Entrepreneurial Opportunities for Hot & Fresh Coffee Cafe Report

This report focuses on identifying entrepreneurial opportunities for a coffee cafe, specifically "Hot & Fresh Coffee Cafe." It explores the sources of entrepreneurial ideas, drawing inspiration from Drucker's 7 sources of systematic innovation, and analyzes the business idea's potential, target audience, and market positioning in Oxford, UK. The report includes a competitor analysis using Porter's Five Forces model to assess the competitive landscape and identify opportunities and threats. The analysis considers factors like the bargaining power of suppliers and buyers, the threat of new entrants and substitute products, and the rivalry among existing competitors. The report aims to provide a comprehensive framework for the cafe's business venture, offering insights into market dynamics and strategic recommendations for success.

IDENTIFYING
ENTREPRENEURIAL
OPPORTUNITIES

INTRODUCTION
Entrepreneur refers to an individual who convert own new and innovative ideas into a
business. An entrepreneur can be someone who starts their own business with the willingness of
taking benefits of an opportunity to earn profit and doing work for social welfare.
Entrepreneurship can be a process of framing, launching and running a new business which is
often initially a small business (Davidsson, 2015). This assignment is related to idea of launching
Coffee products by “Hot & Fresh Coffee Cafe”. This report include of methods and framework
which help in the improvement of business venture. This assignment will be discussed about the
different sources of entrepreneurial ideas, rational and market gap for this idea. Further will
defined about SWOT analysis to collect data and evaluation of competitive and market
environments in which this idea will be launched.
1. Information about those sources that inspired business idea
Innovative and new business ideas are inspired by current trends that are shortened on
the basis of determination of current market analysis. Entrepreneur takes business ideas for
different sources like future perspective and online research. A new venture that is inspired by
current trends is set up in Oxford street, Oxford, UK by “Hot & Fresh Coffee Cafe”. This is a
Coffee shop which offers coffee and sneaks to those people who come there for business
meeting, spending time and other purpose etc. The concept of launching this business venture is
formulated by Ducker's 7 sources of systematic innovation which describes sources of
innovation which are mentioned below:
The unexpected- Market place is a great place to take opportunities and look
opportunities for the business launching and expansion. It is a place which provide various
innovative and growth opportunities for a new venture of business. Unexpected situations can be
highly powerful in business area as they encourage the innovators to look the other perception of
the situation and take it as opportunity and advantage. In Hot & Fresh coffee cafe, it help in
providing various opportunities in form of various customer or clients.
The incongruity- The growth and development of a business is totally depended on the
needs, demands, taste and preferences of the customers. It also consist that which kind of
products are produced by the company for its customers (Guerrero, Urbano and Fayolle, 2016).
Before launching a new product, the management of the company should do proper market
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research and target its customer base, it is important to take feedbacks, customer's reviews and
other activities that provide information about their needs. For hot & Fresh coffee cafe it is
essential because help in manufacturing products according customers demands. This factor
influence this business idea because before introducing business if they analyse the market and
customers needs then they can easily provide products to their customers accordingly. .
Process need- It consist identification of the weak spots of the organisation's process so
that they can be correct or redevelop (Hang, Garnsey and Ruan, 2015). This factor helps in
proving more opportunities to a new business. For example, if in Hot & Fresh coffee cafe, it can
be find out that customers wait too long for their entries than it can take decisions to recruit more
employees so that they can offer services in less time.
Industry and market structure change- Sustainability and stability in a business may
remain same but change in customers needs and demands affect any business almost overnight.
In restaurant sector, there are various change occurs related to customers tastes and preferences
so it is required to fulfil their needs. In Hot & Fresh Coffee cafe, by offering products and
services according to the customers needs, it can change threats in to opportunities.
Demographics- Change in demographic factor affect the business of any company at
high rate. This factor considers various factors like age, profession, education, income, gender,
lifestyle and others which are the main reason to affect the business. For example, now these
days, people are highly focusing on managing their lifestyle so the organisation produces
products accordingly. This factor helps in producing quality products to the customers like
organic and herbal coffee because most of the people are working and they are highly conscious
about their health.
Changes in perception- There are various change generated over the period of time in
customer needs. Now these days, people are highly focused on the quality of the products and
they are ready to pay for it. Because the perception of the people is changing towards the goods
and services and they think that those goods which have good quality, the price of them also
high. So with the help of it, Hot & Fresh Coffee Cafe can offer quality products to its customers
and gain their loyalty (Hansen, Monllor and Shrader, 2016). Now, these days people are health
conscious so the perception of them change towards the drinks and they are focused on healthy
drinks like herbal an d organic coffee which is favourable for Hot & Fresh Coffee Cafe. .
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New knowledge- Knowledge is beneficial for getting information about innovation in an
appropriate manner. It helps in providing various opportunities for new venture and business
(Jayeoba, 2015). With the help of it, Hot & Fresh Coffee Cafe can introduce customers with new
products like flavoured coffee and other liquids.
These all sources can be beneficial for this company because with the help of them it can
provide products and services according to its customers and fulfil their needs and demands.
2. An introduction to business idea and what it is, and who and where potential customers and
target audience are
There are various growth and development opportunities in the market that can be grape
by entrepreneurs by launching new business. This opportunity can be grab by Hot & Fresh coffee
cafe by launching its business in the market and offering products and services according to the
customers’ needs and demands. In UK, the Government is also motivating entrepreneur who has
recently graduated to launch a new venture. According to it, it is important and necessary before
launching their business, they present their business to government. If the idea will be good and
relevant, the government provide fund to them to set up their new venture. In the market, the
value of launching new business is £150,000 in which £90,000 is provided in the form of loan by
the government authorities at low interest rate. With this £50,000 is offered as government grant
and remaining £10,000 will be invested in form of capital by the individual.
To target its customers, this cafe will focus on youths, college students, business people,
youngsters, adults, professionals, employees because they are highly visited to cafes for various
purpose like spending time with friends, business purposes, meetings, hangout and others. This
cafe is also launched in business or corporate area such as Oxford Street, Oxford, UK so that it
can easily provide its products to its target audiences. This Cafe house also provide its products
on reliable prices so that they can easily purchase by all class customers. In its Coffee products it
offer different varieties of it like cold coffee, hot coffee, bean coffee, Organic and herbal coffee.
Now these days, people prefer herbal and organic coffee because they are more health conscious
so this coffee house also provide these products.
3.Competitor analysis that looks at the competitive marketplace
There are various growth and development opportunities in the market that can be grape
by entrepreneurs by launching new business (Karimi and et. al., 2016). This opportunity can be
grab by Hot & Fresh coffee cafe by launching its business in the market and offering products
3

