Identifying Entrepreneurial Opportunities in the UK Food Industry

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IDENTIFYING ENTREPRENEURIAL OPPORTUNITIES
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Executive summary
The entire study highlights to evaluate the key traits of the entrepreneurs in the local market of
the food industry. With the lead of various tools and techniques, many strategies are defined in
the present context. Moreover, the qualitative, quantitative and the thematic is also accentuated
to clear the point related to operate entrepreneurial ship in the UK local market.
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Table of Content
Introduction......................................................................................................................................3
LO1..................................................................................................................................................4
P1. Determine and evaluate different sources of entrepreneurial ideas and innovation..................4
LO2..................................................................................................................................................5
P2 Explain the rationale and the market gap for a specific entrepreneurial idea using relevant
tools and techniques to support your choice....................................................................................5
LO3..................................................................................................................................................8
P3 Present data needed to support gap analysis in the evaluation of a specific entrepreneurial
idea...................................................................................................................................................8
P4 Interpret data appropriately to provide evidence of market potential......................................10
LO4................................................................................................................................................13
P5 Apply a SWOT framework to collate evidence to support an objective assessment of a
specific entrepreneurial idea..........................................................................................................13
P6 Evaluate the competitive and market environments in which the idea will be launched to
assess potential viability................................................................................................................14
Conclusion.....................................................................................................................................16
References......................................................................................................................................17
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Introduction
An entrepreneur is an individual that sets up business by combining the different key elements
that are required for the process of productivity that instance capital, labour and land. The
entrepreneurs are the persons who try to apply all the strategies and methods that will be suitable
for the growth of the company and enact those activities without anyone's consultations. In this
assignment, all the related details on the creativity and the innovations that are administer idea
for the new venture. Different methods and frameworks evaluated in the given context that are
used by the entrepreneurs in order to understand the market competitions and the preferences of
the potential customers. In addition, the primary as well as the secondary research is also
determined in the respective study to accentuate the ideas of entrepreneurs in relation to the
assessments.
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LO1
P1. Determine and evaluate different sources of entrepreneurial ideas and innovation.
There are various feasible and new business ideas are the crucial countenance of the great
entrepreneurs. Thus, some of the key ideas are highly evaluated below that states how the
entrepreneurs innovations are evaluated.
● Hobbies and interest
Hobbies are the activities that are followed by the entrepreneurs with a huge interest that leads
then to accentuate the dynamic business ideas. In has been observed that the entrepreneurs get
high success in their business when they pursue their interest and hobbies as their form of career
(Guercini and Cova, 2016).
● Customer surveys
The key element of each business unit must be the customer oriented. Thus, to achieve so the
entrepreneur are required to do the adequate analysis on the market that justify what are the
needs and requirement of the potential customers. This also enables to generate various business
ideas that are to be conducted through surveys (Kuratko and Morris, 2018). The surveys may
include the personal observations, questionnaires and many other ways that will serve the best
for the business.
● Brainstorming
The process of solving the issues that arises while starting the new business and the qualifies
related to the several business ideas in finding the solution to the respective issues are termed as
the brainstorming (Chou, 2018). This is the key traits that are inbuilt in every entrepreneur that
enable him or her to develop the booming business ideas that are strange and unintelligible.
● Franchises
Franchise is one of the term that are the part of the existing manufacturer and the distributors of
the product that give the legal right to carry the established business in the different locality with
the aspects of paying royalties to the actual owner. This is the other kind of business that are
carried on by the entrepreneurs that are relative save as the business is already established and
renowned in the market (Buzza, 2016). The entrepreneurs can build a gigantic range of profit out
of the franchise.
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 Mass media
Some of the relevant methods of generating the opportunities, ideas and information are
newspapers, magazines, television and many other. In order to achieve a huge success in the
market the entrepreneur is required to do the deep analysis in all the fields of the media that
includes the commercial and advertisements (Turner and Larson, 2015).
● Personal talents and experience
Generally, the opportunities and ideas that are raised in the entrepreneurs are their experiences
that they gained from their working time. The knowledge and skill are highly developed when a
person focus on the relative business units. They then apply these skill and ideas in order to
achieve the desired goals in future (Lafontaine and Shaw, 2016).
LO2
P2 Explain the rationale and the market gap for a specific entrepreneurial idea using
relevant tools and techniques to support your choice.
A market gap is the condition that arises when the demands and need of the customers are not
relevant in accordance to the products and services that are offered in the market. Gaps in the
market are the opportunities for the entrepreneurs that lead to raise the awareness in relation to
the product and services that are offered by the ways of advertisement and offer campaign that
helps to reach the untapped market (Bertrand et al., 2016).
The business idea that is evaluated in the given context is the small restaurant in the local area. It
has been observed that the establishment small business leads to raise the economic growth to
community by providing the employment opportunity in the local areas. Moreover, the local
business is high in generating the emotional roots as the nature of the owner is known to the
neighbour. It has been observed that the small business unit are more specialized in delivering
services by maintaining the standard of the product and services (Kim and Ji, 2018). The idea
establishing the small restaurant has been raised by the above certain ideas that can determine
gaining opportunities in the local business market.
