BUSINESS ENTERPRISE SIMULATION

GROUP#6
LEADER: Ang Abraham MEMBERS: Jake Racal, Qiu Windy, Kim Bryan

EXTERNAL SOURCES SPECIFIC EXTERNAL SOURCES BUSINESS OPPORTUNITY

1. Sociocultural factors -Desserts are the very Fried Ice Cream
common products and one of
the cravings of the society this
days especially in a very hot
climate that we have, and we
all know that as long as a
dessert has more ingredients
on it and has the same price
on what they are used to
purchase they will immediately
transfer to this product.
2.Consumer Preferences -People on the society craves
for ice cream during hot
climate days, so the
customer’s preference has to
be entertained at all times
such as the toppings for the ice
fried ice cream and many
other factors that may help
boost the impact of the
business to the customers.

3. Physical location of the -It would be located at Fried Ice Cream

entrepreneur ArcaYard in Valenzuela City
because that place has a high
demand of customers, which is
a very good opportunity for a
new start up business.

4. Competitors -A very common problem for a

business, especially if there is a
threat of new entrants and the
threat of new substitution for
your product and a company
that has the same service and
better quality with the same
price would be the conflict
here.

INTERNAL SOURCES SPECIFIC INTERNAL SOURCES BUSINESS OPPORTUNITY

1. Academic Background
2. Financial Capacity
-We have the academic
background of entrepreneur.
We have experience, but we
are still students.
-Since it is a new business the
capital would be limited only
to test whether this business
can provide short payback
period and a positive result of
income in the future.
 3. Vision and Strategy -The one who will operate this
business should be capable of
thinking what to do next, what
actions to take and what to
sacrifice for it

4. Skills, expertise or academic -A person operating this

backround business should have the skills
needed and this is only
possible if this area is in his
field of expertise and has a
proper education regarding it.

EXTERNAL SOURCES SPECIFIC EXTERNAL SOURCES BUSINESS OPPORTUNITY

1. Competitors -Since it is located inside the Fried Ice Cream
university, there would be a lot of
stall inside the cafeteria so it will be
a battle of how we will present our
products.
2. Consumer Preferences - People on the society craves for ice
cream during hot climate days, so
the customer’s preference has to be
entertained at all times such as the
toppings for the ice fried ice cream
and many other factors that may
help boost the impact of the
business to the customers.
3. Physical location of It would be located in the cafeteria Fried Ice Cream
the entrepreneur of a certain university. We chose this
for the reason that according to the
latest statistics that there are a lot of
students who pursues higher
education compare to other years so
it means that customers will
continue to grow eventually.

4. Competitors -A very common problem for a

business, especially if there is a
threat of new entrants and the
threat of new substitution for your
product and a company that has the
 same service and better quality with
the same price would be the conflict
INTERNAL SOURCES
1. Academic Background
2. Financial Capacity
3. Vision and Strategy
4. Skills, expertise or academic
backround
here.
SPECIFIC INTERNAL SOURCES BUSINESS OPPORTUNITY
-We have the academic Fried Ice Cream
background of entrepreneur.
We have experience, but we
are still students.
-Since it is a new business the
capital would be limited only
to test whether this business
can provide short payback
period and a positive result of
income in the future.
-The one who will operate this
business should be capable of
thinking what to do next, what
actions to take and what to
sacrifice for it
-A person operating this
business should have the skills
needed and this is only
possible if this area is in his
field of expertise and has a
proper education regarding it.
 Element I Attractiveness Score and Justification
Market Potential (25%)
Fried Ice Cream Cap w/ earphones
Market Need 5 4
Since it is a public place no matter We are selling it in a place
what the circumstance it would where there are a lot
serve as a place for gatherings so consumers but we have to
demand of customers will be very consider a lot of factors on
high. this kind of product.

Growth Rate 5 3
The market grows fast in these The market is still
areas because it serves as the unpredictable because
“tambayan” of people and another there is a lot of
is going to university/school competitors who sells
because it is a must for attendance. earphones with good
pricing and more
convenient for the
consumers.

Element II Attractiveness Score and Justification

Financial Feasibility
(25%) Fried Ice Cream Cap w/ earphones

Net Income 3 3
Despite the demand, the
competition is very tough specially
it is a place where there are a lot
stores and a possibility of
alternative substitution on your
product.
Despite the demand of
students and consumers,
we have to consider
factors like millennials
who likes wireless
earphones for fashion
which is a major problem
to this product because it
has to be attached to be
able to use.
Return on Investment 4 3
and Capital Recovery Since it is a public place where there The only problem for this
Period is a high demand of customers and to be a positive flow of
the climate in the Philippines is very income is that they might
high everyday this can provide a find it more convenient to
short payback period. use earphones separated
with a cap.

Element III Attractiveness Score and Justification

Competitive Advantage
(25%) Fried Ice Cream Cap w/ earphones

Control Over Prices, 2 2

Distribution and Costs We don’t have any control on the
pricing of the ingredients, since we
always have ups and downs in the
economic growth in the Philippines
Pricing 4.5
Competition is tough, therefore
since we are a new business,
pricing would be very affordable
first for the consumers, because
people in the society nowadays are
easily attracted to cheap stuffs.
We don’t have any control
on the pricing of the
materials to this product.
4
Pricing will depend on the
competitors’ prices but we
also have to consider if we
can get an income over it
because we also have to
pay for the place we
rented.
 Element IV Attractiveness Score and Justification
Entrepreneurial
Advantage (25%) Fried Ice Cream Cap w/ earphones

Margin for Mistake and 3 2

Errors Since we are just students who
became an entrepreneur with no
experience this might be a problem
for our business, but eventually
since it is a dessert food for hot
days, we can entertain the
customers for them to feel at ease
even we’re just students.
Since we are just students
and just got lucky to get a
permit to make business on
the chosen places, we
should properly observe
the rules on that area and
observe the income daily to
avoid fatal mistakes in the
business

OAM Elements Fried Ice Cream Cap w/ earphones

Market Potential (25%) 10*25% = 2.5 7*25% = 1.75

Financial Feasibility (25%) 7*25% = 1.75 6*25% = 1.5

Competitive Advantage
6.5*25% = 1.625 6*25% = 1.5
(25%)
Entrepreneurial Advantage
3*25% = 0.75 2*25% = 0.5
(25%)

Total 6.625 5.25