Unit 27 - Entrepreneurial Opportunities: Coffee Thrill Business Plan

This report, focusing on Unit 27: Identifying Entrepreneurial Opportunities, presents a comprehensive analysis of a potential new business venture, 'Coffee thrill,' a coffee shop concept in London. The report begins by exploring various sources of entrepreneurial ideas and innovation, emphasizing the importance of market gap identification and consumer needs analysis. It then delves into a detailed explanation of the rationale behind the business idea, targeting health-conscious consumers with herbal-infused coffee, and utilizes tools such as competitor analysis, SWOT analysis, and primary/secondary research to support its evaluation. Data interpretation, including questionnaire results and graphical representations, provides evidence of market potential and consumer awareness. The report also assesses the competitive and market environments, evaluating the potential viability of the business and its ability to capture market share. Overall, the report offers a thorough examination of the entrepreneurial process, from idea generation to market analysis and strategic planning, providing valuable insights for students of entrepreneurship.

Unit 27 – Identifying
Entrepreneurial
Opportunities

Table of Contents
INTRODUCTION...........................................................................................................................3
P1 Determination and evaluation about different sources of entrepreneurial ideas and
innovation....................................................................................................................................4
P2 Explanation of the rationale and the market gap for a specific entrepreneurial idea using
relevant tools and techniques to support your choice.................................................................6
P3 Present data needed to support gap analysis in the evaluation of a specific entrepreneurial
idea..............................................................................................................................................7
P3 Presentation of data needed to support gap analysis in the evaluation of a specific
entrepreneurial idea.....................................................................................................................8
P4 Interpretation of data appropriately to provide evidence of market potential.......................8
P5 SWOT framework to collate evidence to support an objective assessment of a specific
entrepreneurial idea...................................................................................................................14
P6 Evaluation of the competitive and market environments in which the idea will be launched
to assess potential viability........................................................................................................15
CONCLUSION..............................................................................................................................17
REFERENCES .............................................................................................................................19

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 employed1. 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 Coffee thrill that found new
concept of to make coffee with help of natural herbs for the health aware people. 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
Business expansion is very obligatory to exist for long time in market, that can be achieve
by evaluating opportunities and threats of market and consumer needs2. Entrepreneurship is an
significant factor or attribute which enables in enhance employment opportunity at both
individual and group of individuals development. In case of Coffee thrill it by finding out new
opportunities in market aimed to launch a new product for health conscious people. An
entrepreneur can bring out innovative idea from many sources such as some times they are
passionate about to open their own business and their family background support them. 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,
1 Grégoire, Denis A., and Dean A. Shepherd. "Technology-market combinations and the
identification of entrepreneurial opportunities: An investigation of the opportunity-
individual nexus." Academy of Management journal 55, no. 4 (2012): 753-785.
2 Tang, Jintong, K. Michele Micki Kacmar, and Lowell Busenitz. "Entrepreneurial
alertness in the pursuit of new opportunities." Journal of Business Venturing 27, no. 1
(2012): 77-94.

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.
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. 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 progress3. It delivers best solution to improve them by accessing needs. For example
Coffee thrill 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
time4. With help of technology changes occurs in industry and market that are very necessary for
3 Kirzner, Israel M. Competition and entrepreneurship. University of Chicago press,
2015.
4 Phelan, Chris, and Richard Sharpley. "Exploring entrepreneurial skills and
competencies in farm tourism." Local Economy 27, no. 2 (2012): 103-118.

advancement. For example coffee thrill 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.
New knowledge:
New way and technology is very important to give things in better way to satisfy
consumer needs and demands. In case of Coffee thrill 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.
In perspective of coffee thrill, it aimed to launch a new product that coffee 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.
Target audience:
Target audience is potential consumer base on which coffee thrill want to target for that
different sources such as advertisement, media and publications are use to connect with them.
According to target audience organization have to create their message and advertisement
campaign5. Coffee thrill their consumer are all age people who are health-conscious people who
want herbs in their coffee to give delighted experiences to their consumers. Hence with help of
5 Alvarez, Sharon A., Jay B. Barney, and Philip Anderson. "Forming and exploiting
opportunities: The implications of discovery and creation processes for entrepreneurial
and organizational research." Organization Science 24, no. 1 (2013): 301-317.

research and data base they can collect important information about their consumer base and
achieve large market share. Their potential consumers are people who are gourmet and people
who are interested to taste different types of food and drinks. They found their consumers in
local area and they grab it by different advertisement sources.
P3 Present data needed to support gap analysis in the evaluation of a specific entrepreneurial
idea
Competitor analysis is an very important tool and management approach that enables in
access strength and weaknesses of both their current and potential consumers6. 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 Caffe nero, starbucks and costa coffee 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.
Achievements of Coffee thrill by their objective is to give best products and service with
different serving style in unique flavor. 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 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 food on table then it give bad experience to their consumers and hinders self interest of
Coffee thrill. Another major factor is not properly supply of food items in proper form and style
for that they have to update their sales system.
Differentiation:
In differentiation consist of provide food and its serving style in different manner so that
it enchant their consumers in better way. In case of coffee thrill they aimed to provide different
flavors and taste to their consumers to satisfy their distinct demands and needs. Their target
6 Urbano, David, and Maribel Guerrero. "Entrepreneurial universities: Socioeconomic
impacts of academic entrepreneurship in a European region." Economic Development
Quarterly 27, no. 1 (2013): 40-55.

