Business Opportunity Seeking, Screening, and Seizing PDF

Unit 3: Business Opportunity Seeking, Screening, and Seizing Lesson 1 Opportunity Seeking: Entrepreneurial Imperatives and Sources Entrepreneurship Senior High School Applied - Academic Have you ever wondered why entrepreneurs are deemed as opportunity seekers? ENGAGE EXPLORE EXPLAIN EXTEN...

Unit 3: Business Opportunity Seeking, Screening, and Seizing Lesson 1 Opportunity Seeking: Entrepreneurial Imperatives and Sources Entrepreneurship Senior High School Applied - Academic Have you ever wondered why entrepreneurs are deemed as opportunity seekers? ENGAGE EXPLORE EXPLAIN EXTEND EVALUATE 2 Learning Propose solution/s in terms of Objective product/s and service/s that will At the end of the meet the need using techniques lesson, you should on seeking opportunities. be able to do the following: ENGAGE EXPLORE EXPLAIN EXTEND EVALUATE 33 List down the top 5 products and/or services that are high in demand these days. What are the underlying reasons behind the high demand rate attributed to the above-mentioned products and/or services? ENGAGE EXPLORE EXPLAIN EXTEND EVALUATE 4 What are the underlying reasons behind the high demand rate attributed to the above-mentioned products and/or services? ENGAGE EXPLORE EXPLAIN EXTEND EVALUATE 5  What are the factors that would greatly affect the purchasing behavior of consumers towards the said products and/or services? ENGAGE EXPLORE EXPLAIN EXTEND EVALUATE 6  Opportunity Spotting and Assessment Opportunity Seeking Opportunity Screening Opportunity Seizing ENGAGE EXPLORE EXPLAIN EXTEND EVALUATE 7  Entrepreneurial Opportunity Seeking Being coined as the “innovative opportunity seekers” in the business industry, entrepreneurs are equipped with a spirit of inquiry that will help them decide which products or services are most likely needed in the marketplace. ENGAGE EXPLORE EXPLAIN EXTEND EVALUATE 8  Sources of Opportunities External/Macroenvironmental Sources Any enterprise, company, or organization is not alone in its business environment. It is always surrounded by an array of factors and forces that help in shaping opportunities but also pose present threats to the company. ENGAGE EXPLORE EXPLAIN EXTEND EVALUATE 9  Six Macroenvironmental Sources of Opportunities 1. Demographic 2. Economic 3. Socio-cultural ENGAGE EXPLORE EXPLAIN EXTEND EVALUATE 10  Six Macroenvironmental Sources of Opportunities 4. Technological 5. Ecological 6. Political and Legal ENGAGE EXPLORE EXPLAIN EXTEND EVALUATE 11 Example: Macroenvironmental Sources of Opportunities Situationer: A group of students intends to put up a milk tea shop near their school. In establishing such business, they have come up with the following data to analyze the impact of the different macroenvironmental sources of opportunities to their desired business: ENGAGE EXPLORE EXPLAIN EXTEND EVALUATE 12 12  Example: Macroenvironmental Sources of Opportunities Macroenvironmental How can these sources help you? Sources 1. Demographic Nearby residents are mostly from the 15-50 age group. Residents are mostly Filipinos. A number of the nearby residents are employed in either the private or public sector. ENGAGE EXPLORE EXPLAIN EXTEND EVALUATE 13 13 Example: Macroenvironmental Sources of Opportunities Macroenvironmental How can these sources help you? Sources 2. Economic Nearby residents are mostly employed. The average monthly household income is Php40,000-50,000. ENGAGE EXPLORE EXPLAIN EXTEND EVALUATE 14 14  Example: Macroenvironmental Sources of Opportunities Macroenvironmental How can these sources help you? Sources 3. Socio-cultural A huge percentage of the area population is attributed to teenagers. Individuals from the 15-18 age group prefer drinking milk tea over coffee. ENGAGE EXPLORE EXPLAIN EXTEND EVALUATE 15 15  Example: Macroenvironmental Sources of Opportunities Macroenvironmental How can these sources help you? Sources 4. Technological Shops near the area are tied up with various online delivery services to serve more customers. Most shops are equipped with an online ordering platform to ease long queues. ENGAGE EXPLORE EXPLAIN EXTEND EVALUATE 16 16  Example: Macroenvironmental Sources of Opportunities