Identifying and Analyzing Entrepreneurial Opportunities: A Report

This report provides a comprehensive analysis of entrepreneurial opportunities, focusing on the case of Natural Essence, a company offering skin and beauty care products. It begins with an introduction to entrepreneurship, defining the role of an entrepreneur and the importance of identifying opportunities for business growth. The report then delves into the application of STEEP determinants and Peter Drucker's 7 sources of innovation. The report examines different types of innovation, including incremental, disruptive, architectural, and radical innovation. It further analyzes market segmentation, Porter's Five Forces model, and the industry life cycle to assess the competitive landscape and strategic positioning of Natural Essence. The report also compares innovation and invention, highlighting the key differences between them. Overall, the report provides a detailed examination of entrepreneurial opportunities, market analysis, and strategic considerations for business development.

Identifying Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1...........................................................................................................................................1
P1............................................................................................................................................1
TASK 2............................................................................................................................................4
P2............................................................................................................................................4
TASK 3............................................................................................................................................6
P3............................................................................................................................................6
P4..........................................................................................................................................10
TASK 4..........................................................................................................................................12
P5..........................................................................................................................................12
P6..........................................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
To carry out a successful business project, an entrepreneur need to constantly innovate
and seek unique and better growth as well as development opportunities which makes the
business out of the line. The opportunity term complies a better condition and favourable chance
to coordinate numerous activities in distinct circumstances. In contemporary market, capitalising
and identifying on the opportunities of entrepreneurial venture is considered as prominent
segments by which organisation can creatively and innovative ideas. Alternation in impulsive
market can be derived at rapid speed cause of the advanced technologies framed through young
entrepreneur who understand the opportunities through considering the niche consumer demands
(Dees, 2017). This project is developed over Natural Essence that offers skin and beauty care
product found in 1998. company consider the consumer start up through understanding consumer
and creating huge revenues from their services. It can lead to innovative idea analyse along with
numerous rational decision on grounds of external market scanning.
TASK 1
P1
An entrepreneur can be termed as the individual who take liability to execute their
innovative and new ideas in regard of executing distinct plans of business that can assist in
generating their organisational revenues. These people often tend to imply innovative and new
plans of business to enlarge their nation's growth. Through executing of STEEP determinants,
these assist in carrying out numerous opportunities of employment among individual of specific
country. An entrepreneur optimise numerous approaches that can aid in coordinating distinct
structure in company. While implementing numerous innovation in ideas, Peter's 7 sources has
indispensable role in the formation and introduction of company. Here are elaborated those
sources in brief: Social Factor: the components is concerned on setting which individual shall be able to
consider the technological value (Davidsson, 2015). It is set that before initiating
financial condition of business of entrepreneur must be better. Entrepreneur should be
aware about the trends and numerous awareness of legislation implied after legislation
should be there.
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 Economical Factor: Compromising and arranging economical sources are essential to
carry out the operations. UK has good and stable economical condition able to invest
capital . This is associated with GDP rate that presents the nation's better condition. This
is appropriate time to execute cosmetic in industry. Technological Factor: Nowadays, distinct technologies execution tend to build more
opportunities of business to people globally (Johnson, 2016). Innovative and new ideas
associated with technologies are significant for people who are expertise in technological
segment. Political Factor: Entrepreneur of company should acquire in-depth information in regard
of nation's political condition. UK government is supporting new ventures and cosmetic
plants in other countries as well. This is fundamental to acquire taxes that are impose
while forming plant.
 Economical Factor: Entrepreneur must be inculcate with components of environment at
certain destination in regard of plan information. Entire corrective measure must be taken
in the consideration while performing the organisational functions. This should outlines
accurate care to people.
