opportunity strategy the evaluation of the
TRANSCRIPT
Who was the inventor of the
light bulb?
Discussion Today
The nature of opportunity
How entrepreneurs really work
Forecasting
Business Plan or Business Model?
The opportunity model
A reality check: What entrepreneurs are really
like
Small Business Verses Entrepreneurship
Raw materials
Transport
Production Transport
Warehouse
Supermarket
Community
Farm
Transport
Education
Research & Development
Management
Fossil Fuels Pollution
Power generation
Export/Import
Air Transport
Waste
Competition & Tension
Conflict
Government
Diversity
Economic Growth
Health Development Poverty &
Unhappiness
Consumption
Uncertainty
New Paradigms
Regulation
Product Opportunity
Gap
Social Social and cultural trends
and drivers Reviving historical trends Influence of international
trends
Technology State of the art and emerging technology Re-evaluating existing
technology Technology applied in new
areas
Economic State of the economy
Shift in focus on where to spend money
Level of disposable income Level of debt
Regulation Restriction of existing
regulations New regulations and impact
on product markets and supply chains
The External Variables
Perceptual Changes
The Environment
Experience
New Knowledge Changing
Domicile Outlook
Urbanization, growing
confidence about social status, etc.
New knowledge about health, fitness,
food, etc.
Aspirations
Where am I now?
Where do I want to be?
Global Convergence
Peers and Role Models
Attitudes
New technology
Changing traditions
Changing Affluence
The benefits of exercise and working out in a gym
Women wanting a safe and secure environment
Women feeling intimidated in conventional gyms in the weight
areas.
Not working out in
conventional gyms
Pick up women’s changing perceptions
Current situation
Changing Perceptions
Result in creation of Fernwood
Women’s Health Club Concept
Opportunity
Support/Facilitate
Regulate/Control Encourage/Discourage
Intellectual Property Laws
Anti-trust Laws
Taxation
Legal System
Board of Investment
Specific Regulatory Bodies i.e., Pesticides Board
Capital Raising Institutions
Labour Laws
Environmental Laws
Business Formation Procedures
Licensing & Permits
Contract Enforcement
Policing of Corruption
Property Laws
Education & Training
R&D Policy
Trade barriers & Protection
Product Standards & safety
Fiscal & Monetary Policy
Changing Technology
Relatively Stable
Flux & Transformation De
crea
sing S
tabi
lity
Increasing Complexity
Routine Non-Routine
Subsistence Farming
Cash cropping
Market gardening Consulting Business
FMCG Manufacturing
Small Retail
Wholesaling
Electronic Goods
Computer & Mobile Phone Airlines
Automobile Manufacture
DVD Rental
Medical Services Fast Food
Merging Industries
Change
Shock
Gestalt
Competitor’s new products
Technology Demographics
New Information
Lifestyle
Changing Tastes
Economy
Regulation
New Opportunities
©Hunter (2012)
Construction New technologies
New Business models
Imitation Replication & Extension
Allocative Supply/Demand changes
Demographic changes
Discovery Incongruities
Structural changes
Locus of change
Value creation
Analytical
Deductive (Black & white)
Intuitive
Inductive
Degree of ambiguity Active/Imaginative
Passive/Reactive The forms of opportunity©Hunter (2012)
Large Companies & Consumer Type
Markets High analytical & Low
intuitive opportunities, high strategy & low tactical
exploitation
Breakthrough Technology
High analytical and high intuitive opportunities, high
strategy & high tactical exploitation
Imitative Business
Low analytical & low intuitive opportunities, low strategy &
low tactical exploitation
Entrepreneurial
Low analytical & high intuitive, low strategy & high tactical
exploitation
Growing importance
of formal strategy
Growing importance of tactical moves
Low
High
Analytical
Low High Intuitive
©Hunter (2012)
Imitative
Allocative
Discovery
Construction
Market Orientated Firms
High adaptability to the environment but low
generative idea & strategy ability
Conservative firms
Very low adaptability to environment
Both Market & Entrepreneurially Orientated Firms
High adaptive and idea generative & strategy development ability
Entrepreneurial Firms
High generative idea & strategy capability
Mar
ket
Ori
enta
tion
Entrepreneurial Orientation
High
High
Low
Low
Four potential firm opportunity seeking typologies
Fastfood (General Characteristics)
1. Cheap 2. Good standard of hygiene 3. Good service 4. Fast and efficient 5. Specialize in a particular food 6. Know what to expect 7. A meeting place for people
Charcoal Burger Grill
1. Location near young people (university): convenient
2. Cheap and affordable 3. Good service 4. Authentic charcoal BBQ
burger grill (western style) 5. Convenient meeting place
with WiFi etc.
