Unit 27: Identifying Entrepreneurial Opportunities - Business Report

This report, focused on Unit 27, explores the identification and evaluation of entrepreneurial opportunities, using the hypothetical business TEA POINT as a case study. It delves into various sources of entrepreneurial ideas and innovation, emphasizing the importance of market analysis and gap identification. The report details primary and secondary research methods, including questionnaires and competitor analysis, to assess market potential and viability. It employs tools like SWOT analysis and the Fishbone model to evaluate the competitive environment and market gaps. The report provides data interpretation, presenting findings on customer knowledge, ingredient preferences, and pricing, ultimately assessing the potential of TEA POINT, a herbal tea business, in the London market. It also explores the rationales behind the business idea, its differentiation strategy, and potential challenges, such as staff training and supply chain issues, concluding with a comprehensive assessment of the business's viability.

Unit 27 – Identifying
Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION ..........................................................................................................................1
P1 Determination and evaluation about different sources of entrepreneurial ideas and
innovation....................................................................................................................................1
P2 Explanation of the rationale and the market gap for a specific entrepreneurial idea using
relevant tools and techniques to support your choice.................................................................3
P3 Presentation of data needed to support gap analysis in the evaluation of a specific
entrepreneurial idea.....................................................................................................................4
P4 Interpretation of data appropriately to provide evidence of market potential.......................5
P5 SWOT framework to collate evidence to support an objective assessment of a specific
entrepreneurial idea.....................................................................................................................9
P6 Evaluation of the competitive and market environments in which the idea will be launched
to assess potential viability........................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
Entrepreneur is a person who sets up a business with taking a financial risk with the hope
of high profit and returns on capital employed (Audretsch, 2012). The main role of the
entrepreneur is to set up a business or expand business with identifying opportunities, threats and
personal capacity to translate an opportunity into a business idea. This report is based on concept
of launching a new business by evaluating business opportunities in London that is TEA POINT
that found new concept of to make Tea with help of natural herbs for the health aware people.
Because now in those days peoples are more concerned about their health. This assignment is
based on entrepreneurial new idea and concept with relevant information and idea behind it. The
report also includes discussion about market research and apply primary and secondary research
techniques to investigate a personal entrepreneurial idea and make an assessment of whether it is
likely to be a commercially viable business or social enterprise proposition.
P1 Determination and evaluation about different sources of entrepreneurial ideas and innovation
In today's market environment it is very essential to expand the existing business
activities with the help of new and innovative activities. For expansion of business the evaluation
of various factors in market is necessary such as opportunity, threats, strengths weaknesses etc..
Entrepreneurship is a vital factor which develop the opportunities of employment through new
idea generation and business expansion. In case of TEA POINT, it find out new opportunities in
market for launching new products for health concerned peoples. The new idea and concepts are
generated by the entrepreneur to launch a new product or service in the market. Further
brainstorming, consumer survey and mass media collection are important sources to bring idea.
A lot of factors that influence to become an entrepreneur is to control others and their activities,
earn money, risk taking ability, new thought and idea are important attributes that contributes in
advancement of entrepreneurs.
Sources of entrepreneurial idea:
To search out best source of entrepreneur with help of Peter ducker seven step to gain
potential results that are as follows:
Ducker's 7 sources of systematic innovation:
Peter Ducker list out 7 main attributes to bring new ideas and opportunities in their book
innovation and entrepreneurship (Autioandet. al., 2018).
1