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.
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 achievement7. In case of Coffee thrill 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. 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 coffee thrill 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. It is also known as desk research, in case of
coffee thrill it commonly using the secondary research because it is easily available in market
and cost effective.
P4 Interpretation of data appropriately to provide evidence of market potential
Questionnaire
Q.1. Are customer possess knowledge about products of Coffee thrill?
Yes
No
7 Wang, Yu-Lin, Andrea D. Ellinger, and Yen-Chun Jim Wu. "Entrepreneurial
opportunity recognition: an empirical study of R&D personnel." Management Decision
51, no. 2 (2013): 248-266.

Q.2. Does Coffee thrill able and provides ingredients according to customers wants ?
Agree
Disagree
Q.3. Do Coffee thrill provides coffee at relevant price?
Yes
No
Q4. Are customers happy or satisfied with coffee thrill services?
Agree
Disagree
Q.5. Does Coffee thrill able to gain attention of their audience?
Yes
No
Q.1. Are customer possess knowledge about
products of Coffee thrill?
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.
Q.2. Does Coffee thrill able and provides
ingredients according to customers wants ?
Frequency
Agree 45
Disagree 15
Mean 30
Mode 0
Median 30
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 coffee thrill provide open roof services and
boo fa which attract large no. of consumers.
Q.3. Do Coffee thrill provides coffee at
relevant price?
Frequency
Yes 35
No 25
Mean 30
Mode 0
Median 30
Agree Disagree
0
10
20
30
40
50
Frequency

Interpretation:
From the above graph it has been summarized that customer are very conscious for their
money and for that coffee thrill give reasonable price products to them.
Q4. Are customers happy or satisfied with
coffee thrill services?
Frequency
Agree 30
Disagree 30
mean 30
mode 0
median 30
Yes No
0
10
20
30
40
Column B

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.
Q.5. Does Coffee thrill able to gain attention
of their audience?
Frequency
Yes 50
No 10
mean 30
mode 0
median 30
Agree Disagree
0
5
10
15
20
25
30
Column B

Interpretation:
As per the respondents in coffee thrill consumers attract towards them and also they
provide health-conscious drinks and food 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 competitors8. 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.
Strength of coffee thrill:
In key strength of coffee thrill helps in judge viability of project that is launched by it in
market to grab large market share that are as follows:
 It has large chain of products that helps in expand in further product to expand its product
line by accessing their needs and wants in proper way.
 It choose it price base that is comparatively less from the fierce rivals in environment.
 Coffee thrill gives new concept of coffee that attract large no. consumers that are
different from their competitors.
 They give emphasis on health of consumers by using different ingredients that prove fruit
full for consumers health.
Weaknesses:
8 Wang, Yu-Lin, Andrea D. Ellinger, and Yen-Chun Jim Wu. "Entrepreneurial
opportunity recognition: an empirical study of R&D personnel." Management Decision
51, no. 2 (2013): 248-266.
Yes No
0
10
20
30
40
50
Frequency

In case of Coffee thrill they have many weaknesses which are hindering their growth that
are as follows:
 they are first time launch a new product into market so they have less experience of that
field.
 They are suffering from the lack of proficient staff members in their restaurant that
increase probability of bad consumer experience9.
Opportunities:
 It has niche market that provides new products and services that completely satisfy their
needs and demands.
 It has new concept which positively satisfy their consumer needs and wants so it is
beneficial for them to get large market share.
Threats:
 In their threats consist of many aspects that are there are lot of competitors in front of
them. It suffer from that their consumer base are habitual of their taste so it is very hard
for them to grab their attention.
 To launch a new product requires huge amount of investment that is hazardous for them
to compete in that market.
P6 Evaluation of the competitive and market environments in which the idea will be launched to
assess potential viability.
There are large no. of opportunities and threats before a business in which it has to
eradicate with help of five force model and PESTEL analysis that helps in gain knowledge and
insights to implement in wide market.
PESTEL Analysis:
In PESTEL framework that are avail by marketers to monitor results in better way that
are as follows:
Political factors:
In political condition consist of that coffee thrill faces problem of raw material sourcing
and while it deal in UK it has lot of political unsuitability in that environment10. In that case they
have to follow various social and environmental rules and regulations that help in fair trade but
9 Burgess, Cathy. "Factors influencing middle managers’ ability to contribute to corporate
entrepreneurship." International Journal of Hospitality Management 32 (2013): 193-
201.

