Unit 27: Identifying Entrepreneurial Opportunities: A Report

Desklib provides solved assignments and past papers to help students succeed.

UNIT 27: IDENTIFYING
ENTREPRENEURIAL OPPORTUNITIES
1

Table of Contents
INTRODUCTION......................................................................................................................................................... 3
LO1................................................................................................................................................................................... 4
P1................................................................................................................................................................................. 4
LO2................................................................................................................................................................................... 7
P2................................................................................................................................................................................. 7
LO3................................................................................................................................................................................ 10
P3............................................................................................................................................................................... 10
P4............................................................................................................................................................................... 14
LO4................................................................................................................................................................................ 16
P5............................................................................................................................................................................... 16
P6............................................................................................................................................................................... 18
CONCLUSION............................................................................................................................................................. 19
REFERENCES............................................................................................................................................................ 20
APPENDICES............................................................................................................................................................. 22
2

INTRODUCTION
It is well said that the business idea is more important than business. It is really important
to choose the right business idea according to market condition, scope as well as according
to a person's interest. There are lots of opportunities in the market that can inspire an
individual's idea such as individually inspired through interest or new products etc. For
this assignment, the idea in which individually inspired to open “music café and restaurant”
that provides the customer the feel and enjoyment of music as well as they can have their
favorite food and non-alcoholic beverages to enjoy with.
This assignment shows the various sources and opportunities for opening a new and
effective business and the challenge faced by the new business. the idea Music café and
restaurant will be open in Glasgow that provides the luxury of café and food entertained by
live music. The assignment focuses on the strengths and weaknesses of the idea of music
café and restaurant and how effectively a business can be established in the market.
3

LO1
P1
Music café and restaurant is a small business idea that comes up with the respect of the
interest is increasing in music for teens and youths as well as mature peoples in the UK. It is
a great business idea that considers the future trend. Through exploring the UK market it is
found out that people love to have lunch or dinner with live music shows entertainment.
There are very few restaurants and cafes are currently running in the UK that provides
non-alcoholic live music food enjoyment to the customers that make the business effective.
Due to less number of these types of restaurant and
cafes, Music café and restaurant is an effective idea
for the teens, youths that love music and have a very
keen interest in music (Kraus et al., 2015). The
building interest in music trend, less number of these
restaurants as well as personal interest drives an
individual to come up with this idea of business.
The right business idea is a very crucial task for an individual that wants to open a
business. More than often new business enterprises are not successful because of choosing
the ineffective business idea. There are many various ways through which effective
business idea can come up with, some are as follows:
Market research
Market research is a very effective source of generating a business idea. The market
research shows the current market trend as well as which business nature has more scope
in particular location, what our customer needs, what customer expects for that particular
location benefits individual to come up with an effective business idea (Patel, 2019).
Interest and Hobbies
4

Interest and hobbies can play a very important part in the business idea as some people
pursue their interest come up with a business idea of their interest that significantly
benefits the business (Džupka et al., 2016). The business of own interest likely to be more
effective as an individual can find enjoyment in it.
Customer survey
Customers are the ultimate need for a business as it is simple that customer can benefits
business to generate income. Customer survey shows
the need for the customer and what they want.
Business can conduct a survey of questionnaire type
that can present the report that shows what is the
most demanding nature of business in that specific
area (Ramadi et al., 2016).
Brainstorming and dreams
Brainstorming is the process where individual observe the needs like needs in daily life
that hard to get can give the business idea as if individual needs it and it is hard to get that
means someone also having trouble to get it. Whereas dreams encourage individual to
open a business of his dream whether it is illogical or not or is ineffective ( Boling et al.,
2016).
Franchises
The franchise is the most common idea of business in which the individual gets the rights
from a popular business organization to open a business of their name in their location.
The franchise business is considered as a safe idea as having already popular brand name
can benefit the local business to attract customers (Jarvis, 2016).
Mass Media
In current time mass media plays a very crucial role in deciding
the business idea. Media like TVs, social media, newspaper, etc.
are a great source of generating a business idea. By watching TV,
5

surfing on social media, reading newspaper individual can easily come up with the effective
business idea as it shows that which demand is increasing and what is the new trend is
popular amongst the people. For example, media article shows a customer has a habit of
eating food while enjoying music or watching TVs, that gives the individual an idea for
opening Music café and restaurant.
Above thought shows that there are many ways through an individual can come up with an
effective business idea. Many great Entrepreneurs started off with a unique and effective
idea and now their business thriving all around the globe (Jiang et al., 2016). There are lots
of opportunities is available in the market field for the individual to grab, the correct
business idea is essential for business success.
6

