STRATEGIC ENTREPRENEURSHIP

TOPIC 3

Dr Anis Amira Ab Rahman

 SEIZING BUSINESS OPPORTUNITIES:
VISSION, MISSION AND OBJECTIVE

Dr Anis Amira Ab Rahman

 Strategic Entrepreneurship and Strategic Management

Source : Wheelen, T. L. and Hunger, J. D.

Dr Anis Amira Ab Rahman (2000 cited in Kuratko, D. F. & Hodgetts, R.
M., 2004: 521).
 Business Opportunities

 What is a Business Opportunity?

 A business opportunity is said to exist when:
 There is a possibility of offering a new product or service
in a particular market.
 The product or service fulfills the demands and
preferences of the customers.
 Where the product can be used to solve their problem.

Dr Anis Amira Ab Rahman

 Business Opportunities

 When and Why is there a need to offer a product

or service in a particular market:
 When?
 Changes in Environmental Factors
 Political and Legal
 Economic
 Social
 Technological
 Why?
 Because Environmental Factors effect customers’
demand for particular product or service.
Dr Anis Amira Ab Rahman
 Business Opportunities

 Involve the process of identifying, evaluating

and selecting a business opportunity.
 Identify the needs and wants of customers.
 Scanning (examining) the environment and
evaluating of self (entrepreneur) and the community.
 Screening (Process of evaluating) of business
opportunities.
 Selecting a business opportunity
 Preparing a Business Plan.

Dr Anis Amira Ab Rahman

 Process of Identify and Evaluate
the Business Opportunity

Dr Anis Amira Ab Rahman

 Evaluating an Opportunity
The feasibility of an idea refers to how possible or worthwhile it is to
The feasibility of an idea refers to how possible or worthwhile it is to
pursue it, to see if it is actually an opportunity.
pursue it, to see if it is actually an opportunity.

Three methods for determining the feasibility of business ideas

are:
 Cost/Benefit Analysis. This is the process of adding up all the
expected benefits of an opportunity and subtracting all the
expected costs. If the benefits outweigh the costs, the
opportunity may be worthwhile.
 Opportunity-Cost Analysis. An opportunity-cost analysis
examines the potential benefits that you forfeit when you
choose one course of action over others.
 SWOT Analysis. This is a business evaluation method that
draws its name from the four areas it evaluates—Strengths,
Weaknesses, Opportunities, and Threats.
Entrepreneurship: Owning Your Future, 11th ed. © 2010 Pearson Higher Education,
Steve Mariotti Upper Saddle River, NJ 07458. • All Rights Reserved.
 Sources of Opportunity
Sources of opportunities include:
 Problems. Many well-known companies were started because
an entrepreneur wanted to solve a problem.
 Changes. Our world is continually changing. Change often
produces needs or wants that no one is currently meeting.
 New Discoveries. The creation of totally new products and
services can happen by accident.
 Existing Products and Services. You can get ideas for
opportunities from businesses that already exist by looking for
ways to improve a product significantly.
 Unique Knowledge. Entrepreneurs sometimes turn one-of-a-
kind experiences or uncommon knowledge into a product or
service that benefits others.

Entrepreneurship: Owning Your Future, 11th ed. © 2010 Pearson Higher Education,
Steve Mariotti Upper Saddle River, NJ 07458. • All Rights Reserved.
 Industry Types and the Opportunities

 Emerging Industries
 Industries in which standard operating procedures
have yet to be developed.
 Opportunity: First-mover advantage
 Fragmented Industries
 Industries that are characterized by a large number of
firms of approximately equal size.
 Opportunity: Consolidation

Dr Anis Amira Ab Rahman

 Industry Types and the Opportunities

 Mature Industries
 Industries that are experiencing slow or no increase in
demand.
 Opportunities: Process innovation and after-sale service innovation
 Declining Industries
 Industries that are experiencing a reduction in demand.
 Opportunities: Leadership, establishing a niche market, and
pursuing a cost reduction strategy]
 Global Industries
 Industries that are experiencing significant international
sales.
 Opportunities: Multidomestic and global strategies
Dr Anis Amira Ab Rahman
Vision

Dr Anis Amira Ab Rahman

 Vision

A vision is a guiding image of success

Inspiration
 Begins with intuition and
ideas

 Evolve through discussion

Vision
 Result in a shared sense of
Guidance Motivation direction and motivation

Dr Anis Amira Ab Rahman

 Vision

 It answers the question

“What will success look Examples
like?”
“A just world without poverty”
 It is compelling “To become a world leader at
connecting people to wildlife and
 It challenges and inspires conservation”
the group
“To become the most influential
 It focuses first on the client bridge between investors and
entrepreneurs”
 It describes what the
“To refresh the world, inspire
organization will look like moments of optimism and happiness
when functioning and make a difference”
effectively.

