Analysis of Innovation and Entrepreneurship: Bubble Cup Store Report

This report examines the significance of innovation and entrepreneurship within the context of the Bubble Cup Store, a beverage shop in Melbourne, Australia. The study investigates the application of new approaches to meet market needs, focusing on how the store can improve business performance through product innovation and operational processes. It explores sustaining and disruptive innovation strategies, open innovation models, and key factors such as idea generation, learning culture, and risk-taking. The report emphasizes the relationship between entrepreneurship and innovation, highlighting the importance of market analysis and a positive working culture. The Bubble Cup Store's potential to introduce non-alcoholic beverages based on grains and vegetables to cater to health-conscious consumers is analyzed, concluding that innovation is crucial for long-term business success and competitive advantage in the global market. The report references various academic sources to support its findings.

Running head: INNOVATION AND ENTREPRENEURSHIP
Management and Business Context
Name of the Student:
Name of the University:
Author’s Note:

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Introduction
Innovation is considered as the application of new approaches to get a better solution to
meet the new requirements of an organization. Innovation leads an organization to fulfill the
needs of the existing market and unarticulated needs (Rayna & Striukova, 2016). The business
organization brings innovation by developing the more effective product, service, and
technologies in their business. The term innovation is associated with the development of
original and more effective ideas. Bringing innovation in an organizational operation or
productivity allows the organization to gain competitive advantages in the market.
Entrepreneurship refers to a position of a person that is able to gain success in the business.
However, the entrepreneurship and innovation are related to each other as entrepreneur brings
innovation in the existing product, service or system to make the change in the business to
achieve the profit. This study deals with the importance of innovation and entrepreneurship in
the context of Bubble Cup Store that is a beverage shop situated in Melbourne.
This study aims to determine the significance of innovation and entrepreneurship in the
context of Bubble cup store. The scope of study includes the opportunity for the organization to
maximize their business performance through bringing innovation in their product feature and
the operation process.
Nature of the innovation process
An entrepreneur needs to understand the nature of the innovation in order to bring
improvement in their business. However, innovation is categorized into sustaining and disruptive
innovation (Dentchev et al., 2016). Sustaining innovation focuses on the current performance
level while disruptive innovation makes changes on the basis of the competition. In the context

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of Bubble cup store sustaining innovation strategy will be helpful for them to reduce the
competition in the global market. However, it is essential for the entrepreneur to identify the
features of the disruptive and the sustaining innovation in order to improve their business
performance. Sustaining innovation focuses on the development of new products that are better
from the previous. However, Bubble cup store can improve their product feature by using
sustaining innovation by incorporating new features in their product. Sustaining innovation leads
an organization towards the progress over the time. Open innovation is another model of
innovation through which an organization commercializes its internal ideas by using channels
that are present outside of their business (Prajogo, 2016).
Evaluation of the key factors and significance of the innovation in context of Bubble cup
store
Innovation refers to the creativity rather than the business. This method gives the
opportunity to a business to do something new in their existing service to meet the demand of the
current market (Visnjic, Wiengarten & Neely, 2016). Capital money and the hard work are the
major two factors of the innovation in order to bring development in the product feature.
However, entrepreneurs are the people who make a combination of such two factors to
incorporate new components in an existing service. Six key factors are involved in bringing
innovation and the promote creativity in an organization. One of the most important key factors
is idea generation. However, for the innovation in the product or service of Bubble cup store
development of the new idea is required as it enables the organization to prepare a framework of
their new innovation.
Bubble cup store is a beverage shop which is going to offer nonalcoholic beverage that is
based on grain and vegetables. Therefore, they focus on the non-thermal method to on the