These idea of Peter F. Ducker present 7 creative and better ideas that are managed here in
regard of producing cosmetic commodities such as Natural Essence: Incongruity: This is associated with the production gap for appropriate service according
to the determined consumer. Hence, production of manufacturing of distinct products
production demands incongruity. Process Requirement: Company should execute innovative techniques in regard of
coordinating distinct operations of business (Karimi and et. al., 2016). Industry & Market Structure Requirement: Company need to execute numerous
changes in the cost and structure of service according to the industry and market demands
executing suitable costing strategies. Demographics: Nowadays, in regard of accomplishing the income and financial level,
organisation should create some modifications while targetting consumer. Changes in Perception, Significance & Mood: Administration of Natural Essence can be
managed through accumulating consumer feedback in regard of considering the
consumer benefits level, perception and response.
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 New Knowledge: New knowledge and information in context of business as the
organisation need to compete those management of Natural Essence by offering new and
unique to disrupt system and deliver better (Karimi and et. al., 2016). Unexpected: This is require to execute some distinct ideas with the business plan while
launching enterprise to provide new services to consumer by their innovation.
Distinct Types of Innovation: This is remarkable for organisation to assume innovative
ideas and implement those as a business or entrepreneurial opportunities. It is simplistic and
polarising perspective which are categorised as the distinct types of innovation that can be
persuaded. Here are mentioned basic innovation types: Incremental Innovation: Among other kinds, this is most common as its utilisation is
done in existing technologies to increase consumer value within the market. Nearby each
business adopt this methods of innovation in direct or indirect form. Disruptive Innovation: This include implementation of new processes and technologies
to current business market. It is often more expensive and lead to new technology, feature
of planning of enterprise. Architectural Innovation: In simple term, it refer to the overall skills and technologies
and their execution in numerous market. It is an amazing innovation that tend to growth
new consumer as far as new trade is receptive.
 Radical Innovation: Often the market is considered as the innovation which include
modification as the technological evolution. This provide a new and unique form of the
basic process to derive the transformation of market (Kohlbacher, Herstatt and Levsen,
2015).
Hence, there are numerous methods and distinct techniques or technologies which lead to
the innovation. Natural Essence is adopting incremental innovation as the cosmetic products
include the touch and essence of Ayurveda, an Indian medical form to resolve and cure the
issues. This rely over the type of ideas and business design whether the company is transforming
idea in market and creating new innovation opportunities. But, innovation misconception is
associated with the concept of invention for which here are mentioned the major distinction
between them:
Comparison among Innovation and Invention:
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Innovation Invention
It is considered as new thought, idea, process
and concept discovery, introduced for the very
first time within the market. This derive
evolution and development of humans or
industry in to better disrupting new concept
which was uncounted.
Innovation can be defined as the concept,
process, idea or product which is modified and
managed according to the market demands and
requirements of companies. This assist in
creating existing commodities value for the
organisation supporting them in their
sustainability.
TASK 2
P2
Business companies are transforming their business which is evident nowadays to
numerous changes taking places in the business environment. After Brexit, various modification
take place in nation cause of acts and laws, Natural Essence is operating business to deliver new
skin item that is entirely natural or organic through producing in Ayurveda methods (Kirzner,
2015). This uniqueness of products can assist in attracting consumer and help in obtaining
market share. Service is agreeable through every individual due to its application in the skin type
etc.
Numerous item features is determined, individual age group will utilise due to their
addition of natural, organic and Ayurveda. Here are discussed some of the claimed ideas
mentioned as below: Example for Whole: New commodity will gain clients attention easily along with
competitor which needed to be distinctive, creative and unique from present substitute or
goods. In regard of products and profit improvisation, enterprise manufacture innovative
commodities that can be produced through executing natural ingredients.'
 Creative Profit for Whole: This should be able to deliver benefits to lead individual
advantages like generating maximum employment. Along with it, this can help in
contributing whole nation's GDP (Koryak and et. al., 2015).
Here is discussed the basic benefits and features of tangible and intangible commodity:
Tangible Intangible
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These refer to visibly available products which
can be presented through clients and purchase.
This significance of this products is, this
provide clients opportunity to opt or consumer
its services.
These can be termed as invisible features that
can not be touched or seen by provide
convenience to the services. It include product
services only.
