Nota Keusahawanan Week 2 (Environment Screening) Edited 20 Sep 2012

8/14/2019 Nota Keusahawanan Week 2 (Environment Screening) Edited 20 Sep 2012

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WEEK 2

BUSINESS OPPORTUNITYSCREENING


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INTRODUCTION

Business an opportunity recognition isconsidered the first critical step instarting a new business. Kirzner, (1979)

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Business opportunity should comprisesof three important characteristics;potential economic value (generateprofit); newness(product did not existpreviously) and desirability (moral andlegal acceptance of the new product)

(Baron, 2006) .

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Screening Environment

Government

PolicyBusiness trend

Global Economic

Private Sectors

Other Issues ( Education, Health, Social, Political, Culture)

OPPORTUNITIES

Strength Weakness

ENTREPRENEUR

THREATS


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Steps to select new ventures

Step1Identify Customers needs and wants

Step 2 Screening environment, evaluating self,community & society, value and

culture of the potential target group.

Step 3

Analyze specific opportunities which are

feasible to venture.

Step 4Select one which is suitable to the

entrepreneur and develop business concept.


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Step 1 : Identifying customer needs & wants

Needs & Wants

ProductsServices

Something physical

which can satisfiedcustomer needs and

wants.

Non-physical but ableto fulfill customer

needs and wants

Needs : something

basic which people

must have. Example:

clothing, house, food,health, basic education,

protection etcs.

Wants: desire tohave

more than basic needs.

Wants will be fulfillafter the basic needs

were being fulfilled.

Examples: cars, bigger

house, traveling, golf

club, latest fashions,

jewelry etcs.


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Step 2 : Screening environment, evaluating self, community& society, value and culture of the potential target group.

Analyze

Environment Self Community

Population structure, Income, taste,

preferences

Country export & imports

Local resources and new technology

Industry linkages

Government and Private

development projects

Global and Regional development

Currents issues, social, rules &

regulations.

Experience

Knowledge &

skills

Financial standing

Interest

Networking

Norm


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Step 3: Analyzing the feasibility of

Opportunities

Legal perspective

Market Competition

level

Funding

Technology availability

Raw material supply

Logistic

Expertise & manpower

Sustainability

Risks Level

Analyze

?Feasibility


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Step 4: Select New Ventures

Market Competition

level / Marketing Plan

Funding ( working

capital, fixed assets)

Operational Plan

( Technology, Supply

Chain)

Organizational &

Admin. Plan ( Expertise

& manpower )

Profitability ( ROI,

ROE, Pay back, Cash

Flow, Risks Level

Analyze

?Viability


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Step 4 ( cont: )

New venture selected.

Prepare Details Business

Plan.

Execute Plan

Monitor and

Improvement.


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Example business opportunities

Forestry Poultry

AGRICULTURE

Fishery Plantation

Veneer Plywood

Logging

FurnitureSawn timber

Fishing Equipment

Deep-sea fishing

Fish Processing

Wholesales/

distributions

Clearing plantation

Planting

Processing

Wholesale/distribution

Nursery

Poultry farming

Processing

Wholesales/Supplies


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Business Opportunities

High Risks

Business Risk Financial Risk

Risk could be transfer

insurance (fire, loss etc)

Controlled riskbut not

100% - market forecast

quality products,

Uncontrolled risk :

economy recession, currency

value, disaster

Liquidity level

Loan

Credit

Currency exchange


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PEST MODEL - AS BUSINESS OPPORTUNITY

SCREENING AND EVALUATION

Factors How?Political government policy and political factor can

have significant influence on businesses as wellas affect consumer confident and businessspending.Existing of legal or business procedures of

the country such as Companies Act(1965), Business Registration Act (1954),and various act..

Economic and

environment

there are a number of economic indicators can

be used to analysis the economics of a countrysuch as Gross Domestic Product (GDP),unemployment rate, and so on. For instance,with the GDP at 5% to 6% in year 2010,Malaysian economic development isamong the highest in Asia (Economic

Planning Unit, 2011)11/7/2013


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PEST MODEL - AS BUSINESS OPPORTUNITY

SCREENING AND EVALUATION

Factors How?

Social Socio and culture influence on business varyfrom country to country. For instance, changesin social trends, values, lifestyles,

demographics etc may impact on theentrepreneurship development

Technology is the making, modification, usage, andknowledge of tools, machines,techniques, crafts, systems, methods oforganization, in order to solve a problem,improve a pre-existing solution to a problem,achieve a goal or perform a specific function.

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http://en.wikipedia.org/wiki/Toolhttp://en.wikipedia.org/wiki/Machinehttp://en.wikipedia.org/wiki/Crafthttp://en.wikipedia.org/wiki/Systemhttp://en.wikipedia.org/wiki/Systemhttp://en.wikipedia.org/wiki/Crafthttp://en.wikipedia.org/wiki/Machinehttp://en.wikipedia.org/wiki/Tool


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Quiz (In Group) 20/9/2012

Select one potential business andanalyze the business opportunitybased on SWOT and PEST Model

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Nota Keusahawanan Week 2 (Environment Screening) Edited 20 Sep 2012

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