Entrepreneurial Opportunities Report: Coffee Exotica Business

This report examines entrepreneurial opportunities, focusing on Coffee Exotica, a business introducing innovative coffee beverages. It explores various sources of entrepreneurial ideas, including Drucker's model, and evaluates market gaps using tools like SWOT analysis and gap analysis. The report analyzes the rationale behind Coffee Exotica's business idea, targeting young consumers with unique coffee offerings like red velvet, unicorn latte, and rainbow latte. It presents data to support gap analysis, interpreting data to show market potential, and applying a SWOT framework to assess the idea's viability. Finally, the report evaluates the competitive and market environments to determine the potential for success, offering a comprehensive analysis of the business opportunity.

IDENTIFYING
ENTREPRENEURIAL
OPPORTUNITIES

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation..............4
TASK 2............................................................................................................................................6
P2 Explain the rationale and the market gap for a specific entrepreneurial idea using relevant
tools and techniques to support your choice...............................................................................6
TASK 3............................................................................................................................................8
P3 Present data needed to support gap analysis in the evaluation of a specific entrepreneurial
idea..............................................................................................................................................8
P4 Interpret data appropriately to provide evidence of market potential..................................10
TASK 4..........................................................................................................................................13
P5 Apply a SWOT framework to collate evidence to support an objective assessment of a
specific entrepreneurial idea.....................................................................................................13
P6 Evaluate the competitive and market environments in which the idea will be launched to
assess potential viability............................................................................................................15
CONCLUSION..............................................................................................................................15
REFERENCES .............................................................................................................................16

INTRODUCTION
Entrepreneurship is an important act known for creating a business opportunities for
earning profitability. It is majorly related with transforming the world by evolving the big issues
such as initiating social change, with innovative products or a unique life changing solutions.
This report is based on the new business idea, originated by “Coffee exotica” which introduces
new range of coffees that are red velvet, unicorn latte and rainbow latte to enchant existing and
new consumers. This assignment covers various sources of entrepreneurial idea and innovation
by evaluating rationale and market gap with help of various tools and techniques. It also
includes gap analysis by using data to evaluate entrepreneurial idea and SWOT analysis to
examine viability of entrepreneurial idea. At last it evaluates competitive market environment
for accessing potential viability of business project.
TASK 1
P1 Determine and evaluate different sources of entrepreneurial ideas and innovation.
Innovative business ideas are very much important for entrepreneur as well as consumers
and it comes from various sources by evaluating social change, innovative mindset and
determination to bring unique life changes. In context of Coffee Exotica that bring chain of
unique coffee's for their consumers so to evaluate sources that inspire them should be accessed
with help of Drucker's model of innovative opportunity that are as follows:
The unexpected:
Market place is foremost area to identify opportunities and a good manager constantly
evaluate scope of their business (Aliaga-Isla and Rialp, 2012). In that regards they focus on
product or services are in greater or lesser demand in anticipated market. They also find out ways
to exploit hidden opportunities in positive manner so manager or entrepreneur majorly rely on
evolve rare opportunities to remain always competitive. The unexpected event helps to an
entrepreneur to evaluate the market gaps by finding out opportunities that are relatively lack
behind in order to comply with deficiencies. In context of Coffee exotica they aimed to bring
series of coffee in market by analyzing market gaps.
The incongruity:
The Incongruity denotes the gap between what is and what should be. Various
organization fail to develop the willing product or services as they not focus on appropriate
research regarding target market,demand of consumers and many more factors (Busenitz And

et.al ., 2014.). So by taking reviews from consumers, feedback and grievances helps to evaluate
gaps while providing products and services to consumers. It is one of most important factor that
shows the realities of concerning market. After evaluating the market and share of coffee in
respective field helps to organization to come up with new ideas or beliefs that in market the
ratio of profitability rises day by day that is major component to capitalize opportunities.
Process need:
Process need consist of evaluating major areas of an organization for correcting or
redesigning them. It is task oriented rather than situation focused in which opportunities occurs
from with in the organization to bring reforms in concerning areas to better perform. In context
of Coffee exotica they evaluate the market needs and current products and market. After that
evaluate that market products should be redesigned as consumers become more demanding so
they aimed to launch in market.
Industry and market structure change:
As per the Drucker's model sometimes innovative ideas come from when industry or
market continual faces fluctuations such as technological advancement demanded, lag in
profitability due to disruption and kinds of factors. So leaders closely evaluate each and every
factor to remain always competitive by adopting innovative business or idea which is Time's
demand. The coffee industry divided into the three main segments that are growers, roasters and
retailers and also two main economic structures which helps to control the coffee industry. In
context of Coffee Exotica they aimed to launch the series of coffee as per the needs of consumers
to remain always competitive in marketplace.
Demographics:
Organizations directly affected by change which occurs in demography by determining
demand of products, target market and quantity of products purchased by consumers (Chell,
2013.). Change in demo-graphical factors such as age, education, purchasing power of
consumers and their education level are affected on business decisions.
Change in perception:
Change in perception is very much crucial factor for an organization so management
have to keenly study perception of their target market. Now a days perception changes overnight
due to advent of technology, involvement of social networks and many other deliverable. These
crucial level of perception brings innovative ideas in mind of entrepreneurs after conducting

