ENTR 101: Identifying Entrepreneurial Opportunities Report

This report presents a comprehensive analysis of entrepreneurial opportunities, focusing on the establishment of a new coffee venture. The report begins with background information on the motivations and inspirations behind the business idea, followed by an introduction to the proposed coffee cafe, its target audience, and its location. A key component of the report is a thorough competitor analysis, assessing the competitive landscape, identifying successes and failures, and proposing differentiators for the new business. The report then applies Drucker's 7 models to identify business opportunities and conduct a gap analysis to determine how to close market gaps. Market research, utilizing both primary and secondary sources, is conducted to support the viability of the business idea and identify market potential. The report concludes by assessing the viability and workability of the business, highlighting strengths, weaknesses, risks, and future growth opportunities, and offers suggestions on how to overcome these challenges. The report's findings are supported by references to relevant academic literature.

Identifying
Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION ..........................................................................................................................4
MAIN BODY ..................................................................................................................................4
1. Background information about those sources that inspired your idea and what motivated
you personally in wishing to set up your own business.........................................................4
2. An introduction to your business idea and what it is, and who and where your potential
customers and target audience are .........................................................................................6
3. A competitor analysis that looks at the competitive marketplace. Look at failures and
successes. What you can do differently? Is this a growth area with low and medium risk?..7
4. Gap analysis and how you are looking to close the gaps. What is the situation now and
what is the future? What are the objectives of this business idea and how do you wish to
achieve them?.........................................................................................................................8
..............................................................................................................................................10
5. Market research to support viability for your business idea and identify market potential
using a range of sources that could be both primary and secondary....................................10
6. Why your business idea is viable and workable and how you qualify this belief. What are
the strengths and weaknesses? How will you overcome the risks and the potential
opportunities for growth and development in the future? .................................................11
........................................................................................................................................................12
CONCLUSION .............................................................................................................................12
REFERENCES .............................................................................................................................13
.......................................................................................................................................................14

INTRODUCTION
Entrepreneur is an individual who seeks for an opportunity to grow and develop by
adapting innovative or creative ideas in order to accomplish high productivity and profitability
ratio. Moreover, they takes an initiative to examine current and emerging trend of market
scenario which leads them to enlarge volume of sales. There are two main components of
entrepreneurial venture i.e. risk taking and innovation which help them to gain competitive
advantage. (Alvarez and Barney, 2010). This report is based upon establishing a new coffee
venture and whose targets population is mainly young and adults as it providing chocolate
flavours which keeps them healthy and fit. Apart from this, this study covers creating a business
idea, application of Drucker's 7 model to determine business opportunities sources. Finally,
implication of competitor analysis to analyse current competitive industry, usage of primary and
secondary sources to identify market potential.
MAIN BODY
1. Background information about those sources that inspired your idea and what motivated you
personally in wishing to set up your own business.
In order to sustain in competitive marketplace, an entrepreneurial always seeks for a
platform and in which they acquire novel or latest technologies or ideas for accomplishing
organizational goal in an effective and efficient manner. However, entrepreneurial opportunity
signifies as a creative and critical thinker in which entrepreneur explores their ideas and
examines all possible opportunities and threat in order to obtain high profit maximization with
optimum utilization of available resources (Ananth, Ramesh and Prabaharan, 2010). In regard of
new entrepreneurial venture i. e. Beans Coffee Cafe whose focal point of establishment is to
provide best and high quality of products and services with an affordable price in order to attain
high level of customer satisfaction. As per the current marketing condition, efficiency and
effectiveness must go hand in hand as they help an organization to adapt correct resources and
applying those in a appropriate place so that they can enhance their market growth without any
hindrances. Furthermore, today's world is full of stress or tensions which has direct influence or
impact on an individual's personal or professional career. This existing scenario of UK
population, Beans Coffee Cafe got encouragement or motivation to started their venture among
UK competitive industry. Hence, creativity and innovation is considered as an integral

