Entrepreneurial Opportunities Analysis for Natural Care Ltd Report

This report delves into the entrepreneurial opportunities available for Natural Care Ltd, a new beauty product company planning to launch in the UK. It begins by defining entrepreneurial opportunities and highlighting the role of innovation in business growth, focusing on the company's vision, mission, and objectives. The report then analyzes various sources of entrepreneurial ideas and innovation, including STEEP elements (Social, Technological, Economic, Environmental, Political) and Drucker's 7 sources (Incongruity, Process needs, Industry changes, Demographics, Changes in perception, New knowledge, Unexpected). It explores different types of innovation, such as product, process, and innovation in place of business, and discusses incremental versus big shift innovation. The report further examines the rationale and market gap for the company, focusing on market segmentation strategies like behavioral segmentation. The report also includes gap analysis, data interpretation, and a SWOT analysis to assess the entrepreneurial idea, and evaluates competitiveness and market environments. The conclusion summarizes the key findings and recommendations for Natural Care Ltd's successful market entry and growth.

Identifying Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Determination as well as evaluation of different sources of entrepreneurial ideas and
innovation...............................................................................................................................1
TASK 2............................................................................................................................................4
P2 Explain the rationale and the market gap for a specific entrepreneurial idea...................4
TASK 3............................................................................................................................................6
P3 Gap analysis and its evaluation.........................................................................................6
................................................................................................................................................7
P4 Data interpretation.............................................................................................................7
TASK 4..........................................................................................................................................10
P5 SWOT analysis to assess the entrepreneurial idea..........................................................10
P6 An evaluation of Competitiveness as well as market environments...............................10
CONCLUSIONS............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneurial opportunities refers to the situation in which new services, products, raw
materials and different organising methods are introduced and sold to recover the cost. It is a
process of creating new information and ideas to establish a new business outlet. Business
persons are the great source of innovation that are required to improve the economy of a country.
Entrepreneurs do not only create opportunities but also generate employment for the nation. A
new business contributes crucial role to the economy of country assisting them grow more and
more. Natural Care Ltd is a new beauty product company which is going to be launched in UK.
The company contain a good business plan that will help to attract more investors to generate
new business opportunities.
This project report contain detailed information of various business opportunities that an
entrepreneur has to develop and grow its business in an effective manner. It consist of different
sources of entrepreneurial ideas and innovation, tools and techniques to support the
entrepreneurial idea and evaluation of the same, interpretation of data to provide evidence of
market potential, SWOT analysis to support the idea, evaluation of competitive and various
market environment.
TASK 1
P1 Determination as well as evaluation of different sources of entrepreneurial ideas and
innovation
Entrepreneur is a person who create a new and innovative business idea and then arranges
resources such as capital, work force and material for the production to execute the idea. The
growth of the business is depended on the effectively utilisation of these resources. A company
which is Natural Care Ltd is going to be introduced in UK with its innovative product which is
Natural Beauty Face Cream, the main target of the business is Females of the society. There are
not much beauty products companies in UK hence it is an innovative plan to target the market.
The vision for the company is to target more and more customers, the mission is to reach at the
top of the industry, objective is to provide natural and harmless beauty products to the customers.
The person who is liable to control the business will have to keep an eye on each activity of the
business and it operations so that the company may ignore the waste of resources. To make the
launch successful the entrepreneur try to collect information of then market where the products
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are going to be introduced. STEEP elements and Drucker's 7's sources can help a person to
identify market trends for the products. The both points are explained below:
STEEP Elements: It is mainly used to analyse the market trends of the segment where a
business is going to be launched. It determine the factors that may affect the business. As
Natural Body Care Ltd is a new company and going to be introduced in the market of UK, it is
suggested to the owner of the company, to conduct STEEP analysis to identify opportunities for
business.
 Social: These factors include consumer behaviour, standard of living, status in society
etc. People in UK are mainly concerned with natural beauty products and the company is
also focused with natural products hence it is a great opportunity for the company to
launch its products in UK with higher possibilities of growth.
 Technological: Technology is a factor that may increase the sale of business by
attracting various customers from different market places. A new venture like Natural
Body Care Ltd is willing to launch its products in UK and looking for growth
opportunities. The local generation of UK is very much technology friendly so if
company add any kind of technology with the product, it will create a good business
opportunity for the organisation. For example, the owner of the company may provide the
products online to reach maximum customers by attracting them toward the company.
 Economical: These factors are concerned with interest rates, taxes, international trade
etc. If a company is willing to run its business in UK then it should get the idea of
economical factors that may affect the business operations there. The economy of UK is
stable as there are various opportunities for start ups. Natural Body Care Ltd is a start up
dealing with natural beauty products, hence there is also a growth opportunity for the
company.
