Unit 12: Entrepreneurial Opportunities Analysis Report - LCC, 2020

This report examines entrepreneurial opportunities, using TESCO's potential entry into the cosmetic sector as a case study. It begins with an introduction highlighting the importance of innovation in business and the factors that drive it, such as customer demand and competition. The report then proposes a new business idea for TESCO: entering the organic cosmetic market. It proceeds to analyze this idea through the lens of Peter Drucker's seven sources of innovation, discussing how TESCO can leverage each source, including the unexpected, incongruities, process needs, industry changes, demographics, changes in perception, and new knowledge. The report further explores the benefits and drawbacks of different approaches and sources, particularly focusing on the seven sources of innovation. Finally, it concludes by emphasizing the role of innovation and business changes in achieving market success and customer satisfaction, while maintaining a competitive edge. The assignment is supported by references to academic literature on entrepreneurship and innovation.

Identifying entrepreneurship
opportunities

Table of content
 Introduction
 New business idea
 7 sources of innovation
 Benefits and drawbacks of different approaches and sources
 Conclusion

Introduction
New idea or innovation within a business practices is a crucial practice that
leads to effective execution of organization at marketplace. The
anticipation of a innovation in business can be a reason of several factors
such as trend, customer demand, increasing competition etc. TESCO is a
larger multinational retail organization that operates at several different
countries but as the competition is increasing which inspire it to bring
innovation in business for remain competitive.

New business idea
For dealing with competition and increasing demand of consumers,
TESCO is planning to enter into a new segment for success i.e. cosmetic
sector. The main aim behind this idea is due to increasing trend among
male and female of all age to maintain a healthy skin. For this TESCO has
planned to bring cosmetic product that are made from organic material in
order to fulfill the need of people for getting healthy skin.

7 sources of innovation
TESCO must consider Peter Drucker 7 source of innovation opportunity
before entering into a new and innovative idea of its expansion of
business. These sources are explained below:
 The unexpected:- The managers of TESCO must focuses toward
regularly studying the market for determining unexpected opportunity
that leads to new idea for success.

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 Incongruities:- The managers of TESCO must focuses toward
discussing their idea with customer get their queries, review and
feedback, and try to involve them while offering new product or
services.
 Process need:-The managers of TESCO must focuses toward finding
the weaknesses and try to bring some innovative idea to convert it into
strength by using existing capability.

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 Industry and market structure change:- The leaders of TESCO must
keep an eye over technological changes and take an action toward it by
considering it as an opportunity.
 Demographics:- Managers of TESCO must keep their eye over
demographic factors and try to innovate product or services as per
demand while bringing new innovative idea.

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 Changes in perception:- The change in perception of customer r open
up the road for bringing innovation for TESCO to offer something new
to be very first for maintaining the customer base.
 New knowledge:- The managers and leaders of TESCO must focuses
toward implementing new knowledge other than just technology in
order to bringing innovation. It support in finding new way of doing
things.

Benefits and drawbacks of different approaches
and sources
Creativity:-
Benefit:- The major benefit of using Drucker seven model is that it
involve process need that work over determining weak point and then
improve it with the help of innovation.
Drawback:- The process need only keep organization to remain focus
over internal factors and eliminate the evaluation of external factors for
innovative practices.

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External sources:-
 Benefit:- The Drucker model focuses on external sources by
considering Industry and market structure change that help in bringing
innovation as per market demand.
 Drawback:- Bringing changes as per market structure, doesn't allow
TESCO to brings something beyond the expectation of customers or
other than competitors.

Conclusion
Innovation and business changes are something that support an
organization to deal with all the treat and exploit the opportunity to
achieve success at marketplace by achieving maximum customer
satisfaction and at the same time keeping competition away.

References
 Siegel, D. S. and Renko, M., 2012. The role of market and
technological knowledge in recognizing entrepreneurial opportunities.
Management Decision. 50(5). pp.797-816.
 Mitchelmore, S. and Rowley, J., 2013. Entrepreneurial competencies of
women entrepreneurs pursuing business growth. Journal of Small
Business and Enterprise Development. 20(1). pp.125-142.
 Tang, J., Kacmar, K. M. M. and Busenitz, L., 2012. Entrepreneurial
alertness in the pursuit of new opportunities. Journal of Business
Venturing. 27(1). pp.77-94.