LO2
P2
Intended Customers
Music café and restaurant aim to target youths and teens, couples as well people who have
interest in music, the business won't approach to the working persons as generally, they
prefer online ordering. The intended customer is likely to visit the business and benefits
the business idea as it is different and idea according to the latest trend (Samo and Hashim,
2016).
Competitor analysis
For a new business, it is very important to know competitors of business as business needs
to compete with them as well as out shadow them with proper knowledge (Samo and
Hashim, 2016). Understanding business competitors benefit business to gain a competitive
advantage as a business can make changes according to business competitors like changes
in the menu, rates, etc. Music café and restaurant can do an analysis of their competitors
using below five steps:
Identify key competitors - The first step in a competitor analysis is to identify the key
competitors of business. Music café and restaurant need to list their top 10 key competitors
to which business needs to compete with.
Analyze and compare what they offer - The next step is to assess the variety they offer to
their customers, a different type of non-alcohol beverages they sell for example: selling
Chinese dishes, Japanese dishes, etc. business needs to analyze their offering and compare
with their menu items (Suddaby et al., 2015).
Analyze their quality and cost - The next step of competitor analysis is to analyze the
quality of the product they offer and in what quantity and what they charge for the
services. It is really important to analyze the cost and quality of the services that
7

competitors providing as it helps Music café and restaurant to compare with their prices
and move accordingly.
Assessing their target customers and marketing tools - The next step is to analyze what
marketing strategies and tools they are using to attract customers like digital marketing
etc. and what their target customers (Suddaby et al., 2015). it is important for music café
and restaurant as a business can compete with them in those marketing channels.
Improving according to analysis - The last step is to improve own services of Music café
and restaurant according to analysis like if competitors proving the good quality and high
rate then the business can reduce their rates to attract competitors, customers. Business
can have more varieties in their menu to attract customers as well as effectively promote
their business to gain competitive advantage.
Gap Analysis
Gap analysis is the process in which business assess their performance whether they meet
the business requirements and business goals and objectives or not. It not, then what
should measure business needs to take in order to fill that gaps (Nijssen, 2017).
Aims and objectives of Music café and restaurant
 Provide the utmost level of satisfaction to customers.
 Provide unique service quality through innovative ideas.
 Innovate the market trend through creative ideas
 Profit maximization for long-term stability
The main reason for gap analysis is to find out the customer's satisfaction level through
customer expectations and customer experiences. Gap analysis is an effective tool to fill up
the dissatisfaction factor for the business. The gap analysis also assesses the current
facilities that should meet future requirements (Nijssen, 2017). The market cap for the
business can be identified through questionnaires surveys and internet research that
consider as quantitative and qualitative research tools for gap analysis which can be used
for identifying business idea gap.
8

The quantitative tool is very effective to find out the accurate results that serve the
research purpose whereas qualitative research used to gain the theory behind the
research. Both serve their purpose effectively as through both research tool Music café and
restaurant can identify the needs and changes to fill the gap.
9

LO3
P3
Quantitative research tool (Primary Research)
The quantitative research tool is a process which is conducted by the individual itself in
order to gain research data that is useful for the business objective. The questionnaire
survey is prepared for 50 general people selected randomly to get effective primary data.
Q.) Is Music café and restaurant is a good business idea?
a.) Yes 35
b.) No 10
c.) Not Sure 5
Is Music café and
restaurant is a good
business idea? Yes
No
Not Sure
Q.) Should Music café and restaurant use modern technology to attract customers?
a.) Yes 40
b.) No 5
c.) Not Sure 5
10

Should Music café and
restaurant use modern
technology to attract
customers? Yes
No
Not Sure
Q.) Are Music café and restaurant lack food varieties?
a.) Yes 30
b.) No 15
c.) Not Sure 5
Is Music café and restaurant
lack food varieties?
Yes
No
Not Sure
Q.) Should Music café and restaurant need to sell alcoholic beverages to attract more
customers and satisfy their needs?
a.) Yes 33
b.) No 12
c.) Not Sure 5
11

Should Music café and
restaurant needs to sell
alcoholic beverages to attract
more customers and satisfy
their needs?
Yes
No
Not Sure
Q.) Is the quality of food and environment satisfy the needs of customers and helps
them to enjoy?
a.) Yes 30
b.) No 13
c.) Not Sure 7
Is quality of food and
environment satisfy the needs
of customers and helps them to
enjoy? Yes
No
Not Sure
Qualitative Research tool (Secondary research)
According to Džupka et al (2016), the business idea plays a critical role in the success of the
business organization. The process of choosing a business idea requires significance
market research and efforts. For establishing new business it is important that new startup
conduct gap analysis analyze the gap that needs to be fulfilled through gap analysis and
benefits business to improve their concern areas that need assessment (Džupka et al.,
2016).
12