Herbal Beauty Care Ltd: Entrepreneurial Opportunities Report

This report focuses on identifying and analyzing entrepreneurial opportunities, specifically for Herbal Beauty Care Ltd. It begins by exploring the sources of entrepreneurial ideas and innovation, including social, economic, technological, and environmental factors, as well as Drucker's 7 sources and different types of innovation. The report then explains the principles of a business idea and the market gap, providing examples and discussing market segmentation (behavioral, demographic, and geographic), along with tangible and intangible product features. The report uses Porter's Five Forces model to analyze the competitive environment, and presents data to support gap analysis and evaluation, including a comparison of Herbal Beauty Care Ltd with a competitor, and supplier and customer power analysis. Finally, the report includes a SWOT analysis to assess the entrepreneurial idea and evaluates competitiveness and market environments, providing a comprehensive overview of the entrepreneurial landscape.

IDENTIFYING
ENTREPRENEURIAL
OPPORTUNITIES

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different sources of entrepreneurial ideas and innovation....................................................1
TASK 2............................................................................................................................................4
P2 Explain the principle and the market gap for a specific entrepreneurial content...................4
TASK 3...........................................................................................................................................5
P3 Presenting data to support gap analysis and evaluation........................................................5
P4 Interpretation of data availed ...............................................................................................7
TASK 4............................................................................................................................................7
P5 SWOT analysis to asses the entrepreneurial idea.................................................................7
P6 Evaluating competitiveness and market environments..........................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Entrepreneurs are the individuals who have large number of ideas on which they invest
their capital to start new venture (Guerrero, Urbano and Fayolle, 2016). As in order to start
venture, there is a risk in starting new venture. There is lots of products are produced by the
organisation but they cannot sustain in the market for longer period of time due to change in
buying behaviour of customer. Therefore, an organisation needs to implement innovation process
to implement change in the existing products. Herbal Beauty Care Ltd is the new venture which
deals to provide different types of herbal products to customer. Their new innovative product is
Herbal Skin Cream. Due to change in buying behaviour of customer company needs to
implement change in various to attract large number of customer. This report explains about
sources of entrepreneurial ideas and innovation, gap analyses, SWOT analyses is performed
entrepreneur helps to sustain in the marketplace.
TASK 1
P1 Different sources of entrepreneurial ideas and innovation
Entrepreneurship is the method by which an entrepreneur implements new and innovative
ideas to maximise the level of profit of company. Entrepreneur is the person who executes new
and innovative idea which helps to generate large number of revenue and give lots of
employment opportunities to customers (Kidwell, 2013).
There are various factors of STEEP which is implemented by company in order to start a
new venture in an effective manner. There are different plans and policies which are used by an
entrepreneur to define the structure of organisation in proper manner. They generates new and
innovative ideas from different sources like magazines, albums and various newspapers.
Entrepreneurs implement 7P's source of innovation which aids to perform various operations of
new venture in effective manner.
The seven sources of innovation are mentioned below:
 Social factor: This factor plays an important role to ascertain the values of new and
advance techniques which is used to understand effectiveness by people living in
society. The management needs to find new business the owner of company needs to
examine the financial condition of entrepreneur needs to be in good state. There is lots of
change are done during Brexit division. There are large number of modification in rules
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and regulations which are implemented and these modifications are not known by various
people living in society ( Qian and Acs, 2013).
 Economical factor: This factor is most important element by which company distribute
the capital which is concerned with the start new business it is also related to GDP which
explains about stability of financial condition where organisation start new venture.
Entrepreneur monitors the condition of nation and choosing the right time he invest his
capital to begin the new venture. This factor is also concerned with the arrangement of
funds in order to perform different operation of new business in effective manner.
 Technological factor: As there are various condition and situations of marketplace. The
owner of Herbal Beauty Care Ltd applies new and innovative techniques which aid to
perform different operations of company within stipulated period of time. In order to
increase the productivity, company needs to hire expert employees who can perform
different types of operations related to manufacturing of that cream.
 Environmental factor: In order to start new venture, the management needs to focus on
environmental conditions of particular place where entrepreneur going to start new
business. Manager needs to determine various factors which are concerned with the
environment of organisation (Eftekhari and Bogers, 2015).
Peter F. Drucker describes about 7 ideas of innovation which are mentioned below to Herbal
Beauty Ltd. Incongruity: It is concerned with to produce new and innovative products considering
needs and want of customer. It is concerned to manufacture different types of products
which are concerned to new range of beauty cream. Process needs: the management needs to implement new and advance technology to
produce new range of cosmetic products. Which are mostly ascertain by cosmetic
products. Industry and market structure: The Company needs to ascertain need and want of
customer which aids helps to implement change in the existing products. Demographics: As per the present scenario company modify the existing technology to
maximise the level of profit of company.
