Analysis of Entrepreneurial Opportunities for Anarchy Beverages Report

This report provides a detailed analysis of entrepreneurial opportunities for Anarchy Beverages, a beverage company offering hot chocolates, coffee, tea, and water. It begins with an introduction to entrepreneurship, innovation, and the concept of entrepreneurial opportunities. The report then explores various sources of entrepreneurial ideas and innovation, including STEEP factors (Social, Technological, Economic, Environmental, and Political) and Drucker's seven sources of innovation. A market gap analysis is conducted to identify the target market and consumer behavior. The report uses Porter's five forces model to evaluate the competitive environment. The report also examines the data needed to support gap analysis in the evaluation of a specific entrepreneurial idea, the interpretation of data to provide evidence of market potential, and the use of a SWOT framework. Finally, it assesses the competitive and market environments in which the idea will be launched. The report concludes with a summary of the findings and provides references.

Identifying Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different sources of entrepreneurial ideas and innovation....................................................1
P2 Rationale and the market gap for a specific entrepreneurial idea..........................................4
TASK 2............................................................................................................................................5
P3 Data required to support gap analysis in the evaluation of a specific entrepreneurial idea...5
P4 Interpret data appropriately to provide evidence of market potential....................................7
TASK 3..........................................................................................................................................10
P5 SWOT framework to collate evidence to support an objective assessment........................10
P6 Competitive and market environments in which the idea will be launched........................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
An entrepreneurship refers to an activity of setting up business by taking the risk in hope
of profit. To carry out business, there is a requirement of an entrepreneur to find innovative ideas
related to better development of business in an effective manner. Opportunities refer to set of
chances that are present for an individual that may help in the development if exploit properly.
Entrepreneurial opportunity emerges at nexus of aspirations of an individual with social as well
as economic situation perceived as favorable in order to develop new service or product (Bolton
and Thompson, 2013). This present report is based on Anarchy beverages. It provides hot
chocolates, coffee, tea, water etc. Under this mention report will be discussion about the various
sources related to entrepreneurial innovation and ideas. Rationale and market gap analysis for
particular entrepreneurial idea by using relevant techniques and tools will also be mention in
present report.
TASK 1
P1 Different sources of entrepreneurial ideas and innovation
An entrepreneur is a person that set up own business as comparison to working as
employees. It runs small business, assuming all risks as well as rewards of venture. An
entrepreneur is seen as innovator, creator, source of new ideas or thoughts etc. This individual
plays a necessary role in an economy of country because it has capabilities as well as skills in
context to anticipate existing and future requirements. An entrepreneur has an ability to think or
find innovate ideas for making business process, products and services more attractive. An
entrepreneur starts business at small scale but their main focus is to conduct business operations
at large level. Under this, innovative idea is to provide organic coffee to people which can be
helathy for them. STEEP factor is an effective tool that Anarchy beverages uses in marketing to
examine the various external factors which can effect on business (Bridge and O'Neill, 2012). It
is necessary for each business firm to include some better external forces before taking any kind
of decisions. It will be helpful in provide better opportunities to entrepreneurs. Under this,
STEEP factors are mention below:
Social factor - The social forces influence on interests, attitudes, opinions of an
individual. The tastes and preferences of consumers changes with in short period of time. So, it is
necessary for an entrepreneur to be aware about the current market trends and also conduct
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research to know about preferences of customers at market place (Bridge and O'Neill, 2012). It
will be helpful in provide better entrepreneurial opportunity. In this present time, there is a
culture of coffee and every one like it so it is an opportunity to Anarchy beverages.
Technological factor- It is pertain to innovation and creativity in technology that may
impact on operations of firm. In this present time period, advancement in technology is helpful in
creating better opportunities for business. Through using latest technology, entrepreneur can
make its business more attractive and as well as productive. The opportunity that has Anarchy
beverages is that there is no need to more investment on technology.
Economical factor- Under this factor, compromising along arranging economical sources
is necessary because these are helpful in conducting business operations in an effective manner.
United Kingdom has strong economic position as comparison to other countries. It has high GDP
with few problems. So, from this an entrepreneur does not need to face any kind of issues in UK
at the time of conducting business (Burns, 2016). Anarchy beverages has an opportunity by
provide its beverages on less cost.
Environmental factor- It impact on environment and United Kingdom has significant
improvement in minimizing negative impact. Local councils, charities, government etc, have
taken many initiatives to develop environmental awareness and minimize negative affect of
economic development. At the time of performing business activities, it is necessary for an
entrepreneur to take care environment and take correct measures. It will be helpful for an
entrepreneur to gain better opportunities related to business. There is an opportunity to Anarchy
beverages that it can provide organic coffee to consumers and use the disposable glasses.
