Identifying Entrepreneurial Analysis

This report will take TESCO for this case study. It is British multinational retail company and it is largest retailer in the world measured by gross revenues. This report will evaluate and determine the sources of the Entrepreneurial idea and innovation. It will explain the market gaps and rationale for the particular Entrepreneurial idea by using tools. This report will interpret data of the potential market and it will also justify specific sources and methods of data collection. This report will include SWOT analyses to sees specific entrepreneurial idea. In the end of this report will analyse PESTEL analyses of TESCO company.

MAIN BODY

P1- Appropriate sources of Entrepreneurial idea and innovation

There are many sources which can help TESCO company to bring innovation and identify the Entrepreneurial idea. Drucker's 7 and Product and process innovation are one of them. This tools will help them to develop new ideas for their company and help them to achieve high growth in the market.

Drucker's 7 sources of innovation

Peter F. Drucker , known as the inventor of the modern management, Drucker has explained valuable resources on the management business and innovation and entrepreneurship. Here are 7 sourcess of innovation explained by the Drucker-

The Incongruity

When the needs are incongruently with the supply, innovation might be born in an attempt to resolve the existing incongruities people might innovate. TESCO leaders should find the problem faced by the customers and need of their customers which can help them to get innovative idea.

Market structure

Industry and market structure of the Retail industry can be stable for long time .

Necessity, still new technologies change in any time so it is important for the TESCO superiors keep and eyes on those changes.

Necessity is known as mother of the innovation and new Entrepreneurial idea. TESCO should bring new product which should be different from other and fulfil the purpose of the people.

Demographic

TESCO should find the alternative of the product which can satisfy the customers, and they can use without any problem. For example, cigarettes are dangerous for humans but most of the people like to do smoke so companies find the alternative and invent e-cigarette.

Changing perception

Changing the perception regarding the things can also help TESCO to develop innovation. For example people like to be fit and healthy, but they like to eat organic food as well.

New knowledge

New knowledge can be a source of innovation for the TESCO. They can bring new technology in the company which can help them to increase their productivity. For example - They can search and study about the technologies which is used by the retailers of the other counties.

Product and process innovation

In the product and process sources, company focus on the innovation of the product and increase the effectiveness of their process.

Product

TESCO can bring innovation in their product by analysis the market and demand of the customers. It is important for them to find what changes they can bring which can create their product unique.

Process

Change in the company's process can bring innovation in the company. For example company can bring new technology in their workplace which increase their productivity and efficiency.

Steep factors

The STEEP analysis is often conducted by firms to get a detailed overview on what external factors determine the trends. It also helps to predict what might happen in the future. STEEP is basically an acronym which stands for Social, Technological, Economical, Environmental, and Political.

Social

It is important for the TESCO company to understand want people need and what they are searching for.

Technological

For the new entrepreneurial Ideas people should find new technology trends in the market.

Environmental

Environmental factors include food, where social etc.

Economical

It is important for the Entrepreneur to know economical conditions of the country like lire labour rates etc.

Political

The Political developments can highly influence individuals and organizations.

M1- Detailed evaluation of Drucker's 7 sources

Peter F. Drucker , known as the inventor of the modern management, Drucker has explained valuable resources on the management business and innovation and entrepreneurship. Those 7 sources of innovation can help TESCO to bring new ideas and innovation in their workplace to increase their growth in the market, and they can also increase their reputation in the Retail market. Want to get Online Assignment Help ? Talk to our Experts!!!

D1- Sources and approaches to identify Entrepreneurial ideas

There are many ways and sources to identify Entrepreneurial ideas which can lead business to achieve high and success in the market. One of them is customer survey, in this method's entrepreneur ask question to the customers and identify their needs and expectations from the sellers. It can be beneficial to search something new and unique business idea. Two main sources of innovation which are used by the Entrepreneurs 'marketing study and new knowledge.

P2- Rationale and market gap to identify new Entrepreneurial ideas by using tool

Tesco company has strong hold in Retail market, and they are having huge market shares but there are new retailer companies who are taking competitive advantages by making same products and cheap price (Blas., 2018). TESCO will launch new product in the market which is Biodegradable bottles. This product is helpful for this company because most of the companies are using Non Biodegradable bottles which are affecting environment. Biodegradable bottles are receivable and useful to save environment. This will also fill the gap between the market because it will affect positively on customers mind and TESCO will able to create good image in customers mind, and they can gain customers loyalty.

Porter's five analysis

Threats of new entrants

Requirement of the capital resources are very high in the retailer market so it is difficult for the small firms to entrant in the high retail market (Bull and et.al., 2016). New business cannot set up their business because they will need high finance in the start.

Bargaining power of supplier

There are many suppliers are very few suppliers of Biodegradable bottles are available in this market so TESCO have fewer choices. This means Suppliers can charge high amount from the TESCO.

