Report: Identifying Entrepreneurial Opportunities for Cafe Cappuccino

This report examines entrepreneurial opportunities for a new cafe, Cafe Cappuccino, in London, UK. It begins by identifying various sources of entrepreneurial ideas and innovation, emphasizing the importance of adapting to political, economic, social, and technological factors, as well as the role of entrepreneurs in driving economic growth. The report then delves into the rationale and market gap for the cafe, focusing on customer identification, market segmentation (geographic, demographic, and behavioral), and the benefits of providing high-quality products and services. Porter's Five Forces model is applied to analyze industry competitors, supplier and customer power, and the threats of substitutes and new entrants. A gap analysis, using McKinsey's 7S framework, is conducted to identify discrepancies between the current market and desired outcomes. The report also utilizes SWOT analysis to assess the cafe's strengths, weaknesses, opportunities, and threats, along with an examination of the competitive and market environments. The conclusion summarizes the key findings and recommendations for the cafe's successful launch and operation.

Identifying Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation..............1
TASK 2............................................................................................................................................3
P2 The rationale and the market gap for a specific entrepreneurial............................................3
TASK 3............................................................................................................................................5
P3 Gap analysis in the evaluation of a specific entrepreneurial idea..........................................5
P4 Interpretation of data to provide evidence of market potential..............................................7
TASK 4............................................................................................................................................8
P5 SWOT analysis to assess the entrepreneur idea.....................................................................8
P6 Competitive and market environments in which the idea will be launched........................10
CONCLUSION..............................................................................................................................10
REFRENCES.................................................................................................................................12

INTRODUCTION
Entrepreneur is an individual who starts and runs a small business firm by undertaking
entire risks or uncertainties and rewards as well. The entrepreneur also known as innovator,
producing goods or services, sources of new ideas and development etc. Therefore, to be a
successful entrepreneur, there is requires continuously innovations and looking for various
opportunities so that business can be grow or run in more effective manner (Farmer, 2011).
Every individual try to develop their small enterprises by finding several opportunities and bring
innovation, creativity or uniqueness in particular products or services so that number of
customers can be attracted to satisfy desired needs or wants as well. This report is based on Cafe
Cappuccino shop which is a new start up and established in London, UK. It will define about
various sources of entrepreneurial ideas and innovation with the help of rationale and market
gap. This assignment will support in analysing gaps and interpret data that helps in providing
evidence of market potential. This will apply SWOT frame work to collate evidence that will be
beneficial for entrepreneurial ideas.
TASK 1
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation
In the present scenario, many of individuals come up with new innovative ideas and
creative thinking while starting a new venture or small business. They always focus on
developing firms and generate more revenues in an effective manner. It is the biggest
opportunities of individual that to come with unique ideas and generate higher profits by running
small business firm. There must bes required to select best alternatives solution from various
aspects or option as well. An entrepreneur is going to start a new cafe which is Cafe Cappuccino
at London (Yao, 2011). This is not an easy task start a new business venture in the competitive
environment because there are number of factors available that can affects on the business
operations as well. Firm needs to considers various resources and better strategies to deal with
these forces and run business in an effective manner. There are defined some external
environmental factors that bring various changes as well as opportunities to develop particular
business such as:
 Political factors: In this included several political issues or conditions that influence
business ideas and its operations as well. In this defined that government may have
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favourable conditions by undertaking tax rates, rules or regulations and restrictions etc.
there are wide scope of selected start up as individual can generate higher profits by
serving variety of coffees to customers so that they will be ready to get foods and
beverages in more efficient manner.
 Economical and Social factors: In this consider customers related factors that have
major impacts on the organisational profits and its reputation (Kung, 2011). Company
requires to analyse customers needs and demands by conducting small research of
consumer behaviour. In this, they will analyse customers choices, tastes and
preferences so that they can implements the ideas as well as provide better quality of
goods or services as per their requirements. These are very beneficial in generating
more profits and biggest opportunities for a new start up.
 Technological factors: in the present world, advanced technologies play an important
role in increasing works productivity by making entire activities more effective and
easy.
Role of entrepreneur: an entrepreneur has major role in developing country as they contribute
more in increasing economies and growth. They come up with new innovative ideas and
effective plan while starting a small business. Entrepreneurs always focus on finding various
opportunities and grab these to develop business firms in an appropriate manner. There are
defines some major role of entrepreneurs such as:
 Entrepreneurs helps in providing job opportunities for unemployed people.
 They support in improving economic conditions and country's infrastructure.
 Entrepreneurs support to social people for developing their living standards.
Types and scope of innovation: In this defined that entrepreneurs are needed to bring unique
ideas and creativity in producing goods or services so that customers can be attracted because
there are lots of competition in the international market (Mcintyre, 2011). The Cafe Cappuccino
has wider scope as they can achieve long term benefits and make customers loyal towards firm
as well.