Market segmentation: This is known as a process under which enterprise divide broad
consumers in various groups on basis of some feature. An organisation can do segmentation on
following basis:
 Behavioural segmentation: In this type of segmentation company divide the total market
into homogeneous groups on basis on consumer’s buying behaviour. Buying patterns of
customers remain the main basis of this type of segmentation in this various factors such
as benefits required, brand loyalty and usage frequency all are examine. This is done by
keep needs and wants of customers in mind.
 Demographic segmentation: In this type of segmentation, market segmentation is done as
per age, race, gender, family size, education and income. Further demographic can be
segmented into various demographic that support a business entity to target its customers
more accurate and appropriately.
 Geographic segmentation: This is a type of market segmentation under which market is
divided on the basis of geographies and regions. This segmentation can be divided by
various parameter such as states, countries and cities. One of the main feature of this of
segmentation is that it helps to reach customers that are living is a same area and have
identical needs.
Porters five model on Natural Essence
Industry competitors: Competitors will be high when, there are various organisation of
same nature that are specifically present in the market place and also providing type effective
goods or services to their customers. For taking advantages to their competitors, it is required for
company manager is to use promotional methods, current items, pricing strategies and some
others (Mueller and Shepherd, 2016). The natural essence are facing various types of issues and
problems that includes high investment, exit risk factors, product differentiations, etc. Currently,
the major challenger of company is “Lavender industry group”.
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Threat of Substitute products: There are various rivals of organisation in the market,
therefore the substitute goods can be easily available in proper manner. Along with this, if the
customer does not satisfied with sufficient funds then this will try to determine modification of
expensive products in proper manner.
Bargaining power of suppliers: They will cater mainly impact on production procedure
of firm. They can supply crude material and there are certain required products relates to fire,
they will making high standards goods and services for their desired customers.
Bargaining power of buyers: Along with this, they will mainly concentrate on down
value and demand for quality based goods and they will reducing profits of association. There
are large number of customers which providing directly impact on value of products or services
in direct manner (Mathias and Williams, 2017).
Threat of new entrance: There are certain issues and barriers which are related to such
are as follows:
 Firm need adequate funds, therefore it will capable for managing their production as well
as business activities in better manner.
 Differentiation of goods, loyalty of customers and their satisfaction level.
 The economic scale will push some people for start same type of business.
 Different rules, regulations and norms of authorities will became obstacles for new entry
 If an individual open an enterprise then they have to usage various promotional methods
or techniques in market place.
Stages of Industry Life Cycle:
 Introduction: This is the first stage of industry life cycle in which a new product or
service has been developed and this ensure beginning of a new sector. This is the stage in
which company utilise focused strategy and focus to sell the product to small group of
individuals.
 Growth: This is the second stage and this require huge amount of funds. Under this
company carry out various promotional activities in order to make its offering different
from its rivals. company invest huge funds in its research activities in order to identify a
new feature to better satisfy the needs of customers. Rivalry exist at market remain the
major issue face by companies.
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 Maturity: This is the stage in which in which life cycle curve become flatter which
indicate slow growth of sector. Company also face competition from late entrants and it
is very essential for company to do effective marketing activities in order to maintain its
market share and to generate profits.
 Decline: This is the stage in which no innovations and technological development arise.
In this company face a decline in its sales and profits. During this sage, various firms go
for merger in order to remain competitive.
TASK 3
P3
Business operate in the society and entrepreneur are responsible for undertaking
numerous social elements. There are various factors which influence the individual's perception
and their actual demands (Renko and et. al., 2015). This is fundamental which entrepreneur has
to evaluate those components and need to try to avoid negative influences. There are various
rivals organisation of Natural essence that should be outlines and developed terms and policies
accordingly. As the cosmetic industry scope is wide, organisation are entering into the market.
Here are presented the data of Natural Essence mentioned beneath:
Basis Company Competitive firm
Competition in market The organisation has lower prices of
product relative to other competitor
firms that proves more advantageous
for growth of company. Cost of this
products is $600.
Competitive company are
delivering prominent
substitutes of this service in
5% more cost relatively.
Hence, consumer will prefer t
more quality and less cost
product despite of higher
priced services.
