Entrepreneurial Opportunity Analysis: Sip and Whip Cafe Report

This report analyzes entrepreneurial opportunities, focusing on the development of a cafe business, "Sip and Whip." The report explores various sources of entrepreneurial ideas, including mass media, trade fairs, and personal interests, and evaluates them using models such as Peter Drucker's model of innovation. It identifies market gaps by assessing technological advancements and customer needs. A competitive analysis is conducted, comparing Sip and Whip to similar businesses, evaluating their products, services, organizational structures, and promotional strategies. The report also utilizes tools such as SWOT analysis, market analysis, and primary research through questionnaires to gather data and assess the cafe's potential. Overall, the report provides a comprehensive assessment of the business environment, market opportunities, and competitive landscape for the Sip and Whip cafe.

Identifying
Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different sources of entrepreneurial ideas and innovation....................................................1
P2 Rationale and Market gap for specific entrepreneurial idea .................................................2
P3 Gap analysis in the evaluation of entrepreneurial idea..........................................................3
P4 Interpretation of data to provide evidence of market potential..............................................6
P5 SWOT Analysis to assess the entrepreneurial idea..............................................................11
P6 Evaluation of competitive and market environment to evaluate potential viabilities..........12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Entrepreneurs is a name given to people who have skills and capabilities to convert their
intellectual ideas into successful business ventures. For doing so they generally involve new and
innovative tools and techniques and also grab or fetch market opportunities and make utmost use
of it. Business ventures generally get launched in crowded markets where a lot of people can get
attracted towards their business idea (London living standards the best in the UK. 2018). This
report further focusses on various ways and means which entrepreneurs use for converting their
business ideas into successful goods and services. This report focusses on various elements such
as identifying various entrepreneurial opportunities that are available in market along with
marketing gap and competition analysis. Also this report focusses on various tools such as
porter's five forces model along with SWOT and PESTLE analysis. In this report an existing
business idea has been innovated into a new modified venture named as Sip and Whip cafe in
which managers have decided about launching or bringing in new products such as Choco
Frappe and Tiramisu with a delightful combination of ice cream and chocolate sauce over it.
Main aim of entrepreneurs in this business is to attract and influence a higher number of
customers so as to increase their productivity.
TASK 1
P1 Different sources of entrepreneurial ideas and innovation.
In present day scenario , UK government is providing financial aid to students who are
graduating from colleges sop that they can further develop their business ideas and convert them
into successful businesses. Various measures or sources that can be used in this context have
been mentioned as under:
Mass Media: It is an important tool that can help in influencing a huge number of people
in one go. Mass media sources include radio, newspapers, televisions etc. All these sources act as
guiding tools that provide ample of information to youngsters for developing their new business
ventures. By carefully examining all these sources entrepreneur of Sip and Whip cafe will be
able to evaluate choices and preferences of customers (Al Mamun and Ekpe, 2016).
Trade fairs: These are general events that occur almost at regular intervals and help in
enhancing customer base of businesses. These are main sources that provide knowledge about
1

any sort of business ideas and that can be launched. Also entrepreneurs get to meet a lot of
professional individuals such as manufacturers, developers, franchisers etc.
Interests and Hobbies: Interests and hobbies are anything that an individual does for
refreshing themselves. These activities are generally based on liking of an individual. These
happen to be most vital source that help in generating new and creative business ideas. Activities
that are taken for mere fun also can get converted into successful business ideas and ventures by
just involving a sum of monetary funds (Blundel, Lockett and Wang, 2017). This will assist the
entrepreneur in gathering ideas related to launch of Sip and Whip cafe with innovative features
to serve the needs of customers.
Furthermore for evaluation of new business ideas entrepreneurs even consider Peter
Drucker's model which has been explained as under:
Incongruity: It is an important factor which examines how a business will further deal
with critical and complex situations in near future. By using this factor gap between expected
performance and standard performance can also be analysed.
Process Need: Second factor of this model is process need which states that employers
should always hire skilled and talented workforce so as to maintain effectiveness of services.
Industry and Market Structure needs: This factor assesses competitors and their
presence at marketplace. This further lends various growth opportunities to entrepreneurs along
with focussing on threats as well. Hence it has been analysed that entrepreneurs should always
study market structure before entering into market.
Demographics: Demographic is a combined key term which is used to explain culture,
choices, beliefs and preferences of people. It further helps in analysing demands of customers in
an effective manner.
Changes in perception, meaning and mood: Nowadays world has become quite rapidly
moving and hence there are always new innovations arriving in food sector. These techniques
help in enhancing sales performance of Sip and Whip cafe at great extent (Boling, Pieper and
Covin, 2016).
New Knowledge: Enhancing knowledge and providing education about new and
innovative technology helps in enhancing skills and expertise of entrepreneurs. Also this can
further be helpful in achieving innovative products and services.
2

