Opportunity Seeking,

Screening, and Seizing

 1. Opportunity Seeking
-Are innovative opportunity seekers
-Introducing new products or services
or finding better ways
-Innovation in terms of product design
or addition of new product features
to existing ones
-They may also tinker on improving
their operational capability by
employing new technologies that will
bring them greater efficiency and
better economies
-Expanding their reach by creating
new markets or maximizing existing
market reach
Entrepreneurial Mind Frame, Heart
Flame, and Gut Game
Entrepreneurial Mind Frame
-Allows the entrepreneur to see things
in a very positive and optimistic light
in the midst of crisis or difficult
situations
-Instead of being discouraged, the
entrepreneur is able to to use problematic
situations as inspiration in creating
something innovative
Crisis – in Chinese writing, it composed of
two characters:
a. Danger
b. Opportunity
Entrepreneurial Heart Flame
-If there is one commonality between an
inventor and an entrepreneur, it is their
surging passion
-It also about emotional intelligence
-Often manifested in the entrepreneur’s
efforts to nurture relationships with
customers, employees and suppliers
-The entrepreneur also looks after the
interest of his or her people by motivating
and encouraging them to be the best they
can become
-This creates a caring culture within the
organization that brings about synergy
among the people working together
toward a common vision.
Passion
-Great desire to attain a vision or fulfill
mission
-It is about wanting something so much that
a person would be willing to totally devote
one’s self to the quest
-The entrepreneur is not easily
disheartened, but is rather driven to
persevere even more.
 Entrepreneurial Gut Game
-It refers to the ability of the entrepreneur
to sense without using five senses
-Is also known intuition
-The entrepreneur just knows whether
something will work or nor without
necessitating logical, systematic and
sequential thinking
-It also connotes courage or in the
“local dialect, “lakas ng loob” (strong
intestinal fortitude)
-It is simply confidence in one’s self
and the firm belief that everything is
within reach so lng as you aspire for
it.
 The Many Sources of Opportunities
-Looking at the big picture
-Noticing emerging trends and pattern
-Finding out specific customer segments
are being targeted in the market place
-New technologies
-New knowledge
 Macro Environmental Sources of
Opportunities
-Big or macro forces that affect
the area, the industry, and the
market, which the enterprise
belong to
-It influence:
a. how business should be conducted
b. how consumers will behave
c. how supply and demand will move
d.How different competitors would
position themselves
e.How the cost of doing business will
proceed
Five Categories of Macro Environment
S – Social
P – Political
E – Economic
E - Ecological
T – Technological Dimensions
1. Socio –Cultural Environment
-Includes the demographics and cultural
dimensions that govern the relevant
entrepreneurial endeavor
-It helps the entrepreneur asses the trends
and dynamics of the bigger consumer
population, their beliefs, tastes, customs
and traditions
2. Political Environment
-The governance system of the
country or the local area of business
-It includes the law, rules, and
regulations that govern business
practices as well as the permits,
approvals, and licenses necessary to
operate the business
- It regulates the use of natural resources
1. Disposal of wastes
2. Taxation of income
3. Importation of goods and services
4. Public and private education
5. Health programs
6. Use of public funds
•It includes the establishment of:
1.Vital infrastructures
2.Logistical access
3.Interventions that affect the cost of
doing busines
3. Economic Environment
-Supply and demand forces
-They are the same factors that drive
the interest and foreign exchange
rates that fluctuate with the
movement of the market forces
-The income levels and the purchasing
power of its people as well as the
competitiveness (or
uncompetitiveness) of its industries
and enterprises are sources of
opportunities
-There is always threat that lurks
behind it
- The entrepreneur must be able to think
critically through each and every single
economic event that impacts his or her
enterprise
Ex: A very fast-growing demand for housing
may lead to the overbuilding of house
- This threat is what house financing
institutions are afraid of.
4. Ecological Environment
-Includes all natural resources and the
ecosystem, habitat of men, animals. Plants
and minerals
-The threats of ecological degradation have
generated countless opportunities such as
smoke, spill detectors, filters and screen,
pollution counters, energy saving devices
5. Technological Environment
-New scientific and technological
discoveries
-The entrepreneur is left with no choice but
to invest in new technologies in order to
keep up with competition
-Technology does not only come in the form
of advanced machinery or equipment
 Examples of Relevant Opportunities and
Threats to a Fast Food Chain
Factors Opportunities to Threats to the
the Enterprise Enterprise

1. Social • Increased
• Increasing double customer base for
income earners in the the fast food chain
family(i.e, mother and • More healthy
father are both working) product offerings
• Trend toward healthier are demanded by
food choices customers
2. Political • Increased
• Tax exemption for purchasing power
13th month pay and of the consumers
other bonuses up to leading to higher
70,000.00 passed by retail sales
Congress