on other hand it increase cost of their operation. The significant concern or issue faced by coffee
thrill is while follow different rules and regulations they occurs huge cost and taxes.
Economic factors:
In economic factor consist of recession that directly influence their business
proceedings11.
Coffee thrill face many labor laws and operating cost that hinders their self interest. Some other
factor that affects their business is various currency exchange rates, various regulations and tax
regimes that have to face.
Social factors:
In social factors consist of changing taste and preferences of consumers in case of Coffee
thrill have to specifically pay attention on consumer need by observing their cultural and social
factors. Changing lifestyles is also an threat for coffee thrill.
Environmental factors:
In environmental factors consist of provide Eco friendly products and services to satisfy
consumers awareness in better way. Rules and regulations and awareness towards environment
in countries hinders their self interest.
Technological factors:
In technology factors consist of hazards while adaptation or launching a new product into
market place. That is due to the changing taste and preferences of consumers that forces to
adaptation of technology. In that case coffee thrill have to spend lot of amount on research and
development.
Legal factors:
In legal factors consist of rules and regulations that follow by coffee thrill while deal in
different market and for new product launching. It faces some restrictions in licensing and strict
laws which hinders their self interest. It faces high cost that occurs while deal with many laws
simultaneously.
10 Lehner, Othmar M., and Juha Kansikas. "Opportunity recognition in social
entrepreneurship: A thematic meta analysis." The Journal of Entrepreneurship 21, no. 1
(2012): 25-58.
11 thematic meta analysis." The Journal of Entrepreneurship 21, no. 1 (2012): 25-58.
Simon, Mark, and Rodney C. Shrader. "Entrepreneurial actions and optimistic
overconfidence: The role of motivated reasoning in new product introductions." Journal
of Business Venturing 27, no. 3 (2012): 291-309.

Porter's five force model:
Competitive rivalry:
it has lot of competitors that hinders their self interest and they are also well established
in market. Their rivals are Starbucks, naro coffee and CCD which are giant rivals.
Bargaining power of buyers:
in case of coffee thrill it operates in international market so it has low bargaining power
by switching cost and higher sustainability in market. So buyer have favorable result for their
product.
Bargaining power of suppliers:
In case of Coffee thrill they have moderate class of suppliers that impacts highly on their
profitability ration that hinders their self interest12.
Threat of substitute products:
In market various types of drinks substitutes are available which work as a threat for
them. In case of coffee thrill tea, soft drinks are major factors that affect its business.
Threat of new entrants:
There are lot of entrants that enter into market after evaluating huge opportunities of that
sector that give results low profit ratio.
CONCLUSION
From the above report it has been concluded that entrepreneurship and entrepreneurs is
significant factor in both for organization and individual. It compensates consumer needs and
wants in well manner by find out solution of their issues. To become an successful entrepreneur
motivation and inspiration should give their best result. To get success in marketplace firm,
have to acknowledge about competitor strength and weaknesses and accordingly moderate in
strategies. To eliminate market gap is very significant for acknowledge current and future trends
while launch a unique product into market.
12 Audretsch, David B., Donald F. Kuratko, and Albert N. Link. "Making sense of the
elusive paradigm of entrepreneurship." Small Business Economics 45, no. 4 (2015):
703-712.

REFERENCES
Books and journals:
Grégoire, Denis A., and Dean A. Shepherd. "Technology-market combinations and the
identification of entrepreneurial opportunities: An investigation of the opportunity-
individual nexus." Academy of Management journal 55, no. 4 (2012): 753-785.
Tang, Jintong, K. Michele Micki Kacmar, and Lowell Busenitz. "Entrepreneurial alertness in the
pursuit of new opportunities." Journal of Business Venturing 27, no. 1 (2012): 77-94.
Kirzner, Israel M. Competition and entrepreneurship. University of Chicago press, 2015.
Phelan, Chris, and Richard Sharpley. "Exploring entrepreneurial skills and competencies in farm
tourism." Local Economy 27, no. 2 (2012): 103-118.
Alvarez, Sharon A., Jay B. Barney, and Philip Anderson. "Forming and exploiting opportunities:
The implications of discovery and creation processes for entrepreneurial and
organizational research." Organization Science 24, no. 1 (2013): 301-317.
Urbano, David, and Maribel Guerrero. "Entrepreneurial universities: Socioeconomic impacts of
academic entrepreneurship in a European region." Economic Development Quarterly
27, no. 1 (2013): 40-55.
Wang, Yu-Lin, Andrea D. Ellinger, and Yen-Chun Jim Wu. "Entrepreneurial opportunity
recognition: an empirical study of R&D personnel." Management Decision 51, no. 2
(2013): 248-266.
Burgess, Cathy. "Factors influencing middle managers’ ability to contribute to corporate
entrepreneurship." International Journal of Hospitality Management 32 (2013): 193-
201.
Lehner, Othmar M., and Juha Kansikas. "Opportunity recognition in social entrepreneurship: A
thematic meta analysis." The Journal of Entrepreneurship 21, no. 1 (2012): 25-58.
Simon, Mark, and Rodney C. Shrader. "Entrepreneurial actions and optimistic overconfidence:
The role of motivated reasoning in new product introductions." Journal of Business
Venturing 27, no. 3 (2012): 291-309.
Audretsch, David B., Donald F. Kuratko, and Albert N. Link. "Making sense of the elusive
paradigm of entrepreneurship." Small Business Economics 45, no. 4 (2015): 703-712.