Unit 3: Opportunity Recognition and Environmental Analysis

Flashcards covering Unit 3: Opportunity Recognition, Environmental Scanning, PESTLE Analysis, Industry & Competitor Analysis, and Business Opportunity Evaluation.

How many e-commerce users were estimated in the Philippines for 2025 according to Statista?

$23.54\text{ million}$ users

What is the projected number of e-commerce users in the Philippines by 2030 according to Statista?

$43.46\text{ million}$ users

In technological change, what is the role of Artificial Intelligence (AI) for entrepreneurs?

AI can automate tasks, analyze data, and enhance decision-making.

What main customer problems are identified in the Community Printing Service Opportunities example?

Print shop far away, long waiting times, needing prints urgently, and shops being closed at night.

What are the seven entrepreneurial research methods for identifying customer problems?

Customer Observation, Customer Interviews, Surveys, Focus Groups, Online Reviews, Competitor Analysis, and Secondary Data.

What is environmental scanning in a business context?

The analysis of internal and external factors for business success to anticipate, adapt, and strategize.

What internal factors are examined during environmental scanning?

Company Resources, Management, and Organizational Culture.

What external factors are examined during environmental scanning?

Economic Trends, Competition, and Social & Political Forces.

What does the acronym PESTLE stand for in environmental analysis?

Political, Economic, Social, Technological, Legal, and Environmental.

In a PESTLE analysis, what does the Economic factor examine?

Income, inflation, and employment (e.g., consumer purchasing power).

What key question drives industry analysis?

"Is there DEMAND?"

What key question drives competitor analysis?

"Who are the RIVALS?"

What are the 10 factors considered in an industry analysis?

1. Industry size and growth, 2. Customer demand, 3. Major trends, 4. Suppliers, 5. Distribution channels, 6. Technology, 7. Government regulations, 8. Barriers to entry, 9. Profitability, 10. Industry risks.

What is the primary purpose of competitor analysis?

Not simply to copy competitors, but to discover opportunities to differentiate the business.

What key question should entrepreneurs ask to differentiate their business from competitors?

"What can my business offer that customers value but competitors do not provide adequately?"

What are six common reasons a business idea might fail despite sounding attractive?

Too few customers, excessive competition, high costs, lack of resources, legal restrictions, and insufficient profitability.

How is opportunity evaluation defined?

The process of determining whether a business opportunity is desirable, feasible, and potentially profitable.

What three core pillars define a good business opportunity?

Desirable (meets a real customer need), Feasible (can be done with available resources), and Profitable (potential to generate sufficient profit).

Why is evaluating a business opportunity important prior to committing resources?

It reduces risk by helping avoid costly mistakes and failed ventures, and it identifies the best path forward by comparing criteria.

What four criteria determine Market Attractiveness?

Real Need, Market Size, Willingness to Pay, and Growth.

What three criteria determine Competitive Advantage when evaluating an opportunity?

Differentiation, Barriers to Copy, and Superior Value.

What four aspects must be evaluated to assess Financial Feasibility?

Startup capital, operating costs, break-even sales volume, and profitability & payback period.

What four elements are evaluated under Operational Feasibility?

Supplies, Facilities & Equipment, Workforce, and Consistency.

What three elements are evaluated under Legal & Regulatory Feasibility?

Legality, Permits & Licenses, and Industry Regulations.

What three factors are evaluated under Environmental & Social Considerations?

Waste & Resources, Community Impact, and Sustainability.

What does Entrepreneurial Fit evaluate?

Whether an opportunity matches the entrepreneur's skills, experience, interests, resources, and willingness to take on risks.