ENTR501: Identifying Entrepreneurial Opportunities Report, UK

This report provides a comprehensive analysis of entrepreneurial opportunities, focusing on the case of 'The Green Chilli Cafe' in the UK. It begins by identifying and evaluating various sources of entrepreneurial ideas and innovation, emphasizing the importance of political, technological, social, and economic factors. The report then delves into the rationale and market gap for the cafe, discussing market segmentation strategies like behavioral, demographic, and geographic segmentation. It outlines both tangible and intangible features of the cafe's offerings. Data analysis and interpretation are used to assess market potential. The report also presents a SWOT analysis to collect evidence supporting an objective assessment of the cafe's viability within its competitive and market environments. The conclusion summarizes the findings and highlights key insights. References are included to support the research.

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............................................................................................................................................4
P2 Rationale and the market gap for a specific entrepreneurial idea..........................................4
TASK 3............................................................................................................................................8
P3 Present data needed to support gap analysis in the evaluation of a specific entrepreneurial
idea..............................................................................................................................................8
P4 Interpret data appropriately to provide evidence of market potential....................................9
TASK 4............................................................................................................................................9
P5 A SWOT framework to collect evidence to support an objective assessment......................9
P6 The competitive and market environments in which the idea will be launched to assess
potential viability......................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Entrepreneur is a person who start as well as run new business by taking financial risk
with the hope of attaining profitability. Mainly, it is considered as an effective process of
launching, designing a new venture at small level. Entrepreneur are innovator, risk taker, idea
generator through which they produce as well as create attractive services in front of customers.
Along with this for attaining success, they needs to make continuous innovation within their
business so that they can easily enhance their growth level at market place (Abu-Saifan, 2012).
In UK, number of people start their new venture by determining various opportunities and at the
same time also bring new ways to invite as well as attract larger number of customers towards its
products and services. Present report is based on The green chilli cafe, a new venture in UK. This
report discussed about different sources of entrepreneurial ideas and innovation which may lead
in evaluating the rational and market gap. In addition of this, report also helps in analysing the
gap by determining evidence of market potential. SWOT analysis also mentioned in this report to
evaluate the entrepreneur ideas.
TASK 1
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation
As per current scenario, number of individuals come up in market with new and
innovative ideas. Along with they also bring innovation and creation within their activities to
make more attractive. For this they always find ways to generate more money in order to operate
their business activities effectively. In current market, person who wants to operate their new
business needs to analyse various opportunities for running their business. This will help them in
enhancing the chances of attaining success. In addition of this, they should have selected best
alternative option to improve their business activities in market. In this, an entrepreneur is going
to run a new idea and venture which is known by The green chilli cafe. Mainly, it is not an easy
task for an individual to run a new business because it requires various ideas and financial funds
initial level. Furthermore, competitive environment of market is also considered as an important
aspect because it directly affects the entire business activities in positive and negative manner
(Perrini, Vurro and Costanzo, 2010). Thus, entrepreneur have to evaluate all the factors before
establishing their business market place. In this, cafe should implement different resources and
develop appropriate strategies to run their business in appropriate manner. Along with, there are
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some various external factors which is important for firm to analyse all the changes and
opportunities as well: Political factors: It is important factor which directly influence the business ideas and
operations. So that it is vital for The green cafe to analyse government factors such as
taxes, regulations and many more (Fuentes and et. al., 2010). For generating high profit,
company needs to implement all the rules within their business so that they can easily
serve quality services to customers as per their needs and wants. This will help in
improving the overall performance of the company at market place. Technological factors: As per current scenario, new and advanced technologies play
crucial role in improving the process of the company. Thus, cafe needs to implement new
ideas within their production department with the purpose of produce quality food
services to customers. This will enhance the productivity and efficiency level of the firm. Social factors: For increasing customers demand, cafe needs to understand their
requirements by undertaking an effective research. With the help of this, company can
easily identify customer’s behaviour towards its food services. Customer taste, choice,
preferences are vital to understand through which firm can serve quality products and
services. With the help of this company easily established competitive image in front of
customers and market as well.
 Economical factors: It is also important for The green chilli cafe to understand the
economic factors because it helps in taking an effective decision towards the investment
value. It includes policies tax rates, wages, interest rates and many more. All these are
directly influence the market place, demand and supply.
