Report on Identifying Entrepreneurial Opportunities for Food on Wheels

This report presents a comprehensive business plan for a food truck venture, "Food on Wheels." It begins by exploring various sources of entrepreneurial ideas and innovation, including Drucker's 7 sources of systematic innovation, with specific examples. The report then delves into the rationale behind the food truck concept, analyzing market gaps and utilizing tools like the STP model and primary research to understand customer preferences and market dynamics. A SWOT analysis and Porter's framework are applied to assess the competitive environment and formulate recommendations for the venture's development and sustainability. The report concludes with a critical evaluation of the food truck idea, considering potential risks and strategies for mitigation, making it a useful resource for aspiring entrepreneurs seeking to understand the process of identifying, evaluating, and launching a new business in the food industry.

Identifying
Entrepreneurial
Opportunities

Table of Contents
TASK 1............................................................................................................................................3
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation providing
specific examples .......................................................................................................................3
M1 Provide a detailed evaluation of Drucker’s 7 sources of systematic innovation providing
specific examples........................................................................................................................5
D1 Critically evaluate the benefits and drawbacks of different approaches and sources that can
lead to the identification of entrepreneurial ideas.......................................................................5
TASK 2............................................................................................................................................6
P2 Explain rationale & market gap for a entrepreneurial idea by use of relevant tools &
techniques....................................................................................................................................6
M2 Provide justification of how entrepreneurial idea can fill market gap by use of various
techniques and competitive analysis...........................................................................................7
D2 Critically evaluate a specific entrepreneurial idea based on appropriate interpretation and
investigation of the competitive marketplace.............................................................................8
TASK 3............................................................................................................................................8
Covered in PPT..........................................................................................................................8
TASK 4............................................................................................................................................9
P5 Apply SWOT framework for collecting evidence for supporting assessment of
entrepreneurial idea.....................................................................................................................9
P6 Evaluation of markets and competitive environment where idea has to be launched...........9
M4 Critical evaluation of specific entrepreneurial idea in the present market scenario...........11
D4 Formulate conclusion & recommendation on how specific entrepreneurial idea can be
developed, managed & sustained in the competitive environment...........................................12
CONCLUSION..............................................................................................................................13
REFERNCE...................................................................................................................................14

INTRODUCTION
Entrepreneurial opportunity refers to an idea of developing a new business which is
economically feasible and can generate benefits for the stakeholders. The business idea can
include any new product, service, market,raw material, processes of production etc. For carrying
on these businesses a lot of capital is required (Boyd and et.al, 2017). Virgin Money is a
financial company which provides financial services to new budding entrepreneurs. The business
idea provided in this report is on a food truck. This report also contains plan of business idea
which will be submitted to Virgin Money. This report has a full study of the new concept
introduced along with SWOT analysis, Porter's framework etc. Following report also mentions
forthcoming risk for the new venture and ways to overcome those risks. The new venture will be
called “FOOD on WHEELS”.
TASK 1
P1 Determine & evaluate various sources of entrepreneurial innovation & ideas with specific
examples
Every young entrepreneur is in search for good opportunities which will support their
idea financially . The United Kingdom government makes sure that young entrepreneurs are
provided the opportunities to showcase their talent. This assists ample number of young people
to introduce new and innovative ideas into the world (Zaitseva, . and Bedirkhanova, 2019).
Virgin Money has generated a scheme in which they provides capital to new businesses. They
give the entrepreneurs an opportunity to pitch their idea. For identifying great opportunities
Drucker's 7 sources of opportunities model is adopted which is mentioned below:
This model was introduced by Peter Drucker. It consists of following seven sources of
innovation Unexpected- Innovations are happen unexpectedly. They happen by chance. They are
not always well thought of or planned. It has been very evident in human history that
great inventions were actually unexpected. Fire can be stated as the most unexpected
innovations that human race have invented.
 Incongruity- Whenever any need is not compatible with the actual goods or services
provided, it might lead to an innovation. We can take an example of smart cars. When
the number of cars was increasing rapidly parking spots were short. So in place of