Some of the benefits that are involved while starting up the small restaurant business in the local
market are stated below:
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● Changing climate
If the business will be operated in the local market then it will be an opportunity to the
entrepreneur in adopting the changing traits of the climate. As the small business are generally
customer oriented the owners understands all the desires and needs of its potential customers in
the local market (Lemoine and Kapnick, 2016). The business enjoys the loyalty of the local
customers in compare to the other business unit as the mindset of the customers determines the
economic crisis. However, the company usually will be able to generate low rate of revenue as
compare to the huge corporations.
● Local workers can be employed
In order to operate the business in the local market, the entrepreneur will be able to generate the
trustworthy employees that can be appointed from its locality. As the small restaurant business
will require to generate a certain labour force, this will increase the local growth of the economy
by appointing the local individuals (Monte et al., 2018).
● Local government contribution in aspects of taxes
While operating the business in the local market the owners are necessary to pay certain tax to its
local government that will help them to adapt all the opportunity that may arise in future.
However, the money that are paid as the tax to the local government will be used for the
community benefits that are initially circulated for the benefit of the business. Although, there
are many threat that are involved beside the benefits these instance high rate of tax in aspects to
the revenue and the high rate tax in the property (Slemrod and Bakija, 2017). However, all this
issues can be resort by the smooth function of the business and by earning the adequate amount
of revenue.
Moreover, there are various tool and techniques to fill the market gap that can be applied in the
small business operations for the smooth functioning.
There are certain crucial tools that are used to bridge the gap that arises between the small
business and the entrepreneurs that are discussed below.
● Fishbone
The tool helps the entrepreneurs to analyse the root effects and issues. In this includes the 6M
that are evaluated in figure 1 that helps to determine the central problems (Coccia, 2018).
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Figure 1: Fishbone diagram evaluating the 6M
(Source: Coccia, 2018)
● McKinsey 7S
McKinsey 7S is the model that helps the entrepreneurs to understand gaps that are generally
arises while operating the business. In addition, it also helps to boost the performance of the
business. Moreover, it also determines the necessary changes that are required to be adopted
(Channon and Caldart, 2015). All the key elements that define the 7S is accentuated with the
help of Figure 2.
Figure 2: The 7s of the McKinsey model
(Source: Channon and Caldart, 2015)
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● Burke-Litwin Causal Model
This is the model that helps to evaluate and understand all the necessary components that are
required to generate by the entrepreneurs while adopting the changing passage of time for the
smooth functioning of the small restaurant (Stone, 2015). Thus, there are the 12 key elements
that are accentuated in the below figure 3.
Figure 3: 12 Components of the Burke-Litwin Causal Model
(Source: Stone, 2015)
LO3
P3 Present data needed to support gap analysis in the evaluation of a specific
entrepreneurial idea.
Gap analysis is the kind of strategic tools that can be applied to determine the gap between the
anticipated result and target. This can be done with the help of the comparing the current
performance with the assumption of the standard business established. In this gap the difference
between then integrated resources and the optimized distribution is analyse (Lee et al., 2016).
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However, for the entrepreneurial business of the small restaurant the stable strategy will termed
to be best alternative. Some respective gaps are discussed below:
● Performance gap
Performance gap arises when a huge difference is evaluated in the actual and standard
performance. In the small restaurant business if the quality of food is not maintained to the
certain level that are demanded by the potential customers in the market then it will be termed as
the performance from the side of cooks and the impact will have the negative to the overall
business unit in the lo
● Product gap
During the time of starting a business the entrepreneurs assumes certain revenue and profits that
can be generated from the respective business. Thus, when the business unit does not earn the
desired revenue the product gap arises. In order to eliminate this gap the entrepreneurs are
required to change its strategy of operating the business functions in the local market.
● Profit gap
When the differences arose between the desired target and the actual earned profit, the profit gap
is accentuated. Thus, the entrepreneurs can use more effective innovations and ideas to
accumulate the interest of the local customers in the market.
● Manpower gap
It is the gap that arises at the time when the actually required labor is not access to the
entrepreneurs. It is the fact that in order to operate the small restaurant business a good and
effective labor will be required that will cook stuffs to offer, maintain the hygiene issues and
other relevant facts. The effective and adequate man force enable to generate the certain
opportunities in the market and help to build strength within the business in the local area.
Some of the alternative actions that can be adopted by the entrepreneurs in order to bridge the
gaps that are accentuated above are discussed below:
● The entrepreneurs can change its objective like for saying in the reference to the small
restaurant business more items can be added to the menu list that will attract the
customer.
● The entrepreneur can change its strategies are included in the promotional factors. Like
for the restaurant business attractive pamphlets that spotlight the special offers can be
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circulated to the local areas. This will lead to generate the interest within the potential
customers and will help to earn high revenue.
● The entrepreneur is required to do the adequate analysis to the overall external and
internal environment for the better and smooth functioning of its restaurant.
P4 Interpret data appropriately to provide evidence of market potential.
Quantitative
1. How much do you agree with the business idea?
Criteria Respondents Total no. of
respondents
% of respondents
Strongly agree 10 50 20%
Agree 15 50 30%
Neutral 10 50 20%
Disagree 10 50 20%
Strongly disagree 5 50 10%
Table 1: Survey on the business idea
(Source: Created by Author)
Figure 4: Showing the graph on the above survey
(Source: Created by Author)
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