Innovation and invention: It is concern with two different concept as innovation and inventions
are very important aspects for modifying and changing in business operations, products or
services, and create new ideas or innovations so that particular goals or objectives can be
achieved in well manner.
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Evaluation of Drucker's 7 sources of systematic innovation
In term of small or medium enterprises requires to focus on bringing new ideas or
thoughts for the purpose of achieving set goals or targets. Individuals always try to implement
new ideas and innovations for getting maximum outcomes in more effective manner. There are
defined Peter Drucker's 7 sources for systematic innovations such as: Unexpected: The main purpose of brining or adopting innovative ideas as well as things
for being ready to face any kinds of situations or challenges (Duru, 2011). Entrepreneurs
focus on formulating better strategies and actions plans in well manner. Incongruity: It included several methods or techniques which support in making better
actions plans by following unique thinks. Entrepreneurs always thinks out of the box for
starting and developing firms. Innovation based on process needs: In this undertakes various new ideas as well as
creative thoughts which has based on needs or requirements. Change in industry and market: There is needed to adopt various innovative ideas and
several changes in the industry as well as market. Demographics: In this, entrepreneur start business by segmenting market and create
target customers for the purpose of increasing their satisfaction level.
 Changes in perception: There can be possibility to implement the new ideas and plans so
that individual can changes perceptions of buyers.
TASK 2
P2 The rationale and the market gap for a specific entrepreneurial
Every business organisations requires to analyse target market and particular customer's
needs or wants so that they can provide them better quality of goods or services in an appropriate
manner (Grégoire, 2012). In this process, entrepreneurs undertake innovative ideas or creative
thinkings as well as several kinds or tools or techniques for finding particular market, its current
trends, situations, customers with their choices, tastes and preferences, needs or wants and strong
competitors who are operating such kinds of business in the market place as well. There must be
required to identify various elements while launching a new business with ideas and effective
products in the market. There are defined basic requirements for reducing such types of gaps:
Identifying customers:
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In the food and beverage sector, there is necessary to identify potential customers and
target audiences by analysing their needs, demands and expectation regarding any goods or
services. with the helps of proper study and research, entrepreneurs can find the potential
customers so that they can satisfy their desired needs and wants in easy manner.
Marketing segmentation: Geographic: In this, market are segmented as per the areas or locations. Entrepreneurs
have to make decisions about new start ups and also analyse the particular area for
providing goods or services (Shepherd, 2012). in this included rural, urban and hilly area
for reaching at potential customers. Demographic: It is best idea or methods for finding appropriate customers who are
interested to have coffee over there. It is known as demographical segmentation which is
based on customers age, gender, income statements, religion and occupation.
 Behavioural: In this consider customer's culture, behaviours, lifestyles, believes and
many other things that has major impacts on the business operations. Entrepreneurs find
their target audiences by undertaking customers buying behaviours so that they can be
satisfied.
Products or services:
Tangible Intangible
There are required better quality of goods or
services which provided by the organisation
as per customers needs. It will helps in
increasing higher satisfaction level of
consumer.
The Cafe Cappuccino can make good image
among competitors by providing several
products or services at effective price in well
manner.
Benefits: There are various benefits or advantages for The Cafe Cappuccino in increasing
growth size and profits with very effective manner (Fuentes, 2010). They focus on building good
relationship among customers by providing better quality of products or services in an
appropriate manner.
Porters 5 force model Industry competitors: It can be seen that there are number of competitors available in the
marketplace who are trying to generate more profits or revenues and also create better
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position at market. Therefore, for Cafe Cappuccino it is necessary to analyse various
competitors and their strategies to capture the market as well as attracts customers for
generating higher revenues in the market. Bargaining power of suppliers: in the foods and beverage industry, It is necessary to
consider suppliers power because they are essential in providing raw materials, beverages
and other things that support in making different types of coffees with unique flavour as
well (Korsgaard, 2013). Therefore, entrepreneur have to make better decisions regarding
purchasing of such material on time so that the chances of delaying can be reduced. Bargaining power of customer's: Customers are kings for every business organisation so
it is necessary to satisfy customers needs or wants by giving them better quality of
products or services at affordable price as well. They can compare the cost factors with
other companies and make decisions regarding purchasing of such products or services in
an effective manner. This will support in making or creating strong relations among
customers and make them loyal towards firm. Threats of substitute: In the food and beverage sector, there are lots of competition as
competitors are coming with substitute of goods or other services. entrepreneurs have to
make strategies for building its goodwill or brand image.
 Threats of new entries: It is another important factors that have major impacts on the
business operations. Strong competitors are available in the marketplace and some new
small start ups are also launching day by day which biggest threats for the Cafe
Cappuccino restaurant.
