Entrep Term Test

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OPPORTUNITY SEEKING

1 / 89

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Business

12th

90 Terms

1

OPPORTUNITY SEEKING

discover new or different ideas; innovation part of the business; create value

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2

Entrepreneurial Mind Frame

  • see things in a very positive and optimistic light in the midst of crisis

  • problems = opportunity = inspiration = challenge = not smth that will bring you down

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3

Entrepreneurial Heart Flame

driven by passion (they feel fulfilled); emotional intelligence (relationship with suppliers, customers and employees)

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4

Entrepreneurial Gut Game

sense without using the 5 senses (intuition); they know smth will work or not; courage

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5

Macro Environment

  • how consumers will behave, how supply and demand will move

  • FACTORS (things you can take advantage of; can not be controlled = need to adapt)

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6

Political Forces

  • government type and policy, funding, grants, and initiatives

  • government actions that influence the economy

  • EX. policies and laws on taxation, rules, and regulations in business practices, permits, approvals, licenses, trade, and labor

  • follow the requirements, they make change = be active

  • imports & exports,

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7

Economic Forces

  • inflation and interest rates, labor and energy costs; supply and demand

  • determinants of an economy

  • market boom, a recession (a period of temporary economic decline) or a growing inflation

  • EX. inflation rate, interest rate, monetary policies, and foreign exchange rates,

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8

Social Forces

aspects of culture and society, demographics, lifestyle, values, social trends, and other similar changes

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9

DEMOGRAPHICS

age, race, ethnicity, gender, marital status, income, education, and employment

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10

CULTURAL DIMENSION

beliefs, tastes, customs and traditions

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11

FADS

trends that are short-lived (months)

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12

TRENDS

particular behavior of a certain group of individuals which lasts for a certain period (years)

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13

MEGATRENDS

trends that persist over a long period

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14

Technology

advancements in technology

  • This prompts companies to analyze trends and developments in technology and determine how these can be used for their benefit

  • EX. emerging technologies, web; information & communication

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15

Legal and Regulatory Forces

  • laws, regulations, and government policies; standards and employment law

  • include health and safety standards, advertising policies, equal opportunity regulations, copyright laws, consumer rights, and policies on product labeling.

  • similar to political

  • These forces regulate the activities of the business organization, and marketers need to be aware of rules and guidelines in order to undertake effective and proper strategies.

    • These forces also ensure healthy competition within the market and uphold consumer rights.

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16

Environmental/ Ecological Forces

  • weather, green, & ethical issues; pollution, waste, recycle; ecology, climate, and climate change

  • Business devises plans and other means to address the threats it possesses.

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17

Industry

  • product types/function of the product or service

    • (e.g. computer industry, beer industry, fast food industry, cola industry, etc.)

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18

PRODUCT CHAIN

  • focuses on the volume produced and the use of the product to the consumers; all parts of the raw material can be used

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19

VALUE-ADDED CHAIN

  • focuses on the value or cost added in each stage of making the product; chain of mark-ups

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20

Market

  • actual and potential demand and supply of a product

  • Ex. value/combo meals or more-for-less strategy

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21

Micromarket

  • specific target market segment

  • are those who are currently buying the goods or services.

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22

Consumer Preferences

  • the tastes of particular groups of people; taste → culture, age)

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23

Consumer Piques

things that irritate customers

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24

Consumer Perceptions

customer's impression, awareness or consciousness about a company or its offerings

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25

Other Sources of Opportunities

  • Entrepreneur's own set of skills, expertise or hobby

  • New knowledge on new technology

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26

OPPORTUNITY SCREENING

Which one is the most effective opportunity?

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27

Personal Screening

  • entrepreneurs have to consider his/her preferences and capabilities through these questions.

    • Do I have the drive to pursue this business opportunity to the end?

    • Am I willing to spend my time, effort and money to make the business opportunity work?

    • Am I willing to sacrifice my existing lifestyle, endure emotional hardship, and forego my usual comforts to succeed in this business opportunity?

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28

WEIGHT

COMPONENT IN RISK/RETURN GRID

  • is how important is that r to the opportunity of the business

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29

RATING

COMPONENT IN RISK/RETURN GRID

can you do it?

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30

Relevance

The opportunity must be aligned with your business' vision, mission and objectives.

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31

Resonance

The opportunity must match the values and desired virtues that you wish to impart.

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32

Reinforcement

  • The entrepreneurs should reflect on their personal interests, talents and skills as well as their hobbies and previous experiences.

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33

Revenue

  • Determine the sales potential of the products/services you want to offer.

  • Is there a big enough market to grab and nurture for growth?

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34

Responsiveness

  • The entrepreneurs should try to research what his/her target customers are looking for.

