
locat
ions
and
area

ment
and
usin
g
new
tech
nolo
gies
Characteristi
cs as well as
functionality
of product
Product is
not
launched
yet
Maximizatio
n in future
Yes There are
less number
of
organisation
s that offer
organic
chocolate
drinks
Product is
not
launched yet
(Park, Sung
and Im,
2017).
Organise
review
feedback on
the basis of
present
consumer
and making
changes in
process to
provide
organic
chocolate
drink
product.
STP approach
The STP approach to determine particular consumer type to target are as under:
Segmentation- the engagement of the company y will do segmentation on the basis of
demographic and behavioural. In demographic the company will target those individual who are
budget conscious and 15-35 age group (Sagathn and et. al., 2019). In Behavioural, they focus on
those people who make concentration in quality services, brand loyalty and medium utilisation
rate.

Targetting- Organix Chocolate is targetting clients who like chocolate product and also
focus on healthy product (Reuber, and et. al., 2018). The firm target 15-35 age group of people
of Wembley city.
Positioning- for positioning in the marketplace, the company accept different business
tactics to build public relation and direct marketing etc.
Industry Life cycle
The phases of it is defined as under:
Startup stage- in this phase, new creation are devised where customer demand is
constricted in chocolate sector. Distribution system is not explained and complimentary products
are not accessible cause of unawareness of new good in marketplace.
Growth stage- In this phase, new innovative products slowly starts to devise their
position in market and profitability started to increase.
Shakeout stage- in this stage, consolidation of new chocolate product take place and
different businesses started to get unfavourable cash flows in this phase,
Maturity stage- Different chocolate organisations are well set up and earning good
profitability. There are several organisations that offer substitute product in market.
Decline phase- It final phase, in it, there are several growth options are accessible to
companies to survive in effective manner in respective business sector.
TASK 3
P3. Present data that required to support gap analysis
Gap analysis
It is an activity which is utilised to find out consumer's demand and identify the way to
develop the procedure in business firm. It is the method of analysing differences in execution
among business information systems or software implementation that analyse that ho bushiness
needs can be met and if not then what step can be to met them effectively (Wang, Thornhill and
De Castro, 2017). In Organix chocolates, the administrator frame a budget and make comparison
with actual execution which assist in accomplish set objectives. This analysis consist two
methods to gather information.
Primary data- It refers to that data which is collected by conducting research of the
market. The information which is gathered by using this method to get information about

customers needs so that products can be manufactured according to them. IN Organix
Chocolates, the administrator can use questionnaire to collect pure and accurate information
form market.
Secondary data- It refers to that data which is gathered from available resource in the
firm. There is not requirement to conduct research and invests more cost and time. Company can
produce the product as per customer (Aghajani Afrouzi and Alizadeh, 2017). It is utilised to
make comparison with other firm that is as below:
Comparative analysis
Basis Organix Chocolates Green Goddess
Size of company It is making plan to establish a
medium size of company that
will offer organic chocolates
drink.
It offers number of organic
chocolates drinks and powder.
Price It will accept market
penetration pricing strategy
because it is newly established
organisation.
It utilises premium pricing
strategy as it is well establish
firm which set price
accordingly.
Location London, UK. UK
Products Chocolates drinks with
different taste.
Different chocolate products
are offered by the company.
Focuses It will concentrates on
consumer taste like low sugar,
quantity and cavities.
It focus number of consumer
by manufacturing products as
per them (Andersson, 2018).
Questionnaire
Q1. Do you like chocolate drinks?
(a) Yes
(b) No
Q2. What kind of chocolate drinks do you prefer?

(a) Liquid Truffle
(b) Chocolate Martini
Q3. Are aware with Organix Chocolates?
(a) Yes
(b) No
Q4. Do you think that Organix Chocolates will achieve growth at Wembley?
(a) Yes
(b) No
Q5. How regularly you spend on chocolates?
(a) Occasionally
(b) Everyday
P4. Interpret information effectively to offer evidence of market potential
Q1. Do you like chocolate drinks? Frequency
(a) Yes 12
(b) No 8
Interpretation- From the above define graph, it can be analysed that among the population of 20
people, 12 are replied that they like chocolate drinks. Whereas remaining 8 individuals are
answered that they do not like these kind of drinks.
Q2. What kind of chocolate drinks do you prefer? Frequency
(a) Yes (b) No
0
2
4
6
8
10
12
12
8
Frequency

(a) Liquid Truffle 13
(b) Chocolate Martini 7
Interpretation- As per preceding mentioned visual communication, it can be concluded that
between the group of 20 people, 13 individual are viewed that they like liquid truffle chocolates
drinks whereas leftover 7 responders are replied that they prefer Chocolate Martini.
Q3. Are aware with Organix Chocolates? Frequency
(a) Yes 14
(b) No 6
Interpretation- This has been analysed from preceding define graphical representation that
among the population of 20 individuals, 14 individuals are familiar with Organix Chocolate
(a) Liquid Truffle (b) Chocolate Martini
0
5
10
15 13
7
Frequency
(a) Yes (b) No
0
5
10
15
14
6 Frequency

company and its products that are offered by it. Whereas remaining 6 representatives are
responded that they have not information about Organix Chocolates company.
Q4. Do you think that Organix Chocolates will achieve growth
at Wembley?
Frequency
(a) Yes 15
(b) No 5
Interpretation- It has been summarised form above explain graph that between the group of 20
responders that 15 are viewed that respective company will attain development in its business at
Wembley. Whereas remaining 5 individuals are answered that the firm will attain success in the
location where it launch its business.
Q5. How regularly you spend on chocolates drinks? Frequency
(a) Occasionally 11
(b) Everyday 9
(a) Yes (b) No
0
5
10
15
15
5 Frequency

