RECOGNIZING

THE POTENTIAL
MARKET
DEVELOPING A BUSINESS PLAN
 At the end of this lesson, the learners should be
able to:
LESSON
OBJECTIVES 1. Identify the forces of the internal environment.

2. Determine the importance of internal

environmental scanning, and

3. Identify internal environmental tools.

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 Is the framework that most promising
entrepreneurs use to finally come up with
3S OF the ultimate product or service suited for
OPPORTUNITY specific opportunity.
SPOTTING &
ASSESSMENT

P R E S E N TAT I O N T I T L E
1. SEEKING the Opportunity

2. SCREENING the Opportunity

3. SEIZING the Opportunity

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 1. SEEKING THE
O P PO RT UNI T Y
a. EXTERNAL/MACROENVIRONMENT
-it involves large societal forces that influence the microenvironment.
 PESTEL (Political, Economic, Sociocultural, Technological, Ecological, Legal)
 Industry Environment (Government, Suppliers, Customers, Competitors,
Employees, Creditors)

b. INTERNAL/MACROENVIRONMENT
-refers to the environment within the business.
 Business Resources
 Business Culture
 Business Structure
 Methods of Generating Idea

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 1. BUSINESS RESOURCES
 These are assets or properties owned or controlled by the business. It
can either be tangible or intangible.

1. TANGIBLE RESOURCES- are assets of the business that have

physical appearance and form.

P R E S E N TAT I O N T I T L E
Examples: Money (in paper bills), building, equipment, machinery,
supplies, human resources

2. INTANGIBLE RESOURCES- assets of the business that do not

have physical appearance or form.

Examples: Copyright, formula, Computer software, Reputation,

Goodwill

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 2 . BU S I N E S S C U LT U R E
 Otherwise known as the organizational or corporate culture.
 It is the collection of values, beliefs, principles and expectations
learned and shared by employees, founders, stakeholders & members
of the management.

TYPES OF CULTURES:
1. Culture of the Business or Organizations

P R E S E N TAT I O N T I T L E
2. Culture of the Employees

 Cultural Acceptance- the degree to which the employees accepts the

culture of the unit.
 Cultural Integration- refers to the degree by which all units across the
business accept and share a common culture.

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 3. BUSINESS STRUCTURE

Refers to the formal organization

arrangement in terms of hierarchy of
positions, flow of communication,
relationship of functional areas, and
production and marketing processes.

P R E S E N TAT I O N T I T L E
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3 . M E T H O D S O F G E N E R AT I N G I D E A S

 Focused Group -conducted by the entrepreneur with the assistance of a

moderator to gather views of selected consumer on certain
Discussion
issues.

 Brainstorming -allows participants to share creative ideas

P R E S E N TAT I O N T I T L E
 Brainwriting or -same as brainstorming except that the channel is not face-
Internet to-face, but in writing online.
Brainstorming

 Problem Inventory -similar to FGD except that the participants are already
Analysis given an inventory of product or service and participants
will just identify from the list given the compelling
problems instead of generating ideas from them.

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SCANNING OF THE INTERNAL
ENVIRONMENT

1.SWOT ANALYSIS

P R E S E N TAT I O N T I T L E
2.BCG ANALYSIS MATRIX

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Q U A R T E R LY P E R F O R M A N C E

P R E S E N TAT I O N T I T L E
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 STARS strong market penetration and
strong growth of the market.

 CASH strong penetration of market

COWS and low growth of the market,

P R E S E N TAT I O N T I T L E
 QUESTION low penetration of market in a
MARK high growth market,

 DOGS low penetration of market in a

low growth market.

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 2. SCREENING THE
OPPORTUNITYO P PO RT UNI T Y
SCREENING
-The process of cautiously selecting the best opportunity.

12 Rs of Opportunity Screening
 Relevance to Vision, Mission, & objectives.
 Resonance to values
 Reinforcement of Entrepreneurial Interests
 Revenues
 Responsiveness to customers needs & wants
 Reach- attainment of rapid growth
 Range- potentially lead to a wide range of possible product or service offerings
 Revolutionary Impact “next big thing”
 Returns
 Relative Ease of Implementation –easy to implement
 Resources Required

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 Risks
 3. SEIZING THE
O P PO RT UNI T Y
OPPORTUNITY SEIZING
-The “pushing through” with the chosen opportunity.

INNOVATION
 The process of positively improving an existing product
or service
 It is a key driver for economic growth.

THREE TYPES OF INNOVATION

1. Breakthrough innovation
2. Technological innovation
3. Ordinary innovation

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 Breakthrough -includes inventions, occur infrequently as these establish the
platform on which future innovations in an area are developed.
innovation Examples: Internet, the computer, or the airplane.

-includes technological advancement of an existing

 Technological product or service which occurs frequently.
innovation Examples: wireless fidelity or Wi-Fi, the laptop, or the jet plane.

P R E S E N TAT I O N T I T L E
-occurs ordinarily which are commonly originating from
 Ordinary market analysis and technology pull instead of a technology
innovation push. This means
that the market has a strong influence in the implementation of
an innovation.
Examples: unlimited internet plans of telecommunications companies,
a wireless mouse, and airbus for economical travelers.

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 Product Planning and Development Process

1. Idea Stage.
This refers to the formation of the business ideas. It starts with an
entrepreneurial intent and proceeds with a development of a business idea
using logic and creativity.

2. Concept Stage.
The refinement of ideas and visualization of an idea that can serve as a
business opportunity.

P R E S E N TAT I O N T I T L E
3. Product Development Stage.
It is here where the business idea is concretized with the production of a
prototype.

4. Test Marketing Stage.

At this phase, the product or service is introduced in the market after a series of
evaluation and feedback from potential customers.

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 Process of Opportunity Seizing
1. Crafting a positioning statement.
The entrepreneur is advised to look at other competitors in the marketplace.

2. Conceptualizing the product or service offering.

It is an idealized abstraction of the product or service to be offered to the
preferred market of the entrepreneur..

3. Designing, prototyping, and testing the product

P R E S E N TAT I O N T I T L E
The entrepreneur must render the concept and translate it into its very
physical and very real dimension by actual testing and then, later on,
subject to testing by potential customers through FGD, surveys, product
demo sessions, etc. Assess how much resources are available..

4. Implementing, Organizing and Financing

Choose correct technology, right people, Design the operating workflow.
Specify the systems and procedures & Design the organizational architecture.

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28 P R E S E N TAT I O N T I T L E
 T H A N K YO U !

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