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Amira, Alodia & Jayvi

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Let e!
 What is this?

1. Rivals/Competitors
SCMUORTE

Answer
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1. Rivals/Competitors
SCMUORTE

Answer CUSTOMER
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1. Rivals/Competitors
TMEARIGNK

Answer
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1. Rivals/Competitors
TMEARIGNK

Answer MARKETING
 What is this?

1. Rivals/Competitors VMNIETSTNE

Answer
 What is this?

1. Rivals/Competitors VMNIETSTNE

Answer INVESTMENT
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1. Rivals/Competitors
EIAFNCN

Answer
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1. Rivals/Competitors
EIAFNCN

Answer FINANCE
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OPRTTOPIYGN
1. Rivals/Competitors

Answer
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OPRTTOPIYGN
1. Rivals/Competitors

Answer PROTOTYPING
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1. Rivals/Competitors
SEIDNGNGI

Answer
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1. Rivals/Competitors
SEIDNGNGI

Answer DESIGNING
Chapter 2: Opportunity Seeking,
Screening, and Seizing
2.1 Opportunity Seeking
Entrepreneurs are innovative opportunity
seekers. They have endless curiosity to
discover new or different ideas and see
whether these ideals will work in the
marketplace.

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 ENTREPRENURIAL

Mind Frame Heart Flame Gut Game

This allows the Driven by passion, This refers to the

entrepreneur to see they are drawn to find ability of the
things in a very positive fulfillment in the act entrepreneur to
and optimistic light in and process of sense without using
the midst of crisis or discovery. the five senses.
difficult situations.

03
The Many Sources of Opportunities
There are many ways to uncover or discover
opportunities.
 Macro Environmental
Sources of opportunities
The macro environment refers to the
"big or macro forces" that affect the
area, the industry, and the market,
which the enterprise belongs to.

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01 Socio-Cultural 02 Political
Environment Environment
This defines the governance
This includes the
system of the country or the local
demographics and cultural area of business. This includes all
dimensions that govern the the laws, rules, and regulations that
govern business practices as well as
relevant entrepreneurial
the permits, approvals, and licenses
endeavor.
necessary to operate the business.

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01 Economic 02 Ecological 03 Technological
Environment Environment
Environment New scientific and
Supply and demand This includes all natural technological discoveries, which

forces mainly drive the resources and the

often lead to the launch and
commercialization of new
macro economic ecosystem, habitat of men,
products with superior
environment. animals, plants, and attributes or to rendering the
minerals. old ones obsolete, are the
entrepreneur's nightmares.

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 ources of Opp
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 The proper classification of what industry the enterprise is competing in is important if
the entrepreneur's intention is to define who are the relevant customers, who are the direct
and indirect competitors, and what are the critical characteristics of the market as to the
quality of products or services to be delivered.

Participants in an industry include:

1. Rivals or competitors in a
particular type of
business. 1. Suppliers of input to rivals as well
as suppliers of machinery and
equipment, suppliers of manpower
Answer
and expertise, and supplies of
merchandise.
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 The proper classification of what industry the enterprise is competing in is important if
the entrepreneur's intention is to define who are the relevant customers, who are the direct
and indirect competitors, and what are the critical characteristics of the market as to the
quality of products or services to be delivered.

Participants in an industry include:

3. Consumer market segments 4. Subsitute products or

being served by rivals or services, which customers
competitors. shift or turn to.

Answer 5. All other support and

enabling industries.
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Market Sources of
opportunities

These can be discovered from

increased or decreased
demand as well as higher or
lower supply.

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 Micromarket
This refers to the specific target market segment of a
particulat enterprise. The need for segmentation would
be crucial in micromarket analysis because the
definition of value for money differs from group to
group.