Gap analysis – This is use to identify the gap between existing marketplace and
expected market requirements. Through identifying this gap it will help to recognise potential
market of Cafe Cappuccino. This gap analysis can be conduct through Mckinsey's 7S frame that
has seven factors. These seven elements are given below -
Hard S's
 Strategy - Cafe Cappuccino can develop strategy to gain competitive advantage in the
existing marketplace. As there are several companies are already providing same kind of
products so it needs to create strong plan that can beat the competition in market.
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 Structure – It refers to structure of Cafe Cappuccino in which environment entrepreneur
works like their reporting structure. This informs about their subordinates works
according to report their senior manager.
 System – This defines to conduct their daily operations and activities in which employees
needs will be engaged.
Soft S's
 Style – This is a leadership style of the enterprise and Cafe Cappuccino has a democratic
leadership which also involves their employees in decision making. So that they can get
new and innovative ideas.
 Staff – Cafe Cappuccino has approximately 6 members team that assist to conduct
routine operations of the firm.
 Skills – There should be a skilled taskforce that can support in firm's activities like its
cafe. The employees should be capable to prepare coffee and snacks that can attract
customers.
 Shared values - These are refers to the norms and standard of Cafe Cappuccino that
guides employees behaviour and actions. Hence, this is foundation of the organization
working ethics.
TASK 3
P3 Gap analysis in the evaluation of a specific entrepreneurial idea
Gap Analysis: In this consider the gap or difference between position of actual and
benchmarking of company within define time period (Nassif, 2010). It shows the firm's desired
place where they wants to go in which the first phase defines about actual or current situations of
particular firm including their brand image, financial positions, employees performance,
productivity level and many more. On the other side, second positions denotes the expected
futures by undertaking present time as well. Therefore, the particular gap that occurs from their
differences is known as gap analysis. It is necessary to review and inspect such gaps so that
better strategies and actions plan can be formulated in an appropriate manner. It is particular
study regarding customers needs or wants and employees current performance.
The Cafe Cappuccino shop can consider this for making effective position and generate
higher revenues through improving business performance in an appropriate manner. The future
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expectancies can be create barriers while running business operations or functions. Market
research can be helpful in reducing these expectancies in well manner (Ghobril, 2010). The Cafe
Cappuccino is providing different types of coffees with various flavours which helps in attracts
more customers towards firm.
Data gathered by online media:
In the present world, the online platform is best mode for collecting various types of data
or information because it helps in providing media, websites and other tools that beneficial for
identifying customers current demands and needs in an appropriate manner. It is a cafe shop
which provide different flavour of coffee to the customers.
Factors Gap Solutions
Business It helps in analysing the
customers ratios that lower
There must be required proper
planning regarding making or
formulating new strategies.
Application It consider the appropriate
informations regarding buyers
behaviours.
In this gather and interpret data
about potential buyers for the
purpose of promoting new
application and services.
In this, the current gaps can be reduced if the Cafe Cappuccino formulate effective
strategies and make favourable decisions in an effective manner (Silva, 2010). They can use
several tools or techniques which will support in identifying the current states, present
performance for the purpose of analyse gaps and then after they can create a bridge for meeting
such gaps. This is an essential in attaining final goals or objectives in more efficient manner.
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The gap analysis can be identify and fill through better performance of company. It can
be fill by undertaking various aspects such as expected and actual performances of firm so that
company can make better decisions regarding utilising available resources (Jean, 2012). The
market gap can be defines as the budget sales and the actual sales which will support in
determining the profits gaps among real and expected as well.
There are two basic research methods that are given below -
Primary method – This method is used to get gather fresh information from people in
order to know their perceptions and point of views. This is conducted for the first time that's why
it caters fresh data from potential market. It can be conducted through observations, interview,
surveys and so on.
Secondary method – It is based on primary research method and it uses previous
collected information to recognise needs and requirement of customers. This information can be
gathered through observations, interview, surveys, newspaper, journals, research papers, etc.
Questionnaire
Q1 What are the major types of food available at Cafe Cappuccino?
Particulars Frequency
a. Coffee 17
b. Snacks 13
Q2 Which age group of customers are mostly buying the food products?
Particulars Frequency
a. Young people 16
b. Adults 14
8
0
5
10
15
20 17
13
a. Coffee
b. Snacks

Q3 Does Cafe Cappuccino have attained success in their business operations?
Particulars Frequency
a. Yes 21
b. No 9
Q4 The products of Cafe Cappuccino are healthy to consume?
Particulars Frequency
a. Yes 19
b. No 11
9
13
13.5
14
14.5
15
15.5
16
16
14
a. Young
people
b. Adults
0
5
10
15
20
25 21
9
a. Yes
b. No