Department of Allied Business Courses

College of Business and Accountancy

Ateneo de Naga University

Subject Code: BMES021 Section: BMN1

Course Title: ENVIRONMENTAL SCANNING & BUSINESS OPPORTUNITY Class Schedule: SAT / 8AM-11AM

RECOGNIZING OPPORTUNITIES AND GENERATING IDEAS

1. OBSERVING TRENDS

The first approach to identifying opportunities is to observe trends and study how they create
opportunities for entrepreneurs to pursue.

A. Economic Forces
a. Economic forces affect consumers’ level of disposable income.
Individual sectors of the economy have a direct impact on consumer buying patterns.
b. For example, a drop-in interest rates typically leads to an increase in new home
construction and furniture sales; large firms source out etc.
c. Getting a handle on these forces by:
(i) studying and observing and
(ii) purchasing market forecasts/analyses

B. Social Forces
a. An understanding of the impact of social forces on trends and how they affect new
product, service, and business ideas is a fundamental piece of the opportunity recognition
puzzle.
b. Some of the recent social trends that allow for new opportunities are the following: ƒ
- Family and work patterns
- The aging of the population
- The increasing diversity of the workforce
- The globalization of industry
- The increasing focus on health care and fitness
- The proliferation of computers and the Internet
- The continual increase in the number of cell phone users
Prepared by: Mrs. Pamela P. Barker, MBA candidate
Page 1 of 3
 - New forms of music and other types of entertainment
C. Technological Advances
a. Given the rapid pace of technological change, it is vital for entrepreneurs to remain on top
of how new technologies affect current and future opportunities.
b. Once a technology is created, products emerge to advance it
c. Advances in technology frequently dovetail with economic and social changes to create
opportunities

D. Political and Regulatory Changes

a. Political action and regulatory changes also provide the basis for opportunities
Example: new laws create opportunities for entrepreneurs to start firms to help companies
comply with these laws

2. SOLVING A PROBLEM

1. Sometimes identifying opportunities simply involves noticing a problem and finding a way to solve it.
2. These problems can be pinpointed through observing trends and through more simple means, such
as intuition, serendipity, or chance.

Look for problems. People complain about it being hard to sleep through the night, get rid of clutter in
their homes, find an affordable vacation, trace their family origins, get rid of garden weeds, and so on.

“Every problem is a brilliantly disguised opportunity.”

- John Gardner

3. Some business ideas are clearly gleaned from the recognition of problems in emerging trends.

3. FINDING GAPS IN THE MARKETPLACE

There are many examples of products that consumers need or want that aren’t available in a location or
aren’t available at all.

Product gaps in the marketplace represent potentially viable business opportunities.

A common way that gaps in the marketplace are recognized is when people become frustrated because
they can’t find a product or service that they need and recognize that other people feel the same way.

A related technique for generating new business ideas is to take an existing product or service and create
a new category by targeting a completely different target market.

THE OPPORTUNITY RECOGNITION PROCESS

The connection between an awareness of emerging trends and the personal characteristics of the entrepreneur:

Prepared by: Mrs. Pamela P. Barker, MBA candidate

Page 2 of 3
4 TECHNIQUES FOR GENERATING IDEAS:
1. Brainstorming – is simply the process of generating several ideas about a specific topic.

Rules for a Formal Brainstorming Session:

I. No criticism is allowed, including chuckles, raised eyebrows, or facial expressions that expresses
skepticism or doubt. Criticism stymies creativity and inhibits the free flow of ideas.
II. Freewheeling, which is the carefree expression of ideas free from rules or restraints, is
encouraged; the more ideas, the better. Even crazy or outlandish ideas may lead to a good idea
or a solution to a problem.
III. The session moves quickly, and nothing is permitted to slow down its pace. For example, it is
more important to capture the essence of an idea than to take the time to write it down neatly.
IV. Leapfrogging is encouraged. This means using one idea as a means of jumping forward quickly
to other ideas.

2. Focus Groups
- is a gathering of 5 to 10 people who are selected because of their relationship to the issue being
discussed.
- Typically involve a group of people who are familiar with a topic, are brought together.

3. Library and Internet Research

4. Other Techniques

- Customer advisory boards. Some companies set up customer advisory boards that meet regularly
to discuss needs, wants, and problems that may lead to new ideas.
- Day‐in‐the‐life research. Other companies conduct varying forms of anthropological research, such
as day‐in‐the‐life research.
- Other companies attend trade shows, conferences, and gatherings of industry personnel. They use
these events as intelligence missions to learn what their competition is doing and then use the
information to stimulate new product or service ideas.

Prepared by: Mrs. Pamela P. Barker, MBA candidate

Page 3 of 3