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 These can be sources of opportunities:
Consumer
preferences
This refer to the tastes of
particular groups of people. Some
examples are the clothes people
wear, the food they eat, the music
they listen to, and the movies they
watch.
Piques Perceptions
New Inventions, System, This refers to customers'
and Work Processes. awareness, their
impressions, and their
These can pique
opinions about your business,
customer's interest
products, and brand.
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Other sources of Opportunities
As an opportunity seeker, the entrepreneur will
surely discover other sources of opportunities.
Unexpected successes (or failures) can lead to
good opportunities.

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 Another potential source of opportunity is the entrepreneur's own set of skills or
expertise or hobby. New knowledge as well as the new technology can be the
source of highly innovative opportunities.

01 Customer preferences change over time.

02 People's tastes in clothes, music, shoes, entertainment, dance,

sports, hobbies, and even careers have evolved over the years.

What piques customers is a great source of

03
opportunities.

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 Another potential source of opportunity is the entrepreneur's own set of skills or
expertise or hobby. New knowledge as well as the new technology can be the
source of highly innovative opportunities.

Before the customer is won over, there is a first battle for the mind.
01 Next, there is a battle for the heart. Finally, there is a battle for the wallet.

The longer the customer wants to use the product, the

02 greater the chances of creating lasting loyalty.

Opportunities abound in shaping consumer perceptions or occupying

03 spaces in their minds or places in their hearts that have not yert been
filled.

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 Another potential source of opportunity is the entrepreneur's own set of skills or
expertise or hobby. New knowledge as well as the new technology can be the
source of highly innovative opportunities.

01 New inventions, new systems, work processes, new insights about

the human psyche, new applications for old knowledge, new
revelations about how the physical world works, new interpretations,
new combinations based on the convergence of previous
technologies, new outlooks about how life should be led, and a host of
other new things are tremendous sources of opportunities

Determining personal preferences and competencies

02 lay the foundation for a new business venture.

Unexpected occurrences in both the external and internal

03 environment of the enterprise indicate that significant changes
are happening and opportunities are spouting.
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 Reflections

What are the

01 What are the 02 03 opportunities that you
major opportunities What are the see from the macro
major threats to environment, industry,
and threats in the suppy and demand market, micromarket,
industry that you and consumer
expect to situation in the perspective of the
participate in? future? business you intend to
pursue?

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Opportunity Screening
After opportunity-seeking comes the
rigorous process of Opportunity
Screening.

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 Three Basic Question:

01 02 03 Will I sacrifice my
Do I have the Will I spend all existing lifestyle,
drive to purse this my time, effort, and endure emotional
hardships, and forego
business money to make the my usual comforts to
opportunity to the business succeed in this
end? opportunity work? business opportunity?

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 The 12 Rs of Opportunity Screening

01 Relevance

02 Resonance

03 Reinforcement

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 The 12 Rs of Opportunity Screening

04 Revenues

05 Responsiveness

06 Reach

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 The 12 Rs of Opportunity Screening

07 Range

08 Revolutionary Impact

09 Returns

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 The 12 Rs of Opportunity Screening

10 Relative Ease of Imprementations

11 Resources Required

12 Risks

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The Pre-Feasibility Study
The ultimate goal of doing the
opportunity screening matrix is to
narrow down the many opportunities
into one or two most attractive ones.

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 This time, the entrepreneur must go down to the details and take time to consider the
following factors that are contained in a pre-feasibility study:

Market potential
and prospects
Financial forecast and
Availability and appropriateness
determination of financial
of technology
feasibility
Project investment
Answer
and
detailed cost estimates
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Market Potential and Prospects
The market potential is based on the estimated
number of possible customers who might avail
of the product or service. For a more realistic
number, it would help to narrow down your
estimation to the relevant population or target
customers in the area where you want to
operate your business.