and services according to the customers needs and demands. In UK, the Government is also
motivating entrepreneur who has recently graduated to launch a new venture. According to it, it
is important and necessary before launching their business, they present their business to
government. If the idea will be good and relevant, the government provide fund to them to set up
their new venture. In the market, the value of launching new business is £150,000 in which
£90,000 is provided in the from of loan by the government authorities at low interest rate
(Kirkley, 2016). With this £50,000 is offered as government grant and remaining £10,000 will be
invested in form of capital by the individual.
To target its customers, this cafe will focus on youths, college students, business people,
youngsters, adults, professionals, employees because they are highly visited to cafes for various
purpose like spending time with friends, business purposes, meetings, hangout and others. This
cafe is also launched in business or corporate area such as Oxford Street, Oxford, UK so that it
can easily provide its products to its target audiences. This Cafe house also provide its products
on reliable prices so that they can easily purchase by all class customers. In its Coffee products it
offer different varieties of it like cold coffee, hot coffee, bean coffee, Organic and herbal coffee.
Now these days, people prefer herbal and organic coffee because they are more health conscious
so this coffee house also provide these products.
3.Competitor analysis that looks at the competitive marketplace
It is an investigation which is essential because it is an assessment of the strengths and
weaknesses of recent and possible competitors. This analysis help in offering both assaultive and
defending strategic context to find out opportunities and threats. To analyses the competitive
marketplace, Hot & Fresh Coffee Cafe can use Porters five force model which is as following:
Porter's Five Force Model
This framework was developed by Michael Porter which help in measuring the
combative strength and position of a business of a company. This model consist five forces
which are beneficial to understand the competition for the new product. These forces are as
following:
Threats of new entrants- This forces refers to new business because in food and
restaurant sector it is easy to start a new business because there are less fund required to start
these kind of business (Kraus and et. al., 2015). So the threats of new entrants are high for Hot &
Fresh Coffee Cafe because there are various cafes who create competition for this company. But
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the company can minimize this risk by producing unique an quality products like organic and
herbal coffee etc. With this way it can reduce competition of new entrants and make
development in its business.
Source: Porter's Five Force Model, (2019).
Bargaining power of suppliers- The bargaining power of suppliers are low in context of
Hot & Fresh Coffee Cafe because there are numerous suppliers in the market and they are ready
to offer raw material to this venture. This help in the growth of the business because the firm can
purchase material at correct prices and manufacture products according to the customers needs
and demands.
Bargaining power of buyers- In Hot & Fresh Coffee Cafe, the bargaining power of
buyers are also low because it produce unique products like herbal, bean and organic coffee. For
these products customers are ready to pay so the consumer power is low (Martens and et. al.,
2018). It is development opportunity for the business of this cafe and the quality and uniqueness
of products help in minimizing risk.
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Illustration: Porter's Five Force Model