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 Change in Perception, Meaning and Moods: The manager of Herbal Natural Care Ltd
needs to gather information of different customer which aids to produce new products.
This helps to enhance rate of sales of different company company. New knowledge: The management ascertain different types of trends which are gain by
the various competitor present in the marketplace (Wing Yan Man, 2012). Unexpected: In order to increase the living standard of people living in society
management needs to implement new and advance techniques
Types of Innovation
The role of innovation is to expand and maintain growth in the business. So management
should implement new technologies which are mentioned below:
Products: This is related to manufacturing of new range of products introduce in the
marketplace.
Place innovation: company able to produce new and innovative products which aids to
attract large number of customer in market.
Incremental vs. Big Bang Innovation: it is concerned about the implementation of small
modifications in the existing herbal products.
Schumacher's Source of Innovation: This theory aids to increase the profitability of
company.
Comparison between innovation and invention:
Innovation: This is concerned with implementation of new and advance technology which aids
to introduce new herbal products
Invention: This is related with to introduce of new and innovative ideas in order to produce new
range of products.
Difference between business idea and products:
Product Idea Business Idea
This process aid to introduce new range of
herbal products considering needs and want of
consumer.
It is concerned about gathering of various steps
which aids to perform various operations of
new entity in market.
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TASK 2
P2 Explain the principle and the market gap for a specific entrepreneurial content
In order to inculcate with the various external factors the management of needs to
implement different types of new and advance technology within company. There were number
of incident occurs during Exit of Britain from European union (Jiang and et. al., 2016). After
division there are large number of modification done in rules and regulation done in rules and
responsibilities of company. There are various types of entrepreneurial ideas which are describe
below: Example for all: There are large number of new range of products which are introduce
in the market . By this it impact on the different trends which are adopted by various
competitors present in the marketplace. So the management of Herbal beauty care Ltd
add some new features in the existing products which helps to increase the level of profit
of company.
 Create benefit for all: The management introduce new products in the marketplace
which aids to give chance to the different customer to avail the products in proper
manner. This helps to enhance the values of GDP of country (Davis, 2012).
Segmentation of market: This process is all about the division of different products
according to demand and desire of various customers present in market. There are different kinds
of segmentation which are mentioned below: Behavioural Segmentation: This segmentation describe about the behaviour to purchase
of various consumers. So organisation needs to provide various types of products as per
the buying behaviour of customer. So company needs to produce different types of
products as per the buying behaviour of customer in proper manner. Demographic Segmentation: Segmentation of customer based on the gender, life style,
level of income of customer. The company introduce herbal skin care products in the
marketplace. In present era, consumers are very intended about the health. So company
needs to produce such types of products which are not corrosive to skin. Geographic Segmentation: The segmentation is related to various geographical
condition where large number of people are living in certain area. So company needs to
produce different types of products which are made according to condition and situation
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made by the people as per the policies which are made b government of UK (Boling,
Pieper and Covin, 2016).
Tangible and intangible features and benefits of products and services
Tangible Intangible
It is related to visible features which are
analyses by various buyers and customer in
order to select various types products and
services to the customer. Company put their
effort to provide various products as per their
preferences.
This is abstract element which are not feel by
the various types of products and services
which are provided by the company.
Porter's five force model on Herbal beauty care Ltd.
Industry Competitors: There are different kind of competition which are faced by the
organisation in order to develop similar types of products and services. Organisation put their
effort in order to produce same kind of herbal products. It take helps of various types of tools
which used to promote specific herbal products which helps to attract large number of customer.
Pressure from substitute products: There are various types of substitute products which
are available in the marketplace. Customer do not their keen interest in order to buy high rated
products.
Bargaining power of supplier: Company depend upon the various types of suppliers
which aids to produce large amount of herbal products. These supplier aids to produce various
types of herbal products.
Potential entrants: There are different obstacle of threats of entrants for company.
 Variability in the products, loyalty given to consumers.
 Capital needed to begin the business.
TASK 3
P3 Presenting data to support gap analysis and evaluation
It is duty of organisation provide different kinds of products which are beneficial for
health to different customer. So the management needs to focuses on to produce improved
quality of different types of herbal products. There are various factors which are focuses by the
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company in order to attract large number of customer. Te company also focuses on the different
types of strategies which are used by the different competitors which produce same kind of
products which is as same as Herbal care beauty Ltd. Company needs to focus on to take various
initiatives steps in order to focus on to deliver the products which are health cautious products.
