Lesson 1 Flashcards
integrates all the key concepts and processes of Accounting, Business and Management (ABM) as applied in real-life activities.
Business Enterprise Simulation
Business Cycle:
business opportunity search
product/service development
business formation and organization
business implementation and control
business wind-up
relevant management reporting in the context of ethical standard and social responsibility.
used in a business enterprise as appropriate.
Technologies
the process of venturing into business begins with scanning the market to find the business opportunities from macro environmental sources and within the realms of the entrepreneur’s community or locality.
Entrepreneurial process
Procedures in scanning the market:
List down 5 business opportunities which you can possibly venture into.
Using systemized criteria which will be gained, reduce these five opportunities to one only.
The entrepreneur must focus on a business idea that is most viable and with the least number of risks.
Thereafter, the entrepreneur must devote his time establishing, growing and managing his chosen business.
External sources of business opportunities:
Sociocultural Factors
Technological advancement
Economic growth or decline.
Politics and legal factors
Industry trends
New discovery or new
knowledge
Futuristic or unexpected opportunities
Competitors
Societal Problems
Physical location of the entrepreneur
drive him or her to pursue a
potential business.
The entrepreneur’s strengths or assets
Internal sources of business opportunities:
Talents, hobbies, skills, expertise or academic background.
Financial capacity
Process/ operational capacity
Leadership and people management skills.
Entrepreneurial attitude/ character
Vision, mission and strategy
it is used for choosing the right product or service to market.
Opportunity Attractiveness Elements or Components (OAM system)
Four Important elements:
Market Potential (25%)
Financial Feasibility (25%)
Competitive Advantage and Entrepreneurial Resources (50%)
Business presents super value to customers. The entire size of the market for a product at a specific time.
It represents the upper limits of the market for a product.
Usually measured either by sales value or sales volume.
Market Potential (25%)
Example of Market potential:
Market Need
Market Structure
Market Size
Growth Rate
Market Capacity
Market Share
Cost Leaders
Projects how much start-up capital is needed, sources of capital, returns on investment, and other financial considerations.
Financial Feasibility (25%)
Example of Financial Feasibility:
Net income
Returns on investment and capital recovery period
Capitalization
Free cash flow
Refers to factors that allow a company to produce goods or services better or more cheaply than its rivals. These factors allow the productive entity to generate more sales or superior margins compared to its market rivals.
Competitive Advantage and Entrepreneurial Resources (50%)
