Entrepreneurship 1: Executive Summary and Business Opportunity Report

This report provides an executive summary and detailed analysis of a bubble tea shop business opportunity. It explores the concept of entrepreneurship, defining it as the process of establishing a new business to generate profits, and highlights the importance of identifying business opportunities. The report covers the micro and macro market, with the micro market focusing on customer preferences and needs like providing Wi-Fi for students and professionals. The macro market analysis examines how marketing strategies affect society and the economy. It includes factors such as political, technological, social, and economic influences. The report also analyzes the macro and micro industries, considering industry growth, operating environments, and market opportunities. The financial aspects of the business are assessed. The report concludes with recommendations and reflections on the business opportunity, emphasizing the importance of competitor analysis, environmental analysis, and Porter's Five Forces to ensure success. The analysis focuses on establishing a bubble tea shop in the Middlesex Street area of the United Kingdom, catering to students and professionals seeking a comfortable place to work or study.

Entrepreneurship

Executive Summary
Entrepreneurship is defined as the process of setting up new business and take up risks in
order to earn profits. Business opportunity helps in successful establishment of new business.
Factors of macro and micro market influence the working of the firm and helps in determining
strengths and opportunities. Macro and micro industries are categorised on the basis of its
investment in plant and machinery and in terms of service, it is based ion the investment on
equipments. Cash flow state determines the inflow and outflow of cash of the firm.

Table of Contents
Executive Summary....................................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................2
Business Opportunity..................................................................................................................2
Micro market .............................................................................................................................2
Macro market..............................................................................................................................3
Macro industry............................................................................................................................4
Micro industry.............................................................................................................................5
Financials....................................................................................................................................6
Recommendations.......................................................................................................................6
Reflections ..................................................................................................................................6
CONCLUSION ...............................................................................................................................6
REFERENCES ..............................................................................................................................7
............................................................................................................................8

INTRODUCTION
Entrepreneurship is a process of setting up a business and taking risk in the hope of
earning profit. It is the willingness and capability to create, organise and operate a business firm
along with its risk to make profit. Initially these businesses are small in size and the individual
who creates it is known as entrepreneur. The present assignment covers business opportunity,
macro and micro market, financials and macro as well as micro industry. Macro market
determines the impact of marketing strategies and policies on society and economy. Micro and
macro marketing embrace what enterprises believe as merchandising in popular sense & how
decisions are made by business society on aggregate basis (Barringer, 2012). Macro and micro
industries are large and small enterprises which are categorised on the basis of investments that
an industry have in its plant and machinery.
TASK 1
Business Opportunity
Present studies shows that bubble tea shops are more preferred by students as well as
professionals as they can sit there not only to drink bubble tea but also for studying and working.
Now a days, it is very common to see individuals in bubble teashops sit in at tables and do their
work. It might seem as a good idea to open bubble teashop in United Kingdom. For some people,
it is a good place for sitting due to easy access to Wi-Fi, snacks, bubble tea and table that makes
a substitute for traditional desk (Butler, 2012). In spite of that, regular stores don't possess a
healthy surroundings to conduct projects related to work or write a coursework. Charles bubble
tea Shop is having their operations in United Kingdom and administer all these facilities to its
customers includes professionals and students. It is a comfortable place for them to study or
work. In proximity to Middlesex street, it is difficult to find a place where a person can sit and
focus on its work. Primary research shows that majority of individual frequently work or
study outside of offices and homes. Charles bubble tea shop offer all these facilities to its
consumers. In fact, around 63 % of people struggle in the area to find an appropriate spot to do
so. It seems that there is no suitable product equivalent to this issue. That is the reason to use
Middlesex street area to establish specialist innovative bubble teashop that meets the
requirements of both professionals as well as students who looking for a place to work or study
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and administer them something that is not provided by the competitors (Dacin, Dacin and
Tracey, 2011).
Micro market
Micro market is defined as a small, self contained outlet in an area without an individual
to monitor it. It is a custom designed trading mart or market with self checkout kiosk. It
administer users a convenience with prices and vending options. They bring a complete new
level of satisfaction, selection and service to break campus and work room. Although these
markets may have the feel of small convenience store and offer more goods than a trading
machine.
Micro market helps Charles bubble tea shop to emphasize on preferences and needs of
selected group of customers such as students and professionals and offer them a wide range of
products specially bubble tea and snacks with the facility of Wi-Fi so that they can study or work
comfortably. The best attribute of micro market is not only convenience to access bubble tea and
snacks, but the fact that all are self serve (Hitt and et. al., 2011). Additional manpower is not
required in order to serve tenants and employees. These technologically advanced and
convenient market stations take the business trading options of Charles bubble tea shop to a
complete new level. In addition with increased product selection, the market also administer:
 Customized set ups and products
 Cutting edge inventory system
 Efficient self checkout capacity
Micro markets are fastest growing retail sector, nearly tied to the trading industry that use
automatic self checkout technology to operate in the areas that require an unattended payment
experience. These are the stores that administer an enhanced customer experience, increases
product variety and sales in a single area while increasing operational efficiencies and keeping
down labour costs. As an outcome of increased convenience and efficiency, the channels of
micro market has grown exponentially. Micro marketing is a strategy or policy which focuses on
generating profit by customer satisfaction. The advertising efforts of these markets are
emphasized on small group of targeted potential customers.
Macro market
Macro market defines as the impact of marketing strategies and policies on society and
economy as a whole. Particularly, it refers to how the 4p's of marketing – product, place, price
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and promotion strategies generate demand for products & services, and thus affect what is
manufactured and sold in the economy (Kuratko, 2016). Its scope is large as it put more
emphasize on the aspects that goes on the far side measure of micro marketing. It is a system
that addresses problems at the nexus of society and market.
(Source: Demand and Supply Curve, 2017)
Marketers view it as a tool that assists them to study the shortcomings and opportunities
of marketing. It seeks functional tools that can assist to improve marketing systems and
processes. Contradictory to micro marketing, it emphasizes on relationship between process of
production and purchase patterns of customers. The concerns of both macro as well as micro
marketing is fully different.
On the other hand, macro marketing is concerned with social responsibilities and
marketing, market regulation laws., overall behaviour patterns of consumer, socially admirable
advertising methods and efficiency of marketing systems. It will target maximum possible
consumer base. It is the best method to use if the business of Charles bubble tea shop will
consider all aspect of marketing. This concept emphasizes on attributes like product features,
availability, packaging and advertising (Neck and Greene, 2011). It examines social impact of
marketing and flow of goods and services in economy in the best possible way. It also assess the
advantages of these goods to society. Some factors of macro market that influence the firm are:
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Illust
ration 1: Demand and Supply Curve

