In market there are variety of opportunity available which convert mindset of many people to become entrepreneur and serve in market. Hence, there are many products and services not available in market place even in quality too. Moreover, an entrepreneur is that who takes risk out of other people and analyse market for introducing a new business, so that he/she can satisfy the needs and wants of customer in effective way in any manner they want. Different people shift there choice from one firm to another just because they are not getting quality in product (Block and Wagner, 2010). The report is based on a cafe which is introduced in market with having an generation of idea as to provide proper satisfaction to customer, so the name is that which invites people. MAX cafe, serves variety of food items of across countries and satisfy people with there product in right contrast. Assignment undertakes segmentation of market. Analysing internal and external aspects and so on.
P1 Evaluate different methods of entrepreneurial ideas and innovation
There are different sources which can provide entrepreneurial ideas because they need to make proper changes or alterations. In simple words, such type of ideas has started business which need certain innovation that can revealed by buyers interviews and examination. Such sources of ideas that can discussed as under:
Customers– Customers are the one who provide effective evaluation of goods and services for driving sales, there is no doubt that this is most appropriate method of ideas. When they utilise the power of customers, so innovative leader should put in that point, sources for collecting new ideas relates to customers. MAX cafe main priority is to attracting large number of customers towards their new food items (Dimov, 2011).
Competitors– It is that factor which assist in increasing sales because there are various existing cafes who are also serving similar type of food products in front of their clients. MAX cafe is going to introduce some extinguish products which can dramatically impulsive for sale.
Looking at the past and future– While talking about to open a cafe so they should analyse others what they need to be done before the mistake they had made, that will avoiding to arise and put business in pitfalls.
Macro environment factors
Macro environment factors are such that will directly impact on external business environment:
Legal factors– It is one of the most essential criteria which has to be followed. For starting business, MAX cafe need to approve their license for easily running the business operation and its functions in United kingdom. So this is necessary for them is to follow all government made rules and norms (Ekpe, Mat and Razak, 2010).
Social factor– Social factor are such that developing impression on both the community and business. MAX cafe required to analyse all customers needs and demand before serving them some food item. Business have ethics which does not violate buyers feeling.
Technological factor– This is required for MAX cafe is to adopt effective method and techniques for smoothly running all business activities in proper manner. If company putting their business on internet that will help in attracting large number of customers for developing good reputation.
P2 Rationale and market gap for specific entrepreneurial idea
At that time, when business is going to enter into new market place so there is need to fix that market gap which enhancing buyers buying nature. Along with this, there are certain techniques and methods that are very important for conducting new market research which can be launched in the business in appropriate manner. For MAX cafe, it is necessary for them is to identifying gap within entrepreneur who can take advantage related with skills and abilities. For taking benefits of such gap, it is required for cafe is to explore all people requirements and needs in proper manner (Foo, 2011). There is always one questions that arise while finding out such type of gap, where to look for gaps, so there are certain moment in which person can acquire gaps which can be noticed that are described as under:
- Trends and new application– There are high level of trends and effective technology because they are getting opportunities are popping up in the market, they will keep eye on such changes and also analyse what type of effect face by business.
- Develop the world topical– If one can analyse the environment so they will noticed that there is loads of creativity, everyone is increasing the opportunities with their creative work. They required to make creative and imaginative doorway of fascinating trends. MAX cafe is that where any thing will be happened because they are going to be compositor not a follower.
Before introducing a new food item which analyse and examine the whole market needs and requirements that will identify the customers needs and demand in better manner. Along with this, there are various needs of buyers regarding new products that will fulfilling their preferences and taste by conducting market research on segmentation basis which are described as follows:
Demographic segmentation– This is that segmentation which divide whole market on the basis of age, gender, martial status, income religion, race, occupation, nationality, etc. There are different type of people who have different needs and demands (Heinonen, Hytti and Stenholm, 2011). MAX cafe required to analysing their customers requirements and taste according to this, they are making these type of food products.
Geographic segmentation– It is that segmentation which is totally based on those people who are living in remote areas. This cafe are delivering various food items to the people who are living in different region.
Behavioural segmentation– In this segmentation, research is totally based on population, lifestyle, thoughts, preferences, decision, attitude, decision making. Different type of people are come in the cafe for consuming such new food products so MAX cafe required to analyse their behaviour and taste towards their services and provided items.