University
Location
Potential success parameters
Co
nce
pt
Extr
acti
on
Constructed Concept Concept Extraction
A (location) + B (characteristics) = C (constructed Concept)
A
B
C
©Hunter (2011)
Organically produced high active concentration shampoo with product
variants to suit various conditions.
Central Theme (Product Proposition)
Underlying Assumptions High & discerning
market end. Customers who
want mass custom produced
products.
Low competition in segment.
Rapidly growing segment.
Products match personal values.
Sustainable
Strategy Characteristics
Brand Theme
Features Benefits Signal
Attributes Channels
Customers
Laundry Service
Service Convenience Price Quality Relationship
Matching product to some marketspace
Matching marketspace to some product
Two ways to scan for opportunities
Change In User Habits
Risk None
None
Some
Some
Great
Great
Dangerous
High
High
None
Change in how and where people buy the product
Medium
Medium
Medium
Low
Low
We can land a man on the moon and return him successfully to Earth but we are still not too sure
what factors make a firm successful
How Entrepreneurs Really Work
The Summarised
Entrepreneurial
Process
Idea
Turn into Opportunity
Final Commitment
Start-Up
Growth
Sustainability
Creativity
Innovation
Strategy
Sales
NPD
Resource Gathering
Your Moves
Your Competitor’s
Moves
Your advantages & Disadvantages
©Hunter (2011)
Ideas Opportunities Strategies Opportunity Performance match Match
Spots
Evaluates &
Elaborates
Selects
Implements & Modifies
Perception & Creativity
Innovation Strategic Thinking
Venture Operations
Capabilities Governing Competitive Scope
Competencies Entrepreneurial, Opportunity
identification, Network, Conceptual, Strategic, Commitment
Resources Networks
Uniqueness / Differentiation
Management Capability
Competitive Advantage Costs: To customers, to operate Knowledge: Competitive environment Relationships: Customers, suppliers, financiers, (relative power) Structure: Organizational ability Technology: strength
Opportunities
Environment
Firm Opportunity Trajectory
Firm Alternative Opportunity Trajectory
Field of Network Based
Opportunities
Strategic Business Analysis
Resources, networks, capabilities, competitive
environment, etc.
Business Goals
Family Values
The Vision Aspiration
Family Goals
Self Assessment (Self-efficacy)
Decision Making Skills
Knowledge Competencies
Personal Goals
Business Competencies
Knowledge
Production & Operations
Marketing
Personnel
Financial
Risk Management
Horizontal and
vertical expansion
Aspirations
Self view
Income needs
Time Horizon
View of retirement
Opportunity cost of doing
other activities
Passion
Family Considerations
Generational
evolution
Grooming successors
Family aspirations
Lifestyle
Attachment
Asset Fulfillment
Value
Type
Needs
Wants
Liquidity needs
Alternatives
Future (Retirement)
Time horizon
Investment
options
Risk management
Tax planning
Opportunity cost of doing
other activities
Exit barriers
The Individual & Family Family history, Current family
livelihood, Current Family Status.
Motivational Origins
Images and Connections
Concepts
Ideas
Opportunity
Vision Platform - Perception
Time & Space Potential
Concept Generator – Making Connections
Sources of Opportunity Learning:
Conceptual World
Identifying concepts
Evaluation after experience
Complete re-evaluation (seek further information)
Real World
Experimentation & Testing
Structure common to all opportunities Vision – Outcomes
Time & Space Resources Networks
Skills, Competencies & Capabilities Competitive Environment Strategy – scope & depth
“A Narrative”
Evaluated and Elaborated Upon
The birth of an opportunity
Can and do entrepreneurs use a business plan?
The Secret
Who had a business plan?
Forecasting
Rate of Adoption
100%
80%
60%
40%
20%
1975 1980 1985 1990 1995 2000 2005 2010
Innovation Growth Maturity
Market Research
Less than 2% of filed patents are ever commercialised
Does a new invention have consumer benefits or create any competitive advantage?
Can consumers accept the new invention?
Laundry Liquids Detergents
Concentrated Laundry Powders
Detergents with Special Additives
Laundry Detergent Tablets
Laundry Detergents Powders
Solid Soaps & Powders
Laundry Blue
Laundry Detergent Bars
Pre 1900’s
Up to Late 1940’s
1950’s until present
1980’s until present
Product Evolution
The Past
Present time
We know the past and present Without any changes our
timeline will remain relatively unaltered
The effect of competitor innovation will bring product
evolution
This changes the parallel of the market gradually
A Radical change in technology
Will radically change the timeline into a new industry
A
va
ila
bilit
y I
nc
rea
ses
Usefulness Increases
Media Reports
Ideas
Data
Information
Knowledge
Wisdom
The Continuum from media reports to wisdom in relation to availability and usefulness
Where does the informati on come from?
