ENTREPRENEURS US - Chapter 3 PDF

Among ENTREPRENE URS US V2020.9.9a ENTER CHAPTER NAME 3 Create Game TEACHER ANGE Find Game GRADE 12 Enter ENTREP Code...

Among ENTREPRENE URS US V2020.9.9a ENTER CHAPTER NAME 3 Create Game TEACHER ANGE Find Game GRADE 12 Enter ENTREP Code BACK Subject 10/10 Recognizing, Assessing, and Exploiting Opportunities EMERGENCY MEETING  OPPORTUNITY RECOGNITION PROCESS WHAT IS OPPORTUNITY? Dictionary: Opportunity- Is a situation or occasion that makes it possible to do something that you want to do.  Three elements in this simple definition: 1. You want to do something 2. There are conditions for the realization of the objectives 3. You must make decisions or take action on these conditions to realize your objective  OPPORTUNITY RECOGNITION PROCESS WHAT IS OPPORTUNITY? Business perspective: an exploitable set of circumstances with uncertain outcome requiring a commitment of resources and involving exposure to risk. Opportunity Recognition - often entails phases that potential entrepreneurs take before introducing a product or service to the market.  Five Stages of Opportunity Recognition 1. Precondition- A preparatory stage, during which the individual assesses his knowledge of the market. 2. Conception- This is the gestation phase, during which entrepreneurial intentions and ideas are generated using logic, creative thinking or both. 3. Visioning- This third stage provides the individual a hunch that can serve as an opportunity for business. 4. Assessment- This stage involves the evaluation on whether the idea can be realized or not. 5. Realization-The last phase suggests the production of a prototype.  Factors in Opportunity Recognition A successful recognition of business opportunities is influenced by three major factors: market awareness, entrepreneurial readiness and connections. 1. Market awareness (prior knowledge to the market)- Refers to personal exposure to market and its components including customers and suppliers  Factors in Opportunity 2. Recognition Entrepreneurial readiness (entrepreneurial alertness)- Refers to a variety of features of an individual to start a business venture. 3. Connections (networks)- Business opportunity recognition is heightened when the individual has a diversity of networks. Opportunity Assessment- Refers to the process of evaluating the likehood that the opportunity can be realized.  Elements in Opportunity Assessment 1. Product or service- A business opportunity is primarily the potential of introducing a new product or service to the market. 2. Market Opportunity- This element in the assessment process refers to the appraisal of the characteristics of the market. 3. Costing and Pricing- A product which may be considered valuable by consumers may not be affordable. 4. Profitability- Based on how the market will receive your product and the cost of producing it.  Elements in Opportunity Assessment 5. Resource Requirements- Inputs in the production process. a. Intermediate- inputs-raw materials b. Factor inputs/Processing inputs- labor, capital and technology 6. Risks- Any business enterprise will face risks in the course of its operations. 7. Entrepreneurial commitment. The commitment of the individual to pursue the realization of its business idea.  Opportunity Pathways There are two pathways in transforming the opportunity into business venture: Rational approach/traditional approach and Intuitive approach. 1. Rational approach/Traditional approach-Uses systematic procedures in proceeding with the implementation of a business opportunity. 2. Intuitive approach-Starts with the recognition of opportunity and proceeds directly to the grabbing of opportunity after sensing that it can be done. Product Planning and Development Process Product Planning and Development Process Precommercialization phase: 1. Idea stage-Formation of business ideas that starts with an entrepreneurial intent and proceeds with the development of business idea using logic and creativity. 2. Concept stage- The refinement of ideas and visualization of an idea that can serve as business opportunity. 3. Product development stage- After the visualization of the idea, the business idea is concretized with the production of a prototype. 4. Test marketing stage-The introduction of the product or service in the market after a series of evaluation and feedback from potential customers.  Stages of the Product Life 1. Cycle Introduction-With a positive feedback after a series of market testing, the product is formally introduced in the market. 2. Growth- Repeated purchase or sustained demand from the initial and subsequent buyers. 3. Maturity-The stage where the product is widely accepted with the emergence of brand loyalty and patronage from its target market. 4. Decline- Once the market for the product has been saturated and innovation possibilities for it have been fully explored, the product may start to lose its market power. Thank you for listening