component for entrepreneurial opportunities as it enable entrepreneur venture to survive among
competitive industry for longer time period of time. However, Peter Drucker who is known as
Father of Management outlines that essence of economic activity is the commitment of present
resources to future expectation, and that means to uncertainty and risk. Thus, appropriate
modification or alteration is required for Beans Coffee Cafe success and development and it
implies Peter Drucker 7's model in their business function which are as follows:
The Unexpected:In this competitive world, marketplace is the area which provides
enormous opportunities to grow and develop. Yet, it is platform for enhancement but still there is
possibility of unexpected failures and gain which business cannot denied or ignored in their
functional unit. Therefore, this element will be useful constituent for Beans Coffee Cafe as it
enable them to recognize changing patterns of market and based on that they can build a new
market position in order to overcome challenges (Calhoun and et. al., 2010).
Industry and Market Disparities:These two element are dynamic in nature as it keeps on
changes according to customer taste and preference, technology development etc. Although, its
is not static, but it offers exceptional opportunities, for which Beans Coffee Cafe cannot
perceived as a threat. However, food and beverage industry is one of fastest growing sector
which provide encouragement to Beans Coffee Cafe to introduce their venture into marketplace.
Therefore, Beans Coffee Cafe should always be alert or updated regarding changes and consider
those alteration as an growth indicator (like customer demand, new trend of digital technology
etc.) in order to foster the sales growth and render high level of satisfaction over demand.
Incongruities:This factor is a discrepancy between what it is and what ought to be.
Hence, there are two factor i. e. demand , price of product which effect directly on the
company's business operation or function for companies in food and beverage industry. Due to
this scenario, it encourage Beans Coffee Cafe to analysis the market condition by conducting
effective market research in order to get the accurate scenario of marketplace as well as
customer's demand or need. At the same time, if it get fails then it leads to huge failure for an
organization. Thus, Beans Coffee Cafe leader should take an initiative to determine market trend
as well as they can collect feedback, reviews or complaints for their enlargement of proficiency.
Process Vulnerabilities:One of the main source for company's survive in an innovation is
that they should be more task oriented than situation destined (Eckhardt, 2013). However, there
is high level of competition among several companies within coffee sector and that is the main

reason which pushed Beans Coffee Cafe to determine its potentiality in order to meet challenges
from competitors. Therefore, Beans Coffee Cafe must analyses the firm's weak spots and correct
or redesign the same because source of innovation comes from within the existing capabilities of
firm , not from the market.
Changes in perception: It is regarded as those factor which changes over time due to the
innovation of technologies, enhancement in social network. In present scenario of food and
beverage industry, majority of the population prefer coffee as they considered it as a most energy
providing drink. Thereby, it assist the Beans Coffee Cafe to introduce their new venture into the
UK marketplace in order to satisfy customer in an effective way. Thus, knowing general
perception of people and their mental stability is a must for Beans Coffee Cafe as it enable them
to see what is happening in the current environment and also they can predict regarding future
occurrence in order to attain high sales growth and profit margin.
New knowledge: It is consider as a key determinant for innovation and creativity and thus
it cannot be unnoticed by any organization. However, coffee industry is constantly innovating.
There are several apps like tech – savy growers which is used to record production data as well
as to make use of available labor and improve coffee quality. Thus, it inspire Beans Coffee Cafe
to introduce their new entrepreneurial venture into market with high quality and latest
technology in order to gain competitive advantage. However, Beans Coffee Cafe should always
be in flexible in nature in aspect of adapting latest or updated technology which leads them to
gain competitive advantage in an effective and efficient manner (Fuentes and et. al., 2010).
Demographics: In present scenario of existing market, there is a constant changes in
population, income level, human capital and age which influence organization decision making.
According to the present scenario of UK, coffee consumption percentage is rising day by day
among youth and adults which aid Beans Coffee Cafe to start thier new venture within UK
marketplace. Hence, Beans Coffee Cafe should examine all potential business opportunity and
according to that make corrective course of action for improving the overall performance of
company.
However, Peter Drucker innovation model allows Beans Coffee Cafe to reach all targeted
end users which enrich firm's profitability ratio and productivity in an innovative and creative
style.

2. An introduction to your business idea and what it is, and who and where your potential
customers and target audience are
Entrepreneurial role occupy as a central position in a market economy as they serve as
spark bulb in an economy's engine by providing enormous employment opportunities that raises
the life standard of communities or societies which add value to firm's brand image. Hence, for
attaining high profit margin every organization should invite creativity and innovation within
their business operation and function in order to achieve sustainable profitability ratio
(Sarasvathy and et. al., 2010). However, to accomplishing the same, business idea plays a vital
role in achieving organizational goal or objective and it is the first or foremost step for
entrepreneur in terms of introducing a new venture into market. Hence, business idea is a
framework which involves all financial and non – financial gains as well as it provide proper
guidance to company to obtain profit maximization with the optimum utilization of resources. In
regard of Beans Coffee Cafe, they create a business idea which help them in analyzing current or
emerging trend of market as well as ascertains the potentiality of firm for achieving high level of
productivity. Thus, the business idea of Beans Coffee Cafe are as follows:
Profile of Beans Coffee Cafe
Today's world is full of competition, as every firm is mainly focus on acquiring novel
ideas or updated technology which generate more opposition among competitors and it directly
impact on business function. Furthermore, in UK, coffee is dominant over tea among population
which allow Beans Coffee Cafe to introduce its new product with chocolate flavor. Its main focal
point is to build a better relationship with customers and provide high quality of product and
service which add value to firms' brand image (Tontini and Dagostin Picolo, 2010). It provide
cappuccino, cookies, pastries, cakes and create a best place for customers where they can feel
relieved from their daily stress and workload.
What it is
Beans Coffee Cafe manufactures coffee with chocolate flavors that give customers high
level of relaxation as well as boost their energy so that they carry out their plans or goals in an
efficacious way. This coffee contains high amount of chocolate which lowers blood pressure,
lowers risk of heart attack and stoke and keep customer energetic and healthy.
Who