The unexpected:
The whole world is full with lot of unexpected events and sometime individual have to
face these failures and sometimes success that is result of innovation and new idea. Unexpected
success and failure that is not noticed. These conditions and situations inspire and motivate
others to start their own business to beat these situations by evaluating both positive and negative
aspects.
The incongruity:
To evaluate market conditions and scenario need to evaluate consumers preferences
(Barazandeh and et. al., 2015). In preferences includes their reactions or responses, feedback and
complaints is one of best way to search out incongruity factor. It is connected with reality as well
actuality that is to be expected in near future to get better results.
Process need:
The best source to find business opportunities is to search out their factors that lack
behind in progress. It delivers best solution to improve them by accessing needs. For example
TEA POINT found that consumer are more health-conscious and want something new to
compensate with their needs and wants in well manner.
Industry and market structure change:
Industry and market structure that change time to time and it not stable for long period of
time. With help of technology changes occurs in industry and market that are very necessary for
advancement. For example TEA POINT faces deregulation in rules and policies for that they
have to pace with these changes launch a new product into market.
Demographic:
One who want to something new in their business always observe change in populations,
their income level, capital and age range that occurs in recent time. To gain advantage constant
observation is very very necessary.
Change in perception:
It is very necessary to perceive world with right view and it changes very frequently. In
changes many in technology, working method and certain brand features are major attributes that
help in rapid growth. These changes are the major reason behind developing a new product and
services that match with perception of consumers.
2

New knowledge:
New way and technology is very important to give things in better way to satisfy
consumer needs and demands. In case of TEA POINT, they launch a new concept to fully
satisfy their needs in better way.
P2 Explanation of the rationale and the market gap for a specific entrepreneurial idea using
relevant tools and techniques to support your choice
Business idea is main attribute to gain financial stability in market, it is related with
product and services to give best things to consumers (Dimov, 2011).
In perspective of TEA POINT, it aimed to launch a new product that Tea which is
prepare on basis of herbs to target health-conscious people. They want to expand their market by
satisfying wants of consumers in different way. They evaluate needs and wants of consumers by
different sources in which media, past experiences and secondary source of data.
Market gap
Gaps in the market represent opportunities for companies to expand their customer base
by increasing awareness and creating targeted offers or advertising campaigns to reach the
untapped market.
Competitors analysis to identifying market gap
Competitor analysis is an very important tool and management approach that enables in
access strength and weaknesses of both their current and potential consumers (Fuentes and et. al.,
2010). They using both offensive and defensive strategy and approach to find out opportunities
and threats to grab large no. of market share. There rivals are Lipton, Tata tea products and other
that are very well known coffee providers in different categories. To grab large no. of consumer
they pay attention on follow rules and regulations that follow by their competitors and that is
easy to adopt changes so that they can give their best to their potential consumers.
Rationals of specific idea:
Achievements of TEA POINT by their objective is to give best products and service with
different serving style in unique flavor. The rationals of the new herbal tea is that it helps in
achieve large market share by their pricing strategy that they proving moderate price with high
quality products in comparison to other restaurants. For achieve large market share they provide
different types of discounts, coupons and other promotional activities that helpful in achieving
large market share. The factor that could be cause of their failure is their staff member that are
3

rigid in nature and restrict to change. So for that they have to adopt different strategies that help
in adapt to change and behave moderately. Employees needed training and development to give
their best in growth and enhancement of organization. In case employees are not proficient and
not adequately able to serve Tea on table then it give bad experience to their consumers and
hinders self interest of TEA POINT. Another major factor is not properly supply of Tea items in
proper form and style for that they have to update their sales system.
Differentiation:
In differentiation consist of provide Tea and its serving style in different manner so that it
enchant their consumers in better way. In case of TEA POINT they aimed to provide different
flavors and taste to their consumers to satisfy their distinct demands and needs. Their target
market is all age group people especially who are health-conscious. To compensate their demand
they aimed to launch a new product into market with expand their product line.
Tools for GAP analysis: Following are tool for GAP analysis by which the TEA POINT can
analysis the market gap:
According to the Fishbone model it is helpful in analysing the gaps in production results.
In this model the 6 Ms are analysed these are such as manpower, methods, metrics, machines,
materials and minutes and determines how they relate to the central problem. According to that
model with help of a diagram 6 Ms defines that how they related with the central problem.
Sources: Gap Analysis Tools to Identify and Close the Gaps in Your Business, 2019.
4
Illustration 1: Gap analysis with Fishbone model