Bargaining power of Buyer

There are many firms within this industry where TESCO is operating their business so customers have more choices, and they can choose other retailers to buy products But this new Entrepreneurial idea can help them to attract customers, and they will have very new choices.

Threat of Substitute products

There are some other firms in this industry who are using Biodegradable bottles so TESCO have threat of substitute product. Supplier of this product are also very fewer so Design and product can be same.

Rivalry among Existing firms

There are very few competitors present in the retail industry where TESCO operates their business (Calderón, Álvarez and Mariño., 2019). Biodegradable bottles idea can help them to take competitive advantages in the market and this idea can address the market gaps.

M2- Justification

Specific Entrepreneurial ideas of ' Biodegradable bottles' can help to feel the gap between the market because this bottle are useful and These bottles are destroyable and reusable. It will also spread message in the customers mind that they are also giving their contribution to save environment. Plastic bottles are big problem for the environment because it can't be destroyed and it has very bed affect on the environment. It is also harmful for the animals as well. Take Examples of Assignments Now!

D2- Entrepreneurial idea based on appropriate investigation and interpretation

Idea of Biodegradable bottles can help TESCO company to achieve success in the competitive market. This is a new trend in most of the market to give contribution towards the environment. Customers are avoiding to but plastic bottles Because they are aware about effect from the Plastic bottles. This creates gap between the market and customers avoid using this which are made with plastic. This new Entrepreneurial idea can be useful for TESCO to overcome from this treat and increase their brand image in the market.

P3- Present data needed to support gap analysis in the evaluation of specific entrepreneurial ideas

TESCO marketers use primary researches to identify the new business ideas of Biodegradable bottles. Primary researches in which investigator collects the market information themselves. They make some questions related to the product and servicess, and they found that customers are concern about use of plasic in the product which help them to get these ideas. They run a face to face survey and ask question directly to the customers. They also get some suggestion to develop their product according to them, so company can satisfy the needs and demand of the customers in this competitive market. Secondary research methods help them to know what customers need in their product and how they can satisfy their demand. Marketers of the TESCO also use secondary methods and collect the information from the surveys done by the other companies (Heap and Waters., 2019). This data help them to compare the recent data and previous data. They use websites and other surveys to collect the data and it helps them to know how demand and needs of the customers change with the time, and they are able to understand customers demand for the TESCO company. Both secondary and primary researches help them find new ideas for the innovation in their product.

GANTT Chart

P4- interpret data to provide evidence of market potential

In the competitive market it is important for TESCO to use new tools to collect data and analyse market potentials (Jensen and et.al., 2016). There are some tools and techniques to collect the data and market potential such as big data to assess market trends, internet forums and social media to test the market responses and evaluation.

Big data analyses

Big data analysis is the use of advances analytic techniques against very large, diverse sets which can include unstructured data, structured data, from the different sources and different sizes from zettabytes. This kind of data can helpful for the TESCO company, and they can get benefits in their business. Company can find the new trends in the market which can increase their profitability and help them to increase their market growth. They can collect the data about the new technologies in the market and new trends in the market. Market potential of Biodegradable bottles are very high according to Big data analysis because This is new rend in almost all the market.

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Internet forms and social media

Internet forms such as quora can be helpful for the small business. Experts provide the new ideas and innovation techniques for the business. It helps to make their business more effective and get better guidance from the experts. They can also collect the data about the market, and they can discuss the new business ideas and get advice from the experts. They can give advice how market can response on their new ideas and how they should implement this idea on their business (Johnston., 2017). Social media is the other ways to test the response of the market. Companies can run online survey in the particular market, so they can collect the data about their new business plan, and they can also analyse how people will response with these ideas and innovation. All the data they will get through the social media tool. Most of the companies are using social media for their product promotion and testing market response on through social media platform. This is the best way to test the market because here they will get accurate data, and they can also target any particular market or any particular area of the country TESCO superiors can take suggestion about bringing Biodegradable bottles in the market, and they will get more suggestions related to the idea, and they will also get ideas about custmers response..

M3- methods of collecting data and sources

There are two methods which are used to collect the data which are primary researches and secondary reteaches. In the primary research's investigator collect data themselves, and they do not take help of any other sources. This method includes open-ended surveys and questionnaires, observation, case studies, online survey and interview. Other method is secondary research in which investigator take help of the primary researches and collect data from the researches done by the others. Example - government documents, historical database etc.

D3- sources and methods to provide justified business objectives and market potential

Markers of the companies can use some sources to collect the data. Most commonly used methods are survey through the mail and email (Merrington and et.al., 2019). Interview on the telephone and face to face interview documents and records and experiments. This sources can help them, to find information which they need to bring new business ideas. This is most effective ways to collect data from the market and companies can develop their product by using this all methods and take competitive advantages in the market.

