Entrepreneurial Opportunities: Market Analysis for a Restaurant Idea

This report provides a detailed analysis of entrepreneurial opportunities, focusing on the launch of a new international cuisine restaurant, Gourmand & Globetrotter, in London. It explores various sources of entrepreneurial ideas, including customer feedback, competitor analysis, and macro-environmental factors. The report delves into market gap analysis, emphasizing the importance of identifying trends, new technologies, and market segmentation strategies (demographic, geographic, and behavioral). It examines the industry life cycle and its implications for the restaurant's success. Furthermore, the report presents data to support gap analysis, discusses market potential, and applies a SWOT framework to evaluate the competitive and market environments, offering insights into the restaurant's potential for success.

Identifying Entrepreneurial
Opportunities

Table of Contents
Identifying Entrepreneurial Opportunities ......................................................................................1
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation..............1
TASK 2............................................................................................................................................2
P2 Rationale and the market gap for a specific entrepreneurial idea..........................................2
TASK 3............................................................................................................................................3
P3 Present data needed to support gap analysis in the evaluation..............................................3
P4 Interpret data appropriately to provide evidence of market potential....................................6
TASK 4............................................................................................................................................6
P5 Apply a SWOT framework to collate evidence to support an objective...............................6
P6 Evaluate the competitive and market environments..............................................................8
CONCLUSION................................................................................................................................8
REFERENCES ...............................................................................................................................9

