arch inst 2

Week 5
CREATE AN ENTERPRISE
a. Identifying Business
Opportunities in the Environment
b. Global Opportunities
c. Forms of Business Organizations
1.Identifying Business
Opportunities in the
Environment
Identifying Business
Opportunities in the
Environment

Entrepreneurs
usually start from
scratch.
The term
“Start-up”
means creating new
business from
scratch or from zero.
Business that provides costumers with
products that do not exist.

“start-up”
Business that provide costumers with
improvements on existing
Sources of
Product
Ideas
Ideas for new
products or services
may come from any
of the following
1
Chance
Happening
2
Personal
interest or
hobby.
3
Friends and
relatives.
4
Family
Business
5
Suggestions.
6
Education
or courses
7
Prior work
experience
8
Research and
Development
9
Creative
problem
solving
10
Focus Group
Discussion
11

Brainstorming
12
Problem
Inventory
Analysis
Improvements
on Existing
Products
Changing the
presentation of the
product also makes it
new.
Spotting
Opportunities
1. Market need
2. Location
3. Hobby of the people
4. Available materials in the
community
5. Your interest and know-how
4 ways of
going into
business
1 Start a new business
1 Buy an existing business
1 Take over a family business
1 Buy a franchise
“Strategy”
an analysis of the environment
is done to determine what
approach to use in the conduct
of business.
SWOT
analysis
Red Ocean Strategy
where we see a lot of crowding.
“the usual” business, what is common.
Blue Ocean Strategy
breaking away from what is ordinary.
2. Global
Opportunities
Global Opportunities

Globalization is about the

expansion of business
operations from one country to
another
How does a company
go global?
Franchise Partnership

Opening
Branches Exporting
“Exporting”
This means selling products to another
country

“Partnership”
Entering into an agreement with a foreign
company to do business in that country
would be beneficial to the local
entrepreneur.
“Franchising”
This is being practiced by big foreign
corporations by allowing their company/s
name to be used by local entrepreneurs to give
their business a global reputation.

“Branch Opening”
also an expensive venture especially start-ups.
However, if the business is already stable in the
industry and is considering expansion.
Government
Agencies Through Friends

Entrepreneur
Getting n touch with foreign buyers/partners

Travel The Internet

Trade Fairs
Are there challenges
to globalization?
Language Regional
Barrier Trade Currency
Alliance Fluctuation

Fortuities
Events Globalization Political
Climate
Peace and
order Laws Tariffs
or Taxes
 Despite the challenges
what factors motivates
entrepreneur go global?
What drives businessmen
to seek markets abroad?
1. Cutting Costs
2. Competition
3. Availability of Resources
4. Market Growth
3. Forms of Business
Organization
1. Sole proprietorship
the simplest form of business
organization. Only one individual
owns all the assets. “Most
convenient to operate”
2. Partnership
An association of two or more
persons to carry on as co- owners
of a business for profit.
3. Corporation
A separate body consisting of at
least five individuals treated by
laws as unit. “...it is more or less
permanent in nature”
Advantages and
Disadvantages
 Activity:
Form a group into 3 and list down the
Advantages and Disadvantages of the
selected Business Organization.
 SOLE PROPRIETORSHIP
ADVANTAGES
1. Easy to form, less
government requirements
1. Fast decision-making –
only one person decides
3. Flexible of operations
4. Suited to small business
DISADVANTAGES
1. Limited source capital
2. Life that may be
dependent on the life of the
owner
3. Management that may be
limited to the capacity of the
owner.
 PARTNERSHIP
ADVANTAGES DISADVANTAGES
1. Easy to form, less 1. Unlimited liability of the
government requirements partner for the debts of the
partnership
2. Suited to the practice of a 2. Limited term of existence
profession
3. Some are exempted from 3. Limited capital
income tax
4. Flexibility of operations
 CORPORATION
ADVANTAGES
1. Capacity as legal entity
2. Practically unlimited life
3. Limited liability of
stockholders for corporate
debts.
4. Wider source of capital
DISADVANTAGES
1. Activities limited by the
articles of incorporation and
corporate by-laws
2. Possibility of abuse of
powers of officers
3. Subject to more
government requirements.
Legal obligations
registering a business
 “name recall”
Choosing your business name that is
short and can be easily remembered.
 1.BIR
2. DOLE
Permits 3. MAYOR’S OFFICE
4. OTHER GOVERNMENT
AGENCIES
End of Week 5 Module