Threats of substitute products- This force create high competition for Hot & Fresh
Coffee cafe. Because there are various cafes in the market and they also produce various similar
products to fulfill the inevitably and needs of the consumers. So the threat of similar goods are
high and it affect the growth of the firm.
Rivalry among existing competitors- In Hot & Fresh coffee cafe, the risk of this force is
high because this cafe newly launched its business in market so it invest fund on advertisement
and others (Nijssen, 2017). There are also several competitors at market place and they also
generate competition because they are already well established and known. So they have some
loyal customer who help in the growth of them.
4. Gap analysis for looking to close the gaps and the objectives of business ideas
Gap analysis refers to a method which is used by organization to analyze the difference
and gap between the current and desired condition of the business of the company. This analysis
can be used by Hot & Fresh Coffee Cafe to monitor the gap between its current situation and
future position.
Basis Current position Desired position Action plan
Products and
Services
Providing different
types of coffees like
cold coffee, hot coffee,
bean coffee, herbal
and organic coffee.
To manufacture coffee
in different flavours
and produce other
healthy drinks like
lemonade and virgin
mojito etc.
To producing these
products, the cafe
purchase different
types of machines and
equipments which are
specially designed for
producing these kind
of products.
Cost These products are
available at reliable
prices so that
customers can easily
purchase them.
The venture set prices
of its products
according to its
competitors so that
they can not gain more
profit.
The firm will develop
good pricing strategies
according to the
quality of products
(Rasmussen and
Wright, 2015).
Innovation The business idea of By making innovation By getting feedbacks
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Hot & Fresh coffee
cafe is unique and
reliable to attract
numerous customers.
in its products like
coffee. There are large
scope for the business
growth by making
innovation in its
existing products.
and customers review,
they can bring more
innovation and can
follow customer
centric approach.
Objectives Strategies
To make insure about the customer
satisfaction and maintaining a sense of
loyalty
 By manufacturing good quality products.
 By using affordable pricing strategy and
making innovation in exiting products (Reuber
and et. al., 2018).
 By launching other new health drinks.
To maintain a sustainable business  By taking feedbacks and customers review on
regular basis
 By using and implementing new and latest
technologies to develop new product.
 By using offer and discount pricing strategies.
5. Market research to support viability for business idea and identify market potential using a
range of sources
If the entrepreneur launched or introduced a new business then it provide information
about some particular issues and problems related to business. For identifying these issues, there
are two methods primary and secondary methods that can be implemented by new business.
Primary method refers to that method in which information collect by the venture first time by
using various source of data collection like; questionnaire interview and survey etc. Another
method is secondary method of research in which the information can be used by the business
which is already available on websites, government portals, internet and others (Santos and et.
al., 2015). From the above methods, Hot & Fresh Coffee Cafe can use primary method of
research and collect information with the help of questionnaire and for this the sample size is 30.
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Name:
Age:
Gender:
Add:
Mail ID:
Q1). Do you have knowledge about the importance and information of the herbal and
organic coffee products?
(a) Yes
(b) No
Q2). The location which is select by the entrepreneur is good for the growth and
development of the business?
(a) Agree
(b) Disagree
Q3). Which product is beneficial for the success of the business?
(a) Herbal Coffee
(b) Organic Coffee
(c) Bean Coffee
Q4). Are you satisfied with the prices and services of Hot & Fresh Coffee Cafe?
(a) Yes
(b) No
Q5). Any recommendation, you want to suggest.
Q1). Do you have knowledge about the importance and information
of the herbal and organic coffee products?
Frequency
(a) Yes 18
(b) No 12
Total 30
Mean 21
Median 21
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Mode 12
Interpretation- From the above graph, it can b analyzed that 18 respondents among 30, know
the importance and have information about the herbal an d organic coffee drinks. Whereas 12
respondents have not information about these coffee drinks products.
Q2). The location which is select by the entrepreneur is good for the
growth and development of the business?
Frequency
(a) Agree 16
(b) Disagree 14
Total 30
Mean 22
Median 22
Mode 14
9
(a) Yes (b) No
0
2
4
6
8
10
12
14
16
18
18
12
Frequency