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35

Reach

Opportunities that have good chances of expanding through branches, distributorships, dealerships or franchise outlets in order to attain rapid growth are better opportunities.

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36

Range

  • Does this business opportunity have the potential for creating a wide array/display of products/services?

  • Is it easy to increase the number of product/service offerings?

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37

Revolutionary Impact

  • If you think the opportunity will be the next big thing or game changer, then there's a big potential for the chosen opportunity.

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38

Returns

  • Does the business opportunity promise to generate good profits?

  • Products with low costs of production and operations but are sold at higher prices will definitely yield the highest returns on investments.

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39

Relative Ease of Implementation

Will the opportunity be easy to implement by the entrepreneur or will there be a lot of problems to overcome?

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40

Resources Required

  • Requiring fewer resources from the entrepreneur may be more favored than those requiring more resources.

  • Does the opportunity need a lot of capital?

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41

Risk

Does the opportunity present a lot of market, technology, people and financial risks?

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42

Pre-feasibility Study

  • ascertain the viability of the opportunity; is it possible?

  • focuses on the few ideas that could make or break your business concept

  • a preliminary study undertaken to determine, analyze, and select the best business scenarios.

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43

Market Potential and Prospects

  • estimated possible customers who might avail your product or service

  • factors that customers consider in making final choice in buying

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44

Market Segmentation

division of customers in different sets (e.g. demographics)

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45

Assessment of Competition

  • determine how saturated the market is in a given area

  • more suppliers and competitors = greater level of saturation

  • this is about how heavy the market is in a given area.

  • Some entrepreneurs would like to keep out of a market where there's a tight competition but others prefer to enter the biggest and richest competitive markets for them to have growth potential.

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46

Estimation of Market Shares and Sales

  • define the market coverage (active outlets)

  • determine the broad market segments within the area (demographics)

  • evaluate the relative strengths of suppliers and competitors

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47

MARKET SHARES

  • stronger the business and longer = higher market share

  • Each company within an industry has sold to a percentage of the market.

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48

MARKET COVERAGE

number of active retail and wholesale outlets

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49

Technology Assessment and Operations Viability

determine whether the product/service will meet customer demand/not

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50

Quantities Demand

one of the four target customer expectations affecting the scale and complexity of an enterprise's operations

  • It's about the needed capacity/volume of the operations.

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51

Quality Specifications Demanded

one of the four target customer expectations affecting the scale and complexity of an enterprise's operations

  • Quality of input/raw materials, Quality assurance process in transforming input to output, Quality output that meets the operations, standards set, and Quality outcomes for the customers who will be looking for specific results.

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52

Delivery Expectations

one of the four target customer expectations affecting the scale and complexity of an enterprise's operations

How much, how frequent, and when to deliver to customers.

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53

Price expectations

one of the four target customer expectations affecting the scale and complexity of an enterprise's operations

Selling price would be evaluated by the customers according to the value that they would receive (in terms of quality, delivery, and quantity) and it should be matched against competitors

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54

Investment Requirements

  • determine how much money is needed to start the business opportunity considering the technologies and operating levels

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55

Pre-Operating Costs

one of the three investments that need to be funded

Costs related to the preparation for the launch of the business (pre-feasibility study, in-depth feasibility study, market research, product development, organizational development, and initial promotional costs)

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56

Production/Service Facilities Investment

one of the three investments that need to be funded

The long-term investment for the actual business establishment (investment in land, buildings, machinery, equipment, computers, software, furniture, vehicles, etc.) If the business will rent, it would also be included.

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57

Working Capital Investment

one of the three investments that need to be funded

The investment needed to operationalize the business (cash - to cover the inventories to be purchase; accounts receivable - to accommodate customers and operating expenses to be incurred such as employees’ salaries, wages and benefits, rent expense, utilities, transportation, fees and licenses, commissions, office supplies; inventories)

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58

Financial Forecasts and Determination of Financial Feasibility

  • indicate the feasibility of the enterprise

  • complete projection of the financial statements

  • the monetary transactions that the business is expected to engage in

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59

Income Statement

  • revenue/sales forecasts (marketing strategy and action program)

  • forecasts of cost of goods produced (operations strategy and production/service delivery program); raw materials

  • forecasts of operating and non-operating expenses (rest of the enterprise delivery system)

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60

Balance Sheet

shows the investments in form of assets and their corresponding financing in form of liabilities (resources mobilized)

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61

Cash and Funds Flow Statement

  • flow of resources

  • inflow - income; outcome - expenses

  • Net Income or Net Loss

    • earn? lose?

