Entrepreneurial Ideas and Market Analysis: Bake Hut Startup

This report provides a comprehensive analysis of entrepreneurial opportunities for a hypothetical bakery startup, "Bake Hut." It begins by exploring various sources of entrepreneurial ideas and innovation, including external environmental factors, Drucker's seven sources of innovation, and the role of the entrepreneur. The report then delves into identifying market gaps, utilizing techniques such as customer identification, marketing segmentation (behavioral, demographic, and geographic), and industry environment analysis (competitors, suppliers, and customers). Data presentation to support gap analysis is discussed, alongside data interpretation for market potential and SWOT analysis. The report covers product and service ideas, the difference between invention and innovation, and the role of creativity. The report also discusses the role of clusters in fostering innovation and explores creativity techniques. The analysis considers different types of innovation, including product and process innovation. The report provides a detailed examination of the market, competition, and potential threats, and the report concludes with an evaluation of the competitive and market environments, offering valuable insights for the Bake Hut startup.

IDENTIFYING
ENTERPENURE
OPPORTUNITES

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation..............1
TASK 2............................................................................................................................................4
P2 Rationale and the market gap for a specific entrepreneurial idea..........................................4
TASK 3............................................................................................................................................6
P3 Present data needed to support gap analysis in the evaluation.............................................6
P4 Interpret data appropriately to provide evidence of market potential....................................8
TASK 4..........................................................................................................................................11
P5 Apply a SWOT framework to collate evidence to support an objective.............................11
P6 Evaluate the competitive and market environments............................................................12
CONCLUSION..............................................................................................................................13
REFERENCES .............................................................................................................................14

