Identifying Entrepreneurial Opportunities: Detailed Report Analysis

This report provides a comprehensive analysis of entrepreneurial opportunities, exploring various sources of innovative ideas, both internal and external to an organization. It delves into how entrepreneurs can leverage these sources to develop and grow their businesses in a competitive environment. The report discusses Drucker's seven sources of systematic evaluation and employs gap analysis to assess a specific entrepreneurial idea, which is the development of a sustainable water bottle. Furthermore, a SWOT analysis is conducted to evaluate the viability of the business idea, followed by an examination of the competitive and market environment using Porter's five forces analysis. The report aims to provide a clear understanding of how to identify, analyze, and implement entrepreneurial ideas for business success.

Identifying Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION...........................................................................................................................3
P1 Different Sources of Entrepreneurial Ideas and Innovation...................................................3
P2 Innovative Idea for Development and Growth of an Organization........................................8
P3 & P4........................................................................................................................................9
P5 SWOT analysis of the Entrepreneurial Idea...........................................................................9
P6 Competitive and Market Environment of biodegradable Water Bottle................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
The entrepreneurial opportunities are generally defined as the situations in which
products and services can be sold at cost with more than its production cost. Through this
process company will be able to gain profit with high marginal difference. In this report different
source of entrepreneur ideas will be discussed in the report that can be used by an entrepreneur to
develop and grow their business organization in the highly competitive business environment. Th
e idea that is developed for the effective growth of company in market is development of
sustainable water bottle in order to meet the sustainability demand of the marketplace. Drucker's
7 source of systematic evaluation will be used in the report (Chan, Dow and Schunn, 2018). A
justification is provided to analyse the entrepreneurial idea that is developed for the business by
using gap analysis. Data that is required for gap analysis has been used in order to better
evaluation of the specific entrepreneurial idea. Data that is collected in the gap analysis will be
interpreted to develop better understanding of the business idea for marketplace. SWOT analysis
will be performed in report in order to evaluate the effectiveness of business idea. For the
successful implementation of idea in marketplace porter five force analysis to evaluate the
competitive market condition.
P1 Different Sources of Entrepreneurial Ideas and Innovation
There are different type of information and data that are available nearby the entrepreneur
are can encourage and motivate to create new idea or innovation in order to gain more success in
the global business environment. There are different sources that can help the entrepreneur to
develop new ideas and innovative development in their products to meet the requirement and
needs of customers. The main sources of new ideas and innovation can be classified in two types
which are internal sources and external sources of innovation (Kazdin, 2016). These sources are
used by the entrepreneur in order to develop effective idea that is good for profitability and
advancement of business in the target market. These are main sources of innovative ideas in
business processes.
External Source
The external sources of new idea or innovation are known as sources that are present
outside the organization and capable to influence the entrepreneur to implement innovation in
organization or come up with new idea to keep their organization running profitable in
marketplace. Some of main external source of idea or innovation are- Customers, User solution,
inventions, competition, suppliers, acquisition, trade fares, conventions, published articles, trade
magazine, outside consultants, channel members and laws and regulations. These are main

internal sources that can force or encourage the organization or entrepreneur to develop new idea
in order to gain higher success in the target market with higher sales.
Customers
Customers are the main source of the new idea creation. Main objective of the
organizations is to generate maximum profit from the target market by providing better product
and services to the customer. An organization only can earn higher profit by full filling all the
requirement of the customer. This is important for them to know the requirement and needs of
customers in order to develop their product and services (Green, 2017). This is how customer
needs and requirement can force the entrepreneur to develop idea or innovation in product and
services.
User Solution
some time there are some challenges are faced by customer with specific features of the
particular product or service. These challenges make them to provide some solution to the
organization. These complaints and feedbacks can force the entrepreneur to make respective
changes in their products and services to avoid decrease the sales in the business process. This is
how user complaints and solutions force the entrepreneur to make respective development of
innovation and ideas.
Inventions
New inventions of products and techniques also can be considered as the sourced of
innovation and development of new ideas. If some products related to company product or
services are invented and introduced to the marketplace (Schweisfurth, 2017). This can
encourage or influence the entrepreneur to come up with new idea or innovation with their
specific products and services to stay competitive in the marketplace.
Competition
Market competition is main driver of development of new idea or innovation in the
company product and respective services in the target market. To keep organization effectively
run their business in the target market this is important for the organization to make frequent
changes in their products and services to maintain profitability as compared to competitors in
marketplace.
Suppliers
There is different type of raw material is imported by organizations to develop their
product. In some area’s organization need to make changes in their product or service
manufacturing process in order to maintain the supply chain of the organization. This is how