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New entrances in
industry
Organisation trade services at
affordable rates as this has numerous
outlets for consumer ease. They
determine approximate 2% discount
for loyal consumer of organisation.
According to the new market
entrants, the prices are $1000
which is more in comparison
of Natural essence.
Power of supplier Supplier cost to deliver service
properly are less costly in
comparison to other firm's.
Competitive companies
supplier are charging higher
commission cost i.e. $2500
which is higher relatively
leading to loss in revenues.
Power of customer Company are aiming to consumer
and focusing over their satisfaction
hence it can lead to more satiate
buyer for enterprise (Ramoglou and
Tsang, 2016).
Other organisations are
focusing over maximising
revenues in comparison to
consumer satisfaction which
can lead to lack of services and
products.
Threat of substitute Substitutes are providing less quality
products in more rates in comparison
to the company which include the
essence of Ayurveda, famous healing
and relaxing techniques globally.
Competitive enterprises are
charging more cots of the
product with more chemical
and different treatment
methods i.e. less natural.
Methods and sources of data collection: Various methods of data collection are there that
can be utilise by a research worker in order to gather information to draw valid conclusion.
Primary and secondary are the two effective and most popular source of data collection. In
primary method of data collection, researcher collect fresh and new data as this help in better
understand research topic and at the same time help in get achieve desired outcome. In case of
secondary method of data collection researcher take help of already available data in order to
complete the research. Mix of both methods is utilise in current research. Under primary method
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of data collection different tools such as questionnaire is formulated and in secondary method
various internet methods are used to draw conclusion.
Development plan:
 Executive summary: Natural Essence provide beauty products and personalised care
services to its target customers. It also manufactures different kind of soaps and
customised products to serve its target customers.
 Description of business: Nature’s Essence manufacture and sells hair and other cosmetics
care products. Company operates in more than 30 countries. Company focus main on
quality of its products so it can better satisfy the needs of its target customers.
 Market research: Nature Essence carry out research market research on continuous basis
in order to collect information about the trends exist in market and about the perception
of customers. benefit of this is that it helps in make alternations in the products as per
specific needs of customers.
 Financial plan: Funds are known as one of the most essentials resource of every
enterprise. Without this company cannot execute its operations and in effective manner.
For collection and proper management of funds company require to prepare budget.
Estimate amounts of funds require by nature essence to carry out its operations and
marketing activities can be understood by the given table:
Budget (in pounds)
Particulars 1st year 2nd year 3rd year 4th year 5th year
Initial money 10000 12000 14000 16000 18000
Investment 8000 10000 12000 14000 22000
Total 18000 22000 26000 40000 40000
Marketing outlay
Promotion 6000 3500 5000 4000 4500
Sales publicity 3000 2500 4000 5000 4000
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Direct selling 4000 3000 7000 4000 5500
Total 13000 9000 16000 13000 14000
 Market plan: Written document prepare by company which consists all the activities
perform by enterprise to achieve its marketing objective is known as market plan. Nature
Essence produce a market plan which consists information about all the communication
tools which company use to carry out marketing of its products. Company use TV
advertisement for promote its goods.
 Marketing mix: This concept is made up of four P’s which are known as product, price,
place and promotion. Marketing mix of nature essence can be understood by the
following points:
Product: This consists the products offer by company to serve its target customers and to
satisfy their needs. Nature essence provide various type of skin and hair care products to its
customers including cream, lotion, soaps, shampoo and many more.
Price: This reflect the pricing strategy use by company to set the prices of its products to
generate profits. Nature Essence use lower pricing strategy and keep the prices of its products
low in order to attract more number of customers.
Place: Nature essence operates more than 30 locations of world and offer its different
products to generate more number of profits.
Promotion: Company use various communication channels such as TV advertisement,
social media platforms to carry out marketing of its products.
 Primary research: A proper questionnaire is prepared in regard of accumulating response
of distinct respondents in relation to provide consumer proper satisfaction after opting
new services or products:
Questionnaire
Name:
Email:
Contact No.:
No. of Respondents: 60
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