3. Economic • Opportunity for the • Smaller supplier’s

• ASEAN Integration I enterprise to difficulty coping
2015(countries that expand to other with greater
belong to ASEAN ASEAN markets competition posed
trading at zero tariff by foreign rivals;
might lose small but
reliable suppliers
4. Ecological • Opportunity to start • Additional costs
• Increased usage of an advocacy toward incurred by new
eco bags and a “greener” packaging may
environment-friendly operation (not decrease
containers limited to usage of profitability
eco-friendly
containers/packaging)
5. Technological • Greater usage of • Potential for
• Increased usage of apps to place online customer
smartphones to delivery orders via disappointments
disseminate smartphones, which and netizen
important may help increase bashing due to the
information(e.g. market reach) poor product
news,weather,traffic)
 Industry Sources Opportunity
-the next biggest sources of
opportunities are the industry and the
market
-One of the most difficult aspects
about industry analysis is defining
what constitutes an industry in the
- The proper classification of what industry
the enterprise is competing in is important
if the entrepreneur’s intention is to define
who are the relevant customer’s, who are
the direct and indirect competitors, what
are the critical characteristics of the
market as to the quality of products or
services to be delivered
 Participants in the industry include:
1. Rivals or competitors
- true rivals or competitors are those
competing for the same or similar markets
Ex: Jollibee vs. McDonald’s
Coca-Cola vs. Pepsi
Samsung vs. Apple’s Iphone
2.Suppliers of input to rivals as well as
suppliers of machinery and equipment,
suppliers of manpower and expertise, and
supplies of merchandise
Ex: fuel
electricity
raw materiasl
3. Consumer market segments being
served by rivals or competitors
4. Substitute products or services,
which consumers shift or turn on
5. All the support and enabling
industries
Industry – according to product types
-According to the functions of the product
or service
Ex: computer industry(Microsoft vs. Apple)
beer industry(SMB vs. Beer na Beer)
fast food industry(McDonald’s vs.
Jollibee)
cola industry(coca-cola vs. pepsi cola)
Industry – by tracing the industry from its
most basic raw material down to its various
consumer applications, otherwise known as
product or value-added chain
Product chain – focuses on the volume
produced or converted at each link of the
chain
Value-added Chain – focuses on the economic
rather than the vol. aspect of the chain
Ex. Of Product Chain(coconut industry)
The coconut tree, regarded as the tree “of
life”is useful for different purposes. Its trunk,
shell, meat,husk, and leaves find their way to all
types of products such as oils, soap, handicraft,
oleochemicals, furniture,wallboards, coir.
NOTE: looking at this value chain alone presents
many potential opportunities for the
entrepreneur.
Ex. Of Value-Added Chain(cup of designer
a coffee)
The coffee beans will then get processed
and packaged by the coffee manufacturer.
Cost and profit margins are added before
selling the product to distributors. Once it gets
in the hands of the distributors, the latter will
have to market and sell the finished product
to coffee shops for a few more pesos added to
Cover for the logistical and transportation
costs incurred. The coffee shops will then
proceed to concoct their own versions of
designer coffees. The fancier the coffee
gets, the more expensive a cup of designer
coffee becomes.
 Relationship Between
Product Chain and value-
Added Chain
 Product Chain Value-Added Chain

Raw material Raw materials Prices and

additional Cost and Profits

Semi- Semi- Semi-processed good

prices and additional
processing processing costs and profits

Prices of processed
Fully processed
goods
Products/services
•The entrepreneur may discover weak links
in the chain that need strengthening or
gaps in the whole chain that need filling
•The opportunity lies not in finding gaps
and weaknesses but in assailing the
strongest links where there may be a
concentration of bargaining power
•The entrepreneur should determine which
players produce the most volume of goods
•Which ones control the flow of those goods
•Which ones make the most profits
•Which ones push the most volume through
the market channels all the way to the final
customers.
 Market Source of Opportunity
The entrepreneur must be able to
measure the actual demand and
supply
Monitoring of the prevalence of
product substitutes
Market impact on the existing
players in the industry
 Example.
The Battle of the value/combo
meals,
otherwise known as “more-for-
less” strategy in the fast food
restaurant industry
 Threats Opportunities
The price war Can be discovered
remains strong such from increased or
that the industry decreased
players are demands as well
compelled to
strengthen their as higher or lower
supply chain for supply
better leverage
 Micromarket
Refers to the specific target market
segment of a particular enterprise
The target customers that represent
the immediate customers of an
enterprise
Example:
The Makati Office crowd has several
choices where to eat. Observing the
behavior of customers during lunch would
indicate what groups of customers prefer
fast food establishments, what groups
brings their own pack lunches, and what
group goes for casual dining.
 Opportunities:
•Opening up a new food outlet
•Offering food delivery services
to a particular office crowd
Consumer Preferences,
Piques, and Perceptions
 Consumer Preferences
•Refer to the taste of particular groups of
people
Examples:
1.Clothes people wear
2.Food they eat
3.Music they listen
4.Movies they watch