leaders of the organization have to make respective changes in their business process by
implementing new ideas and innovation in organization processes.
Acquisition
With the process of acquisition process there are some innovative changes in new ideas
need to be implemented in order to keep organization running effectively in the marketplace.
This change in company product or service is related to the infrastructure and available
technology in related company.
Trade Magazine, Trade Fares & Published Articles
Trade fare and articles are mainly based on the new ideas and development in the
business processes (Siegel, 2018). This innovative and creative trade fares can encourage the
employees to develop new idea or innovation in their product or services.
Conventions
Conventions between different organizations also can act as source of innovation of new
idea by offering some limitations to company. These limitations can force entrepreneur to
develop new idea or innovation for business procedure.
Outside Consultants
sometimes organization used different external sources to make proper development in
their product and services in order to make proper developments in their products and services.
These companies can provide different ideas and innovative processes that can improve the sales
performance of organization in the target market. This can encourage the entrepreneur to think
about new ideas and innovation for proper business development.
Channel Members
These are people who are part of the supply chain of the organization. These people help
the organization in their distribution process of goods and service. If some challenges are faced
by these people in processing of goods and services then it can force the company or
entrepreneur to implement new idea or innovation in the business process to provide
convenience to channel people.
Laws and Regulations
These are the major factors that can affect the business of the organization and their
operations in the target market. Some legislation and regulation made by organization prevent
the company from performing some actions in the target market.
This is how some external factors or sources can influence the entrepreneur to think of
new business idea or innovation in the marketplace.

Internal sources of Idea
The source of ideas that are present with in the business organization are known as
internal sources of innovation. Some of main internal sources of innovation or idea are- Internal
Research and development process, employees of organization, information technology, shelves
ideas, complaints systems, customer services and sales force of organization.
Internal Research and Development process
the research and development department are one of the most important operational
department of organization. The leadership of organization focuses on the positive changes in
their product and services to gain higher profits in marketplace. The main work of the
organization is to make positive changes in the company product and develop new ideas to
improve the capability of business (Boston, 2016). This is how research and development
department can provide different new ideas and techniques to improve the growth and
development of organization in the target market.
Employees of Organization
Employees of organization are main factors for organization these people are important
for the continuous performance of company in marketplace. There are different challenges faced
by people in the operations of organization. These challenges can affect the performance of
employees in operations of organization. These can affect overall performance of the company in
target market. This is major problem for company to maintain their production and
manufacturing line. Further this can affect the supply chain of organization. To avoid this
condition in company operation entrepreneur can implement some new and innovative ideas in
business procedure to gain maximum performance in the target market.
Information Technology
There are different information systems are used in the business organization. These
information systems help the company to manage their operational, sales and performance data
in marketplace. Data collected, stored and processed by information can help company to know
more about the performance of the organization in the target market. By using these
information’s company can implement different ideas in product development to get better result
in marketplace.
Shelves Ideas
In the manufacturing industry huge number of people works over there in different
department. Some of these people are involved in the decision making of organization. With this
process organization have huge number of ideas. These ideas can be used by the entrepreneur to

make changes in their product and services to maintain the profitability of company in the target
market.
Complaints Systems
In the business organization different complaint systems are used by different department
to maintain the operations error free and with maximum productivity. These systems are used by
the company to get complaints about the organizational operations, production process and
issues in particular products. By considering these complaints entrepreneur can make certain
changes in the company operations and production processes. This is how this can influence the
entrepreneur to develop new idea or implement innovation in company.
Customer Services
Customer service department provide the services to the customer regarding issues that
are faced by them during utilization of company product. These complaints of customers can
force the entrepreneur to develop new idea about product or service to provide better services to
the customers.
Sales Force of organization
Sales force of the organization is front line of company that deals with customers. These
employees know more about the requirement and needs of customer. The information possessed
by the employees can be used by the organization to get better result in the target market
(Trippel, Girlish and Isaksen, 2018). This can force the leadership and management of the
organization to get better result in market performance
This is how some of internal operational factors can force or encourage the entrepreneur
to think about new idea or innovation for the business process of company.
Drucker Seven Sources of Systematic Evaluation
This model also can be used to evaluate the sources of innovation in the organization.
These sources are explained as- Unexpected, the incongruity, process needs, Industry and Market
Structure Change, demographics, change in the perception, meaning and mood and new
knowledge. All these sources are similar to the sources that are explained above.
Unexpected
The unnatural change in the demand of product in the target market can be considered as
source of new idea and innovation in organization.
The incongruity