Political- United Kingdom is constitutional monarchy that manage and run in influence
of parliamentary system. It is a stable country with more opportunities for firms to conduct their
business operations in an efficient manner. It is necessary for company to follow all rules and
regulations which are made through government of UK. In United Kingdom, there is no political
intervention so it has a better opportunity to Anarchy beverages (Ceci and Prencipe, 2013).
Drucker’s 7 sources of innovation give a purposeful way to find out opportunities along
with mitigate risks. It is helpful in making the drinks of Anarchy beverages more attractive with
new flavors. Drucker’s 7 sources of innovation given below:
The Unexpected- Under this, market place is better area to look towards opportunities. It
is important for manager to constantly focus on market and determine new things. So, it helps in
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providing opportunities to business by making innovation in its products.
The Incongruity- It is concerned with production gap for offering the proper services
with the help of determining their needs and wants of customers. Anarchy beverages fall in to
trap of manufacturing products or services without to do proper investigation by identifying
needs of target. Feedback, complaints and reviews of consumers are better way to identify
incongruity.
Process Need- It is task- focused as comparison to situation focused. It consists
determining process weak spots of firm as well as correcting them. Anarchy beverages need to
analyze process and search an effective way to improve them (Fisher, 2012). With the help of
determining weak points after evaluation capabilities, an entrepreneur will able to develop
effective and innovative solutions.
Industry and Market Structure Change- The market structure and industry both can be
stable with the help of technological development. There is a requirement to an entrepreneur of
Anarchy beverages to focus on changes at market place because it will be help in providing
better opp' to business.
Demographics- Anarchy beverages can be impacted by change in demographics. The
changes impact market by identifying demand for services and products. Change in income level
of an individual can impact on its purchasing power.
Changes in Perception- Perception of every person is different from each other.
Perception change over a period of time but now a days because of involvement of technology as
well as power of the social networks can happen the changes faster (Grégoire and Shepherd,
2012). Under this, perception of people can be change for certain services or brands.
New Knowledge- It is used as for innovation and under this scientific as well as
technological breakthroughs are main source of innovation that cannot be overlooked through
businesses. In order to run business smoothly, Anarchy beverages should use new tools and
techniques.
Anarchy beverages uses innovation as well as creativity in its business in context to
make its drinks better. Anarchy beverages is using innovation as deals in beverages by using the
tastes and flavors of drinks better. This firm uses innovation in its business on continuous basis.
It uses various ideas where it transformed them in development of business. An innovation is
related with invention which mention below as above:
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Comparison among Innovation and Invention:
Innovation Invention
An innovation is defined as new method,
device and idea. It is viewed as an application
of the better solutions which meet with new
needs, current market requirements etc.
Generally, it is a procedure of converting idea
in to service or goods which develop value
for which consumers will pay.
It refers to unique method, process, novel
device etc. It refers to technical and scientific
idea it accomplishments or embodiment. IT is
necessary that idea should be economic and
also should helpful in satisfying needs and
wants of consumers.
P2 Rationale and the market gap for a specific entrepreneurial idea
It is necessary for company to know about information or details where it is going to
launch its business (Kirzner, 2015). It should conduct investigation to analyse behaviour of
targeted consumers. Firm can segment its market on the basis of given factors:
Demographic segmentation- Under this, market is segmented on the basis of age,
income level, family size, education etc. The main focus of Anarchy beverages is on young
people because they are different flavors drink.
Behavioural segmentation- It is a procedure of segmenting total market in small groups
that depends on behaviour of consumers. They mostly prefer high quality products in less cost so
it need to be case care of company.
Porter's five force model
It is tool for evaluating competition of business. Through this, firm can identify
competition in industry along with profitability.
Bargaining power of customers- Anarchy beverages should make innovation in its
beverages to make them attractive. The bargaining power of consumers are high because they
can switch firm easily. Innovation is most effective way to attract large consumers towards firm.
Bargaining power of suppliers- Under this, Bargaining power of suppliers is less
because entrepreneur can switch suppliers. Anarchy beverages purchases materials from one
supplier on reasonable cost (Lavoie, 2015). It is helpful for firm to provide its beverages on less
cost to consumers.
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Competitive rivalry- At market place, there are more rivals of Anarchy beverages
which deals in same product line. In context to retain in competitive market, it is essential for
this company to make innovation and provide good at minimum cost.