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62

The Feasibility Study

  • required for bigger projects that entail millions of pesos worth of investment

  • more comprehensive and detailed; more rigorous/meticulous approach

prepared to convince bankers and investors to put money into the business

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63

OPPORTUNITY SEIZING

determine the critical success factor and be vigilant about the factors the lead to failure

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64

CRITICAL SUCCESS FACTOR

  • ay change depending on what market segment the enterprise is addressing.

  • If the market segment wants high quality and can tolerate high prices, it's different from those who are very price conscious but at the same time not too demanding on the quality.

  • Will I be able to manage these factors?

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65

POSITIONING STATEMENT

  • an expression of how a given product, service or brand fills a particular consumer need in a way that its competitors don't.

  • branding of the product

  • For you to craft a positioning statement, know your competitors' major buyers and features of their products should give you an idea.

  • Then, customer profiling should be done.

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66

VALUE PROPOSITION

  • a statement that answers the 'why' someone should do business with you.

  • It should convince a potential customer why your service or product will be of more value to them than similar offerings from your competition.

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67

MARKET NICHE

  • small segments of the market where discriminating customers are searching for special product/service features and attributes to satisfy the specific market needs.

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68

Designing, Prototyping, and Testing the Product

  • render the concept and translate it into reality

  • assess how much resources are available and what kind of setup is needed

  • provide the concept and translate it into its very physical and very real dimensions.

  • Then, assess how much resources are available in order to seize the opportunity and what kind of organizational setup will work best for this kind of opportunity.

  • END RESULT: highly satisfied customers, huge sales realized, large profits generated, etc.

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69

WHY

ONE OF THE QUESTIONS THAT SHOULD BE ASK IN MARKET RESEARCH

Purpose and objective for conducting the market research

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70

WHAT

ONE OF THE QUESTIONS THAT SHOULD BE ASK IN MARKET RESEARCH

Determine the scope and limitation of the market research to be conducted

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71

WHICH

ONE OF THE QUESTIONS THAT SHOULD BE ASK IN MARKET RESEARCH

Determine the market segment to be studied

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72

WHO

ONE OF THE QUESTIONS THAT SHOULD BE ASK IN MARKET RESEARCH

Identify the members of the selected segment who will participate for the research

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73

WHEN

ONE OF THE QUESTIONS THAT SHOULD BE ASK IN MARKET RESEARCH

Determine the time and timing of the research

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74

WHERE

ONE OF THE QUESTIONS THAT SHOULD BE ASK IN MARKET RESEARCH

Pinpoint the relevant location of the market research

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75

HOW

ONE OF THE QUESTIONS THAT SHOULD BE ASK IN MARKET RESEARCH

Determine the methodology to be used.

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76

Sales Data Mining

  • observing and recording

  • includes all numbers for the data; frequencies

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77

Focus Group Discussion

  • is one of the most common qualitative research tools.

  • It is effective in extracting consumer and non-consumer experiences regarding products, places, or programs.

  • This method can also be used for generating initial insights.

  • extracting consumer and non-customer experience about the product, place or program

  • timer, transcriber; 1. 5 to 3 hours only

  • qualitative, interview

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78

Observation Technique

  • one of the best ways of gathering data about customers in their natural setting without having to interact or talk to them.

  • One has to simply observe people as they go about their usual activity such as buying and using products and services and assess how they behave.

  • However, the researcher must be discreet so as not to attract the attention of the one being observed.

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79

HUMAN OBSERVATION

humans observe the events as they happen

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80

MECHANICAL OBSERVATION

mechanical devices are used to record events for later analysis

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81

Survey Research

  • most preferred instrument for in-depth quantitative research

  • The respondents are asked a variety of questions which are often about their personal information, motivations, and behavior.

  • not only paper and pen, also be conducted via telephone, personal, and mail interview

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82

Usage, Attitude, and Image Survey

  • the most popular type of survey

    • is intended to derive market awareness, market size and share, product usage and preference, customer interest, and customer image.

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83

Probability sampling

  • randomly selected

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84

Non Probability sampling

done when it's difficult to estimate population because they move from one place to another or not permanent in a given location; respondents are not constant

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85

Data variability of a proportion

  • how spread out a set of data is from a central point

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86

Confidence level

  • tells you how sure you can be (90%, 95%, 99%)

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87

Error in the result

remaining of the confidence level

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88

Legal Visibility

the ability to accurately and completely view the processes, transactions and other activities operating within an enterprise

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89

People and Physical Resources

these are the sales volume targeted (determine the quantities of materials, supplies, power, space, people, operating expenses, and other requirements), technology to be utilized, and the capabilities needed by the employees (calibrate the salaries and wages, benefits and allowance, travel and transportation, and other people-related expenses).

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90

Peso/Money Resources

other financial requirements in establishing and nurturing the business.

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