ENTREP|LESSON 2

Question 1

ESSENTIALS IN
ENTREPRENEUR’S OPPORTUNITY
SEEKING

Answer 1

ENTREPRENEURIAL MIND FRAME
ENTREPRENEURIAL HEART FLAME
ENTREPRENEURIAL GUT GAME

Question 2

This allows the entrepreneur to see things in a very positive and optimistic way in
the midst of difficult situation. Being a risk - taker, an entrepreneur can find solution when problems arise.

Answer 2

ENTREPRENEURIAL MIND FRAME

Question 3

Entrepreneur’s driven passion, they are attracted to discover satisfaction in the act
and process of discovery.
Passion is the great desire of an entrepreneur to achieve his/her goals

Answer 3

ENTREPRENEURIAL HEART FLAME

Question 4

This refers to the ability of the entrepreneur of being intuitive. This also known as intuition. The gut game also means confidence in one’s self and the firm believes that
everything you aspire can be reached.

Answer 4

ENTREPRENEURIAL GUT GAME

Question 5

SOURCES OF OPPORTUNITIES

Answer 5

• CHANGES IN THE ENVIRONMENT
• TECHNOLOGICAL DISCOVERY AND ADVANCEMENT
• GOVERNMENT’S THRUST, PROGRAMS, AND POLICIES
• PEOPLE’S INTEREST
• PAST EXPERIENCES

Question 6

CHANGES IN THE ENVIRONMENT (3)

Answer 6

1.1 The Physical Environment
1.2 The Societal environment
1.3 The industry environment

Question 7

a. Climate- the weather conditions.
b. Natural resources- such as minerals, forests, water, and fertile land that occur in nature and can be used for economic gain.
c. Wildlife- includes all mammals, birds, reptiles, fish, etc., that live in the wild.

Answer 7

physical environment

Question 8

a. Political forces- includes all the laws, rules, and regulations
that govern business practices as well as the permits, approvals,
and licenses necessary to operate the business.
b. Economic forces- such as income level and employment rate.
c. Sociocultural forces- customs, lifestyles and values that characterize a society.
d. Technological environment- New inventions and technology innovations

Answer 8

Societal environment

Question 9

a. Competitors
b. Customers
c. Creditors
d. Employees
e. Government
f. Suppliers

Answer 9

industry environment

Question 10

A person with entrepreneurial interest sees possibility of
business opportunities in any new discovery or because of the use of latest technology.
For example, an individual with knowledge in repair and installation of a machine engine discovers that additional engine parts that considerably reduce
fuel consumption

Answer 10

TECHNOLOGICAL DISCOVERY AND ADVANCEMENT

Question 11

The priorities, projects, programs, and policies of the government are also good sources of ideas.
For example, the use of firecrackers to celebrate New Year’s Eve is strictly prohibited. People without entrepreneurial
interest will view the ordinance as a plain restriction. However, for
an entrepreneur, it is a business opportunity to come up with a new
product that will serve as a substitute for firecrackers.

Answer 11

. GOVERNMENT’S THRUST, PROGRAMS, AND POLICIES

Question 12

The interest, hobbies, and preferences of people are rich source of entrepreneurial
ideas. Like the increasing number of Internet Café at present could be lead to the strong attachment of young people to computers

Answer 12

PEOPLE’S INTEREST

Question 13

The expertise and skills developed by a person who has worked in a particular field may lead to the opening of related business enterprise.
For example an accountant who has learned the appropriate accounting and management skills and techniques in a prominent accounting firm can start his/her business venture by
opening his/her own accounting firm.

Answer 13

PAST EXPERIENCES

Question 14

FORCES OF
COMPETITION
MODEL

Answer 14

It is also known as the “five
forces of competition,” An
industry environment is a
competitive environment.
Regardless of what product or
services you have, competition
is always present

Question 15

– it is the act or process
of trying to get or win something.
For example, the prices
are lower when there is a
competition among the stores.

Answer 15

Competition

Question 16

Five(5) forces competing within the industry

Answer 16

Buyers
Potential New Entrants
Rivalry among existing firms
substitute products
suppliers

Question 17

The buyers are the one that pays cash in exchange to your goods and services. For example, the influenced of the price or in the bargaining strategy. The buyer has a strong and magnified bargaining power. The threat
of its bargaining power will be less if the following factors
notice. There are several suppliers available in the market.
* The buyer has the potential for backward integration.
* The cost of switching the supplier cost is minimal.
* The product represents a high percentage of the
buyer’s cost.
* The buyer purchases large portions of the seller’s product or services.

Answer 17

Buyers

Question 18

A new entrant is defined as the one who enters something. For example, the level of capital requirements, if the
business requires huge
capital, new entrants should decline to join the business. This gives a threat to the business. This can be notice if
there is the presence of the following factors:
* Substantial capital
requirement.
* Strict government
policy.
* Difficulty in accessing
distribution channels.
* Economies of scale.
* High cost of product
differentiation
* High switching cost

Answer 18

Potential New entrants

Question 19

Rivalry is a state or
situation in which people
or groups are competing
with each other.
For example it depends on the Marketing strategy of your competitor, like giving freebies and special offers.
The intensity of rivalry
among existing firms is
characterized to the following
factors:
* Diversity of rivals.
* Characteristics of the products
or services
* Amount of fixed costs.
* Number of competing firms.
* Increased capacity.
* Rate of industry growth.

Answer 19

rivalry among existing firms

Question 20

Substitute means anything that takes the place or function of another. For example, the consumers decide to use margarine as a substitute for butter. In case the price of butter increases, preferably the consumer will gradually switch to margarine. A substitute product can give a big threat in the industry
environment if the following
factors are notice:
* Switching cost is low.
* Preferences and tastes of the customers easily change.
* Product differentiation is highly noticeable
* The quality of substitute
products dramatically improves.
* The price of substitute product is substantially lower.

Answer 20

Substitute Products

Question 21

The Suppliers are the one
that provide something that is needed or wanted.
For example if the supply
and services being offered is unstable or keep. The intensity of the threat is strong in this kind of the competitive force in the industry.
This can be notice if there is the presence of the following factors:
* The supplier has the ability for forward integration.
* Suppliers in the industry are few, but the sales volume is high.
* Substitute products are not readily available in the market
* The switching cost is very high.
* The product or service is unique

Answer 21

Supplier