Beans Coffee Cafe is mainly targeted youth and adults in order to keep them healthy and
fit as well as to boost their mind so that they can complete work without any hindrances.
Where
Beans Coffee Cafe is located at business center area so that all the white collars and
others who rushes to their offices prefer to have an aromatic freshly brewed coffee that keeps
them fresh and energetic.
3. A competitor analysis that looks at the competitive marketplace. Look at failures and
successes. What you can do differently? Is this a growth area with low and medium risk?
Competitive analysis refers to the identification of competitors and analyzing of the strategies
which tells about the strength and weakness related to the product and service. A competitive
analysis play a important role in marketing plan of a company (Yuan, 2013). It helps in
evaluating the competitors by placing them under the different group of strategies. It helps in
establishing the unique products and services. It is considered as one of the best way by which
company can compare similar type of products which are existing in the market. The current
trend of UK population is in the consumption of coffee. So it will be best opportunity for the
company to expand in this sector. This will also enables the company to build a strong image in
the minds of all the rivals. There are so many coffee cafe in the street as well as it now become a
trend in the office too. It is considered as one of the pleasant way where people can interact with
each other. Thus the emerging preference of coffee among the people will enable the growth of
Bean coffee cafe as it is adding to a new flavor in the lives of people of UK ( Is the UK reaching
coffee shop saturation point?, 2017). There are several competitors available in the market
namely Costa Coffee, Nero Cafe etc. Costa was the first coffee chain of UK that is used to
control the coffee making process. It is the most popular coffee all over the world and is voted
as nations favorite coffee shop. Though the competitors are successful in the market but as now
Now a days people are so taste conscious and this can be one of the benefit for Bean coffee cafe
as it is providing with the new tempting taste. This could probably increase the profitability of
the concern. People are very fond of chocolates and by introducing of new flavor in the segment
will add more customers. Adding new chocolate flavor in the coffee is itself a unique product as
apart from drinking purpose it is also used as a scrub for the facial purpose. (Renko and et. al.,
2015). The company produce the product at cheap rate with high quality which will help in

attracting more customers. With the help of this strategy company Bean Coffee Cafe can easily
capture the market and also will develop a competitive advantage in the market.
4. Gap analysis and how you are looking to close the gaps. What is the situation now and what is
the future? What are the objectives of this business idea and how do you wish to achieve
them?
A gap analysis is an investigation of current performance and the way of identifying the
difference that occurred between the current state and other where the business could be. A gap
analysis refers to the tool which help in analyzing the gap which occurred between the target and
the results. It is very important to examine the need of gap analysis as it helps in knowing the
actual position where the company is standing (Hills and Hultman, 2013). Bean coffee cafe is
new venture in UK whose main purpose is to provide such a tempting taste that is unforgettable
in the minds of customers. The main aim of this company is profit maximization with the
development of its product. Coffee being one of the most famous product in the minds of
customers and by adding new flavor, the company will able to attract large number of customers.
There are so many tool which can be used for analyzing of the position in term of standing and
profitability of Bean Coffee Cafe. he company is facing gap with other company in terms of
technology as the company which already is in is existence make use of new technology because
of available resources. The price structure set by them are normally high because of their brand
emergence. Lastly gap could also be seen in the terms of quality as being in the market for long
time they able to know about the taste and preference of the customers. The tool which is used
by the company is Mckinsey 7s Framework. This framework will help in determining the
expectations of company. This framework is used when new strategies are implemented. This
model is further divides into hard and soft elements. The hard elements are the one which can be
controlled where as on the other hand soft elements cannot be controlled by the company.
Strategy, structures and systems are the hard elements where as staff, skills, styles and shared
values are the soft elements. Below is the clear description of the McKinsey 7S:
 Strategy: It refers to the plan which is developed by the firm in order t compete
successfully in the market. Bean Coffee Cafe should create the strategy in such a way
which will help the company to attain a competitive advantage. The company should
clear about the vision and mission in order to stand high in the market (Popp and Holt,
2013). Moreover using penetration pricing strategy at the beginning will help the