P3 Gap analysis in the evaluation of a specific entrepreneurial idea
Gap analysis is defined as the study or research for identifying difference between actual and standard performance within an organisation. In this consider qualitative and quantitative comparison of company. It can be describe as the principle for recognising the actual requirements and find ultimate solutions for defining problems. This is an essential in explaining some desired expectations or particular place where the firms wants to go or achieve (Renko and Shrader, 2012). It is also beneficial for every firms to attain set targets with improving performance in well manner. In this consider several steps that must be undertake for reaching at desired place so it is necessary to analyse that gap which occurs while running business ans its operations.
In the first phase, it undertake several aspects regarding firms such as company's goodwill or brand image, financial positions, its market shares, profitability and business performances and employees relations within an organisation. In the second phase, company undertake future aspects such as benchmarking and set standard that are to be achieved for gaining best possible outcomes in well manner (Short, 2010). Therefore, after performing entire tasks or works, organisations wants to analyse the gaps if occurred while attaining targets. These gaps can create barriers in increasing profits or productivity as well. This is also known as gap analysis which is must be required to find actual problems so that they can make better decisions regarding selecting best alternatives for resolving issues or problems in an appropriate manner. There are define two basic points that addressed by the gap analysis such as:
On the other side, gap analysis is a 360 degree analysis which is beneficial in performing several level as strategic as well as operational in any critical environment so that company can find actual or current situations of the firm in an efficient manner (Simon, 2012). It can be consider as the first stage in which analyse the performance versus potential so that appropriate results can be find out that may exceeds the expectations.
Conducts a gap analysis
The gap analysis is generally conducted for identifying the major differences in a big brands as what situations or problems occurred to resolve such types of issues. Therefore, it would be better that to undertake several host factors by an individual for analysing particular gap such as:
- Sales number
- customers satisfaction
- manufacturing costs or expenses
- time factors for production and shipments
- international expansions
- Retentions rates
there are defined number of host factors that can be considered bys the organisation for getting better outcomes while analysing several gaps in performance in an effective manner (Tang, and Kacmar, 2012).
This is an another aspects or next phase where an entrepreneur selects the particular area for the purpose of identifying the current level of performances and the future expectations. These are as followings:
- Focus on selling attributes and several channels
- Current monthly sales as per performances
- Industry Potentials
- Peculiar result or outcomes as per the networks
[source : Gap Analysis: A Template for Connecting Potential with Performance, 2017]
The states can be classified into three major areas such as:
- Analyse Gaps
Describe the gap
After identification of the gaps, the next step which have to considered is that to find and understand particular reason behind occurrence of problems. If a business undertake such situations for the purpose of analysing the exacts solution or things to do to achieve predetermined goals or objectives in more appropriate manner (Busenitz, 2012). It is an essential for The Max restaurant that they can grab opportunities for improving their performances and increase profitability or productivity. Here are some pattern given for describing the gap such as:
- Gap: The place where gaps are founded
- Gap Description: Gather informations and keep records to them which will support in contributing gaps in well manner. It can be quantitative and qualitative as well.
- Why: in this consider the reason behind occurrence of particular gaps.
Bridge the gap: The final stage is brainstorming activities which is beneficial in identifying the possible solutions through analysing gaps in an appropriate manner (Vaghely and Julien, 2010). In this defines that the particular solutions must be specific and relevant so that company can achieve best possible outcomes in an effective manner.
P4 Interpret data appropriately to provide evidence of market potential
The Market research play an important role in identifying particular market and its situations so that firm can make appropriate decisions or strategies for producing goods or services. it is an essential to define target customers by analysing their choices tastes and preferences towards goods or services. The Max Cafe has opportunities to develop business and increase its goodwill by providing best quality and varieties of coffees in the marketplace. Market research can be conducted for finding better target market and potentials customers during the stage of pre launch and post launch as well (Wang and Ellinger, 2013). Therefore, it is necessary to have good knowledges and informations about specific market for starting and running business operations in well manner.
- Primary market research: It is best method for gathering information regarding market as company conduct the research and collect data to improve its particular products and services. in this consider several methods as feedbacks, questionnaires, observation, surveys and interviews so that customers can respond and give their opinions regarding products or services.
- Secondary market research: This is another suitable method where data are gathered form other resources. These are based on quantitative methods rather then qualitative and it undertake various sources such as official data, government policies, internet, newspapers and magazines for collecting informations that support in finding best outcomes. It is very beneficial in data gathering because it takes less time as well as cost effective techniques for the organisation.
