MODULE 2 PART 7: Idea Generation (Opportunity Seizing) Flashcards
_____ opportunities is the ultimate step in planning for a successful business venture. Entrepreneurs should
learn from other businesses’ successes and failures to identify the key factors contributing to success.
- seizing
(3) External Environment Tools:
- PESTEL Analysis (helps identifying positive and negative impacts of external forces to business)
- Competitor Analysis (studying competition to develop effective strategies to rival and secure share of competitors’ markets)
- SWOT Analysis (performed before the enterprise is operating)
This tool helps identify the external forces that can positively and negatively impact the business.
- PESTEL Analysis
(6) Factors under PESTEL Analysis:
- Political (influence of government and policies on a business or industry)
- Economic (impact of economy and performance on business and profitability)
- Social (environment and emerging trends affecting business profitability)
- Technological (impact of technological innovation on a market or industry)
- Legal (importance of legal laws and procedures where business operates)
- Environmental (influence of surrounding environments and ecological aspects’ impact on a market or industry)
These factors determine the influence of government and its policies on a particular
business or industry. It includes trade, fiscal, and taxation policies, among others.
- Political
These factors determine the impact of the economy and its performance on a
business and its profitability. It includes interest rates, employment or unemployment rates,
raw material costs, and foreign exchange rates.
- Economic
These factors determine the social environment and emerging trends affecting
business profitability. It includes changing family demographics, education levels, cultural
trends, attitudes, and lifestyle changes.
- Social
These factors determine the impact of technological innovation and
development on a particular market or industry. It includes digital or mobile technology
changes, automation, research, and development.
- Technological
These factors determine the importance of understanding legal laws and procedures in
a given territory where a business operates. It includes employment legislation, consumer law,
health and safety, and international and trade regulations and restrictions.
- Legal
These factors determine the influence of the surrounding environment and
ecological aspects’ impact on a market or industry. It includes climate, recycling procedures,
carbon footprint, waste disposal, and sustainability.
- Environmental
Conducting a _____ analysis is a crucial component of any successful business plan. By studying the competition, the entrepreneur can develop effective strategies to
rival and secure a significant share of the competitors’ markets. The entrepreneur should classify
its competitors into direct and indirect groups to conduct a thorough analysis. (McCreanor, 2023)
- competitor
What are the lists that needs to be considered in competitor analysis?
- products or services offered by the enterprise
- their profitability
- growth pattern
- marketing strategies
- additional details from company
Questions to use for analyzing competitors:
- Who are the competitors?
- What products or services do they sell or offer?
3.What is each competitor’s market share? - What are their past strategies?
- What are their current strategies?
Usually performed before the enterprise is in operation.
Strengths and weaknesses are Internal factors, while opportunities and threats are external
(Friesner, n.d.)
- SWOT Analysis
What is the meaning of SWOT?
- Strengths (internal factors that give an advantage or contribute to its success)
- Weaknesses (internal factors that put a business at a disadvantage)
- Opportunities (external factors that positively impacts an organization)
- Threats (external factors or challenges that may impede the sucess of a business)
This refers to the internal factors within an organization that give it a competitive advantage or contribute to its success. These could be a strong brand reputation, a dedicated and skilled workforce or a superior product or service offering.
- Strengths
This refers to internal factors or characteristics of a business or individual that put them at a disadvantage or undermine their overall performance. It includes issues such as inadequate market knowledge, limited financial resources, deficiencies in infrastructure, ineffective marketing strategies, or an absence of technological expertise.
- Weaknesses
This refers to external factors that have the potential to positively impact an organization’s performance or strategic objectives. They are
favorable conditions or trends in the external environment that the organization can leverage
to its advantage.
- Opportunities
This refers to external factors or challenges that may impede the success or progress of a business or project. They can negatively impact the performance or competitiveness of an organization. It can be changing market trends, competitors, new regulations, economic conditions, technological advancements or natural disasters.
- Threats