P5- SWOT analyses to support specific entrepreneurial idea

SWOT analysis of TESCO

Strength

Strength of Biodegradable bottles is that, This kind of bottles are the best replacement of the plastic bottles. It will help to decrease the circulation of the plastic bottles in the market. People can buy those bottles for the regular use because these bottles are reusable (Ortega And et.al., 2019). Best thing about Biodegradable bottles are that it does not affect on the environment and it can be destroyed easily and this bottles does not produce any harmful Gasses. Biodegradable bottles look premium so it will also attract customers to but this product. Biodegradable plastic breaks down only in a period of a few months, depending on the material used to make the bioplastic and the method of disposal. Other kind of plastic contribute 12 percent of waste and only 8 percent from this plastic can recyclable .

Weakness

Biodegradable bottles are useful but This product have some weakness. For the recycling process of Biodegradable bottles needs costly equipment and it also to take time to recycle this product. Some of the Biodegradable products produce methane when decomposing in landfills. Biodegradable products produce very high amount of methane per year and methane is 80 times more potent than carbon dioxide. This also absorbs heat faster so it can become a reason for the climate change. Cost of the Biodegradable bottles are higher than plastic bottles so customers can avoid buying Biodegradable bottles.

Opportunities

It is an opportunity for the business because it becomes a trend among customers to buy Biodegradable bottles and products (Reuber And et.al., 2018). Now a days people are more concern and aware about bed effect of plastic so they are using Biodegradable products to give their contribution toward environment. It can be helpful for the business to create good reputation among the customers and increase their growth in the market.

Threats

There are many firms who are using Biodegradable bottles in the retail industry so TESCO company can have threat of competitors. They will also become their competitors who are already using Biodegradable bottles. It is important for them to create good relation with the suppliers of the Biodegradable bottles, so they can add some value and make profit in the market.

TESCO company does not manufacture any product so it will be costly for them to but from the others and it will be costly for this company, and they will not able to create profit from Biodegradable bottles

P6- Evaluate the competitive and market environments in which idea will be launched

PESTEL analysis can help TESCO company to know factors which are affecting their business and the market environment where they can launch their Entrepreneurial idea.

PESTEL analysis of TESCO

Political factors

Government of each country are very concern about the use of plastic because it is affecting environment. They are forcing retail companies to use less plastic and there are many governments strictly ban plastic in their country (Singh and et.al., 2018). TESCO can take advantages from the Biodegradable bottles and aware people to use Biodegradable bottles and save environment from plastic. They will also get support from the Government, and they can launch their product without interference of government and their new business idea can work successfully.

Economic factors

Demand of the Biodegradable bottles is increasing because customers are aware about the harmful affect of plastic on animals, soil, and environment. It helps to create demand among the customers to use Biodegradable product.

Social factors

Biodegradable bottles has good affect on the society and people because TESCO can spread a message through Biodegradable bottles that why plastic is dangerous for the environment and it will also inspire other retailers to use Biodegradable product in the stores to give their contribution toward the environment. Society people will also start using this bottles, and they can give their contribution to save climate and environment.

Technological factor

TESCO can use Their online website and shopping side to sell Biodegradable bottles, and they can take competitive advantages in the market (Turriago-Hoyos, Thoene and Arjoon, 2016). They can also aware about the Biodegradable bottles and their use to the customers through articles on their website.

Environmental factors

Biodegradable bottles are special made to save environment and it helps to reduce use of plastic in the society.

Legal factor

Government of the many countries are encouraging companies to use Biodegradable product so idea of Biodegradable bottles can be successful and TESCO can take competitive advantages.

M4- entrepreneurial idea in a context of competition and marketplace

Biodegradable bottles can be successful because use of plastic is increasing nowadays and some amount of plastic can use recycle. It Can help entrepreneur to achieve competitive advantages in the market place. For example- If TESCO use Biodegradable bottles and advertise importance of this product than company can encourage customers to give their contribution by using Biodegradable bottles.

D4-Justification and recommendation

New entrepreneurial ideas can be developed through understanding customers demand and gaining knowledge about new information (Varelas and Georgopoulos., 2017). . After getting new ideas it is important for the entrepreneur to manager things needed to convert these ideas into reality. They also have to understand that how these ideas will help them to take competitive advantages and show their presence in the market.

CONCLUSION

As per the report will has been analysed entrepreneurial opportunities for the TESCO company. This report has been evaluated and determine the sources of the entrepreneurial idea and innovation which has been Concluded Drucker's 7 sources of innovation and product and process innovation. It has been explained the market gaps and rationale for the particular Entrepreneurial idea by using tools. This report has been interpreted data of the potential market and it also has been justified specific sources and methods of data collection such as primary and secondary data. This report has been concluded SWOT analyses to sees specific entrepreneurial idea. In the end of this report has been analysed PESTLE analyses of TESCO company to their idea in the market.

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