Entrepreneurial Opportunity Analysis: A Cafe Business Report

This report provides an analysis of a cafe business as an entrepreneurial opportunity, examining various models and market segments. It covers PESTEL analysis, Porter's Five Forces, and industry micro VRIO to assess the viability of the business. The report discusses political, economic, social, technological, environmental, and legal factors affecting the business, as well as market attractiveness, target market segments, and sustainable advantages. It also addresses potential risks and the importance of strong supplier relationships, understanding buyer power, competitive rivalry, and the threat of substitution and new entry. The VRIO analysis evaluates the value, rarity, inimitability, and organization of the business, emphasizing the need for a clear mission, risk management, and effective teamwork to ensure successful execution and growth.

Entrepreneurial
Opportunity

Table Of Contents
INTRODUCTION..............................................................................................................3
Business Idea-Cafe..............................................................................................................3
CONCLUSION...................................................................................................................5
REFERENCES....................................................................................................................6

INTRODUCTION
Entrepreneurial opportunity can be defined in the manner that it is the situation where
products and services has been sold out greater than the cost of production. It is the situation
where entrepreneurs can take action for making the profit. (Shahriar, A. Z. M., 2018). These
kind of situation has been identified through studying the market needs and requirements and
understand the different parameters of the customers. In this report, the analysis has been done
on the different kinds of models and its related aspects and also about the different market
segment. The analysis has also been done on the PESTEL analysis, porters five forces and
industry micro VRIO with respect to the designed business opportunity. The chosen business
opportunity is with respect to the Cafe.
Business Idea-Cafe
For starting the business it is important to consider the different domains of the market. It
includes the market attractiveness, target segment benefits and attractiveness, industry
attractiveness, sustainable advantage, mission of the business and relative risks, execution on
critical success factors and about the up, down connected criteria of the value chain. For the
proper execution of these market domain it is very important to consider all the factors of
different analysis. Under the PESTEL analysis, it includes political, economic, social,
technological, environmental and legal factors.
Political Factors: For starting the business it needs to consider tax rates, fiscal policy, trade
tariffs and tax policies also. (Ozasir, S., 2020). Tax rates helps in identifying and fixing the rates
of the products. And the different kinds of policies supports in taking the decision of with respect
to taking the business on the international level.
Economic Factors: Under this head, it is important to consider economic growth, interest ,
exchange rate, inflation and wage rate. These parameters supports in planning the business at the
international level.

Social Factors: Under this head, while doing the business at the international level it needs to
understand that different countries have their own cultural norms and expectations so it
isimportant to think about it into the strategically manner for starting the business.
Technological Factors: With the changing period of time innovations and development in
technology also changes the way of doing the business
Environmental Factors: While opening the cafe it is important to consider the ecological aspects
so that it helps in analysing that whether the business affect the surrounding environment or not
into the ethical manner.
Legal Factors: While starting the business it is important to properly analyse the laws related to
employment and the employees who are going to work in the organisation.
For clearing the factor of market attractiveness it is important to do the marketing and popularise
the product through different social media platforms. For targeting the market the PESTEL
analysis helps in understanding the situation of the another country. For taking the interest
towards in this particular industry it is important to create the awareness and spread the
importance of it so that big business managers and investors take interest into it. For
understanding the sustainable advantage, it is important to analyse about the factors related to it
and its importance with respect to the sustainable growth. ( Accounting and
Finance.Ramkissoon-Babwah, N., 2015).Risk related to it that in the coffee business it
somewhere affects the health of the consumers which will create problems with respect to the
future growth of the company.
In terms of Market – micro – Target Market Segment, it is important to notice that which age
group should be targeted so that maximum profit can be earned out of it. Majorly school and
college going groups, adult people and office employees can be targeted who can use their
products for the purposeof relaxing themselves and in the break time also they can have the
coffee so that it helps in relaxing their mind and body.
For understanding the market domain into the effective manner, the PORTER'S FIVE FORCES
model and their factors plays a very important role. It includes the supplier power, buyer power,
competitive rivalry, threat of substitution and threat of new entry. With reference to the cafe
business, the people who are involved into this business need to understand that to have the good
relationship with the supplier so that they support into the positive manner in the emergency

situation also. (Potts, J., 2019). It is important to analyse about the market before starting the
business that who are the potential buyers in the market so that business man can analyse that
what is the strength of their customers. For starting this business, it is important to note that who
are the competitive persons or can give tough competition in the market. Before launching the
product it needs to understand that what is the probability of customers shifting towards the
substitute products. With the last factor threat of new entry so business have to be so strong at
the international level so that no one can replace it and does not give the irreplaceable chance in
the market.
Under the VRIO analysis, there are four factors related to it which are named as value, rare,
inimitable and organisation. Under the value head, if the business can't help in minimizing the
threats and risks related to it then it becomes difficult to stand in the market. The product should
be rare in the market so that customers do not find any alternative related to it. The product
should be unique in nature which considers under the inimitable head. Under the organisation
head, there should be proper organisational structure so that the execution of task can be done
into the appropriate manner.
The business need to be confident about their execution of work and the mission should be clear
cut and the risk related to it should have the proper solution for it. The relationship among the
team members helps in building the strong base for the purpose of execution of task.
CONCLUSION
Entrepreneurial opportunity is one of the big ways for growing themselves in the stronger
way at the international level. (Ajide, F. M. and Kameel, H. O., 2018). This kind of opportunity
not only enhances the level of an individual but also gives the opportunity to face the challenges
into the effective manner. So entrepreneurial opportunity plays a very important role in the
growth of the business as well as in terms of the country also.

REFERENCES
Books and Journals
Ajide, F. M. and Kameel, H. O., 2018. An overview of entrepreneurial development in
developing countries: A comparative analysis. In ICAN Annual International Academic
Conference on Accounting and Finance.Ramkissoon-Babwah, N., 2015. The dynamics of
women entrepreneurs in Trinidad and Tobago-Motivations, challenges and
recommendations to support their entrepreneurial development. International Journal of
Gender and women’s Studies, 3(1), pp.33-42.
Potts, J., 2019. Innovation commons: The origin of economic growth. Oxford University Press.
Ozasir, S., 2020. Entrepreneurial Diversity: Contextual Variety of Entrepreneurial Identities and
Experiences. In Academy of Management Proceedings (Vol. 2020, No. 1, p. 13392).
Briarcliff Manor, NY 10510: Academy of Management.
Shahriar, A. Z. M., 2018. Gender differences in entrepreneurial propensity: Evidence from
matrilineal and patriarchal societies. Journal of Business Venturing 33(6), pp.762-779.