Dr Anis Amira Ab Rahman

 Examples of visions

1. McDonald’s - We are committed To doing what is

right. To being a good neighbour and partner in
the community To conduct our business with the
environment in mind
2. Ford – our company delivers excellent products
and services and strives to make the world a
better place.

Dr Anis Amira Ab Rahman

 Mission

Dr Anis Amira Ab Rahman

 Mission

Mission describes the overarching purpose of the

organization – the reason it exists.

 Who are you, as an  Purpose: sentence that describe the end result
organization?  An infinitive that indicates a change in
status
 Why do you exist?  An identification of the problem or
condition to be changed
 What do you do?
 A description of the primary means used to
 Who do you serve? accomplish that purpose

Dr Anis Amira Ab Rahman

 Create Your Mission Statement

• What is the problem that exists to solve?

• Who is affected by the problem?
• How would the community be improved, changed or
different if your organization’s efforts were
successful?

• What is the purpose of your organization?

• Why does it exist?
• What is the ultimate outcome or result you are
hoping to achieve?

Dr Anis Amira Ab Rahman

 Create Your Mission Statement
• What business are you in?
• What do you do to fulfill your purpose?
• What is the broadest way in which you could
state your work?

• For whom do you work?

• Who is your target population, your audience,
your market?

• Where do you work?

• What are your geographic boundaries?

Dr Anis Amira Ab Rahman

 Difference Between Mission and Vision

 A mission statement describes the *present* state of

a person or organization: "Who are you? Why are
you here? Why do you exist?"

 The vision statement describes *future* state: "Who

do I want to be? Where do we want to go?" The
vision should be inspirational and slightly out of
reach. Typically, it is a person or organization's vision
that provides a framework for planning.
Dr Anis Amira Ab Rahman
 Objectives

 After developing mission statement, objectives are

required to define. Objectives are much specific
than mission statement
 For example- I want to finish my assignment by 10
o’clock this morning. This indicates to perform a
number of tasks including typing text into computer,
reviewing some questions/criteria that have already
be written, printing out the assignment for
proofreading and so on.
Dr Anis Amira Ab Rahman
 Objectives
Objectives must be evaluated by SMARTER tools:
S Specific
●

M Measureable
●

A Attainable
●

R Realistic
●

T Timeframe
●

E Extending
●

Dr Anis Amira Ab Rahman

R Rewarding
●
 REFERENCES
 Barringer, B and Ireland, D (2012) Entrepreneurship – Successfully Launching New
Ventures (4th Ed.). Pearson Education, Global Edition.
 Dollinger, Marc J., (2003) Entrepreneurship: Strategies and Resources, 3rd Edition,
Prentice Hall International Edition.
 Mariotti, S. (2010). Entrepreneurship: Owing Your Future. (11th Ed.). England: Pearson
Education Ltd.
 Hitt, M. A., Ireland, R.D., & Hoskisson, R.E. (2011). Strategic Management: Competitiveness
& Globalization. (9th. Ed.). Canada: South-Western Cengage Learning.
 Wickham, P. A. (2006) Strategic Entrepreneurship. (4th. Ed.). England: Pearson Education
Ltd.
 James P. Lewis (2001) “Fundamentals of Project Management: Developing Core
Competencies to Help Outperform the Competition” (2nd edition), AMACOM publisher.
 Kuratko, D. F., & Hodgetts, R. M. (2004). Entrepreneurship: Theory, process, practice.
Mason, Ohio: Thomson/South-Western
 Leong, B. (2011). Introduction, Identifying Ideas & Business Opportunities, Nanyang
Technological University.
 Slideshare. (2007). Entrepreneurship studies – Chapter 2, Cosmopoint International
University College, School of Business.
Dr Anis Amira Ab Rahman