 Environmental: These factors are concerned with different environment protection acts
and different ecosystem factors such as soil, energy and pollution. As the government oh
UK is very strict about environment and Natural Body Care Ltd is a natural beauty
product company the products manufactured by the company are eco friendly hence,
there are various opportunities for the company to launch its business in UK.
 Political: Political factors can highly influence the business and its environment.
Government of UK is providing opportunities to the start ups by providing subsidies to
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support and enhance enhancing their work. It is a good chance for Natural Body Care Ltd
to establish a business in UK and get the support of government.
Drucker's 7's sources:
Incongruity: It is the difference between what is and what should be. It is a process of
determining customre's needs and fulfilling it accordingly. It also determines two different states
of the organsiation that are unexpected success or failure and competitors in the market.
Process needs: It helps to identify the process of the company whether it is strong or
weak. It helps to identify the weak spots and help to make strategies to remove errors from those
areas with modification.
Industry and market structure changes: It helps to keep a track record of changes that
may happen in product line of the company. The company have to improve the way of thinking
about the strategies and make plans to reach the organisational goals.
Demographics: Innovation and inventions may be based on demographics, in particular
segment. Analysing changes in the centre of people, gravity can be used by capitalising on the
anticipated demands of that particular group.
Changes in perception and temperament: There is huge support of perception of
employees in development of innovation within the organisation. It is understood that if
employees prefer to take challenges, it automatically develops the innovative working
environment.
New knowledge: Knowledge based innovation is the most powerful way to grab the
opportunity for the business and get the desired success with the help of that knowledge and
providing products according to their demand.
Unexpected: The owner of Natural Body Care Ltd should be prepare to face unplanned
results that may be positive or negative and should make policies to deal with same. Planning for
contingencies always play a crucial role in future to overcome from unanticipated losses.
Different types of innovation: Innovation refers to the generation of an idea that may
help to grab attention of customers by launching a new product. It refer to the application of new
ideas to better meet the exception of the business. Natural Body Care Ltd is a new venture that
opt numerous natural beauty products to dominates chemical cosmetic products. The innovative
ideas may grab the attention of the public and may create an urge to buy their products. They are
also offering the products online which is also a good idea to fulfil the requirements and
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unarticulated needs of the company. Innovation take place when the new product is unique than
other and have some positive qualities that may increase interest of customer to buy the product.
Following are the types of innovations:
 Product: It refers to the innovation in the products that may provided by the organisation
to the customers. It is possible with the help of new or additional features of the product.
The product which is going to be launched in market by Natural care Ltd is a natural face
cream which is an innovative idea because there are no such specific manufacturer of
natural and harm less beauty face cream in UK.
 Process: It will be the innovation in the whole manufacturing process of the product and
it may also be possible with the innovation in the supply chain or distribution process of
the company.
 Innovation in place of business: This innovation is related to the identification of the
exact place to build more and more clients. It is also known as place advancement.
 Incremental v/s big shift innovation: Natural Body Care Ltd can settle its business on
the measure of advancement that it needs to make in its business. The development is
possible in two ways; first is incremental and second is explosion. Incremental refers to a
little advancement and explosion that refer to fully new item or new procedure.
TASK 2
P2 Explain the rationale and the market gap for a specific entrepreneurial idea
It can be clearly understood that business are changing their ideas to grow more and
acquire more market area to maximise the profits. The main purpose of various organisations is
to make innovation in their products and processes to achieve the higher level of organisational
goals. In light of some large events like exit of UK from European relationship which is known
as Brexit, there have been typical alterations are made in policies from side of government.
Large number of initiative are taken by government to support small companies in their start-up
and growth. Easy access of funds, subsidies are some of the benefits which h are now available
after the situation of Brexit
So there may be different types of features that may help to modify the product and it is
very important for the company to launch itself in UK. There are different types of
entrepreneurial ideas that may be adopted by the entrepreneur to introduce a new business or run
the start up successfully. The ideas are discussed below:
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 Creation of example for all: As Natural Beauty Care Ltd is a new business which is
going to launch it self in UK to get success, it should set different standards for the
company and should make the products little different from other who already have
acquired the market. So if the company with a new and innovative idea get massive
success by acquiring more market it will be a good example for other start ups to
introduce a good and innovative idea. Creation of benefits for all: It is an another part or content that would help to form
profitable strategies for the business that may help to grab success in and around the
country. It will be profitable for customers as well as company because if the new and
innovative idea works than workers and other members who are part of the company may
get a large profits (Sánchez, 2013).