Unexpected: For successful business operations business individuals need to bring in
unexpected innovations in their ventures so as to enhance growth and profitability.
By using this model managers of Sip and Whip cafe will be able to analyse sources that
help in bringing new and innovative changes. For example, managers of Sip and Whip cafe will
have to increase their knowledge base by doing a market research and further check which
company is using which technology.
P2 Rationale and Market gap for specific entrepreneurial idea
In present context main idea developed by entrepreneur is to adopt innovations and
modifications in an existing cafe. In this Sip and Whip cafe has decided about enhancing its
effectiveness and quality of services. For this entrepreneurs have decided about provided
personalised or customised food products to their customers. Along with this entrepreneurs have
also decided about setting up as small personalised liquor bar and smoking area for their
customers as well. This cafe also hosts a number of events such as book fairs, poetry shows and
educational events on a regular basis (Guerrero, Urbano and Fayolle, 2016). Hence it is quite
important that entrepreneurs examine or analyse behaviour of customers so as to achieve a
competitive edge over their rival firms. Target customers of Sip and Whip cafe are generally
youngsters.
In context of Market Gap it is an important term which explains opportunities that are
available for analysing gaps that are present in market in relation to various goods and services
that have not been provided by any other cafe. By launching a new idea in market
entrepreneurs of Sip and Whip cafe will be able to fill market gap as technology used will be
more advanced and products and services provided to customers will be of highly better and
improved quality. Various factors of market gap has been mentioned as under:
Technological advancements: In today's modern world technology is taking an
important place in every individual’s life and is changing with fast pace. It is necessary for an
entrepreneur to keep themselves up-to-date with different emerging tools and techniques in order
to ensure sustainable growth. By taking advantage of different types of technological measures
entrepreneur can effectively launch their new business venture. With help of this, filling of
market gap can be done in formative way and demands customers can be fulfilled in subsequent
manner.
3

Identification of opportunities: To gain more advantages in market it is essential for an
entrepreneur to analyse available opportunities prevailing in market (Top 10 Sources of Business
ideas & Opportunities. 2018). This will benefit them to fill market gaps in innovative way and
stay one step ahead form their competitors. With the help of identification of all opportunities
entrepreneur can form effective and innovative business ideas and ensure sustainable growth.
P3 Gap analysis in the evaluation of entrepreneurial idea.
COMPETITIVE ANALYSIS
BASIS Sip and Whip cafe Leila's The Bridge
Products and
Services
In present context Sip and
Whip cafe follows a policy
where they consider
preparing customised food
products for their
customers.
Leila's offer world-
class facilities to their
customers which
includes excellent
infrastructure and
modifications in their
menu as per customer
demand.
The Bridge offer
numerous range of
food and beverage
items and keeps on
modifying their menu
on regular basis as per
their customer
feedbacks.
Organisation
Structure
Sip and Whip cafe follows
a functional organisation
structure in their cafe
(Hmieleski, Carr and
Baron, 2015).
This cafe has adopted
departmental structure
in which subordinates
are only authorized to
take follow up order
from their managers.
This cafe have
implemented matrix
structure in which
roles and
responsibilities are
given to staff as per
according to functions
and product that are
being offered.
Major
Attractions
Cafe has incorporated a
personalise menu for
customers. Also they have
constructed liquor bar in
Leila's offer various
range of food,
beverages and mock
tails to their customer
The Bridge offer
excited range of
entertainment facilities
and different type of
4