The difference between the actions required for effective performance and what should
be the actions of the company for effective performance in the target market. This difference can
lead to innovative change in the company process and business actions.
Process Needs
For better performance in the target market this important for the company to implement
some changes in the organization. This need of change can force the organization to make
changes in the organizational process by implementing innovation in company processes. This is
how procedural need of organization can lead to implementation of innovation in the operations
of organization.
Industry and Market Structure Change
Change of structure in industry or marketplace can lead to implement innovation in the
business processes of organization in the internal and external operations of the organization.
These change in the marketplace and industry can affect the profitability and performance of the
organization on global level. That's why it can lead to implementation of change in the
marketplace.
Demographics
Changes in population, age structure and education level of people can lead the change
implementation in company. These changes will affect the requirements relayed to specific
product and services of the company.
Change in the Perception, Meaning and Mood
Change in perception of people can reduce the sales of organization in the target market
and it can force the company to make changes in their business process to reduce the
performance of the organization in the target market.
New Knowledge
With the improvement in the knowledge regarding particular product. This development
of knowledge leads the entrepreneur to implement innovative practices in organization.
P2 Innovative Idea for Development and Growth of an Organization
In current time people are too much concerned of environmental sustainability and
protection of the biodiversity. This is basic thinking of people to take initiate in direction to
implement practices that can prevent major harm to environment and society along with
biodiversity. This is how this is the best business idea to develop water bottle that is easily
biodegradable which is effective for the protection of environment (Trippl, Grillitsch and
Isaksen, 2018). There are different changes are implemented by the government on use of one

time use plastic. In most of the countries one time use plastic is banned. This is affecting a
particular industry that is producing one time use plastic. By developing one-time plastic
company will be able to address the market which has huge future scope with sustainable
products. This is how idea of sustainable biodegradable water bottle is best for the current market
situation. There are many policies of government are also providing different advantages to
organization that are come up with these type of ideas. The main idea about launching this
product is to offer effective and sustainable products to the organization in order to meet the
environmental sustainability. By this process organization will be able to provide better solution
to the sustainability issues about which people are majorly concerned. The market gap can be
analysed by using Porter Five force analysis.
Porter's Five Force Analysis
Threat of new Entrant
This threat is low for organization because less number of organization are providing
similar products.
Threat of Substitute
Threat of substitute product is high for company because there are a lot organizations are
looking for developing such product for better market performance.
Bargaining Power of Customer
Less number of organizations are providing products like this so customers have less
options for such products.
Bargaining Power of Supplier
Due to the sustainable raw material products less number of supplier available in market
place. Cause of these bargaining power of supplier is also too high.
Rivalry Among Existing Market Competitors
The rivalry among existing customer is law because there are only few organization are
producing biodegradable water bottles.
P3 & P4
Covered in PPT
P5 SWOT analysis of the Entrepreneurial Idea
The entrepreneurial idea which have been included in this is manufacturing of sustainable
water bottle. This product is made of environment friendly products and does not have any
negative impact on the environment due to its important characteristic which is that the bottle is
biodegradable (Brigham, 2018). The material being used in this is bamboo, bulrush, recycled