Market segmentation: It is a process of dividing the selected and targeted market in
small segments which help to determine the needs of the customers and help the company to
offer the products to customers according to their perception. It helps the marketers to
personalise their market segment. In Natural Beauty Care Ltd, the marketers should consider the
best target market to launch its beauty products (iegel and Renko, 2012). It also help to reduce
the risk of an unsuccessful or ineffective market campaign. The various kinds of market
segmentation are as follows:
 Behavioural segmentation: It is a process of dividing the market into small groups
according to the buying behaviour of the customers. It can be adopted by Natural Beauty
Care Ltd to set the market according to the buying patterns of the customers. It include
brand loyalty, benefits needed or during a particular events.
 Demographic segmentation: It is mainly based on customer's age, gender, family size.
income, education level etc. This types of segmentation method can be used by the
marketers of Natural Beauty Care Ltd to market its products because this may be the best
way to attract more and more customers and they may offer products to those customers
who are really willing to buy such products that company is offering. It helps to target
customers in a more accurate way (shane, 2012S).
 Geographic segmentation: It is a method which is used by various marketers to divide
its market geographically. It can be used by Natural Beauty Care Ltd to launch its
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business by selecting a proper city, state or country as a target. In this methods a segment
can also be targeted by total population if the area.
The segment which have been chosen by the owner of Natural Care Ltd is demographic
segment classified the consumer on the basis of gender. The company is focusing over female
customer basically between the age of 15-45 providing them a better product deprived from
chemicals.
Porter's five force model: It was introduced by Michael Porter. The main function of
this model is to determine the competition of the market (Porter's Five Forces, 2018). There are
five different forces in this model that are described below:
Competitors: As Natural Beauty Care Ltd is going to launch natural beauty face cream
in the market and there are various competitors who are already dealing with these type of
products. So it is possible for the company to face strong competition to deal with, if
entrepreneur want to reduce the competition than it should select a good marketing strategy.
Threat of substitute: There are end number of beauty products in the market and if the
company is willing to grab the attention of the customers then it should add an element that may
help to attract more and more customers.
Buyer power: In refers to the bargaining behaviour of customers, consumer generally do
not pay the cost which they find unsuitable as per their delivered product. This behaviour of
buyer may increase competition for the company and force to decrease the price of its products,
it may result in decreased industry profitability. So the owner of the company should set
appropriate prices for its products, to reduce the chance of bargaining by customers.
Supplier power: Suppliers of company can also affect the market position. They may
increase the price of raw material when they want to so the entrepreneur should select the less
expensive supplier to buy the raw material.
Threat of New Entrants: Threat of new enterprise entrance is moderate in the natural
segment of cosmetic industry as there are organisations that are offering the same products but
their services are not economic. Other organisations are not venturing in the same segments thus
company has less threat in market to compete with.
TANGIBLE AND INTANGIBLE RESOURCES Tangible Resources: This includes the products which are having physical existence.
Natural Beauty Ltd. Deals in various number of products which falls under this category
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includes Lipstick, herbal cream etc. Other tangible resources include machine, land,
vehicles etc. which is enough in Natural Beauty Ltd
 Intangible Resources: There are many intangible products upon which organisation is
required to provide emphasis for further sustainable development. The aspects which are
covered under this includes trademark, copyright, registration etc. High skilled worker,
capabilities of organisation, human resources, financial assets etc.
TASK 3
P3 Gap analysis and its evaluation
For the purpose of collecting customers point of view, it is very important for the
company to interact with them personally and get their valuable feedback related to the product.
It will help Natural Beauty Care Ltd to analyse market position and customers reaction toward its
products. It will also help in making modification accordingly. There is a survey conducted for
30 people to record their reaction toward the Natural Beauty Face Cream. Data is collected
through questionnaire.
Q1 Select your skin type?
(A) Oily skin
(B) Acne
(C) Dry and dull skin
Q2 Do you prefer using specific facial creams?
(A) Yes
(B) No
Q3 Have you ever used natural beauty face cream?
(A) Yes
(B) No
Q4 What you like most about this cream?
(A) Price
(B) Quality
(C) Suitability
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P4 Data interpretation
Q1 Select your skin type?
Particular respondent
Oily skin 10
Acne 12
Dry and dull skin 8
Total 30
Mean 10
Median 10
Mode 2
From the above chart it has bees recognised that from 30 respondents, 10 has
selected oily skin, 12 has selected acne and 8 has selected dry and dull skin.
Q2 Do you prefer using specific facial creams?
Particular Respondent
Yes 18
No 12
Total 30
Mean 15
Median 15
Mode 6
8
10
12
8
Oily skin
Acne
Dry and dull skin

Yes No
0
2
4
6
8
10
12
14
16
18
20
18
12
Respondent
18
12
Respondent
Yes No
From the above bar chart it has been recognised that out of 30 respondents 18
prefer facial creams and 12 do not prefer facial creams.
Q3 Have you ever used natural beauty face cream?
Particular Respondent
Yes 25
No 5
Total 30
Mean 15
Median 15
Mode 0
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