Week 3 4 Entrepreneurship 1 entre PDF

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LESSON 2

Recognizing the Potential Market

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Expected Skills

At the end of this lesson, the students should be able to: 1. Analyze the market need; 2. Determine the possible product/s or service/s that will meet the need;

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Name: ________________________________________

Score:_____________

Section:_______________________________________

Date:______________

PRE-TEST Problem inventory analysis

Ethical factors

Consumer preferences

Brainstorming.

Industry

Political factors

Opportunity seeking

Economic factors

Business plan

Legal factors

I. Identify the Common/Core traits and personality that entrepreneurs should develop in managing and running a business. Choose your answer inside the box. 1. ________________________ These are the current need and wants of potential customers that should be discovered right away by a budding entrepreneur. 2. ________________________ This is the source of current trend on what is happening in the industry where the future business will belong to. 3. ________________________ The first step and is the most difficult process of all due to the number of options that the entrepreneur will have to choose from. 4. ________________________ Comprehensive paper that details the marketing, operational, human resource, financial. 5. ________________________ Similar to FGD, brainstorming is an activity that allows the participants to share creative ideas. 6. ________________________ This method is similar to the FGD except that the participants are already given an inventory of product or service problems. 7. ________________________ These factors play a vital role in the scanning of marketing environment because economic factors directly affect any business venture. 8. ________________________ These factors are mostly induced by government policies, and administrations, which can have a strong effect in the entrepreneur’s business. 9. ________________________ These are the factors that will serve as an entrepreneur’s guide on how to be ethical in running the business. 10. ________________________ Related with political factors, legal factors are government laws and regulations that can restrict or allow business activities.

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Lesson Motivation

EXPLORE

From the previous discussions, we must remember that no successful business started huge right away. A business starts with an idea. Once the business owner is established, the business owner, the entrepreneur, can choose to expand and explore franchising, intrapreneurship (managing a startup business in an established business), and acquisition (buying another similar business or a new business). Franchising is a business arrangement wherein the franchisor, who is the owner of the business, acquires distribution centers through the franchisees or the affiliated dealers.

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LESSON DISCUSSION

FIRM-UP/ DISCUSSION As the saying goes, the most difficult part of every task is where and how you start. The same true with entrepreneurship. You may have all the resources needed to operate a new venture, but it will never be easy to start one. This module will discuss the proper and efficient ways of starting a business. You will introduced to the entrepreneurial process, which starts with identifying and evaluating the opportunity. The heart of this module is the scanning of marketing environment where you can formulate a product or service solution applying the techniques of seeking, screening and seizing opportunities. As a result, you will deal with analyzing the need of the market, think the potential set of products or services that will meet the need, assess the feasibility of the solution, and select the best product or service that will address the need. Four aspects of entrepreneurial process 1. Opportunity spotting and assessment - this is the beginning of the process and is considered the most difficult. Entrepreneurs at this point take note of interesting trends in their environment. Consumers are reliable sources of opportunity information because market needs originate from them other major sources of opportunity are the glaring problems in the environment, problems encountered by co-entrepreneurs, new trends, processes, and developments in the environment. 2. Developing a business plan - Entrepreneurs should formulate business plan when they have already spotted and assessed the opportunities for a market. A business plan is a comprehensive paper that details the marketing, operational, human resource, financial. Strategic direction and tactics of the business. This business plan will be the core guide and direction of the entrepreneur in calculating the resources needed, assessing how to obtain these resources efficiently, and running the business sustainably. 3. Determining the capital needed - A big idea can never be translated into reality if the entrepreneur’s resources are limited. Therefore, it is mandatory in the entrepreneurial process to calculate the resources needed to establish the business and compare this against the entrepreneur’s current resources. 3

4. Running the business - This is part where the entrepreneur should use the resources allocated for the new venture. The business plan prepared in step 2 should already have been implemented. All aspects of the business plan should be critically observed from operations, marketing and sales, human resources, finance, and strategy implementation. The entrepreneur should have a control and monitoring system to serve as a check and balance of the formulated plans. This Table summarizes the components and steps in the entrepreneurial process. Components and Steps in the Entrepreneurial Process Opportunity and spotting assessment

Developing a business plan

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Evaluate the identified opportunity

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Conceptualize and measure the opportunity Identify the perceived value of opportunity to company and the customers

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Do cost-benefit analysis of opportunity including risk analysis

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Match the opportunity with the entrepreneur skills and objectives Scan the strengths and weaknesses of competitors

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Determining the capital needed

Come up with a business description and analysis Perform industry analysis Come up with the marketing plan

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Prepare the operations plan including the original plan

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Come up with the financial plan

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Identify strategies and tactics

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Perform monitoring and control

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Calculate the intrinsic and extrinsic capital needed Calculate the existing capital Calculate the difference between the needed capital and the existing capital. Choose the most cost efficient suppliers or service providers Develop contact and relationship with suppliers and service providers

Running the business

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Practice leadership as a way of life

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Recognize critical success factors

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Identify existing and foreseeable problems and issues

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Employ risks-mitigating controls and monitoring systems

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Devise an expansion/sustainability strategy

Valuing: As we are planning to become an entrepreneur, let us not forget that finding the opportunity first before coming up with a new product or service will let us put into an achievement where our start up business will grow and be developed.