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 THEIR PURCHASING POWER OR The season of the year

DISPOSABLE INCOME

THEIR PROXIMITY OR ACCESSIBILITY their personal identification with the

TO THE GOODS OR SERVICES trend setter

THEIR INDIVIDUAL DESIRES AND

PREFERENCES their educational attainment

their technical proficiency and product

THEIR AGE OR GENERATIONAL GROUPING
expertise

their motivational impetus

THEIR SOCIAL, CULTURAL, OR ETHNIC
BACKGROUND

their lifestyle preferences

THEIR PEER GROUP PREFERENCES

their susceptibility to certain

THEIR GENDER advertising and promotional appeals, and
many others
Segmenting the Market

Using a set of demographics will be the most

basic approach on determining the target
segment. Keep that in mind that some general
statistics for these demographics can be found
online.

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Assessing Competition
Market potential is also affected by
the number of establishments
supplying and serving your target
customers. This process would
determine how saturated the market is
in the given area of coverage.

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Estimating Market Share and Sales

After estimating the number of potential

target market or segment, the next thing that
the entrepreneur should assess is the potential
market share he or she can attract.

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 In the assessment of market potential, the entrepreneur should evaluate the relative
strength of the various suppliers or competitors in the marketplace by asking the following
questions:

Who has dominance?

Who has greater barganing

power?
Which segments of the total
market are saturated and
over served and which ones
Answer
are relatively underserved
Are there market segments which are
more attractive than others for the
entrepreneur, either because of past
expertise in the segment or weaker
competition in the segment
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Technology Assessment and
Operations Viability
In order to get the enterprise going, the
entrepreneur must go through the intricates of
detailing the operations that would be required
by the business, which also includes technology
assessment.

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There are at least four target customer expectations affecting the scale and complexibility
of an enterprise's operations:

Quantities demanded

Quality specifications
demanded

Delivery expectations
Answer

price expectations
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Investment Requirements and
Production/Servicing Costs
Now comes the challenging part, the
entrepreneur needs to how much money is
needed to start the business opportunity with
consideration to the technologies and operating
levels required.

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Tere are three investments that need to be funded

Pre-Operating Costs

Production/Service
Facilities Investment

Answer Working Capital

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 Financial Forecasts and
Determination of Financial
Feasibility
Upon completing the first three parts of the pre-
feasibility study, the entrepreneur should now be able to
proceed in constructing his or her enterprise's financial
forecasts for the business. The financial forecasts refer to
the monetary transactions that the business is expected
to engage in.

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 Income Statement

The Income statement is a financial statement

that measures an enterprise's performance in
terms of revenue and expenses over a certain
period.

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Revenues-Expense=Income or Profit
(Loss)

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 Balance Sheet

Creating the balance sheet is a bit

more complicated because one has to
look at three different things.

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 Assets

Assets represent all the investments in

the enterprise including the initial
investments that you considered in the
pre-feasibility study.

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 Assets

Financing assets or investments are the

liabilities and equity. Liabilities represent
the enterprise's debts to suppliers, to
banks, to governement, to employees, and
other financiers.

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Assets=Liabilities+Equity

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Financial Ratios and Measurements

In any business endeavor, the investor or the

entrepreneur himself or herself will always be
interested in knowing the payback period or
how long will it take for him or her to get back
what he or she has invested in the enterprise.

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 Total Investment
Payback Period = ------------
Annual Net Income After
Taxes

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 Net Profit After Taxes
Returns on Sale = ------------
Sales

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 Net Profit After Taxes
Return On = ------------
Assets Total Assets/Investments

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 A feasibility study is prepared to convince bankers and investors to put money
into the business opportunity.

01 a more in-depth study of market potential to ensure that the

business proposal will reach the forecasted sales figure

02 proof that the product or service being offered has the right
designs, attributes, specifications, and preferred features

proof that the entrepreneur and his or her team have the
03 necessary experience skills, and capabilities to maximize the
venture's chances of success

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 A feasibility study is prepared to convince bankers and investors to put money
into the business opportunity.