Political: Various laws and regulations influence the working of firm such as trade
restrictions, rental property law, employee law etc. For opening bubble tea shop, licence is
required and many other things are needed so it is necessary to follow all the laws and policies
made by government. There are various trade restrictions that are exist in the market so, it is
necessary to follow appropriate strategies.
Technological: Changes in technology affects the efficiency and effectiveness of
production processes. Emergence of new technology helps in creating innovative products. By
the use of effective technology in bubble tea shop
Social: As the firm is new and start with innovative idea, the competitors are less. It is
the reason to enter in market of United kingdom. On the basis of demographics and marketing
segment, it determines development of product, target audience and the quantity of product to be
produced.
Economic: Number of bubble teashops are increasing and it will become popular in
United Kingdom. Micro market is highly concerned with how businesses make decisions related
to production and marketing of product, brand management, distribution channels, pricing
decisions, promotional and packaging decisions, buying behaviour of individuals and production
processes and methods.
Macro industry
Market analysis of macro industry includes:
Industry growth: There are 2 key factors of bubble teashop: customer sentiment and
disposable income. When these increases, demand of bubble tea rises. As per the industry trends,
the growth of the firm depends on the number of people who consumes bubble tea on daily basis.
If number of professionals and students increase, growth and revenues increase (Sarasvathy and
Venkataraman, 2011).
Operating environment: Some facilities are offered by Charles bubble teashop to its
customers such as free Wi-Fi facility, tables to sit comfortably to study or work or conduct a
short meeting etc. As per the research reports, the competition in the industry is expected to
increase. There exists an opportunity to offer products and services in the Middlesex street area
to professionals and students so that they will comfortably sit and do their work conveniently.
The firm is expected to grow at 3.7 % over five years.
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Market opportunity: The target customers of the company are professionals and students.
It is an opportunity for the firm to offer good environment to its customer with easy access to
Wi-Fi and administer quality products so that consumers feel happy and satisfied and visit the
place more and the goals and targets of the company can be fulfilled (Shane, 2012).
Expansion strategy: Bubble tea shop facilities are necessary in the Middlesex street area
to support growing need. The existing firms do not provide facility of Wi-Fi for the students and
professionals. The competitors of the firm are Starbucks, Costa, Wasabi, Cha time etc.
Some key success factors of the firm are as follows:
Competitor analysis: In order to achieve success, the firm needs to identify its
competitors and provide better products than its rivals.
Environmental analysis: It is essential for the firm to analyse external as well as internal
environment of the firm in order to know strengths, weaknesses, opportunities and treats.
Porter's five force analysis:
Bargaining power of customers: The power of customer is strong that easily can change
brand of drink without switching the costs. However, in London, the traditional shops of Bubble
tea are very few & unavailable around commercial areas. Hence, in London, Bubble Tea will
weaken the power of customers as per the research. At the time of switching brands, its
customers incurs time and transportation costs.
Bargaining power of suppliers: The power of suppliers is weak as Bubble Tea London
will import their raw materials directly from Mainland China and Taiwan where has various
suppliers as per the research.
Threat from substitutes: Substitution threat is moderately strong for Bubble Tea. Firstly,
various players involving Coca Cola has been creating its milk tea brands. In UK, Asian bottom
drink brands also have been invading. Secondly, consumers can be more attracted by large range
of drinks.
Threat of new entrants: The entry barriers are medium as they only require to consider
equity of brand, medium or small scale investment, technology barriers. So, threat from new
entrants is strong.
Industry rivalry: Number of rivals who sell Bubble tea are few. Considering the other
factors, intensive competition is faced by Bubble Tea from Costa, Starbucks etc. according to the
research. So, rivalry is medium.
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Micro industry