INTRODUCTION
There is a huge pool of ideas that can make a entrepreneur successful but they need to be
analyse the opportunities, threats and capacity of a idea that can sustain a for a long time in the
market. As there is s wide range of products and services that does not stay in the market because
of the changing demand and choices of the targeted customer. Because the customer always a
better option to switch, the one who is going to establish a business with an idea first should get
know that reasons of customer shifting to another brand. This report is about a restaurant which
is going to be launched with a idea that people can never stay away from the savour food and
that's why the name is also invites them, Gourmand & Globetrotter which is a international
cuisine restaurant in London. The ideas behind the name is to offer a special cuisines of different
countries, that the customers can get only when while travel across borders but bow they can get
it under one umbrella. The report underpins marketing segmentation, external and internal
factors, funding process and so on(Block and Wagner, 2010).
TASK 1
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation
There are various sources which can gives a entrepreneurial ideas because there is always
a need that needed to make some changes. In bookish language, these ideas that has already
started a business requires some innovation and that innovation can be revealed by the customer's
survey and interviews. Whereas in actual the ideas is of a business is generated derive through
observation and the thought that can has some economical value to the people and entrepreneur.
These sources of ideas can be as described as follow -
Customers – As in every business the customer is a prime person who should be
satisfied from the product cause if the end user is satisfied than then they will also raise the sales.
That's why they are most fruitful source of ideas when it comes to open Gourmand &
Globetrotter the customers are the priority for this. Because there was a lot of people who are
seeking for some different kind of flavours that's why the cafe is offering food from beyond the
limits(Dimov, 2011).
Competitors – Competition is also a factor which increases sales because there are so
many existing restaurants which are offering the similar types of eatery but Gourmand and
Globetrotter is going to launch with some extinguish items that can dramatically drive the sales.
Looking at the past and future – While one is about to open a restaurant they should
observe others what they have done before because the mistakes they had made, that can be
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avoid to occur and put a business in pitfalls. Present requirements and future expectations aid to
expand a business(Ekpe, Mat and Razak, 2010).
Macro environment factors
Macro environment factors are those which impacts on a business externally that are as follows-
Legal factors – Legal factor is the most important criteria to be followed. Because
getting a license for Gourmand & Globetrotter is crucial before starting the service if license is
not approved by the UK Government then the business will be illegal and the entrepreneur is also
liable to pay the penalty. So it is essential to follow the legal structure for the business.
Social factors – Social factors are those which makes an impression on the society and
business both. Because human beings are lives in a society so there some religions and they has
some rules that they have to be follow. So, business should has some ethics that does not violate
customer feeling. For example, in restaurant the products raw material should be according to
their belief and there must not be any kind of product which can harm anyone. Another aspects
of social factor is word of mouth, if a business has a good image then that will attract more
customers(Foo, 2011).
Technological factors – Technology is a helping hand for business cause it makes so
many things accessible within a touch. Putting a business on internet brings numerous customers
and also creates a goodwill.
Economical factors – The economical factors affects the innovtion because a business
needs funds to grow and operate smoothly but if the economy is low then then business cannot
survive in the market.
Environment factors – People is aware about environment and the business which keeps
safe environment the public supports to the firm.
Sources of innovation opportunities can be define as -
 The Unexpected – A good entrepreneur should always looking for the opportunities in
the market that can give new direction to the restaurant.
 The incongruity – It considers things as what it is and what it should be that can make
things more better than before.
 Process need – process need is about to identifies the weaknesses and redesign them in a
meaningful way.
 Industry and Market Structure Change – There are some regulations that changes with
time so the entrepreneurs should watch these regulations.
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 Demographics – The business depends on the population, income levels, educaitons,
perception and age so it should innovation the products according to the requirement to
sustain in the market.
 Changes in Perception, Meaning, and Mood – The polulations changes over time and
their perceptions and moods also changes and that impacts a business and there is always
a scope for innovations.
Types of innovation
1. Process innovation – Process innovation refers to a new or important improvement in
production to deliver the final product.
2. Product innovation – Product innovation is to introduce an item or services which is new
or has some innovative features to use.
3. Incremental innovation – Incremental innovations is a sequence of small improvements
or updated techniques applied in a company for an existing products, services, process
and methods.
Difference in innovation and inventions
invention defines creation of a product or services for the first time whereas the
innovations is an amendment in the existing goods and services according to requirements.
TASK 2
P2 Rationale and the market gap for a specific entrepreneurial idea
When a new business is going to be enter in the market with Gourmand & Globetrotter
which is a restaurant that provide special cuisines in London. at that time there is a need to fix a
market gap in order to increase customer's buying nature. There are some specific tools which
are required to conduct market research that can introduce a business effectively. There is a need
to identify the gap from where an entrepreneur can take advantage with skills and resources. To
take an advantage of these gap one should explore itself to new and interesting people with
experiences and ideas. One questions arises while finding out the gaps is, where to look for gaps,
so there are some pinpoints where a person can get the gaps, that can be noticed in terms of -
 Trends and new technology – There are lots of trends and technology because of that
new opportunities are popping up in the market, one should keep an eye on the changes
and analysed that what kind of impact the business would face(Heinonen, Hytti and
Stenholm, 2011).
 Make the a world topical - If one can observe the surrounding then they will notice that
there is a loads of creativity, everyone is enhancing the opportunities with their fanciful
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work. Because imagination opens a doorway of fascinating trends. Gourmand &
Globetrotter is a restaurant where everything happens before anywhere else, because it
will be going to be a trend setter not a follower. It is going to furnish the availability of
the foods and beverages with innovative recipes that no one has(Quan, 2012).
Marketing segmentation
Before launching a new food product one should analyse the market requirement which refers to
identify the customer's needs. There are different demands of customers and regarding food they
definitely has some versatility and to know their taste it conducted a marketing research on
segmentation basis that are as follows -
Demographic segmentation – Demographic segmentation divides market on the basis of
demographic variables like age, gender, martial status, income religion, race, occupation,
nationality, etc. because there are various people whose food habits are depends upon their
religions. Similarly people always spend according to their income and occupation so the
Gourmand & Globetrotter must have the affordable and planned menu according to the targetting
customers.
Geographic segmentation – Geographic segmentation studies about the population which is
living in the particular geographic] area because the people who are living in that area has
specific requirements according to the climate. In restaurant international food is serving for the
people, there may be different kinds of people are staying in that region(Renko, Shrader and
Simon, 2012).
Behavioural segmentation - In behavioural segmentation the research is dependent on the
purchasing nature of population, lifestyles, attitudes, thoughts, preferences, choice and decision
making. Because if the people are having a lavish lifestyle then they would not worried about the
money the only thing matters for them is the brand and quality. They people who comes in
middle class are having some preferences so they may be can't afford the luxury things but they
can spend a small amount of their income on food. Those who are food lover are matters a lot for
restaurant business because they wanted to eat the unique kind of flavours that indulge them.
Industry life cycle: It is the normal stage that a industry goes through during the course of its
life cycle in the market. An industry life cycle is divided in to five categories such as:
Early stage phase: In this phase, product may be alternate option which makes a place
for it in the company.
Innovation phase: In this, an organizor can expand their product with innovative style in
order to increase profitability of the company.
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Cost phase: It mainly refers to the consolidation of an industry. Few business are
naturally eliminated this is because they are not able to grow along with the industry or
developing cash flows in the negative way.
Maturity phase: At this stage, company's revenue from the various products becomes
the main focus of an organisation.
Decline phase: It is marked by minimising revenue as the demand change to other
product in the industry.
According to the above concept it has been analysed that Gourmand & Globetrotter
multinational cuisine restaurant need to follow industry life cycle in order to increase its market
demand in London. Therefore, there is need to improve their phases in different ways.
TASK 3
P3 Present data needed to support gap analysis in the evaluation
Gap analysis is qualitative and quantitative comparison of a company's present
performance which means to recognize actual present state with the potential performance
which is the target state. Its core principle is to recognize the requirement and find out the
solutions. It addresses two points that is :
 Performance
 Potential
Gap analysis is a 360 degree analysis that performs strategic or operational levels in
inward and outward environment and one can run a company in a direction through various
processes or departments. After passing through the first phase of analysis performance versus
potential one can be able to see the results are exceeding the expectations(Short and et. al.,
2010).
Conducting Gap Analysis
The gap analysis is conducted to be big brand but if so many things are tried to be tackle
at one time then the resource will get stretched(Tang, Kacmar and Busenitz, 2012). So it would
be better if an individual considers anyone of these host factors like :
 Sales number
 Customer contentment
 Retention rates
 Transportation times
 Manufacturing costs
 Marketing returns
 International expansion
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Once the area is isolated then that factor is enough to make an impact.
Identify states
Once an entrepreneur selected the focused area then the first step is to identify both the
of the area to identify where is the performance and what are the expectations in future. For an
example,
 sales channels as focus
 peculiar nodes as the channel
 at present what the sales performance
 industry average potential
[source : Gap Analysis: A Template for Connecting Potential with Performance, 2017]
The states goes through three iterations that are :
 Current performance
 Potential state
 Gaps
Describe the gap
After the identification of the gaps the second step is to describe the gap for better
understanding the reason behind their occurrence(Vaghely and Julien, 2010). If a business is
ahead of target then it is a good time for the business to analyse the what exactly done to attain
the target. If there are several ways to utilize the same principles in other areas of a restaurant. It
is essential to going through from this step because a well performing business can also be
optimized. To describe a gap there is a pattern that should be followed such as :
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Illustration 1: Gap Analysis: A Template for Connecting Potential with Performance