Evaluation of Drucker's 7 sources of systematic innovation:
As a small business, The green Chilli cafe needs to implement new and innovative ideas
within their activities as per continuous basis. This will helps in attaining set goals and objectives
in an appropriate time span. For generating more profitability, entrepreneurs focus on
implementing creative ways to making their process more appropriate (Korsgaard, 2013). As
there are 7 sources which help in improving the chances of attaining success:
 Unexpected: Under this, entrepreneurs tries to make innovative strategies and plan to
reduce any kind of issues and problems. For this firm always bring innovation and things
to enhance the company activities.
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 Incongruity: It refer to various tools and techniques which helps in making an effective
plan. Along with, entrepreneur tries to introduce innovative thinking to develop their
activities.
 Innovation based on process needs: Under this, cafe needs to make their process
appropriate by implementing new and innovative ideas which is relate with customers
needs and requirements as well (Grégoire and Shepherd, 2012).
 Change in industry and market: Firm needs to be implement new changes by establishing
innovative ways in market and industry as well to increase customers demand.
 Demographics: In this, entrepreneurs set their business by determining their target
customers in order to provide them satisfaction.
 Change in perception: Under this, company needs to implement new ways to making
their process more attractive as customers can change their perception towards the
products.
Role of entrepreneur:
An entrepreneur plays vital role in developing economic condition of country by
establishing new and creative business. Mainly, entrepreneur are the person who bring new ideas
and plan to grab attention of people. This will contribute in enhancing the chances of attaining
success at market place by introducing new and creative services in front of market. Along with
this, there are some major role which play by an entrepreneur are as follows:
 An entrepreneur creates new and innovative ideas to start a new venture.
 They support in enhancing the development of economic growth of nation.
 They also create various job opportunities to larger number of local people to improve
their loving standard.
Type and scope of innovation:
In market place, innovation consider as an important role which helps in improving the
chances of increasing profitability level of the company. In context of small business, there are
some type of innovation are as follows: Product: It refer to product differentiation in which company introduce their specific
products which differ from other company (Duru, 2011). The green chilli cafe produce
their products more attractive in which customers can easily recognise. For example, cafe
offer mac puff, coffee and various items.
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 Process: It defines innovative ways which is implemented by the company within their
activities to improve their growth level. With the help of this company easily sell their
quality products (Farmer, Yao and Kung‐Mcintyre, 2011). Incremental vs. Big Bang innovation: Under this, incremental innovation refers to small
changes and updates in the process which helps in improving the product quality of the
company. Other hand, Big Bang define an effective product development process which
helps in reducing the chances of arising issues by implementing innovation.
 Schumpeter’s source of innovation: It is also an effective type which define as a
business cycle. With the help of innovation company can enhance their investment to
make their operations more effective.
Difference between innovation and invention:
Innovation Invention
 Innovation refer to ideas for products
and services which implement first
time.
 It is a process to adding values within
existing products.
 Invention refer to an ideas for products
which never been define before.
 Mainly, it creation of a new products
Difference between product and business ideas:
Product idea Business idea
Product idea refer to modification which is
creating in existing products with the purpose
of making more attractive and creative as well.
Business idea refer to generating more and
more revenue by implementing various
opportunities.
TASK 2
P2 Rationale and the market gap for a specific entrepreneurial idea
For run a new business, it is important for entrepreneurs to determine the customers
needs and demand towards food services (Davidsson, 2015). Mainly it helps in determining that
what actually customers wants. By this company easily set their outlets as per customers needs in
order to understand products features in which firm can easily make different products towards
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its rivals. In addition of this, company also analyse the marketing gap which contribute in
understanding the different between actual market condition and desired circumstances.
Furthermore, market gap consider as an effective tool which helps entrepreneur to determine all
the future opportunities and at the same time also aid in determining profitability level from its
competitors (Baggen and et. al., 2015). All these will aid in enhancing the market share of the
company and productivity as well.
Need to identify specific customers types for target idea: In market place, every
customers have their specific taste and lifestyle. Thus, it is important for company to effectively
understand their needs and wants in order to sell product. Along with this, business organization
needs to set new and innovative ideas to serve their quality commodities to number of customers.
