Entrepreneurship-Reviewer-Q1.docx

**RELEVANCE OF ENTREPRENEURSHIP TO AN ORGANIZATION** 1. [Development of Managerial Capabilities:] it is the ability to manage a department of your business. E.g. team leader, manager, head. 2. [Creation of Organization:] employees for manpower like different departments you need for...

**RELEVANCE OF ENTREPRENEURSHIP TO AN ORGANIZATION** 1. [Development of Managerial Capabilities:] it is the ability to manage a department of your business. E.g. team leader, manager, head. 2. [Creation of Organization:] employees for manpower like different departments you need for your business. E.g. finance team, design team, legal management team. 3. [Improving the Standard of Living:] another benefit or social change to improve resources that can help lift the economy and economic status of an individual. 4. [Means of Economic Development:] Taxation 5. [Create Value/Gain Profit] **[Entrepreneurship]** is the act of starting a business in the hope of earning a profit. Pertains to risk-takers and the one who manage his/her business. Blue ocean -- creating new demands Red ocean -- have made existing demands **FACTORS AFFECTING ENTREPRENEURSHIP** 1. Internal Factors (Personality Factors) a. Initiative b. Proactive c. Problem Solvers d. Perseverance e. Persuade f. A Planner g. Risk-taker 2. External Factors (Environmental) a. Political b. Climate c. Legal System d. Economic and Social Condition e. Market Condition **COMPETENCIES IN ENTREPRENEURSHIP** 1. COMMON a. Decisive b. Communicator c. Leader d. Opportunity Seeker e. Proactive f. Risk-Taker g. Innovative 2. CORE a. Economic and Dynamic Activities b. Innovative c. Profit Potential d. Risk-bearing **CAREER OPPORTUNITIES** 1. Teacher 2. Researcher 3. Sales 4. Business Consultant 5. Business Reporter **RECOGNIZING POTENTIAL MARKET** The Entrepreneurial Process of Creating New Venture **ESSENTIAL IN ENTREPRENEURIAL'S SEEKING** 1. Entrepreneurial Mind Frame 2. Entrepreneurial Heart Flame 3. Entrepreneurial Gut-Game **SOURCES IN OPPORTUNITIES** 1. Change in Environment 1. Physical Environment a. Climate b. Natural Resources c. Wildlife 2. Societal Environment a. Political Forces b. Economic c. Sociocultural d. Technological 3. Industry Environment a. Competitors b. Costumers c. Creditors d. Employees e. Government f. Suppliers **SOURCES OF OPPORTUNITIES** 1. Changes in Environment\\ 2. Technological Discovery and Advancements 3. People's Interests 4. Government, thrust, programs and policies 5. Past Experiences **FORCES OF COMPETITION MODEL** 1. Buyers 2. Potential New Entrants 3. Rivalry among existing forms 4. Substitute Products 5. Suppliers **[Unique Selling Proposition]** and **[Value Proposition]** allows entrepreneurs to prepare themselves on how to advertise and sell his product even if it is like others. **[Value Proposition]** is a business or marketing statement that summarizes why a consumer should buy a company's product or use its service. a. Target Costumer b. Needs/Opportunities c. Name of the Product d. Name of the Enterprise/Company **[Unique Selling Proposition]** refers to how you sell your product or services to your costumers. a. Identify and rank the uniqueness of the product or services character b. Be specific c. Keep It Short and Simple (KISS) **[Market targeting]** a stage in market identification process that aims to determine the buyers with common needs and characteristics. Commonly used methods for segmenting the markets 1. [Geographic Segmentation] -- the total market is divided according to geographical location. a. Variables to Consider - Climate - Dominant ethnic group - Culture - Density (either rural or urban) 2. [Demographic Segmentation] -- divided based on consumers. a. Variables to Consider - Gender - Age - Income - Occupation - Education - Religion - Ethnic group - Family Size 3. [Psychological Segmentation] -- divided on how costumers think and believe. a. Variables to Consider - Needs and wants - Attitudes - Social Class - Personality traits - Knowledge and awareness - Brand concept - Lifestyle 4. [Behavioral Segmentation] -- costumers' behavior pattern as they interact with a company. a. Variables to Consider - Perceptions - Knowledge - Reaction - Benefits - Loyalty - Response [Service requirement] intangible thing or product that cannot be touched but the [customer can feel] the fulfillment. There are elements