Interpretation- As per preceding data, it can be analysed that among the aggregation of 20
representatives, 11 people are replied that they spend occasionally on chocolates drinks whereas
remaining 9 individuals are viewed that they spend everyday on chocolates drinks.
TASK 4
P5. Apply SWOT framework to aggregate evidence to support an objective assessment
In the context of Organic chocolate, the company uses SWOT analysis to evaluate its
strength and weakness with the opportunities and threads present in the work environment. So
that company can uses the resources in the best possible manner (Evansluong and Ramírez
Pasillas, 2019). The company are aiming to introduce to new chocolates drinks in the target
market place. The swot is discussed as follows:
Strength: Under this company has good team who has new innovation ideas to make its
product and services available in the market place. The company has effective manager and
leader who focus on increase the production of the company which will further enhance the
productivity of the company in the long run. The includes the factors which presents the good
points of the company so that the company can use such factors in the best possible ways to
increase the profits in the market share and build the great image in the market so that customer
know that companies product and services in better ways.
Weakness: Under this situation, the company tries to reduce its weakness so that they
can achieve the mission and vision of the company in the long run. Weakness can be
unproductive use of advance technology in the operations management which will effective the
profitably of the company .
(a) Occasionally (b) Everyday
0
2
4
6
8
10
12
11
9
Frequency

Opportunities: This is very important part of the company, as company are looking for
various type of opportunities to enhance the productivity for the organisation in the market
place. The company has opportunities to launch new chocolate drinks for the target segment of
the company. The company tries to know what is customer wants in terns of different type of
chocolate drinks as taste and preference of the customer are keeping on changing on the regular
basis.
Threats:Here company tries to find out the any threads which are present in the work
environment which matching with the weakness of the company so reduce the impact of such
threads in the company and maintain the productivity of the company in the market place
(Ezeahurukwe and Ameh, 2018). The company focus on reducing the effect of the thread which
are present in the environment so that company are able to make product and services according
to needs of the customer in the market.
P6. Evaluation of competitive and market environments in which the idea will be launched to
asses potential viability
Porter's five force:
This framework is useful in determining the five competitive forces which influences the
performance of company and its effectiveness. It is useful in identifying the competition level
which exist within the market. For this, entrepreneurs analyse an idea which is concerned with
the profitability that is going to earn with the help of implementation of new idea of developing
chocolate drinks (Ilonen, Heinonen and Stenholm, 2018). Analysis of market situations is helpful
for researcher in order to develop plans and concerning strategies which is useful in increasing
sales and profitability of company. To implement new ideas in an effective manner, this analysis
is useful to evaluate the market conditions and feasibility. For this, five forces are discussed as
under: Threat of new entrants: With the arrival of new entrants, the productivity of company
gets affected as when new entrants take place in the market. By this, the competition
level gets increases as it somehow negatively influences the performance of an
organisation. In this business, chocolate drinks is taken for this, entrepreneur need small
amount of investment which can develop the chances of threat from new entrants.
Moreover, in order to gain competitive advantage it is quite significant for an
entrepreneur to analyse the operating and fixed cost. Additionally, entrepreneurs can

easily sustain in market and also earn high profitability if they produce goods in bulk and
provide high discount to companies. Threat of substitutes: Substitute products are those that are easily consumed by
customers at other place as it becomes the big threat for businesses. For this,
organisations who have low substitutes can grasp more opportunities that charge high
amount form customers and also enhances the level of profit. For this, there are many
substitutes that company use in making chocolate drinks that tends to increase the level of
threats for an entrepreneur (Korte, 2018). For this, company use chocolate power as if it
is available at low rates. It is important for an entrepreneur to provide new idea in market
at cheap prices in comparison to their competitors and achieve success and earn more
profits. Bargaining power of suppliers: In this context, company low down its power of
suppliers as it becomes easy for them to switch form other suppliers. For this, there are
number of suppliers are present who can provide raw materials to company at low prices
(McDermott, Kurucz and Colbert, 2018). Therefore, the power of suppliers is low and
buyers have chance to take raw materials at cheap prices that leads to increase
profitability. Bargaining power of buyers: This power relies on the factor that how important a
customer is for company. For this, entity with large customer base tends to have less
power in the hands of customers that prevails in the market. Moreover, the bargaining
power is medium for buyers as there are very less options for companies in market area.
For this, entrepreneurs has chance to raise the number of customers as if they charge low
prices to attract more customers.
 Competitive rivalry: It is generally the number of competitors that prevails in market and
also influences the performance of company. In present times, the presence of
competitors in the offering is chocolate drinks is less and for this, entrepreneur has an
opportunity to develop positive reputation and presence in market (Nijssen, 2017). For
this, they have chance to develop good and healthy relations with other companies that
helps them to sustain in market for longer period of time.

CONCLUSION
According to the above discussion, the company comes up with the new product and
service in the market, by evaluating the different source of enterprising ideas and innovation and
company tie to use different tools and technique to examine and fill the gap in the market
potentials so that company are able to meets its goals by providing and fulfilling the needs and
wants of the customer from time to time. The company also done market investigation to know
the taste and preference of the target audience so that company can produce the goods according
to the needs and requirement of the customer so that company can gives the accurate product
and make profits in the market and build the brand image in the target market place.
REFERENCES
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