INTRODUCTION
Entrepreneurship is a core procedure which is identify need of a person to start a new
venture. In this procedure, individual needs to identify their dreams and believing in themselves
to accomplish their vision and missions properly. An individual who takes risk in order to
making money is known as Entrepreneur (Farmer, Yao, and Kung‐Mcintyre, 2011). They are the
individual who believes in transform their vision and objectives into a business idea. An
individual needs to create a effective market image of their new venture in order to getting higher
competitive advantages easily. These activities helps to acquiring long term benefits and growth.
Through this, they can easily get various opportunities to manage their business activities
properly. This report is based on a new start up named “Bake Hut” that provide bakery products
to their customers. This report represent different sources of entrepreneurial ideas and
innovation, market gap for a specific entrepreneurial idea and data representation to support gap
analysis. At last it also determine data interpretation to provide evidence of market potential and
SWOT analysis of firm.
TASK 1
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation
Entrepreneurship is not an easy task because it is required analysis of market and
customer to represent quality products as well as services in front of them. In this procedure,
entrepreneur requires to implement innovative ideas and creative thoughts to grabbing maximum
opportunities from target market. There are different sources are determine below that consider
entrepreneurial ideas and innovation as -
External environmental sources: These factors has major impact on a business organisation.
External environmental factors are beyond the control so for this firm needs to make impactful
strategy to reduce its negative impacts easily (Farmer, Yao, and Kung‐Mcintyre, 2011). These
factors are also helpful in providing several opportunities to Bake hut.
 Social factors – These are the most important factors that are requires to analysis
properly. Its consider customer's demand, desire, changes in fashion as well as trends. All
these factors has direct impact on customer's demand. So for Bake hut is is require to
examine market competition and users requirement to provide them quality services
easily.
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 Technological factors- This is a most effective factors that has direct impact
organisational productivity, profitability and growth. In this process, management of
Bake hut needs to implement new and innovative ideas as well as advance technology to
serve quick and quality services in front of customers. All these activities aid to maximise
brand image by promoting them through online medium.
Drucker's 7 sources of innovation:
 Unexpected – Innovation is impactful procedure that enhance capability to adopt
unexpected ideas for business development (Duru, 2011). Through this, employees of
Bake hut can provide new products and services to customers to maximise their strength
in target organisation .
 Incongruity – For an entrepreneur, it is require to adopt new and different idea in their
business organisation to provide unique services in market. Through this, they can easily
build their own image in front of target audience to maximise their growth and
profitability.
 Innovation based on process need – Innovation is a impactful process that requires to be
based on process need. It is not an easy task because it consider several changes and
modification in overall procedure.
 Changes in industry and market – Innovation helps to make desirable changes in industry
and market of specific product. So before implementing such activities in business, it is
required to analyse each and every factors in appropriate manner. Through this Bake hut
can easily get desirable outcomes.
 Demographics – Each and every entrepreneur wants to create own business in target
market by providing quality services to customers. For this manager of Bake hut needs to
build direct connection with customers to create demographic values easily.
 Changes in perception – Main objective of implementing innovation in business is to
changes perception of customers for specific services (Grégoire and Shepherd, 2012). A
new venture always established to provide unique and different services to customers by
implementing creative thoughts easily.
 New knowledge, both scientific and non-scientific – Innovation is impactful procedure
that require proper knowledge. It can be scientific or creative.
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Role of entrepreneur: Entrepreneur is an individual who takes risk in order to making money
and getting higher incomes easily. They are basically implement creative ideas and thoughts to
start a new venture. To be a successful entrepreneur, it is require to have passion about learning
and taking risk. In this procedure, some of the individual using past experience and others are
adopt new ideas from studies as well as practical learning. For them, it is require to believe in
themselves to attain their vision and missions in proper way. Major role of entrepreneur is
 Create new ideas to introduce a new start up in target market.
 Implement innovation to manage quality of products and services.
 Grabbing opportunities from target market.
Types of innovation: For an entrepreneur, it is require to use different types of innovation to
create unique and different services for customers (Fuentes and et. al., 2010). Types of
innovation can be -
 Products and process innovation- Product innovation implement new changes and
modifications in good and services on the bases of customer's demand and their
requirement. Process innovation is also a effective methods that used to implement
significant changes and improvement in production and delivery process.
Difference between invention and innovation and the role of creativity: Innovation and
invention are two different terms that uses to make effective changes. Innovation is basically
uses to make proper modification and changes in existing products and services. This activities is
based on changes in customer's requirement and employees demand. Invention is basically uses
to introduce new products and goods by implementing advance technology and creative
thoughts. Invention is a process in which new things are introduced for the first time in front of
target audience (Korsgaard, 2013).
Difference between a product or service idea and a business idea: Bake hut is a new start up
in which entrepreneur implement new ideas to make quality products and services for customers.
Products and services are two different things in which products ideas includes modification in
its taste and features while as services ideas include different manners in which employees needs
to understand customer's requirement to provide them quality services easily.
Role of ‘clusters’ in fostering innovation: This is a most effective procedure in which
employees provide their ideas to make positive changes. Cluster innovation is basically uses to
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implement several ideas to introduce a specific and quality product easily. All these activities are
helps to represent unique idea in front of target customers in proper way.
Exploring creativity:
 Uses creativity techniques to generate ideas – In a new venture, it is require to use
creative techniques and innovative ideas to maximise numbers of customers for firm. By
implementing such modifications, management of firm can easily capture customer's eyes
toward their services.
TASK 2
P2 Rationale and the market gap for a specific entrepreneurial idea
In a firm, it is required to make effective changes by implementing innovative ideas and
creative thoughts. Entrepreneur needs to analyse different market activities and their future
targets in order to filling gap properly (Nassif, Ghobril and Silva, 2010). For this, they needs to
implement new ideas to maximise organisation's profitability and growth. Market can be a major
element of this process that determine customer's requirement, needs, changes in products and
trends that affect their requirement. To filling market gap Bake needs to use different techniques
as -
Identifying customers – For an entrepreneur, it is required to analyse target market and
customers in order to manage quality of products. Identifying customers is a beneficial approach
that helps in analysing their demand and requirement for specific services. For bake hut, it is
require to analyse target customers to start their new venture at specific location. This activity
help to build direct connection with audience to getting long term benefits and growths as well.
Marketing segmentation -
 Behavioural – These activities are based on lifestyle, believes, culture and its values for
customers. For entrepreneur, it is required to analyse all these activities properly to
provide them appropriate services and products as well (St-Jean and Audet, 2012). These
kind of factors are based on marketing segmentation that are affected by purchasing
behaviour of consumers.
 Demographic - All these activities are classify on the bases of age, gender, occupation,
nationality and income sources of customers. These activities has major impact on
business organisation, so for this bake hut needs to analyse such factors to provide quality
4

services to customers. This procedure requires flexibility in cost of products to cater
affordable services to audience.
 Geographic – For an entrepreneur, it is require to analyse requirement of customers to
provide quality services at several places. Bake hut is a new venture which is established
to provide bakery products and services to target customers at several locations. Main
objectives of this segmentation is to provide effective services to customers easily.
Product or services -
 Tangible – These services are based on quality of products and services. Major
advantages of this process is to provide higher satisfaction to customers by fulfilling their
requirement properly.
 Intangible – For an entrepreneur, it is required to use different ideas and concepts in
order to maximise customer's strength in their organisation. For this, they needs to use
cost effective strategy as a promotional tool to capture customer's eyes easily toward
their services (Kotha and George, 2012).
Industry environment -
 Industry competitors – These are the existing organisations of market that can be a
industry competition for new start up. In this procedure, an entrepreneur requires to
analyse different existing organisation that also provide similar services to customers.
Through this, they can easily implement effective ideas and creative thoughts to
maximise values of their firm.
 Bargaining power of suppliers – They are the suppliers of services who can easily
manage costs of different products to maximise profitability easily. For Bake hut,
suppliers can be their employees who provide different goods to customers on the bases
of their demand. For them it is require to analyse capacity of customers to afford cost of
different services.
 Bargaining power of customer’s – They are the key strength of an organisation who
provide helps to maximise profitability and growth of firm to make a effective market
image easily (Burg and et. al., 2012). Main objective of a new venture is to provide
higher satisfaction to customers by analysing their requirement and desires as well.
 Threats of substitute – These factors can be a major threat for an organisation.
Sometimes, different organisations provide similar services to their customers at different
5