Interpretation- As per the analysis of above information, it can be monitored that 16
respondents among 30 are agree with location that it is suitable for the development and growth
of this new venture. Where as 14 are disagree that this destination is not good fro the growth of
this coffee cafe.
Q3). Which product is beneficial for the success of the business? Frequency
(a) Herbal Coffee 12
(b) Organic Coffee 10
(c) Bean Coffee 8
Total 30
Mean 19
Median 19
Mode 8
10
(a) Agree (b) Disagree
13
13.5
14
14.5
15
15.5
16
16
14
Frequency

Interpretation- From the above analysis, it can be concluded that within 30 respondents, 12 are
supported that herbal coffee is beneficial for the success of business because people are more
health concussion and they prefer this. Whereas 10 are agree with organic coffee and 8 are
supported to Bean coffee that these products helpful for the development of the company.
Q4). Are you satisfied with the prices and services of Hot & Fresh
Coffee Cafe?
Frequency
(a) Yes 17
(b) No 13
Total 30
Mean 21.5
Median 21.5
Mode 13
11
(a) Herbal Coffee (b) Organic Coffee (c) Bean Coffee
0
2
4
6
8
10
12
12
10
8
Frequency

Interpretation- As per the above information, it can be analyzed that within 30 respondents, 17
are agree with the pricing strategies and services of the firm where as 13 are not agree with the
prices and services of this new business venture.
6. Why this business idea is viable and workable and how qualify this belief
Business idea of coffee house will be analyze in term of feasible and viable opportunity
for new entrepreneurs. By manufacturing new and healthy coffee drinks which are high in
demand and have less competitors can provide high chance of growth for the business. In this
business idea, the government also provide support in term of offering fund to establish business
(Wood and McKelvie, 2015). There are limited competition and the accessibility of the products
is not much high so the profits can be expected for this business idea in near future.
To monitor the strengths and weakness, this new venture can use SWOT analysis as
strategic tool and technique. This analysis is as following:
Strengths Weaknesses
 This cafe house can provide healthy
and unique coffee drinks like herbal
and organic coffees etc.
 There are high competition so there are
minimum and limited market share for
it.
12
(a) Yes (b) No
0
2
4
6
8
10
12
14
16
18 17
13
Frequency

 It is set up in a business or corporate
area where it can has a large customer
base.
 There are numerous option available in
the market so the customer can easily
switch to another brand.
Opportunities Threats
 By making innovation in its existing
products and launching new health
drinks (Davidsson, 2015).
 By making joint venture an tie up with
other companies for promotion.
 There are various competitor in the
market and they generate threat for the
business of the company.
 Change in consumer taste and
preferences.
Risks and the potential opportunities for growth and development
Risk is a complementary element in a business with the thought of getting growth and
development. If there are high risk then it provide high profit to the company. It is essential and
necessary for Hot & Fresh Coffee Cafe to minimize the risk related to problems. High
competition in the markets the biggest threat to small enterprises which influence their business.
It is necessary to monitor this risk so that it can be minimize by taking appropriate action
towards it. In Hot & Fresh Coffee cafe, quality, uniquer and healthy coffee drinks products can
be beneficial to resolve these kind of issues and help in increasing sale, customer base and profits
of it (Guerrero, Urbano and Fayolle, 2016).
CONCLUSION
As per the above mentioned information, it can be analysed that to start or establish a
new business the entrepreneur required an opportunity. There are different sources which help in
offering information about the background of the business. With the help of government, a new
business venture can easily manage its fund and provide introduction about the business of it.
There are high competition for each business in the market and this competition affect differently
to the various business activities. To calculate actual and future position of the business , the gap
analysis can be used by the entrepreneur to monitor the gap and objectives of the business idea.
With the help of market research, the information and data regarding a specific issue can be
identify and gather.
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REFERENCES
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Online
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<http://www.incrementalinnovation.com/innovation-management-development/7-
sources-innovative-opportunity>.
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