Sca Scann nn nning ing th the eM Mar ar arketi keti keting ng EEnvir nvir nviron on onme me ment nt Scanning the marketing environment is the starting point of any new venture that involves understanding and knowing the intricacies of the macro environment, microenvironment, and internal environment. With this process of scanning the general environment, an entrepreneur can recognize various opportunities and at the same time understand thoroughly the arena where the future business will operate. The process of seeking, screening, and seizing is adapted to create the most suited product or service for an opportunity. The general rule is to find the opportunity first before coming up with a new product or service for an opportunity. The general rule is to find the opportunity first before coming up with a new product or service, not the other way around. This is one of the mistakes that budding entrepreneurs commit starting a new venture. Scanning is a crucial way of understanding and knowing the intricacies of the macro environment, microenvironment, and internal environment. Therefore, this task must be in a full focused of right decision making in the things screened. VALUING: What’s the value of scanning in the marketing environment? Of course, to scan is to find an opportunity first before coming up with a new product or service. TRANSFER: Think of a business that you find will suit to your talent or skills and make a scanning with regard to your marketing environment if the business you are going to establish is very suitable in your residence area/town or place where to put it up. Create a business plan based on the business you want to put up.

SEEKING, SCREENING, AND SEIZING The 3S of opportunity spotting and assessment is the framework that most of the promising entrepreneurs use to finally come up with the ultimate product or service suited for a specific opportunity. An opportunity is an entrepreneur’s business idea that can potentially become a commercial product or service in the future. The entrepreneur serves as the catalyst of creating a value for the costumers through the new or innovated product or service. As a reward, the entrepreneur earns profits when the costumers are satisfied and delighted.

S1: SEEKING THE OPPORTUNITY Opportunity seeking is the first step and is the most difficult process of all due to the number of options that the entrepreneur will have to choose from. It involves the development of new ideas from the various sources as follows: 5

1. Macro environmental sources a. STEEPLED. This is a mnemonic for sociocultural, technological, economic, environmental, political, legal, ethical, and demographic factors. This represents the general environment where the entrepreneur can identify business opportunities from and where the future business is about to operate. b. Industry. This is the source of current trend on what is happening in the industry where the future business will belong to. For example, the entrepreneur should be fully acclimated on what is happening with the rice industry if he or she wants to establish a rice retailing business. c. New discovery or knowledge. These are new strands that can be the core business model of a new venture. For example, the influx of mobile applications necessities businesses to have this platform as one of their transaction channels. d. FUTURISTIC OPPORTUNITIES- These are the projected new opportunities that can possibly affect the new business while it is running. 2. Micro market a. Consumer preferences, interests, and perception.These are the current need and wants of potential customers that should be discovered right away by a budding entrepreneur. This way, he or she will be able to take a chance of the opportunity. A need is recognized when a costumer believes that there is a difference between his or her current situation versus his or her desired condition. A want, on the other hand, is recognized when a costumer believes that there is a specific product or service that can perfectly suit the need. b. Competitors. Recognizing and understanding potential competitors will aid the entrepreneur to develop a product or service that is unique and will surely stand out from the competition. c. Unexpected opportunities from costumers. Oftentimes, the most brilliant ventures come from the most unexpected opportunities. It may happen in unlikely situations, unlikely places, and with unlikely people. d. Talents, hobbies, skills, and expertise. Business opportunities do not just come from outside forces, but also form within the entrepreneur. The entrepreneur’s talents, hobbies, skills, or expertise can be a source of business opportunity.For example, if the entrepreneur is an artist, why not sale his or her paintings? If he or she is a musician, why not put up a bar and perform there? If he or she is an expert in home interior design, why not make it a business? e. Irritants in the marketplace such as deterrents, problems, complaints, and delays. Generally, entrepreneurs see opportunities in situations where there is a recurring problem or sometimes when there is no more hope in solving the problem. When costumers are already sick and tired of the same old issue or problem that is when the opportunistic entrepreneur should come in and make a difference. f. Location. Often, entrepreneurs just have to look at their ecosystem and they will be able to spot a business opportunity right. For example, if the entrepreneur’s location has many schools, then a restaurant, an eatery, or probably a computer shop might be a good business to establish. If the entrepreneur is an island with an awesome beachfront, why not put up a hotel?

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Learning Target Analyze the market need;

DEEPEN: Activity Title: Opportunity

Spotting and Assessment

ACTIVITY 1

DIRECTION: Do an opportunity spotting and assessment activity in your own locality or barangay. Identify the potential opportunities from the macro environmental and microenvironmetal sources. Use the next page for your answer. Follow the given example below: Opportunity source

Findings

Potential product or service

Demographics

The number of ofw families is increasing in barangay Lucap.

Remittance

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Business, cell phone load business

Full Name: _______________________

Year. Level: _______________

Last Name, First Name Middle Initial

Strand: __________________________

Date & Time Finished: __________________

Activity No.____

Title of the activity: _____________________

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