 Gap – where the gap find.
 Gap description - Record every bit of information that are contributing to gap. These
gaps can be quantitative or qualitative.
 Why – The reason for gaps why they came in existence.
Bridge the gap
The final stage is brainstorming to know all the possible solutions to recover gap and the
reasons behind it(Wang, Ellinger and Jim, 2013). These solutions must be specific and should
has a direct impact on the problem which has analysed in the previous stages. As the
entrepreneur is creating an exhaustive solutions to the gap description summery, they are enable
to think in wider context and position the practical implementation. While hypothesize the
probable solutions one should keep in mind that the implementation can be costly in terms of
time, money and human resources (Wood and McKinley, 2010).
P4 Interpret data appropriately to provide evidence of market potential
Marketing research is essential to sustain in market fro long duration because a business
person enjoy the longevity and why not they invests so much energy in it. The market research
pinpoints the target market, consumer problems and realistic competitors. Marketing research
cab be carried out from various stages during the pre – launch and post – launch. Because if an
individual is having a good knowledge about the marketplace then they are able to begin an
astonishing business in competitive environment(Block and Wagner, 2010). There are some
techniques of marketing research such as -
Primary Research: It refers to the methodology in which collection of data are done through in
direct way other than taking the subject matter from secondary source. According to this there
are number of measures like, survey, interviews and questionnaire with the help of which an
individual can attain their objectives and goals. With the help of primary research entrepreneur
of Gourmand & Globetrotter will provide clear and correct data that can implement the same in
their thoughts.
Secondary Primary Research: It is a type of research that has already been gathered, organized
by other individuals. It involves in reports and few studies by government agencies, trade
associations or other business entity in the industry. For the small businesses with low fund,
mostly, research is mainly secondary because it can be attain in a faster way and it is more
affordable than the primary research. Therefore, it can costly for this restaurant and they need to
invest more money if they want to apply this research it can be more costly as compare to
primary research.
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QUESTIONNAIRE
Name:
Age:
Gender:
Address:
Mail ID:
Q1) What are you main reasons for going out to restaurants ?
 To go out
 To eat good food
 Do not want cook
Q2) For which kind of special events do you go to restaurants ?
 Birthday
 Anniversary
 New year
Q3) Will you satisfied with the food quality provided by Gourmand & Globetrotter restaurant ?
 Yes
 No
Theme 1: What are you main reasons for going out to restaurants ?
Q1) What are you main reasons for going out Frequency
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to restaurants ?
 To go out 10
 To eat good food 10
 Do not want cook 10
Interpretation - As per the above graph, it has been evaluated that 10 respondents out of 30 are
going restaurants to go out. 10 respondents to eat good food and remaining 10 also goin
restaurant for they do not want to cook in their home.
9
10
10
10
To go out
To eat good food
Do not want cook

Theme 2: For which kind of special events do you go to restaurants ?
Q2) For which kind of special events do you
go to restaurants ?
Frequency
 Birthday 10
 Anniversary 11
 New year 9
10
10
11
9
Birthday
Anniversary
New year