through research. The perception of people changes in radical manner in order to organization
have to put resources to build products as per the consumers need. Consumers always prefer
products that are innovative in nature, in context of Coffee Exotica as per the consumers wants
aimed to launch series of coffee in market. All are the important sources to bring innovation in
market after analyzing needs.
New knowledge:
New knowledge work as an source of innovation with the advent of technological
advancement brings end no. of opportunities in front of businesses (Cruz, Hamilton and Jack,
2012). Internet, Research and development helps to find out better ways to improve in products
and services incrementally. Technological advancement is very much important for an
organization in order to remain always competitive in the market. In context of Coffee Exotica
they while conduct research find out various kinds of tools and techniques that are advance in
nature so to avail opportunities exist in market they aimed to launch no. of coffee in market.
From the above discussion it has been summarized that innovation is very significant part
for the whole world in which many factors contributes to think inventively. In context of Coffee
Exotica they bring chain of innovative coffee's with use of The incongruity after conducting the
through research regarding emerging consumers needs and wants of consumers should be
evaluated properly.
TASK 2
P2 Explain the rationale and the market gap for a specific entrepreneurial idea using relevant
tools and techniques to support your choice.
For an organization before launching a new idea or concept they have to keenly observe
or study about the consumers needs and wants by checking viability of business idea to get
success. In context of Coffee Exotica they conduct through research before come into
marketplace that are as follows:
Business idea:
Business idea is one of well known concept in between business tycoons, build to gain
financial stability which rely on products and services offered by firm (Koryak and et.al ., 2015.
). In context of Coffee Exotica which brings series of innovative coffee for both their existing
and new consumer base after knowing their taste and preferences. In their chain of innovative

products are Red velvet, unicorn latte and rainbow latte as Their target audience are majorly
young people who demands always something unique attributes while visiting their coffee shop.
So to satisfy consumers emerging needs they bring range of coffee's to get potential market share
in UK.
Target audience:
The target audience of respective organization who are always prefers products that are
innovative in nature and for that they are ready to pay higher prices. In context of Coffee Exotica
to compensate emerging needs of their target base which is majorly youngsters launches new
series of coffee's to remain always competitive in marketplace. Majorly the target audience of
coffee shops are lovers of it and people who spend the time where specifically drinks and regular
cups available in inviting cups to gain potential market share (What Is the Target Market for
Coffee?, 2019). The people who purchase beans also includes in list of target audience of coffee
shops as they always prefer to consume coffee.
Rationale:
The entrepreneurial idea is very much important for Coffee Exotica as they are deal in
coffees for long time but the target market always demands variations (Krueger, 2017.). In that
regards it is very much essential for them to bring some innovation in that series they add no. of
innovative coffee in their menu. By introducing new coffees they able to attract the attention of
new and existing consumer base in positive manner. Day by day the coffee lovers rises in the
whole world and people more interested to consume coffee that are very much innovative and
based on the new theme so in context of Coffee Exotica they aimed to launch series of coffee to
remain competitive in the marketplace by gaining potential outcomes. The reason behind to offer
coffee to the consumers is to enlarge business opportunities as consumers become more
demanding day by day so it is very much potential to gain market share by launching new
products into market. The £10.1bn UK coffee shop market grew by7.9% in the year 2018 that
shows that market share is very much wide and by establish more coffee houses organization
needed to avail opportunities.
Gap analysis:
A gap in the market in which business are not currently serving with help of research and
development they evolve out hidden opportunities to remain always competitive in market. Also
gap analysis assist in evaluating own strength and weaknesses by comparing with competitors,