cost. These prices are more reliable that capture consumers eyes toward them. These
substitute services can be a weakness of firm in order to render similar products at
different costs.
 Threats of New entries – In an economy, different organisations are established to
making their own image and goodwill in target market. These firms can be a major threat
for those organisations those arr already providing similar services to customers. So for
this Bake hut needs to make impactful strategy to reduce negative impact of such
activities.
TASK 3
P3 Present data needed to support gap analysis in the evaluation
For an entrepreneur, it is require to make effective strategy to reduce impact of marketing
gap. This process determine different activities of an organisation that helps to provide them
effective growth and advantages (Perrini, Vurro and Costanzo, 2010). For a business
organisation, it is require to use different tools and techniques to analysing market condition and
customers demand as well. For a proper market research, organisation can use different types of
resources to manage activities of organisation on the bases of customer's opinion and their
requirement as well. A proper market research can be done through two different methods that
can be -
Primary research – In this research, analyst always uses fresh data and proper
information that provide authenticate information to firm. Main objective of this research is to
analyse opinion of customers on the bases of their demand and requirement for specific services.
For Bake hut, it can be a beneficial move that helps to provide appropriate information of
customers view point on firm's services. Through this, firm can easily maximise their values and
effectiveness to build a positive image in front of target customers. In this research, data is
collected by employees of firm to understand customers views properly.
Secondary research – This research is provide pre determine information to customers
on the basis of customers requirement and need. In this procedure, data is collected on the basis
of historical approaches and representation. All these activities provide appropriate information
to management of organisation to getting higher opportunities and benefits as well. In this data
collection method, organisation needs to hire a mediator who analyse each and every information
6

properly to maximise growth and effectiveness of firm. These kind of information is based on
past and historical data (Abu-Saifan , 2012). In the context of “Bake hut”, this research method
will help in industry as well as competitor analysis so that organisation can easily create their
own market place with appropriate strategies. On the basis of secondary research practices,
management of Bake hut can identify their potential buyers so that they can introduce quality
services for them. All these kind of business process are assist in attaining desired competitive to
a firm by implementing appropriate plan as well as strategies.
New technologies for audience research – For entrepreneur of Bake hut, it is require to use
different technologies to getting proper information related to customers requirement and need.
For this, they can use several ideas and techniques that help to provide effective information to
employees. New technologies for audience research can be -
 Survey – This is a most effective procedure in which organisation uses several ideas and
techniques to analyse information through several customers. In survey methodology,
employees analyse individuals opinion for organisational products as well as services.
This survey and research helps to making desirable changes in business activities.
 Data collection – In this procedure, analyse choose random person from a larger
population to getting authenticate information easily. It can be -
Questionnaire
Name-
Email ID-
Contact No.-
Q 1. Do you think that Bake hut provide unique and quality services in target market as well as
to customers ?
A. Yes
B. No
Q 2. Is there any requirement of training for employees of Bake hut ?
A. Yes
B. No
Q 3. Do you feel that implementation of Innovation help to provide long term benefits to Bake
hut ?
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A. Yes
B. No
Q 4. Do you agree that Bake hut can easily getting higher competitive advantages from target
market ?
A. Yes
B. No
Q5. Any suggestion for future improvement.
1: Unique and quality services that are provided by Bake hut in target market
Particulars Frequency
A. Yes 12
B. No 8
2: Requirement of training for employees of Bake hut
Particulars Frequency
A. Yes 15
B. No 5
8
12
8
A. Yes
B. No

3: Implementation of Innovation help to provide long term benefits to Bake hut
Particulars Frequency
A. Yes 16
B. No 4
4: Bake hut can easily getting higher competitive advantages from target market
Particulars Frequency
A. Yes 12
B. No 8
9
15
5
A. Yes
B. No
16
4
A. Yes
B. No

Gap analysis - Gap analysis is basically a representation that helps to analyse
organisation's current position and their future requirement. All these activities are based on
organisation's future vision and mission that needs to be accomplish through different strategy
and planning procedure. On the bases of Gap analysis, a new start up can easily enhance their
productivity and performance to getting maximum profits and growth all these activities are
based on future objectives and target that are requires to attain properly. Gap between such
activities are determine how an business organisation making effective and impactful plans to
maximise effectiveness of such business activities.
P4 Interpret data appropriately to provide evidence of market potential
Theme 1: Unique and quality services that are provided by Bake hut in target market
Particulars Frequency
A. Yes 12
B. No 8
Total 20
Mean 10
Median 10
Mode 4
Interpretation – As the above graphical representation, it has been analysed that out of
20 candidates, average 10 percent are agree with the quality of the Bake hut bakery. They likes
the quality of the products that are provided by the bakery. On the other hand, there 10 percent
people who are not satisfied by the quality. As it result, it has been identified that customer's of
10
12
8
A. Yes
B. No