their cafe in accordance
with demands of
customers.
and offer flexible
working environment
to their staff (Koryak
and et. al., 2015).
cuisines in their Cafe.
Promotional
Strategy
In context of promotional
strategies, entrepreneurs
use mass media channels
and online platforms for
promoting their cafe.
This cafe promotes
their venture on big
public hoardings,
online websites and
different types of
social media
platforms.
The Bridge promotes
their business venture
via numerous social
media sites and online
websites.
In addition to this, there are a number of factors that need to be considered by
entrepreneurs of Sip and Whip cafe which have further been stated as under:
Market analysis: Market analysis is a combined process in which various key factors of
target market are analysed. In present context London is a centre of attraction for almost all
business concerns and provides them a number of opportunities so as to promote new and
innovative ideas (Nieto and González-Álvarez, 2016). By raising market growth, entrepreneurs
will be able to achieve a number of opportunities by providing excellent quality services to their
customers. Hence managers of Sip and Whip cafe will have to further assess current customer
demands.
Technology: In context of technology managers need to evaluate various technological
advancements and choose best suitable out of them. This will help in growth of a business
venture. In present context it is quite important that entrepreneurs of Sip and Whip cafe should
choose effective tools and techniques that will further help them.
Primary research:
Primary research refers to a process or method that helps in collection or gathering data
and information in a direct manner. Data is directly collected from individuals and is not based
on any other sources. Examples of primary data include questionnaires, survey, interviews etc. In
present context managers of Sip and Whip cafe have decided about using questionnaires for
5

collecting data and information regarding their services. This will be effective as data collected is
fresh and there is no chance of bias.
QUESTIONNAIRE
NAME:
AGE:
ADD:
GENDER:
MAIL ID:
Q1) Are you aware of uniqueness in services offered by Sip and Whip Cafe?
 Yes
 No
Q2) What is your personal interest which you want to have in Cafe?
Hygienic and Healthy Environment
Gaming Zone
Free Wi-Fi Zone
Separate Smoking and Bar Zone
Q3) Are the pricing range of Sip and Whip cafe is affordable and as per according to the
services provided in the structure?
Yes
No
Q4) Are you satisfied with the food quality provided by The Family Bean Cafe?
Yes
No
Q5) Recommend valuable suggestions and further feedbacks of modifications in the services of
Sip and Whip Cafe?
P4 Interpretation of data to provide evidence of market potential
Theme 1: Services provided by Sip and Whip Cafe
Q1)Are you aware of uniqueness in services offered by Sip and Whip Cafe? Frequency
a) Yes 30
6

b) No 10
Theme 1:
Central Tendency Data
Mean 23.5
Median 23.5
Mode 13
Standard Deviation 9.19
Interpretation: From the above mentioned graph it has been interpret that 30 out of people are
aware about unique and innovative services provided by Sip and Whip cafe, 10 people on the
other hand do not have any knowledge in this context.
Theme 2: Facilities offered by Sip and Whip Cafe
7
a) Yes b) No
0
5
10
15
20
25
30
Column B

Q 2) What is your personal interest zone which you feel should be included
in the cafe?
Frequency
 Hygienic and Healthy Environment 9
 Gaming Zone 12
 Free Wi-Fi Zone 13
 Separate Smoking and Bar Zone 6
Theme 2:
Central Tendency Data
Mean 10
Median 10
Mode 3
Standard Deviation 3.16
8

Interpretation: From the above mentioned graph it has been assessed that 40 individuals were
interviewed out of which 9 people believe that cafe should involve a hygienic and clean
ambience in their surroundings. 12 people focus on a gaming zone being brought in and 13
people expect the cafe to be well equipped with Wi-Fi and internet facilities. Lastly 6 people
wish the cafe may infuse a separate smoking area.
Theme 3: Price Range offered by Sip and Whip Cafe
Q3) Are the pricing range of Sip and Whip is affordable and as per according
to the services provided in the structure?
Frequency
a) Yes 35
b) No 5
9
Hygienic and Healthy Environment
Free Wi-Fi Zone
0
2
4
6
8
10
12
14