in service requirement like [on-time delivery], [service with a smile], [easy-payment] etc. It includes all aspect how a customer expects to be treated while purchasing a product and how easy the buying process goes. [Output requirements] thing or things that can be seen. [Characteristic specifications] that a consumer expects to be fulfilled in the product. For example, if the consumer hires a multi cab, then on-time arrival becomes an output requirement. Customer buys gadgets (phone speaker) the specification like the loudness and clarity are the output requirements. [Market size] the entrepreneur\'s most critical task is to calculate the market size, and the potential value that market has for their start-up business. Market research will determine the entrepreneurs\' possible customers in one locality. In determining the market size, the entrepreneur will conduct a strategic marketing research from reliable sources using the following method: **First step** is to estimate the potential market approximate number of customers that will buy the product or avail your services. **Second step** estimate the customers who probably dislike buying your product or avail the services. **Third step** is for the entrepreneur to estimate the market share, that means plotting and calculating of the competitor\'s market share to determine the portion of the new venture. Market size becomes the most important factor if you ever need to raise funding for your business. [Market research] process can be defined as the process of gathering, analyzing and interpreting the information about the products or the services to be offered for sale to the potential consumers in the market (De Guzman, 2018, p. 25). [Data Collection] is the most valuable tool in any type of research study. Inaccurate data collection may cause mistakes and ultimately lead to invalid results. (Edralin. 2016. p. 80) 1. Organize collected data as soon as it is available Know what message you want to get across and then collect data that is relevant to the message. 2. Collect more data. 3. Create more data. 4. Take note of interesting or significant data. When designing or constructing your own research questionnaire, remember the following guidelines. (Edralin. 2016) 1. Keep it as simple as possible 2. Make sure it is clearly appealing and easy to read Cluster or block related questions 3. Move from complex questions to more specific questions 4. Make sure questions are concise and easily understood Avoid questions that are difficult to answer). 5. Make sure response scales used are consistent with categories that are mutually exclusive [Interview] is one of the most reliable and credible ways of getting relevant information from target customers. Personal interviews are the traditional method of conducting an interview. [Focus Group Discussions] (FGD) is an excellent method for generating and screening ideas and concepts. It can be moderated group interviews and brainstorming sessions that provide user\'s needs and on information behaviors. **THE MARKETING MIX (7P'S) IN RELATION TO THE BUSINESS OPPORTUNITY** 1. **[Product]** -- any goods and services that is produced to meet the consumers' wants and needs. Consumer Goods Business Goods --------------------------------------- ----------------------------------- Direct demand Derived demand No. of buyers is great Limited no. of buyers Buyers are scattered Specified regions only Small value High value Buying based on emotions Buying based on practicality Affected by fashion and style changes Affected by technological changes 2. **[Place]** -- buyer and seller exchange products. 3. **[Price]** -- value of money in exchange for the product. 4. **[Promotions]** -- initiative undertaken by an organization to promote an increase in sales. a. Sales Promotion Technique - Free gifts - Free samples - Free trial - Costumer Contests - Special Prizing 5. **[Direct Marketing]** -- promotional method that involves presenting information about your company. 6. **[Packaging]** -- outside appearance of a product and how it is presented to the costumers. a. Five Basic Function of Packaging 1. Protection - Natural deterioration - Physical protection - Safety - Waste Reduction 2. Containment 3. Information 4. Utility of Use 5. Promotion 7\. **[Positioning]** -- process used by marketers to create an image in the minds of a target market.