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processing of such beverage in order to retain high-quality nutrients and minerals in this product.
This new innovative idea has been generated by this organization through the mental labor of
their innovators. The next key factor is to provide continuous support to the innovator to give
shape the newly generated idea (Prajogo, 2016). In the context of Bubble cup store, the
entrepreneur needs to give continuous support to the employees to establish such innovation in
their organization to improve their product. Learning culture is another factor of the innovation,
however; to give shape an innovative idea it is important to establish a good learning culture in
an organization that encourages the employees to implement new innovation in their service.
Hence, the entrepreneur of Bubble Cup store needs to provide a good learning culture to the
employees to improve their existing skill through which they can bring innovation to this
organization.
Risk taking is the crucial element of the innovation as innovation means new
implementation that may leave the positive and negative effect on the organization (Linton &
Solomon, 2017). In the context of Bubble cup store, they are going to offer non-alcoholic
beverage in their product, which may lead the organization to face the high cost in the production
process. In order to bring such innovation in their product, this organization has to take such risk,
which enables them to gain competitive advantages in the market. During the innovation, the
internal and the external stakeholders should tolerate the changes as changes are the part of
innovation. Therefore, mistakes can be taken place during innovation that needs to overcome by
the stakeholders to give shape their innovation. Apart from this occurrence of the conflicts is the
common phase of the innovation (Huhtala, Vaniala & Tikkanen, 2016). Conflicts may occur
between the employees while doing collaborative work. However, in the context of Bubble store
the innovator generates to offer non-alcoholic beverage that is made of vegetables and grains.

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Hence, such innovative idea may be supported by some employees while some employees can
disagree with this innovative thinking. Therefore, due to lack of proper communication between
the employees misunderstanding creates between them, as a result, the innovation often affected.
Innovators play the major role in the innovation process as for example, they draw a
relationship between the problems and the ideas (Chesbrough, 2017). Therefore, they take the
challenges and observe the behaviors of the consumers and the position of the competitors before
generating the new idea in a business. The innovator of the Bubble Cup store develops a network
in order to meet with the different stakeholders of their organization to generate different ideas
regarding the business of such organization. However, it is important for the organization to hire
a strong innovator that is able to exhibit new idea, which will lead the business towards the
success.
Relationship between the Entrepreneurship and Innovation
Entrepreneurship and innovation are related to each other to bring drastic changes in an
organizational system or product feature (Castaño, Méndez & Galindo, 2016). However,
innovation is applied by the entrepreneur in an organization to make changes and bring
opportunity to achieve profit. Entrepreneur focuses on the high potential business opportunity.
The practice of an Entrepreneurial leader is different from the normal leader. The work of an
entrepreneur consists of setting a working climate, identifying the opportunity and leading the
specific venture forward. In order to establish the innovative idea of the Bubble Cup store,
entrepreneurship is vital for such organization. However, to give shape the new innovative idea
in this organization a proper working culture is mandatory. Hence, the entrepreneur will be
responsible to establish a positive working culture in this organization.

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The entrepreneur needs a proper market to sell their new innovative product (Castellacci
et al., 2016). However, for the Bubble Cup store, they are going to develop non-alcoholic
beverages based on vegetable and grain that will fulfill the demand of the health conscious
people in Australia. Before innovating any process it is crucial for the entrepreneur of the
business to carry out a market analysis in order to understand the current demand of the market.
The idea of the production of non-alcoholic beverages in the Bubble cup store will be effective
for such organization to increase the number of health conscious customers, which also increases
their profitability in the Australian beverage industry.
Innovation is beneficial for the entrepreneurship as entrepreneurship is associated with
the financial development and makes the economy afloat (Silva, Styles & Lages, 2017).
Entrepreneur serves as the innovator of the economy in an organization rather than an investor.
The importance of the innovation in the entrepreneurship can be ensured by generating new ideas
or solution in the context of any product and service. In order to maximize the longevity of the
business of Bubble cup store innovation should be incorporated in the entrepreneurship.
Entrepreneurship identifies the needs within a community and comes up with a proper solution
by developing the innovative idea (Castaño, Méndez & Galindo, 2016). Entrepreneur seizes the
scope in an organization to innovate something new in an existing process in order to make the
lives of the people more comfortable. However, the entrepreneurs of the Bubble cup store should
be kept themselves abreast according to the present market trend and this organization needs to
innovate new features in their product without compromising the quality of the product. Hence,
for the Bubble Cup store innovation in entrepreneurship will enable them to change over the time
by developing their product to gain a better position in the global competitive environment.

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Conclusion
This study evaluates the significance of the innovation and the entrepreneurship in the
context of Bubble cup store. This is a beverage shop and going to launch non-alcoholic
beverages for the customers who are health conscious. Hence, it is important for such
organization to understand the current needs of the market before their innovation and it is
associated with the profitability and reputation of the organization. It can be concluded that
entrepreneur uses the innovation to bring opportunity to an organization and to make changes in
the existing system. Hence, innovation is important for the entrepreneurship to improve the
image of their organization in the global market.

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