For attaining customers attention, company needs to provide discounts on quality products which
increase the chances of achieving customers satisfaction level. In context of The green chilli
cafe, they having wide range of products in which customers can easily buy and satisfy their
needs. With the help of this company may established their positive brand image at market place
and at the same time also capture market share form its rivals.
Market segmentation: It is an effective process which help in distributing entire market
into potential customers as per their taste and preferences. With the assistance of this, company
easily serve creative products and services as p[er customers requirements. As a new business,
The green chilli cafe also use this process to offer their variety of products as per market
segmentation are as follows: Behavioural segmentation: Under this, company segment market on the basis of
customers behavioural and taste as well. As per this, company may increase customers
base within their company. Demographically segmentation: In this, The green chilli cafe segment market as per
income level of people, their life style and status as well (Suddaby, Bruton and Si,
2015). By this cafe easily offer their quality food services as per affordable cost as it
help in increasing their profitability level.
 Geographic segmentation: Under this, company distribute their products as per
geographical places which helps in increasing profitability level of the cafe at market
place. This is possible when company effectively analysis market which may contribute
in attaining competitive place in market.
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Apart from this, the description of tangible & intangible features and benefits of products
and services as well.
Tangible Intangible
Tangible products are relate with those
commodities which customers easily seen
before buying. For example, The green chilli
cafe serve products such as green chilli potato,
chilli paneer and many more.
Under this, intangible products are invisible
features which are feel bys customers after
consuming products and services.
Industry environment:
It is an effective aspect which help business organization to evaluate the current industry
environment. This will aid in identifying the ways to attain success in market. Mainly, it
concerned with various benefits and new entries in which company serve their services
accordingly for attaining desirable results (Renko and et. al., 2015). Thus, entrepreneurs needs to
identify the threats and opportunities before establishing new business. It helps in enhancing the
chances of attaining success at market place.
Porter's Five Forces Model:
For identifying threats and opportunities, it is an effective tool which help company to
evaluate the actual performance of the company at market place. Mainly, it provide support to
new business to effectively launch their new products and services effectively. It includes some
factors are as follows: Competitive rivalry or competition: Under this, company face high competition in
market place because various competitors are operate in same line and provide same
services at low cost. For example, The green chilli cafe face competition from Starbucks,
Dunkin Donuts and many more. Threats of new entrants: It refer to moderate force which face by the company at market
place. New entry in market place compete with company at local level. In addition of
this, The green chilli cafe grab customers attention towards its products and services
with the purpose of establishing competitive advantage form its rivals (Karimi and et. al.,
2016).
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 Bargaining power of customers and buyer: It refer to strong force of buyer power
which affect the overall profitability level of the company at market place. In addition of
this, customers of The green chilli cafe are willing to pay higher cost for quality and
premium products in which they serve quality commodities to their target customers as
per their needs and wants. With the help of this company may enhance their profitability
level at market place. Bargaining power of suppliers: Under this, it refer to number of suppliers who are
present in market. Along with this, the power of suppliers is very high due to this,
company can enhance their market share by providing quality products and services.
This will capture customers attention towards cafe products and at the same time also
attain the competitive advantage form its rivals.
 Threat of substitutes: Under this, the substitute products of cafe shops are highly
available in market place. As another company also offer food products at lower cost so
that it is harder to cafe to generate profits. Thus, for attaining success in market place,
The green chilli cafe have to serve their quality products at affordable cost so that
customers are consume its products.
Approaches to competitor analysis: For attaining success at market place, company needs to
analysis approaches for analysing the competitors at market place with the purpose of
maintaining their positive performance (Hmieleski, Carr and Baron, 2015). Along with this, there
ate some ways which should used by The green chilli cafe to effectively analysis competitors in
market are as follows:
 In this, entrepreneurs needs to determine the actual and potential rivals which present in
market place.
 Owner of the business should evaluate the areas in which they effectively perform their
business activities and serve quality products as compare to its competitors.
 Undertaking marketing strategies within their business activities.
 Evaluate those areas where firm make their competitive place.
 Implement marketing gap which helps in determining the difference among current area
and existing as well.