making new parking smart car were introduced as they covered relatively less space in
parking.
 Market Structure- Market structure, plans and policies of competitors and weaknesses
of competitors also provide hints to bring in innovation (Nijssen, 2017). The best
example of it can be google. Before google all the information in search engines were
scattered. Google worked on those informations and arranged them in such a manner so
that it can be used by people without any hassle. Necessity- Necessity can be said to be mother of invention as well as innovation. For
instance a microscope was invented in order to learn deeply about microbial world.
Innovation can be said as thinking of new things which can fulfil the existing needs in a
better manner. Demographics- Lifestyle also supports innovation (Ram, , 2018). It is necessary for a
company to mould itself with the changing demographics. For example the innovation of
fan was done in order to protect people from heat. Refrigerators and air conditioners are
another such examples. Changing perception- Changing perception of people around the world is also one of the
reason of many new innovations. Today's children prefer playing indoor rather than
outdoor. This changed perception have led to innovation of number of indoor games.
Gymnasiums are also a result of people's changing perception about their health and
healthy living,
 New Knowledge- New knowledge about a subject has also led to many innovations, how
laptops were introduced after computers, then palmtops, tablets and cellphone. Each
innovation leads to a new and better innovation. Healthcare is another segment which
has witnesses a number of excellent innovations through increasing their knowledge
about various diseases and treatment for them.
M1 Detailed evaluation of systematic innovation by use of Drucker’s 7 sources
Drucker's 7 source of systematic innovation model helps in evaluating the sources
responsible for innovation. Taking it into consideration for “Food on Wheels” it can be
concluded that the sources from which this idea was developed are more than one. This idea was

based on demographic as well as changing perception of people. People have generated good
taste for fast food. They find it easy to get food in their locality rather than going to far away
dine ins. This change in perception of people gave birth to idea of a food truck.
D1 Critically evaluation the benefits and drawbacks of different approaches and sources that
lead to emergence of entrepreneurial ideas.
Identification of entrepreneurial ideas is a very complicated process. Study of every small
detail which may directly or indirectly effect the business is to be done. Sources which lead to
emergence of entrepreneurial ideas helps an to earn profit through a new business (Blitz,. and
Kazi, , 2019). It also introduces in society something new & innovative. There are also some
major drawbacks of such ideas like it requires huge investment of money and time and in case
business is not generating enough profits all the efforts will be wasted. It also affects the
traditional business practices.

TASK 2
P2 Explain market gap & rationale for development of entrepreneurial idea by use of relevant
tools
Rationale behind a business idea
A new business idea is build up only after identification of needs & requirements of
customers. It is also necessary for a entrepreneur to make a detailed analysis of external market
conditions & trends before implementation of the new plan (Engelken, and 2016). In present
scenario, Food on Wheels is willing to expand their market share by making a analysis of of
various market trends. The idea is that this brand has been operating since three months in
London with one truck and now are willing to plan their expansion to other different parts of the
city. Various factors used for making a analysis is discussed below:
Determination of various opportunities: It can be said that it is crucial for
entrepreneurs to identify various opportunities to achieve development & growth. For smooth
operations of a new idea it becomes essential for every entrepreneur to identify who are various
competitors and ensure resources are available to be utilised in a effective manner (Kim, 2017) .
Food on wheels is based on a innovative idea of mobility of restaurant according to demand and
response of customers at a particular location. There are many opportunities in some streets of
London where there is no availability of restaurants or street food outlets , it can be utilise by
Food on wheels by making a detailed analysis of appropriate locations for new trucks.
Technological opportunities: Technology is playing a very important role in achieving
success by implementation of a innovative idea in market. Advanced technologies are playing a
very crucial role in changing behaviour patters of customers. With new technology adoption
overall way of preferences for customers have changes such as there has been evolution of new
applications that allows food delivery to people anytime from anywhere (Pollari, 2016). It also
allows in building up of effective and different market position for achievement of higher sales
in coming next quarter.

STP Model:
This model is applied by various entrepreneurs for defining segmentation, targetting and
positioning of a particular business idea and product in the market. STP model for used by Food
On wheels while they are planning their expansion to 20 trucks:
Segmentation: Segmentation is related to dividing of market in various prats or segment
that is base don similar characteristics or features they share. These factors include age, gender,
education, nationality, occupation and many such type of factors. Customers are segmented
according to various geographical factors also such as city, country, state etc. in Food on Wheels
entrepreneur has segmented the market based on geographical locations (Shafir, 2018).
Targeting: It is referred to as specific group of people who are selected by target group
of companies for launching various new products or adding in exiting variants (Bajic 2018,). For
targetting a particular market it becomes crucial to make a detailed analysis of expectations of
customers and according to that further target market will be decided by food on wheels, in
present case the target market is of office going people or students who are having preference for
mobile sources of food outlets.
Positioning: This strategy is in concern with making a positive image of products or
services for their target customers (García-Gusano, Iribarren. and Dufour, 201). This is last step
where entrepreneurs are willing to attain customer loyalty. For Food on wheels, managers are
focussing on using their mobility structure as a medium for creating a distinguished position in
the market.
Primary research: It is being conducted for the purpose of developing a detailed understanding
of the requirement of target market where there is a sample drawn that consist of 10 respondents
and then development of a business idea according to results drawn from such primary analysis:
Questionnaire:
1. Are you a frequent outside eater or you prefer home made food?
 Home made
 Outside
 Sometimes both
2. Do you have a fixed meal that you are regularly following?
 Yes
 No