04 legal visibility

05 more detailed costing on the different assets and more

justification for the production and operating expenses

more thorough analysis of the technology and its

06 sustainability

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OPPORTUNITY SEIZING
 Oppurtunity Seizing
-the final stage.
-The entrepreneur has an idea as to where he or she will locate the business
and how he or she will market the product or service.
-Determine critical success factors.

Entrepreneurs need to have an innovation mindset so they can stand out in

the marketplace. They need to identify their target market and formulate a
compelling message, supported by a marketing mix that matches the desired
customer bonding strategy that will resonate with the target market.

 WILL I BE ABLE TO MANAGE, TO MY ADVANTAGE,

THE CRITICAL SUCCESS FACTORS AND AVOID THE
CRITICAL FAILURE FACTORS?

The critical factors may change depending on what market segment

the enterprise is addressing. If the market segment wants very high
quality products and can tolerate higher prices, the critical success
or failure factors here would be different from a market segment that
is very price conscious but is not too demanding on quality.

Innovation is the process of positively improving an existing product or

service. It is a key driver for economic growth.

THREE TYPES OF INNOVATIONS according to the degree of

distinctiveness.

01 Breakthrough Innovations

02 Technological Innovations

03 Ordinary Innovations

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 FOUR STAGES

1. Idea Stage- in this stage, the entrepreneur determines what are the
feasible products and/or services that will perfectly suit the opportunity.
•Market Evaluation

or services.
• Assessment of the value of new products
• Elimination of unappealing products or services.
.
2. Concept Stage- the developed idea will undergo a consumer acceptance
test. This test includes getting the initial reactions of the primary target
market and the distribution channel.
• Conversational interviews
3. Product development Stage- in this stage, the entrepreneur
leverages on the information generated from the prospective
customer via the concept stage.
• Determine actual reactions from prospective customers
• Conduct consumer panel
4. Test marketing stage- this stage validates the work done
from the first three stages to measure success in the
commercialization of the product or service.
• Actual sales results
 CRAFTING A POSITIONING
STATEMENT

POSITIONING STATEMENT
• The entrepreneur is advised to look at other competitors in the
marketplace.
• Details such as major buyers, attributes or features that make the
competitors’ products attractive should give the entrepreneur an idea.
Customer profiling will come into the picture their characteristics and
traits, behavior and usage pattern, preferences and dislikes.
Grid 1 arranges the products according Grid 2 arranges the products according to
to their quality levels along the
horizontal plane and according to their

their sales volume along the vertical plane

and according to their main value
prices along the vertical plane. propositions in the horizontal plane.

Conceptualizing the Product or Service Offering

After making an assessment of the competing products, the

entrepreneur must then conceptualize
his or her own products. A
concept is an ‘idealized abstraction of the product or service to be
offered to the preferred market of the entrepreneur.
 Designing, Prototyping, and Testing the Product

From conceptualization, the entrepreneur proceeds to the design, prototyping, and testing of
the concept.

Designing render
measurements.

Prototyping ready for

testing.

Testing thru surveys and

The entrepreneur must be able to ‘perfect’ the product
Answer demos.
or service as it goes through the above processes while
the product or service is continuously subjected to

testing and improvement.

Implementing, Organizing, and Financing

Good planning and good programming are essential to have good implementation. A good
planner and programmer must make several important choices to achieve the desired end
results.

First is to choose the correct technology, the one that would produce the output that would
meet the quality specifications of the customers.

Second is to choose the right people who can perform the technical and managerial
functions necessary to realize the desired end results.

Third is to design the operating workflow that would assure the effective, economical, and
efficient production of the output.

Fourth is to specify the systems and procedure§ that would govern the enterprise,
motivate and discipline the work force, and satisfy the customers.
Fifth is to design the organizational architecture that would allow the people to function at
their best.

Good planning and programming= good implementation

People and physical resources are dictated by the

sales volume targeted, the technology to be utilized,
and the capabilities needed by the workforce.

The sales volume would then determine the quantities

of materials, supplies, power, space, people,
operating expenses, and other requirements.
Thank You