Entrep Summative tomo Flashcards
Entrepreneurial Process
- Opportunity spotting and assessment
- Developing a Business plan
- Determining the capital needed
- Running the business
evaluate the identified opportunity Opportunity spotting and assessment
Opportunity spotting and assessment
problems encountered in the environment
Sources of opportunities
3s of opportunity spotting
Opportunity seeking
Opportunity screening
Opportunity Seizing
the first step and the most difficult process of all due to the number of options that the entrepreneur will have to choose from.
opportunity seeking
Ways to spot opportunity
- Voice of Customers
- Voice of Enterprise
A research process that captures the changing needs of customers and consumers
Voice of Customers
Benefit related to the performance of the product or service
Functional Benefit
Benefit related to the price of the product or service
Economic benefit
Benefit related to how the owner feels when owning or using the product or service
Emotional benefit
Benefit related to how others will perceive the owner of the product or service
Social benefit
Entrepreneurs must understand the frequency, and depth
Pain Points Understanding
Not just understand pain points but also accepts that change is needed
Pain Healing
Lifestyle trends
how do people live
how do people work
how do people pray
how do people die
how do people invest
the process to articulate the needs of the entrepreneur or the needs of their company
Voice of enterprise
growth strategy
segment opportunity
product opportunity
channel opportunity
geography opportunity
business model opportunity
new business versus expansion
new business versus expansion
identify the need of non-market customers
market driven strategy or market driving strategy
merger and acquisition
other ways to grow
general environment where the business can operate
steeple analysis
current trends
industry
new venture
new discovery or knowledge
diversity of product line
Futuristic opportunities
represents a general view of localities traditions, customs, beliefs, norms
SocioCultural Factors
Composed of innovations of an existing technology or an invention of a new one mostly on applied science and engineering research areas
technological factors
play a vital role in the scanning of marketing environment because economic factors directly affect any business venture
economic factors
factors that will serve as an entrepreneurs guide on how to be ethical on running the business
ethical factors
these factors are mostly induced by government policies
Political factors
related with political factors, government rules and regulations
legal factors
comply with environmental standards
Environmental factors
consumer preferences, interests
Microenvironmental sources
This is the process of cautiously selecting the best opportunity.
Opportunity screening
to vision, mission, and objectives of the entrepreneur.
Relevance
Resonance to values.
Resonance to values.
How does the opportunity resonate with the entrepreneur’s personal interests, talents, and skills?
Reinforcements of Entrepreneur Interests
In any entrepreneurial endeavor, it is important to determine the sales potential of the products or services you want to offer.
Revenues
to customer needs and wants.
Responsiveness
Opportunities that have good changes of expanding through branches, distributorships, dealerships, or franchise outlets in order to attain rapid growth are better opportunities.
Reach
The opportunities can potentially lead to a wide range of possible product or service offerings, thus, tapping many market segments of the industry.
Range
If you think that the opportunity will most likely be the “next big thing” or even a game-changer that will revolutionize the industry, then there is a big potential for the chosen opportunity.
Revolutionary Impact
It is a fact that products with low costs of production and operations but are sold at higher prices will definitely yield the highest returns on investments.
Returns
Will the opportunity be relatively easy to implement for the entrepreneur or will there be a lot of obstacle and competency gaps to overcome?
Relative ease of implementation
Opportunities requiring fewer resources from the entrepreneur may be more favored than those required more resources.
Resources required
. In an entrepreneurial endeavor, there will always be risks. However, some opportunities, carry more risks than others, such as those with high technological, market, financial, and people risks.
Risks
It is a blueprint composed of controllable and uncontrollable variable critical to the success of the firm.
Key factors for success
The process of determining the viability of a new service or product through research conducted directly with potential customers.
Market Research
Convert a concept or an idea into reality via proof of concept, build prototype and do rapid testing.
Prototyping and rapid testing
Market validation is the process of presenting a concept for a product to its target market and learn from those prospective buyers whether or not the idea is worth pursuing.
Validate for acceptability
this is the last step in opportunity spotting and assessment
Opportunity Seizing
It is when you bring something new to the world.
BREAKTHROUGH/DISRUPTIVE INNOVATIONS
A new or improved product or process whose technological characteristics are significantly different from before.
Technological Innovations
The market has a strong influence in the implementation of an innovation
Ordinary Innovations
The characteristics of business which give its advantages over its competitors
Strengths
Characteristics of business which makes it disadvantageous relative to competitors
Weaknesses
elements in a company’s external environment that allow it to formulate and implement strategies to allow more profitability
Opportunities
Elements in external environment that could endanger the integrity and profitability of the business
Threats