3. Do your family members prefer street food
?
 Yes
 No
4. Average money you can spent monthly in pounds on street food?
 50
 100
 200
 more than 500
5. Do you feel that fast food or street food can negatively affect your health?
 Yes
 No
 Sometimes
6. Will you be attract towards any attractive offers in case of street food?
 Yes
 No
7. Will you be interested in having a street food cart that will be offering you large variety of
different cuisines?
 Yes
 No
 Depends on price
 Depends on quality of food
 Both on high quality and prices
8. Do you get influenced by promotions of fast food chains on different platforms like social
media?
 Yes, always
 No, Never
 Yes but occasionally
 No I depend on my personal experiences only
9. What is your prosperity prices or quality offered by a particular food chain?
 Prices

 Quality
 Both
10. Please provide some Valuable suggestions for a street food chain to be launched in
London.....................................
From the above survey it can be clearly seen that when it was questioned to 10
respondents about their preferences about quality and prices of food products there was a
majority response towards both that is people will have a preference for high quality and
Yes
No
Depends on price
Depends on quality of food
Both on high quality and prices
0
1
2
3
4
5
6
7
Column C

reasonable products as street food is not offering other amenities like restaurants and cafe.
Majority of respondents that is 6 out of 10 were on favour of both quality and prices of products.
From above chart it can be observed clearly that when iot was questioned to 10 respondents
about whenever they prefer home made or street food. It can be seen clearly that 3 respondents
clearly prefer outside food and 50 percent that is 5 out of 10 have a preference for both the type
of food products. Hence, it can be concluded that there are very high chances of growth for any
new street launch and also “FOOD on WHEELS” has a profitable opportunity to launch their
business.
Porters five force analysis:
It is used for making a competitive analysis of the service industry to which “FOOD on
WHEELS” belongs:
Home made Outside Sometimes both
0
1
2
3
4
5
6
2
3
5
Column F

New entrants: In the food segment especially in case of service industry and street food
chains there is always presence of very high competition because of the low investment that is
required. So for food on wheels there will always be possibilities of high threat of new entrants.
Bargaining power of buyers: In present case in London there is limited bargaining
power of buyers as there are not much options that are available for people who are looking for
some street food options in London who offer a wide variety of cuisines. This requirement will
be fulfilled by “FOOD on WHEELS”.
Competitive rivalry: There is presence of strong competition in service sector Because
of some existing brands like street food union, Maize Blaze, Pepe Italian street food that can
lead to presence of high competitive rivalry and there is requirement to form certain effective
strategies like price penetration to effectively establishment of a strong customer base.
Threat of substitutes: The presence of strong competitors lead to high threat pf
substituin for the exiting customers. It might impact the future sales in case “FOOD on
WHEELS”. Is not able to develop a differentiation advantage that can b e major reason pf having
a preference for this new brand.
Bargaining power of suppliers: The main suppliers of fast food industry that is part of
the service indutryincludes dairy products, dough and meat vendors. The bargaining power is not
that high because of limited number of suppliers. It is a advantage of “FOOD on WHEELS” as it
will help in development of a reliable base of suppliers.
From the above made analysis of various competitive forces it can be said that for
“FOOD on WHEELS there is presence of very high competitive rivalry but there is a
requirement to understand the needs of customers in order to establish successfully a
competitive advantage and survive for long run in the organisation.
M2 Provide justification related to entrepreneurial idea can fill market gap by use of various
techniques and competitive analysis
A specific entrepreneurial idea plays a very crucial role in filling of gaps that arise in
market (Schweichhart, Weber and Hildenbrand, 2018). Many times there are problems being
faced by people and such problem are the major source of opportunity for any new
entrepreneurial idea. In present scenario, it can be said that Food on wheels has used this gap as
they felt that there is not much presence of good food options in many streets in London. So,

they started by one truck and after completion of three months they saw huge success and decide
to launch 20 trucks in different locations.