Entrepreneurship Reviewer PDF

**REVIEWER AND POINTERS TO REVIEW IN ENTREPRENEURSHIP** **INTRODUCTION OF ENTREPRENEURSHIP (1^ST^ PPT)** **Entre --** "between" **Prendre** -- "to take" **Entrepreneurship** - the science of converting processed ideas into a remarkable business venture **Entrepreneur** - a person who creates un...

**REVIEWER AND POINTERS TO REVIEW IN ENTREPRENEURSHIP** **INTRODUCTION OF ENTREPRENEURSHIP (1^ST^ PPT)** **Entre --** "between" **Prendre** -- "to take" **Entrepreneurship** - the science of converting processed ideas into a remarkable business venture **Entrepreneur** - a person who creates unique ideas that will be useful for a starting business. **Businessman** -- a person who starts the business with an existing idea or concept. **FIVE (5) LEVELS OF ENTREPRENEURIAL DEVELOPMENT** - **The self-employed --** Self-employed persons are, simply put, not comfortable with the routines of a desk job - **The manager --** Entrepreneurs feel need to step up and ask some help from the people around them. They delegate and hire potential employees to do the work. - **The leader --** Entrepreneurs in this level already enjoy seeing people flourish, stepping up and producing great results with minimal supervision. - **The investor** -- They look for more opportunities for their business to grow. They may either purchase one or two - **The true entrepreneur** -- They aim for quality and excellence in their work. They have fully learned, and continue to practice, a four-step process of thinking -- starting with idealization, visualization, verbalization, and materialization. **NEW TERMS THAT COINED FROM ENTREPRENEUR'S FIELDS** - **TECHNOPRENEUR** -- an entrepreneur who puts technology at the core of his or her model - **SOCIAL ENTREPRENEUR --** one who recognizes the country's social problems and turn them to profitable institutions with the intention of helping the disadvantaged community rather than making a profit. - **INTRAPRENEUR** -- an entrepreneur in a large company or corporation who is tasked to think, establish, and run a new big idea or project.  - **EXTRAPRENEUR** -- an entrepreneur who hops from one company to another to act as innovation champion, providing creative and efficient solutions. **POINTERS TO REVIEW** - **COMMON ENTREPRENEURIAL COMPETENCIES** - **10 COMPETENCIES FOR ENTREPRENEURIAL SUCCESS** **COMPETENCIES - **are considered as the capability, capacity, and ability of a person to handle situations in various areas in business operations such as in marketing, management, production, and finance. **MODULE 2: RECOGNIZING THE POTENTIAL MARKET (2^ND^PPT)** **ENTREPRENEURIAL PROCESS - a** step-by-step procedure in establishing any kind of business that an entrepreneur has to undergo. **FOUR (4) ASPECTS OF ENTREPRENEURIAL PROCESS** - **OPPORTUNITY SPOTTING AND ASSESSMENT --** This is the beginning of the process and is considered the most difficult.  - **DEVELOPING A BUSINESS PLAN** -- Entrepreneurs should formulate a business plan when they have already spotted and assessed the opportunities for a market. - **DETERMINING THE CAPITAL NEEDED --** It is mandatory in the entrepreneurial process to calculate the resources the resources needed to establish the business and compare this against the entrepreneur's current resources. - **RUNNING THE BUSINESS --** This is the part where the entrepreneur should use the resources allocated for the new venture. The business plan prepared should already been implemented. **SCANNING** - The starting point of any new venture that involves understanding and knowing the INTRICACIES of the macroenvironmental and microenvironmental. **3S OPPORTUNITY SPOTTING AND ASSESSMENT** - **OPPORTUNITY SEEKING --**actively looking for opportunities - **OPPORTUNITY SCREENING --** the process of cautiously selecting the best opportunities. - **OPPORTUNITY SEIZING --** the "pushing through" with the chosen opportunity **MACRO ENVIRONMENTAL SOURCES** - **STEEPLED (SOCIOCULTURAL, TECHNOLOGICAL, ECONOMIC, ENVIRONMENTAL, POLITICAL, LEGAL, ETHICAL, DEMOGRAPHIC)** - **INDUSTRY** -- This is the source of current trend on what is happening in the industry where the future business belongs to. - **NEW DISCOVERY OR KNOWLEDGE -- **These are the new trends that can be the core business model of a new venture. - **FUTURISTIC OPPORTUNITIES --** These are the projected new opportunities that can possibly affect the new business while it is running. **METHODS OF GENERATING IDEA** - **FOCUS GROUP DISCUSSION (FGD) --** A moderator handles a very open, free-flowing, and in-depth discussion with a group of people who can provide insightful ideas - **BRAINSTORMING** -- an activity that allows the participants to share creative ideas using different rules. - **BRAINWRITING** -- the same as brainstorming except that the channel used is not face-to-face, but writing or online. - **PROBLEM INVENTORY ANALYSIS **-- similar to FGD except that the participants are already given an inventory of product or services problem. **OPPORTUNITIES** -- an entrepreneur's business idea that can potentially become commercial product or service in the future. **INNOVATION** -- is the process of positively improving an existing product or service. **THREE TYPES OF INNOVATION**  **BREAKTHROUGH INNOVATION --** may includes inventions, occur infrequently as these establish the platform on which future innovations in an area are developed.   **TECHNOLOGICAL INNOVATION --** occur frequently, are technological advancements of an existing product or service.  **ORDINARY INNOVATION -- **occur ordinarily, commonly originating from market analysis and technology pull instead of technology push. **FIVE (5) KEY STAGES** - **IDEA STAGE --** the entrepreneur determines what are the feasible products and/or services that will perfectly suit the opportunity.  - **CONCEPT STAGE --** once the acceptable product or service has already been identified, the developed idea will undergo a consumer acceptance stage. - **PRODUCT DEVELOPMENT STAGE --** this is where the actual reactions from prospective customers are determined. - **TEST MARKETING STAGE --** where the actual sales results will be the foundation of the consumers' acceptance level and will be the basis in commercializing the product or service. - **COMMERCIALIZATION STAGE -- **the people involved in this stage ensure that the goals of the product/service development process are achieved and are in line with the business plan. **SWOT ANALYSIS (STRENGTHS, WEAKNESSES, OPPORTUNITIES, THREATS)** **REASON WHY INNOVATION IS IMPORTANT IS TO DRIVES THE ECONOMY GROWTH.** **MARKETING MIX (3^RD^ PPT)** - Entrepreneur must use the 7P\'s model to do the following: conduct a situation analysis, set objectives, conduct strength, weakness, opportunity and threat (SWOT) or competitive analysis; and ultimate come up with marketing strategies and tactics. **7P'S OF MARKETING** **PRODUCT -** is any physical good, service, or idea that is created by an entrepreneur or an innovator in serving the needs of customers and addressing their existing problems. **3 LEVEL CONCEPT OF PRODUCTS** **Level 1: Core Benefits** - are the major factors why a customer buys a product or avails of a service. - Better packaging for products or a better physical evidence or customer experience for services. - Additional benefits: a customer will still get the core benefits of a product even without the augmented benefits. **PLACE-** refers to a location or the medium of transaction. **PRICE- t**he peso value that the entrepreneur assigns to a certain product or service after considering its costs, competition, objectives, positioning, and target market - **Bundling**- two or more products or services in one reduce price. - **Penetration**- refers to setting low prices to increase market share, but the entrepreneur will eventually increase the price once the desired market share is achieved. - **Skimming**- where prices are initially high and then they are lowered to offer the product or service to a wider market. - **Competitive pricing-** refers to benchmarking prices with the competitors. - **Product line pricing**- refers to pricing different products or services within a parallel product array using varying price points. - **Psychological pricing-** this considers the psychology and positioning of price in the market. - **Premium pricing-** refers to setting a very high price to reflect elitism and superiority. - **Optional pricing-** refers to adding an extra product or service on top of the original to generate more revenue. - **Cost-based pricing-** the basis of mark up is the cost of sales. - **Cost plus pricing-** the markup is based on a certain percentage cost. **PROMOTION** - Involves presenting the products or services to the public and how these can address the public\'s needs, wants, problems, or desires. The main goal of promotion is to gain attention. **PROMOTIONAL TOOLS** - **Advertising**- to effectively inform and persuade the target market. - **Public Relations-** to offer positive image of the company and the brand. - **Selling**- to get the customers buy. - **Sales Promotion-** to convince customers to buy immediately. **PEOPLE**- play a vital role in servicing customers even though the entrepreneur sells only physical goods. **PACKAGING**- is how the product or service iS presented to customers. It is the overall identification (look and feel) of the product or service. **PROCESS**- defined as a step-by-step procedure or activity workflow that the entrepreneur or employees follow to effectively and efficiently serve customers. **FUNDAMENTALS OF BRAND MANAGEMENT** **BRAND** - refers to the identity of a company, of a product, of a service, or of an entrepreneur himself or herself **BRAND MANAGEMENT - i**s the supervision of the tangible and intangible elements of a brand. - **Tangible Elements-** Include the product itself, its packaging its price and its location. - **Intangible Elements-** Include the perception and relationship of the customers with the brand. **4M'S OF OPERATIONS (4^TH^ PPT)** **4 M'S ** **MANPOWER**- talks about human labor force involved in the manufacture of products. It is measured as the most serious and main factor of production. - **Educational background -** This gives the entrepreneur an idea on the degree of the candidate\'s knowledge of basic things - **Work experience -** This will tell him or her what to expect from the applicant and what he or she can potentially contribute to the business based on his and experiences - **Specific skill or knowledge -** This one is important especially on technical jobs that require high proficiency. It will be easy for entrepreneurs to place highly skilled people into specialized jobs because they can help right away. - **Work attitude -** This deals with the worker\'s integrity and how he or she deals with his or her coworkers, bosses, and customers.Entrepreneurs also need people with relationship skills because communication is important in applying their expertise. - **Inputs** - the materials or ingredients to be used in creating the product - **Process** - the transformation phase where inputs are processed by manpower and-machines to come up with the final - **Output** - the final product of the process stage, which is intended to be sold to target customers **Prepared by :** **Ms. Aira S. Medes**