Industry Life- Cycle: It is one of the important cycle for business organization which helps in
determining the overall performance of the company and its products as well. It includes various
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stages of the life cycle which show the growth of the firm in market place with the purpose of
developing marketing offering. As it include various stages following phases are as follows:
(Source: Industry Life Cycle, 2017)
 Development Phase
 Introduction Phase
 Growth Phase
 Maturity Phase
 Decline Phase
TASK 3
P3 Present data needed to support gap analysis in the evaluation of a specific entrepreneurial idea
Gap Analysis: It is one of the important aspect which help in determining the gap
between benchmarking of the firm and actual position of the company in appropriate time frame.
Mainly it define the place where actually company wants to see itself. Along with this, it also aid
in determining the actual gap between the integration of resources and optimized allocation (gap
analysis, 2018). AS it includes some phase such as first phase define current situation of brand
image, financial performance of employees and so on. Second positions includes expected
futures. Thus, it is important for company to review all these gap so that they effectively
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Illustration 1: Industry Life Cycles

formulate effective strategies and plan. In context of The green chilli cafe, they also include
within their activities in order to improve their overall performance level at market place.
In addition of this, company also carry out survey on 50 person in which they take their
reviews and opinion by making an effective questionnaire (Hatak And et. al., 2015). With the
help of this company take feedback from customers in order to change their activities
accordingly. In this context, approx 35 people wants products at minimum cost and rest of
respondents are willing to pay high pay for premium products and services. With the help of this
company may enhance demand of the products and services at market place.
P4 Interpret data appropriately to provide evidence of market potential
Primary and secondary sources both are important which helps in collecting data and
information in an appropriate way. Along with this, primary sources refer to actual and original
data which is gathered by taking survey, interviews from various customers. This will helps in
understanding customers views and opinion towards cafe products and services as well. On the
other side, secondary source refer to existing data and information such as newspaper, internet,
magazines and many more.
In addition of this, entrepreneurs needs to use as well as adopt nee marketing skills
because the threats of competition is high in market. This will helps in increasing the overall
performance of the company as compare to its competitors. As The green chilli cafe offer quality
products and services at affordable cost in which every type of customers are easily buy and
consume its products. This will aid in attracting larger number of customers towards its products
and services.
Furthermore, The green chilli cafe needs to manage their brand image for this company
set their new and innovative outlets which contribute in grabbing customers attention towards its
products and services (Gielnik and et. al., 2015). With the help of this, firm can attain
competitive advantage from its rivals.
TASK 4
P5 A SWOT framework to collect evidence to support an objective assessment
Swot analysis is play vital role in evaluating the objectives which may contribute in
enhancing the brand image at market place by accomplishing positive goals and objectives.
SWOT analysis of The green chilli cafe:
Strength Weaknesses
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 Quality food services is one of the
biggest strength which help The green
chilli cafe to attain high market share
from its rivals.
 They serve healthy services to its
customers and workers as well (Kraus,
Kauranen and Henning Reschke, 2011).
 The products price is more affordable
by the customers.
 Less knowledge in workers is
negatively affect on overall goodwill of
the firm.
 Proper training is less at workplace in
which workers are fails in handling
their customers.
Opportunities Threats
 Cafe wants to grab customers attention
by adding values in products.
 Improve their menu cards by
introducing new and innovative food
items.
 Taste and preferences of customers are
continuously change.
 High competition in market.
 Unnecessary rules and regulation of
government bodies are also affect the
overall activities of the company.
P6 The competitive and market environments in which the idea will be launched to assess
potential viability
As per current scenario, it is important for every business planner and start-up to required
appropriate skills and knowledge in order to effectively analysis all the situation that present in
market place. In addition of this, they get various ideas from market and various factors like
Peter F. Drucker's innovation and many more which contribute in determining the impact of
macro elements on overall performance of the company. This will helps in enhancing the
chances of attaining higher profitability level and competitive advantage as well. On the other
side, it can be possible when company set their new business on right time as it help in reducing
the chances of hacking ideas by its competitors. In addition of this, entrepreneurs should set their
ideas on the basis of company weakness because it aid in determining those areas where firm can
easily grab customers attention by delivering their quality products (Foo, Uy and Murnieks,
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