consumers feedback to put best efforts. After accessing the gaps which hinders in organizational
development and enhancement in that regards leader have to pay attention on building strategies
and tactics to perform in best manner. In context of Coffee Exotica they by conducting research
find out gaps in performing well and after that takes crucial decisions to launch no. of innovative
coffees in market that are Red val-vet, Rainbow latte and Unicorn Latte. By using various tools
organization can find out gaps with help of SWOT analysis, Fish bone structure and McKinney's
7s model to get optimum outputs. In context of Coffee Exotica there unique selling point that
they aimed to launch series of coffee that is red velvet, unicorn latte and rainbow latte that are
rarely exist in market and consumer demands the products and services that are unique in nature
so that consumers attract in order to remain always competitive in marketplace. As they operate
from many years in market so they conduct research and development in market so after that
evaluated that consumer taste and preferences rapidly changes and they demand highly
innovative products in that regards they aimed to launch series of products in market.
Strategy to beat the competitors:
The best strategy to beat the competitors is to choose one of best promotional strategy
that helps to reach at large no. of consumers in positive manner. They can define the aspects that
are very much important for consumers and differentiate from their fierce competitors so all are
important factors to compete in better manner.
Fish bone / Ishikawa diagram:
Fish bone which is a structured team process model helps to identify factors or causes
related with adverse event. It is very effective in brainstorming by evaluate possible reasons of a
problem and sort it into various categories (Nijssen, 2017. ). In that, problem or effect showed at
the head or mouth of a fish and contributing causes of root problem listed at mid or smaller
bones of it. In context of coffee Exotica which deals with youngsters and they always prefers
products and services that are innovative in nature but they threatened to pilfer or it is easily
replicate by competitors in market. The another mid or smaller bone fish problem of respective
organization that they have to compete in market as large no. of coffee shops existed in market.
Further major problem that face by them is lack of funds, resources which hinders self interest to
reap out important benefits.
So after evaluating each effect of the respective issues or problem organization can easily
eliminate gaps by giving their best to remain always competitive in marketplace.

TASK 3
P3 Present data needed to support gap analysis in the evaluation of a specific entrepreneurial
idea.
For an organisation after evaluating gap it is needed to communicate it with
organisational stakeholders so that they can plan accordingly to perform in best manner (Omri,
and Boujelbene, 2015.). The major gaps in front of Coffee Exotica is that they face problem of
resources or funds that hinders their self interest. Also they threatened regarding their business
idea which is not so much innovative as other competitors copy it very easily. To analyse gap
coffee Exotica should be compared by Costa coffee that are as follows:
Coffee Exotica Costa coffee
Coffee Exotica are new in market and their
consumers are majorly youngsters that always
demands innovative products.
Costa coffee is one of great brand name and
covers a large market share with their quality
of products which provides loyal consumers.
Coffee exotica provides product at lower cost
in comparison to costa coffee.
As they have great brand value they charge
higher prices in respect.
So after comparing both the organisation it has been evaluated that Coffee exotica have to
work on building brand value and bring innovation which is not easily replicable.
Also With help of primary and secondary research method, gap should be eliminated that are as
follows:

Primary data:
Primary data which is accumulated by a researcher from first hand objects that are
surveys, questionnaire, experiments and events (Perry, Chandler and Markova, 2012.). In
context of Coffee Exotica by using questionnaire they majorly find out gaps to judge
competitiveness of their product.
1. Is consumers like or prefers the chain of innovation that aimed to launch in market?
Yes
No
2. What are the new concepts or trends which prevails in marketplace?
Personalized experiences
Innovation in products
Interior of coffee shops
3. Is it essential to implement innovation in organisation time to time?
Yes
No
4. Which promotional activity proved effective to reach at large no. of consumer in context of
coffee industry?
Advertisement
Sales promotion
Events
5. Is new chain of coffee able to attract satisfy consumers wants?
Yes
No

Secondary data:
Secondary data which is collected by someone else and cost effective in nature with
easily available (Rasmussen and Wright, 2015.). In context of Coffee Exotica they collect
necessary data to take important decisions that are as follows:
From the above graph it has been summarized that Ten years ago only 10,000 places
existed to purchase coffee in market of UK in which one third are giants such as Starbucks,
Nero's and costa coffee but in last few year in market of UK more than 22000 coffee shops
existed that are doubled than branded outlets.
P4 Interpret data appropriately to provide evidence of market potential.
Theme:1
1.Is consumers like or prefers the chain of
Illustration 1: Is the UK reaching coffee shop saturation point? 2019
source: Is the UK reaching coffee shop saturation point? 2019

innovation that aimed to launch in market?
Yes 15
No 5
Interpretation:
From the above graph it has been evaluated that consumers likes to purchase the products
as respective products are innovative in nature. So after conducting research and development
positive reviews of consumers should be gathered.
mean 10
mode 0
median 10
Theme: 2
2. What are the new concepts or trends which
prevails in marketplace?
Personalized experiences 10
Innovation in products 5
Interior of coffee shops 5
Yes No
0
5
10
15
15
5 Column B

Interpretation:
From the above graph it has been evaluated that there are some trends prevails in market
that demands by consumers that are personalized experience and innovation in products and
interior of coffee shops. In which as per questionnaire personalized experience most demanded.
mean 6.67
mode 0
median 5
Theme: 3
3. Is it essential to implement innovation in
organisation time to time?
Yes 12
No 8
Interpretation:
10
5
5
Personalized experiences
Innovation in products
Innovation in products
Yes No
0
5
10
15 12
8
Column C