Micro industries are those in which the investment on plant and machinery are is less,
i.e., not more then 25 lakhs. When analysing firms at micro level, it is necessary to address the
topics that affect profits, growth, market entry and cost of the firm. These industries have less
resources so, they are not be able to properly utilized these resources (Storey, 2016). The
constraints include supplier frameworks, adequate consumer base, financial investment level and
the issues that has impact on short as well as long run costs and revenue of the firm. Its store is
different from its competitors in terms of quality, atmosphere, service and delivery option. Every
time customer thinks of drinking coffee, they will remember Charles bubble teashop by its
original taste and loyalty card. Consumers will be willing to come and have bubble tea due to its
taste (Welter, 2011).
Customer analysis: It is necessary for the firm to understand the needs of customers and
as per the needs provide them products in order to satisfy them.
Quality of product: It is necessary for the firm to provide quality products to its
customers so that they are more satisfied and chances of success increases.
Market analysis: There is a clear need for a place where people sit comfortably and do
their work as well as drink coffee. The existing facility of firm attracts more customers by its
comfortably sitting area, delicious bubble tea and snacks and excellent Wi-Fi facility.
Financials
As per the given cash flow statement, it has been evaluated that loss is high in month 1
and it has been continuously reduced in second and third month. In month 4, no loss takes place,
in fifth month, again the cash flow of the firm comes in negative and in sixth month, the cash
flow of the company comes in positive, i.e., that means company earns profit of $ 5,345.05. In
micro level industries, the decision makers are concerned about minimizing cost and maximizing
revenue. Implementation of proper marketing strategy by Charles bubble teashop helps in
reaching out customers indirectly.
Recommendations
The overall business is feasible, after some months, the it is going to make profit. I would
personally recommend the business as there is no barrier of entry. The investment in the business
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is low and the running cost of business is also low. Furthermore, in evidence of changing
demands of customers, we could say that the opportunity of growth of business is high.
Reflections
After carrying out this study, I have realised that lots of things are needed before starting
any business. It has been found that financial part is very difficult and rest of the part I enjoyed.
The study assists in developing academic skills and consciousness about new business.
CONCLUSION
From the above mentioned report, it has been concluded that the aspect of micro and
macro market are important as they play an important role in assisting businesses to develop an
effective marketing strategy. Successful and effective marketing campaigns take business to
complete new level and assists in generating higher profits. Proper understanding of macro as
well as micro marketing concept makes easy for business to know the best area to focus on.
Macro and micro industry defines some factors on which growth and success of the firm
depends.
REFERENCES
Books and Journals
Barringer, B., 2012. Entrepreneurship: Successfully Launching New Ventures, (2012).
Butler, J. S., 2012. Entrepreneurship and self-help among black Americans: A reconsideration of
race and economics. SUNY Press.
Dacin, M. T., Dacin, P. A. and Tracey, P., 2011. Social entrepreneurship: A critique and future
directions. Organization science. 22(5). pp.1203-1213.
Hitt, M. A. and et. al., 2011. Strategic entrepreneurship: creating value for individuals,
organizations, and society. The Academy of Management Perspectives. 25(2). pp.57-75.
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Kuratko, D. F., 2016. Entrepreneurship: Theory, process, and practice. Cengage Learning.
Neck, H. M. and Greene, P. G., 2011. Entrepreneurship education: known worlds and new
frontiers. Journal of Small Business Management. 49(1). pp.55-70.
Sarasvathy, S. D. and Venkataraman, S., 2011. Entrepreneurship as method: Open questions for
an entrepreneurial future. Entrepreneurship theory and practice. 35(1). pp.113-135.
Shane, S., 2012. Reflections on the 2010 AMR decade award: Delivering on the promise of
entrepreneurship as a field of research. Academy of Management Review. 37(1). pp.10-
20.
Storey, D. J. ed., 2016. Entrepreneurship and new firm. Routledge.
Welter, F., 2011. Contextualizing entrepreneurship—conceptual challenges and ways forward.
Entrepreneurship theory and Practice. 35(1). pp.165-184.
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