Threat of new entrants- It is easy for new entrants to enter in market. So, for Anarchy
beverages, it is essential to maintain its quality and provide organic products. It need to develop
its better strategies to sustain at market.
Threat of substitute- In market, there are same products already available and if cost of
its product will be high then target consumers can go towards the substitute products.
TASK 2
P3 Data required to support gap analysis in the evaluation of a specific entrepreneurial idea
Entrepreneur is a person that responsible for undertaking social elements and manage
business in a community. There are various factors which directly effect on perceptions and
views. In order to run business in successful manner, it is essential for an entrepreneur to
determine all negative factors which effect on performance of business. With the help of this,
company can run or manage its business in successful manner (Mitchelmore and Rowley, 2013).
At market place, there are competitors of Anarchy beverages which it need to be identified.
Under beverage industry, Anarchy beverages has wide scope in large market. The data of
Anarchy beverages given below as above:
Basis Firm Competitive firm
Competition in market The cost of this company is
not much high as comparison
to its competitors. It will aid in
increasing development as
well as growth of its business.
The competitor company
offering substitutes of their
products is almost 5%. The
consumers are more focused
towards better quality of
products at minimum cost as
comparison to high cost.
New entrance in industry Anarchy beverages provides
different types of beverages at
reasonable cost that helps in
On the basis of new market
entry, cost is £900 that is more
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attract more consumers
towards firm. In context to
gain attention of consumers, it
also provides discounts on its
drinks.
than Anarchy beverages.
Power of supplier This company has suppliers
which provide materials in less
amount as comparison to other
firms.
In this, suppliers of competitor
organisation are charge high
cost that is not beneficial for
company because cost of
materials will be high then
firm will provide expensive
products which will not be
beneficial for business.
Power of consumers The power of customers is
high because they can switch
in an easy manner. The main
aim of this firm is to satisfy
demands and needs of
consumers by providing them
better quality and healthy
drinks.
The main aim of other
organisations is to enhance
their profit level and operate
their business at large scale.
Threat of substitute At market place, there are
many substitute products so it
is essential for Anarchy
beverages firm to provide its
beverages that develops
positive impact on health of
people.
The competitive firms make
changes in their goods by
adding some additional
substances which help in
attract more people.
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Questionnaire refers to written or printed questions with choice of answers related to
specific subject. It is most effective way to gather necessary or relevant information.
QUESTIONNAIRE
Age:
Email:
Contact no:
Address:
Q1) Does Anarchy beverages provides healthy drinks to people?
 Yes 30 No 20
Q2) What are main attractive factor of Anarchy beverages?
 Costs 10
 Quality 15 Suitability 25
Q3) Are you satisfied from the beverages which are provided by Anarchy beverage?
 Yes 20
 No 18 Can't say 12
Q4) Does cost charged through Anarchy beverages is affordable for consumers?
 Agree 35 Disagree 15
Q5) Does the quantity offered against the charged price is satisfactory or not?
 Yes 38
 No 12
P4 Interpret data appropriately to provide evidence of market potential
There is analysis and interpretation of data given below: At market place, there is high competition, so it is essential for Anarchy beverages to
understand needs of consumers in better manner and gain competitive position.
 Anarchy beverages provide its beverages on discounted costs. It will help consumers to
be loyal.
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Under this, representing interpretation through gathering data mention below:
Q1) Does Anarchy beverages provides healthy drinks to people?
Particulars
No. of
respondents
Yes 30
No 20
Total 50
Mean 25
Median 25
Mode 10
Interpretation: It is interpreted from the above graph that out of total number of
respondents, 30 are in support of the statement that healthy beverages are provided by Anarchy
Beverages But on the other hand 20 respondents having the opinion that the quality of beverages
is not up-to the mark.
Q2) What are main attractive factor of Anarchy beverages?
Particulars No. of
8
Yes No
0
5
10
15
20
25
30
30
20
Column B

respondent
s
Costs 10
Quality 15
Suitability 25
Total 50
Mean
16.6666666
667
Median 15
Mode 10
Interpretation: It is interpreted from the above graph that suitability is the most
important factor which present with Anarchy beverage which attracts the customers most in
number. After the respondents having the opinion that quality and costs are such perspectives
which are best in organization.
Q3) Are you satisfied from the beverages which are provided by Anarchy beverages?
Particulars No. of respondents
Yes 20
No 18
9
Cost Quality Suitability
0
5
10
15
20
25
30
10
15
25
Column B