company to build a effective customer base and this could be beneficial in removing the
price gap.
 Structure: It refers to the process of dividing the business unit in an organized way so that
information is easily accountable. Bean coffee cafe must form a effective structure so that
the company can build its brand image in the competitive market like other competitors.
 System: it refers to the procedure of the company which disclose about the daily activities
that helps in decision making. It provide a proper process that tells how the business in
undergoing. In this context the main focus of Bean Coffee Cafe is to have main focus on
the organizational change. This will help in determining the potential of employees that
who are capable enough to face such challenges. By effective system Bean Coffee Cafe
can find the measures so that it can also stand in competition with other companies and
with that gap can be filled.
 Shared Value: It is considered as the center of McKinsey model. These states the rules
and regulation which is important for the foundation of the company. Thus Bean Coffee
Cafe should set the guidelines in such a way which will enable the employees to maintain
a proper working culture. If proper culture is provided to the employees , they find
motivation and always work toward maintaining and improving the quality.
 Staff: This is the element which constitute an organization. It is concerned with how
many employees are required and the ways in which employees are recruit or trained.
Bean Coffee Cafe must provide training to their employees which helps in boosting their
motivation. Rewards should be given to employees according to their performance at the
end of the month or half yearly (Chang and Chen, 2015). Experienced staff in this
segment should only be appointed as he is well aware about the issues which company is
facing and would help the company in filling those gaps.
 Skills: it refers to the ability which helps the employees of an organization to perform
well. To develop the skills of its employee, Bean Coffee Cafe should provide adequate
training on the regular basis in order to develop their skills. To develop the skills of its
employee, Bean Coffee Cafe should provide adequate training on the regular basis in
order to develop their skills on the basis of using technology which being used by other
rivals. This will improve the problem solving process and help the cafe in reducing the
gap which is faced due to use of technology and setting of the price.

 Style: It defines the way in which company is managed by the top level managers. The
best style which is choose by Bean Coffee Cafe is democratic style because in this style
decision is taken by every employee of the company. This will improve the problem
solving process.
5. Market research to support viability for your business idea and identify market potential using
a range of sources that could be both primary and secondary.
Data collection signifies gathering information or data from all potential and possible
respondents in order to understand existing or future trend of market which leads them to
accomplish their objective. There are two types of data collection method i. e. primary and
secondary data (Garud and Giuliani, 2013). For this data collection, sample size is 50
respondents and targeted customers are youth and adults of UK.
Primary Data for Beans Coffee Cafe
1. Do you drink coffee?
 Yes
 No
2. What type of coffee you drink or buy?
 Cappuccino,
 Iced Tea
 Chocolate flavour
 Other
3. When do you usually drink coffee?
 Morning
 Evening
 Afternoon
 Night
4. Why do you drink coffee?
 To keep awake
 To give energy

 Because of taste
 Other
5. How many cup of coffee do you drink per day?
 1-2
 3-4
 more than 5
6. Provide some suggestion regarding coffee introducing into market?
1. Do you drink coffee? Frequency
Yes 30
No 20
Mean 25
Median 25
Mode 10
Interpretation: From the above graph, out of 50 respondents 30 people prefer to drink coffee and
remaining 20 respondents does not consumes coffee which directly impact Beans Coffee Café to
capture the best positioning among competitive marketplace. Thus, company should be updated
with trend of industry so that they can provide high level of satisfaction to customer.

Yes No
0
5
10
15
20
25
30
Frequency
30
20
2. What type of coffee you drink or buy? Frequency
Cappuccino, 15
Iced Tea 10
Chocolate flavour 15
Other 10
Mean 12.5
Median 12.5
Mode 5
Interpretation: The above drawn graphs signifies that out of 50 respondents, 15 people
consumes cappuccino, 10 respondents prefer ice tea and 20 personnel demands for chocolate
flavor and remaining other 5 respondents go for other drinks. So as per the report, only few
population prefer chocolate flavor which influence Beans Coffee Café proficiency capability.
Thus, firm can add more flavor to current drink like dry fruits in order to make coffee healthier
that Help Company to gain the attention of customer and it reflect in acquiring sustainable