Macroenvironmental How can these sources help you? Sources 5. Ecological The city where they belong doesn’t allow the use of plastic bags. ENGAGE EXPLORE EXPLAIN EXTEND EVALUATE 17 17  Example: Macroenvironmental Sources of Opportunities Macroenvironmental How can these sources help you? Sources 6. Political and Legal Registration with the DTI is needed. A business permit from the city has to be obtained prior to the operation of the business. ENGAGE EXPLORE EXPLAIN EXTEND EVALUATE 18 18  Sources of Opportunities Internal/Microenvironmental Sources Internal sources pertain to those factors that can be controlled by the management. It includes factors of resources available that affect individuals and businesses. ENGAGE EXPLORE EXPLAIN EXTEND EVALUATE 19  Five Microenvironmental Sources of Opportunities 1. Customers 2. Suppliers 3. Resellers 4. Competitors 5. General Public ENGAGE EXPLORE EXPLAIN EXTEND EVALUATE 20  Sources of Opportunities Industry and Market Disparities Certain disparities in the market may take place in the form of regulations, deregulations, constant changes in supply chains, and other structural problems. ENGAGE EXPLORE EXPLAIN EXTEND EVALUATE 21  Sources of Opportunities Consumer Preferences and Interests Consumer preferences and interests can also be sources of opportunities. These preferences refer to the interests or tastes of individuals. When products eventually become outdated, consumers’ changes in perception can subsequently kill sales. ENGAGE EXPLORE EXPLAIN EXTEND EVALUATE 22  Sources of Opportunities Technological Discoveries and Advancements Continuous advancements in technology can be the source of highly innovative opportunities in the business industry. ENGAGE EXPLORE EXPLAIN EXTEND EVALUATE 23 Tip As an entrepreneur, you need to think about the means adopted by shoppers when purchasing products. You have to devise ways for you not to fall out from the industry, most especially in today’s digital age. 24  Activity Think of a business that you intend to pursue. In the matrix provided list down five applicable sources of opportunities that would greatly help in the establishment of your business, and briefly explain how these sources would help your business endeavor. ENGAGE EXPLORE EXPLAIN EXTEND EVALUATE 25  Questions Part A. Answer the following questions based on your understanding of the lesson. 1. Why is the opportunity seeking a crucial phase in entrepreneurship? 2. What happens when an aspiring entrepreneur does not fully utilize the various sources of business opportunities? ENGAGE EXPLORE EXPLAIN EXTEND EVALUATE 26  Questions 3. How is an entrepreneur different from an ordinary businessman? 4. What is the very first step that you must take when seeking a business opportunity? 5. How would you contrast macroenvironmental and microenvironmental sources of opportunities? ENGAGE EXPLORE EXPLAIN EXTEND EVALUATE 27  Questions Part B. Write down the first business establishment that you see outside the school. Using the matrix provided, identify how the five macroenvironmental sources of opportunities would help you in case you would be pursuing the same kind of business. ENGAGE EXPLORE EXPLAIN EXTEND EVALUATE 28  Wrap Up The 3S of Opportunity Spotting are the following: Opportunity Seeking Opportunity Screening Opportunity Seizing Opportunity seeking is the first step that must be taken by any start-up venture in order to have an idea as to the kind of business opportunity that will be taken by any budding entrepreneur. 29 Sources of Opportunities in Entrepreneurship Wrap Up 30  Bibliography Dollingner, Marc. Entrepreneurship: Strategies and Resources 3rd Edition. New Jersey: Prentice Hall, 2003. Kotler, Philip & Gordon McDougall. Marketing Essentials. Prentice-Hall Canada Inc., 1985. Peters, Michael & Robert Hisrich. Entrepreneurship 4th Edition. McGraw-Hill Book Co., 1999. Shea, Peter. Start your own business. Entrepreneur Media Inc., 2010. Short, Jeremy C., David J. Ketchen, Christopher L. Shook, and R. Duane Ireland. “The Concept of ‘Opportunity’ in Entrepreneurship Research: Past Accomplishments and Future Challenges.” Journal of Management 36, no. 1 (January 2010): 40–65. doi:10.1177/0149206309342746. 31