paper, sugarcane pulp, algae. The entrepreneurial idea and venture include making bottle from
sugarcane pulp, recycled paper and husks. These bottle are likely to get decomposed within 80
days.
To assess what are the strength and weakness of the idea and venture and what are the
opportunities and threats available to this idea framework of SWOT analysis is being applied.
Strengths
 Increasing concern of people for nature and environment (Phadermrod, Crowder and
Wills, 2019)(people are getting more aware about the nature and effect of plastic on the
environment in such a condition bottles which are biodegradable have very good scope).
 Weaknesses of plastic bottle is one of the reason degradable water bottle have scope in
market (plastic bottle are very harmful for environment and its weakness can work as
strength for biodegradable water bottle).
 Availability of the resources for the venture (all the required resources for making
biodegradable water bottles are available).
 This is cost friendly and require less time to set up the venture and manufacturing facility
(plant of manufacturing biodegradable water bottles is less costly to set up and time
required for this is also less).
 Unseasoned nature of venture and product (this is not a seasonal product and hence its
demand is constant).
 Less competitors (there are very few firms which are already into this business which
means competition for this is less).
Weaknesses
 The bottle can be used only one time (this is why people may avoid buying such product
even after its environment friendly nature).
 Expensive product (this is a single use product which makes it expansive for customers).
 Awareness of people (people are aware about hazards of plastic but are not aware of
availability of such product (Sarabi, 2016). this requires that before starting the venture
and in initial time extensive marketing and promotional efforts will be required).
Opportunities
 Growing market demand (market demand for products which are environment friendly in
constantly increasing and this is a big opportunity for this venture).
 Benefits for environment (this is a product who is environment friendly and have strength
to replace products which are not good for environment).

 Support of government for such ventures (first thing is that this is an entrepreneurial
ventures which are supported by government and another is that this is an environment
friendly idea both of these are positive factors to get support from government).
 Unaffected demand (its demand is constant and does not get affected by any factor as
water bottles are required in all conditions).
Threats
 Increasing price of raw material. This can be prevented by using alyernative material and
recycling process.
 Availability of Substitute products (Sarabi, 2016). There are other products available
which can cover up the weakness of this product, these are products which can be used
more than one time
P6 Competitive and Market Environment of biodegradable Water Bottle
It is very important to evaluate competitive and market environment this help to know
and understand the factors which are either favourable and unfavourable for venture and what
impact they might have on business. To evaluate and analyse these factors model of PESTLE
analysis is being used here-
Political Factor
This factor includes effect of political factors on business and venture. This includes
policies and rules that get changed because of political people and parties (Perera, 2017). This
includes effect of political condition of the place where business and venture are being operated.
Because of its environment friendly nature political factors have less effect on the venture.
Economical Factor
These are factors like economic condition of the country and region where venture and
business are operating and people who might be its customers. This water bottle can be
purchased by anyone and does not get affected from anyone's financial condition of the people.
Cost of this product is also a favourable element. Performance of economy does not affect the
venture Ans its business functions such as inflation and taxation policy etc. because the venture
is first of its type and is starting at small level. This is why factors such as economic conditions
have insignificant effect on this venture.
Social Factor
This factor helps in considering effect of social environment which includes consumer
trends and taste and preference of consumer (Policy, 2016). In relation with this consumers'

attitude is perfectly favourable as most of all people and consumers are aware of the drawbacks
and hazards of plastic water bottle. This create an opportunity in market to sell biodegradable
water bottle which is safe and does not have any hazard on health and environment.
Technological Factor
In this venture technological use is limited to process of manufacturing which means
converting raw material into final products. Other than this technology can be used for marketing
and supporting activities. This type of ventures is really limited, and this is why technology
which is being used for this is at starting level and is also advanced as per the technological
environment.
Legal Factor
Such ventures do not have any type of threat from legal environment and rules and
regulations which are required to be followed by all the businesses also required to follow in this
type of business. Due to its ordinary nature the business does not need to follow any type of
special rules and regulations. This is why legal environment does not possess any threat for this
entrepreneurial ventures.
Environmental Factor
The most favourable impact which this entrepreneurial venture make is on environment
(Corban and et.al., 2019). This venture reduces the negative impact of harmful plastic bottle and
ensure that this does not any type of negative impact on environment.
On the basis of above analysis and discussion it can be concluded that no factor has any
significant negative impact on this entrepreneurial venture and this business also have scope in
market because of its nature and characteristic of being environment friendly and hazard free.
CONCLUSION
This report is concluding different sources of innovation and new idea in the
organization. Drucker Seven Sources of Systematic Evaluation has been used to analysis
different sources of innovation within a specific organization. Market gap analysis has been
performed to analysis the effectiveness of particular entrepreneurial idea for the business of
organization. The data collected in the market analysis also has been reflected in the report.
SWOT and other competitive analysis have been performed in order to check the effectiveness
of this business idea for marketplace.