In order to ascertain sustainable position company needs to determine the effectiveness to take
decision which are concerned with the starting of new venture.
Basis Natural Essence Herbal beauty care Ltd.
Competition in the market There are rivals like Natural
Essence who set the price of
different products more than
5% than the other organisation
which reduce the interest of
various consumers.
Company needs to concentrate
over to improve the quality of
various products and feature of
different products in proper
manner.
Power of supplier There are various suppliers of
organisation which charge
hight percentage of
commission which reduce the
profitability of organisation
like suppliers charge $2600
which affect the profitability
of company.
The organisation search
suppliers which charge low
rate of commission during
supply of different products.
Power of customer It is concerned on to determine
the buying behaviour of
customer which aids to
increase sales of various
products (Teece, 2012).
So organisation needs to
concentrate over taste and
preferences of various
customer. Company needs to
offers different types of
products as per the taste and
preferences made by customer.
Threats of substitute The organisation offer
different types of substitute
The organisation needs to
concentrate over to implement
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products and also focus o to
those products which are less
offered by demand by
customer.
effective pricing strategies
which helps to attract large
number of customer
By evaluation it has been assumed that management of Herbal beauty and care Ltd have
prepare plan and policies which are ascertain by the organisation in order to improve the quality
and design of different products with respect to different rivals present in marketplace.
(Source: Sales of Herbal Products, 2018)
The above data is giving information about the increasing sales of herbal products and cosmetics
in UK year by year, which is increasing the growth rate of Herbal Beauty Care Ltd. With such a
rapid increase in sale of these products are rising the chances of organisation to increase its sales
as well as to get more customer base which in return increasing company's profitability and
productivity (UK organic market 2018).
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(Source: demand of Herbal Products, 2019)
Above data shows the market analysis on natural and organic cosmetic items of UK, it is
showing a increase decrease situation year by year but in 2016 demand for natural products was
highest which is a good opportunity for the company if it expands its business (UK organic sale
statistic 2019).
P4 Interpretation of data availed
The interpretation of above mentioned information is given below:
 according to figure 3.1, sale in UK has increased from 36 m to 61.2 m in last eight years.
It has positively impacting the Herbal Beauty Care Ltd. Because it is a good scope for the
organisation to expand its business as sales are increasing in the UK market. it will also
affect the profitability of the company as well as its productivity.
 From the figure 3.2, it have observed that demand for these products are increasing in UK
market which is directly impacting the sales of Herbal Beauty Care Ltd. If organisation
wants it can expand their business by increasing its productivity or through launching
more products in their catalogue. The above market analysis is showing sale in 2002
which is 1000 and get increased by 2092 till 2016. This a huge rise in demand and sales
which is increasing opportunities for the company.
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 Natural Essence have strong customer base so it charges high rate of products on the
various cosmetic products which aids to maximise the level of profit of company. So
management of Herbal beauty and care limited needs to ascertain price skimming policies
which aids to attain large number of consumers.
 Natural essence charge high rate of on the different customer rate because of strong
customer base. Whereas company needs to fix low price as compare to Natural Essence
and offers different rate of discount on different products.
 As Natural Essence have healthy relation with consumers. So the herbal beauty care
limited needs to implement various marketing tools by which company can attract large
number of customer (Hmieleski, Carr and Baron, 2015).
 Natural Essence charged $800 in the form of subscription fees to different consumers.
Whereas the Herbal beauty and care Ltd have to charge less for subscription as compared
to Natural Essence which aids to attract large number of customer.
TASK 4
P5 SWOT analysis to asses the entrepreneurial idea
Herbal Beauty ad care Ltd wants to attain growth and expand the new venture in the
cosmetic beauty marketplace. Company needs to first determine about the strength, weaknesses,
opportunities and threats which give impact on various operations of business in future
perspectives. The manager of Herbal beauty and care limited needs to perform SWOT analyses
which are explains below:
Strength: In order to start new cosmetic venture company needs to provide different skin
care products because in present time customer are very careful about the skin. The cosmetic
business ascertain growth in last decade so the management of Herbal beauty and care Ltd eager
to enter in new business.
Weakness: Due to high rate of cosmetic products it affect the income of different
individuals. It is very essential for the business to begin venture in the developed country.
Organisation also needs to ascertain effective price strategies by which large number of customer
can purchase different customer.
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