P5 SWOT framework to support an objective
SWOT analysis is used to embrace the market situation of an enterprise by using internal factors of firm. It focused on a company's strength, weaknesses opportunities and threats to know the critical and important aspects that can aid to explore the business. Max Cafe is a small cafe which offers the snacks and three meal plan for every one. The interior and exterior designing of the cafe plays a major role to grab the customers (Quan, 2012).
- Max Cafe is a new entry in the market which serves innovative relish food and beverages to attract the customers.
- It is situated in the most accessible and crowded place where the people can reach easily so it is a to feast themselves and their friends.
- The cost of the menu is affordable for everyone without any differentiation in their living status.
- The cafe also has some discount promotional schemes that supports to encourage the business.
- There are occasional vouchers and coupons are also available so that the customers can easily join the cafe events while ordering the savour food.
- Max cafe is only focused on the French and Spanish cuisine as it is in the United Kingdom.
- It is not investing excess dollars on the marketing so there may be a chance that weak marketing can impact on the business.
- It is putting up small investment so it take a long time to get the customers in mass.
- If Max cafe would be launch with a variety in menu plan then it can get a huge popularity among the customers as it will come with a bang in the marketplace.
- After establishing a cafe at one place it can start with the new cafes at several locations with customer satisfaction.
- As it has a affordable price so it can penetrate the market with taking the competitive advantage.
- The way it carry out the business operations it can earn the maximum profits by using various resources and techniques (Renko, Shrader and Simon, 2012S).
- Max Cafe is a new entry so it tough for this to stand in a market as there are already giants performing their business.
- Cafe has intensive competition with existing brands so it has a biggest fear to establish its goodwill in the market.
- As it has a small business and if it does not spend high amount on the marketing then it can decay within less time.
- Making loyal customers in small amount of time is difficulties (hort and et. al., 2010).
P6 Evaluate the competitive and market environments
Max Cafe is fresher in the market and every business establishes to gain the profit against the investment they made. When it comes to gain the profit there is a simple to trick to reach on peak is to defeat your rivals who stand against the Cafe. It is not easy to get victory over others this needs to lot of efforts and to commit the action. It needs to peep in the competitors resource in order to identify what kind of strategies they are utilizing. It can improve the competition strategies of the cafe. Because the cafe will be aware about the services that are providing by the other restaurants and cafes to maintain the satisfaction level of their customers and making them loyal clients. As much as the cafe is retrieves the information of their competition partners they can put new strategies to catch prospect customer's attention through offering the extensive services and delights. They can recognize the customer requirements and expectations from the cafe so they can establish an impactful plan that can meet their desires and also aid to fulfil the objectives of business (Tang, Kacmar and Busenitz, 2012).
To allure the customer's cafe can can apply marketing tools that can be advertising, sales brochures, newspapers, magazines, discount deals, competitive pricing, etc. to launch with a good hope to get a business on hike.
To evaluate the marketing environment for Max cafe there are some factors that are viable to analyse the business concept market size, aimed customers, trending approaches. Keeping specific eye on the changing market is not possible to analyse the exact demand according to the market size but if one has a sense to target potential market size then they don't need to gauge the every entity in the market. One should have a good understanding and sense of potential size of the marketplace then they can earn the good business even in huge market (Vaghely and Julien, 2010).
In the end of the year, business should also analyse the accounts books to figure out the investment and earning and this will also tell about the sales in actual and what are the expected. The foremost importance of the checking accounts is that it tells the profit and loss of the Cafe on the basis of previous year (Wang, Ellinger and Wu, 2013). Get Assignment Help Australia at the cheapest cost by experts writers.
It is good practice to aware about the competition level because business are always strive to increase their sales and that is the main motive to gain the profit. The one who is getting started a new business it will good for them to investigate about their existing rivals in the market and that how they can see their growth in the market by enhancing the sales (Wood and McKinley, 2010).
For More Visit: Influence of Framework and Analysing of Macro Environment-Tesco
The resort is about the identification opportunities of entrepreneurial which comprises the opportunities that are already existing in the market. Max Cafe is launching a small cafe in London that offers a French and Spanish cuisine for every standard with affordable price. This report includes the macro environment factors and opportunities, marketing segmentation and research, gap analysis and Swot analysis along with market environment.
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