ENTREPRENEURIA

L MIND
GROUP 1
LESSON 6

TOPIC: Identifying and Analyzing

Opportunities
MEMBERS:
BELJANO, JOVEN P. CAÑETE, DHENMER C.
LEDESMA, CAYL RAMZEL SIBALA, RHOY JOHN
MANINGO, CEDIE M. SAURA, RUSSELL E.
JOSE, XANDER KANE
ALFARO, CHRISTIAN L.
Identifying and Analyzing Opportunities
Identifying and Analyzing Opportunities

Challenges of New Ventures

Role of culture in assessing opportunities
Factors causing success and failures in new venture
The opportunity analysis plan
Identifying and Analyzing Opportunities

Challenges of New Ventures

Finance Government Policies
Human Resources Political Environment
Decision Making Interest Rates
Customer Taste & Preferences Competitors
New Technology
Suppliers
Raw Material Cost
Identifying and Analyzing Opportunities

Challenges of New Ventures

Finance
Obtaining finance to start a new business is the major challenge for an
entrepreneur due to the difficult economic environment.

Human Resources
Once all the financial requirements are set, then the next biggest
challenge is acquiring skilled human resources.
Identifying and Analyzing Opportunities
Challenges of New Ventures
Decision Making

Customer Tastes & Preferences

New entrants should know the customer’s pulse to maximize the sales and profits.

New Technology
New innovations and technological developments are also one of the major
challenges.
Identifying and Analyzing Opportunities

Challenges of New Ventures

Suppliers
Finding right suppliers is also a great challenge for the new entrants to
fulfill the production requirements.

Raw Material Cost

Acquiring raw materials is not only a challenge; however, proper
maintenance is also a great challenge which enables the manufacturers to
produce quality goods. Raw material cost varies according to the
competitors, seasonal variations and due to the scarcity.
Identifying and Analyzing Opportunities

Challenges of New Ventures

Government Policies

Political Environment

Interest Rates
The increase in the interest rates discourages the new entrants to start and manage
the new ventures.

Competitors
Identifying and Analyzing Opportunities

Role of culture in assessing opportunities

CULTURE has become one of the most important business topics of 2016. CEOs
and HR leaders now recognize that culture drives people’s behavior, innovation, and
customer service: 82 percent of survey respondents believe that “culture is a potential
competitive advantage.” Knowing that leadership behavior and reward systems
directly impact organizational performance, customer service, employee engagement,
and retention, leading companies are using data and behavioral information to
manage and influence their culture.
CULTURE
 Culture is a business issue, not merely an HR issue. The CEO and executive
team should take responsibility for an organization’s culture, with HR supporting
that responsibility through measurement, process, and infrastructure.
 While culture is widely viewed as important, it is still largely not well
understood; many organizations find it difficult to measure and even more
difficult to manage. Only 28 percent of survey respondents believe they
understand their culture well, while only 19 percent believe they have the “right
culture.”
 Culture can determine success or failure during times of change: Mergers,
acquisitions, growth, and product cycles can either succeed or fail depending on
the alignment of culture with the business’s direction.
Identifying and Analyzing Opportunities

Factors causing success and failures in new venture

-Long and short-term success and failure of small businesses with emphasis on their
education and training.
-It is important to understand the external and internal factors responsible for
business start-up, the barriers faced during the initial and continuous stages of trading
and the advice and assistance available to entrepreneurs.
-all entrepreneurs are when developing a business are faces with three vital stages:
a)getting idea of business, b)start-up activity and c) activate the business.
Identifying and Analyzing Opportunities

Factors causing success and failures in new venture

Internal factors
In the light of internal factors will show three main area of research, which are related
to a- personal Characteristics of Small Business entrepreneurs, b- Planning and
organizing business and c- financial management.
Internal factors

A. Personal Characteristics of Small Business entrepreneurs

In spite of a number of research which has attempt to discover if there are any clear
characteristics which distinguish small business owners the general conclusion
appears to be that there in no simple pattern, but a complex set of interrelated factors
that increase or decrease the probability that an individual will become the owner of a
small business, and whether or not that business will succeed or fail.
Internal factors

B. Planning and organizing business

What seems to be a common citation are poor planning , poor management and
marketing. There are a lot of reasons given, but it is hard to actually know for sure
why a business failed unless you analyzed each particular case.
Internal factors

C. Financial management

A chronic problem facing many small businesses is the lack of funds to establish
them on a sound and stable financial footing. Initially, a business's capital may be
limited to what its owners can raise from savings, mortgaging the family home or
borrowing from relatives etc.
Identifying and Analyzing Opportunities

Factors causing success and failures in new venture

External and contextual Factors

In terms of external and contextual factors it is widely recognized that successful

organizations are those that best adapt to fit the opportunities and the constraints
inherent in the environment in which they operate (Kalleberg & Leicht, 1991). Here
some factors are more concentrated by previous researchers, namely: a-economic
factors, b- government support, c- Social support d- Information factors and e-
informal factors.
External and contextual Factors

A. Economic and infrastructure factors

The vast majority of new micro and small businesses are initialized in the localities in
which their founders already live, and the chances of success are closely related to
the geographical location (Sullivan et al 1998; ; Lussier, Robert N.
1996;Stanworth,1991).
B. Government support and empowerment role
It is realized that small business has a greater role in economic growth.
External and contextual Factors

C. Social support
The availability of social support can be a significant factor in the ability of small
business owners to cope with the barriers and difficulties they face during the
initialization of a new enterprise.
D. Information factors
The research showed that access to information to know the market behavior,
analysis the demand and supply of products and services are in high priority for small
business managers. Those who have a greater understanding of the industry or market
tend to have more favorable perceptions of the value of the opportunities they
encounter and their ability to utilize those opportunities(Lussier, Robert N,
1996;Gatewood et al, 1995 ).
Identifying and Analyzing Opportunities

The opportunity analysis plan

Identifying and Analyzing Opportunities
 The opportunity analysis plan

Opportunity analysis is very important to both the prospective entrepreneur and the
existing business owner. Every innovative idea and opportunity should be carefully
research into. This can be done by developing an opportunity analysis plan. An
opportunity analysis plan is not the same as a business plan. It main focus is on the
idea and the opportunity for the idea (i.e market). In layout and presentation,
opportunity analysis plan is much shorter than the business plan.
 The opportunity analysis plan

The primary objective of an opportunity analysis plan is to serve as a basis for the
decision to either act on the opportunity or wait until another better opportunity
comes. Generally an opportunity analysis plan consists of four sections as describe
below:

The Idea and its competition

The Market and the Opportunity
Entrepreneur and Team Assessment
The Next steps (How to achieve and implement)
 The opportunity analysis plan

The Idea and its competition

In this section, the product or service needs to be described in as much detail as
possible. There is also the need to have a prototype or schematic of the product so
that a full understanding of all aspect and features of the product is attained. There is
also the need to identify and list all competitive product and competitive companies
in the market. Finally the new product/service idea should be compared with at least
three competitive products/services that are most similar in filling the market needs.
 The opportunity analysis plan

The Market and the Opportunity

The next section of an opportunity analysis plan addresses the size and the nature of
the market.
Entrepreneur and Team Assessment
The entrepreneur together with a team should be involved in the opportunity analysis
process.
The Next steps (How to achieve and implement)
Short Quiz

1-5. Write at least 5 major challenges that entrepreneurs will encounter?

6-7. What are the two factors causing success and failures in new venture?
8. Why it is important for an entrepreneur to identify and analyze opportunity?
9. What is the first thing you should do in order to know if the outcome of your
business will success or fail?
10. Full name of our Teacher in Entrepreneurship