P3 Presentation of data needed to support gap analysis in the evaluation of a specific
entrepreneurial idea
Gap analysis is an management tool that is used by organization to measure performance
level by both standard and desirable level of achievement (Grégoire and Shepherd, 2012). In case
of TEA POINT with help of various information system or applications that are useful in get
business requirements should be met according to need. For that necessary and potential steps
should be taken to get desirable outcomes.
There are various ways and methods that helps in eliminate gap to achieve desirable
outcomes that are as follows:
Primary research:
Primary research is first hand or new set of collection of data and information to find out
answers of specific problems or issues (Welter and Alvarez, 2015). It can be conducted with help
of surveys, questionnaire and interviews at the individual and group of individuals to get better
results. It is one of the best method to grab large no. of information and data before launching a
new product into market. In case of TEA POINT with help of this method it can grab data
resulting large no. of consumers achieve.
Secondary research:
In that secondary research it use information to take decision which is already available
in market for different reason and available for all (Tang Kacmar and Busenitz, 2012). It is also
known as desk research, in case of TEA POINT it commonly using the secondary research
because it is easily available in market and cost effective.
In order to support market gap Tea Point requires to implement primary research that
help them in analyzing current
Questionnaire
Q.1. Are customer possess knowledge about products of TEA POINT ?
Yes
No
Q.2. Does TEA POINT implements ingredients according to customers wants ?
Agree
Disagree
5

Q.3. Does TEA POINT consider relevant prices for their new product ?
Yes
No
Q4. Product name suits to its features perfectly ?
Agree
Disagree
Q.5. Does TEA POINT able to gain attention of their audience through advertising practices ?
Yes
No
P4 Interpretation of data appropriately to provide evidence of market potential
Q.1. Are customer possess knowledge about
products of TEA POINT?
Frequency
Yes 40
No 20
mean 30
median 30
mode 0
Interpretation:
From the above table it has been summarized that consumers possess knowledge about
their products and it can spread awareness through social media and other sources also.
6

Q.2. Does TEA POINT implements
ingredients according to customers wants ?
Frequency
Agree 45
Disagree 15
Mean 30
Mode 0
Median 30
7
Yes No
0
5
10
15
20
25
30
35
40
Column B

Interpretation:
From the above graph it has been found that customer are enchanted and aware about
their premises to able effective services. In case of TEA POINT provide open roof services and
boo fa which attract large no. of consumers.
Q.3. Does TEA POINT consider relevant
prices for their new product ?
Frequency
Yes 35
No 25
Mean 30
Mode 0
Median 30
8
Agree Disagree
0
10
20
30
40
50
Frequency
Yes No
0
10
20
30
40
Column B

Interpretation:
From the above graph it has been summarized that customer are very conscious for their
money and for that TEA POINT give reasonable price products to them.
Q4. Product name suits to its features perfectly
?
Frequency
Agree 30
Disagree 30
mean 30
mode 0
median 30
Interpretation:
From the above graph it has been concluded that company Is in position of equal position
means same candidates like their products just same dislike them.
9
Agree Disagree
0
5
10
15
20
25
30
Column B

Q.5. Does TEA POINT able to gain attention
of their audience through advertising
practices ?
Frequency
Yes 50
No 10
mean 30
mode 0
median 30
Interpretation:
As per the respondents in TEA POINT consumers attract towards them and also they
provide health-conscious herbal tea items.
P5 SWOT framework to collate evidence to support an objective assessment of a specific
entrepreneurial idea.
To judge or measure viability of a project need to evaluate various steps and procedures
to grab large market share and beat their competitors (Kohlbacher, Herstatt and Levsen, 2015,).
These all factors helps to organization in better evaluation and decision making regarding
expansion of business. In that SWOT analysis that stands for strength, weaknesses, threats and
opportunities of business.
10
Yes No
0
10
20
30
40
50
Frequency