Supermarket Retail Prices New Zealand June 2002
Product Size Pak N Save Woolworths Foodtown Warehouse New World GilmoursCockroach Control
Raid Advanced Baits (3 Baits) 30ml $3.75 $3.53Mortein Roach Trap 4 traps $6.07 $6.99 $6.55 $6.75No Cockroaches 500ml $10.39
Ant Control
Raid Ant Killer 120ml $3.16 $3.69 $3.70 $3.79 $3.18No Ants Gel Bait 60ml $7.72 $7.60 $7.99 $7.30No Ants Bait Stations $3.95 $3.49 $4.99Mortein Ant Nest Stop 4 baits $3.91 $3.99Neverong Ant 250ml $2.90 $2.38Raid Ant Baits 3 pack $4.25Ant Ban $4.15No Ants 500ml $10.99
Moths/OtherRaid Moth Proofer $3.65 $3.29 $3.29Mortein Mosquito Coils 10 coils $2.02 Raid Portable Mozzie Repeller $12.33 $10.65 $10.99 $12.99Spiral Fly & Mosquito Rep. $11.45Mortein Mozzie Zapper $10.45 No Fleas/No Spiders 500ml $10.99
New ZealandSales Forecast (Net Invoice Price*)Account: Auckland/FoodStuffs/ProgressiveProduct: Roach Attack 140grams
%Year 5.10% 4.96% 6.95% 10.92% 11.92% 11.92% 11.92% 11.92% 7.94% 5.96% 5.79% 4.70% 100.00%
No Stores July August Sept. October November December January Februrary March April May June TotalTotal Account 274 Vol 61.46 59.78 83.70 131.52 143.48 143.48 143.48 143.48 95.65 71.74 74.99 56.63 1209.42
Val $4,447.54 $4,325.97 $6,056.36 $9,517.13 $10,382.33 $10,382.33 $10,382.33 $10,382.33 $6,921.55 $5,191.16 $5,045.33 $4,098.04 $87,132.39Auckland/ 42 Vol 12.60 12.60 17.64 27.72 30.24 30.24 30.24 30.24 20.16 15.12 12.60 12.60 252.00New World Val $911.74 $911.74 $1,276.43 $2,005.82 $2,188.17 $2,188.17 $2,188.17 $2,188.17 $1,458.78 $1,094.08 $911.74 $911.74 $18,234.72Auckland/ 19 Vol 5.70 5.70 7.98 12.54 13.68 13.68 13.68 13.68 9.12 6.84 5.70 5.70 114.00Pak N Save Val $412.45 $412.45 $577.43 $907.39 $989.88 $989.88 $989.88 $989.88 $659.92 $494.94 $412.45 $412.45 $8,249.04Auckland/ 130 Vol 25.35 25.35 35.49 55.77 60.84 60.84 60.84 60.84 40.56 30.42 40.56 25.35 522.21Four Square Val $1,834.33 $1,834.33 $2,568.06 $4,035.52 $4,402.38 $4,402.38 $4,402.38 $4,402.38 $2,934.92 $2,201.19 $2,934.92 $1,834.33 $37,787.12Auckland/ 14 Vol 2.73 1.05 1.47 2.31 2.52 2.52 2.52 2.52 1.68 1.26 1.05 1.05 22.68Non Banner Val $197.54 $75.98 $106.37 $167.15 $182.35 $182.35 $182.35 $182.35 $121.56 $91.17 $75.98 $75.98 $1,641.12Progressive/ 30 Vol 9.00 9.00 12.60 19.80 21.60 21.60 21.60 21.60 14.40 10.80 9.00 5.85 176.85Foodtown Val $651.24 $651.24 $911.74 $1,432.73 $1,562.98 $1,562.98 $1,562.98 $1,562.98 $1,041.98 $781.49 $270.00 $423.31 $12,415.63Progressive/ 39 Vol 6.08 6.08 8.52 13.38 14.60 14.60 14.60 14.60 9.73 7.30 6.08 6.08 121.68Supa Value/Fresh Val $440.24 $440.24 $616.33 $968.52 $1,056.57 $1,056.57 $1,056.57 $1,056.57 $704.38 $528.29 $440.24 $440.24 $8,804.76
Estimated % Distribtion and Average Monthly Self Offtake (in Cartons) Roach Attack Ant Attack Ant Attack No-Moz No-Moz Fun Candles Prewash Living Scents
Group 140gramsgrams 150gramsgrams 50 mlml 3x35 grams 100 grams 3x35g rams Stain 100grams Wardrobe 30g
%dist AMSO %dist AMSO %dist AMSO %dist AMSO %dist AMSO %dist AMSO %dist AMSO %dist AMSO
AucklandFoodstuffs/New World 100% 0.5 100% 0.8 100% 0.8 100% 0.5 100% 0.5 100% 0.25 100% 0.4 100% 1Foodstuffs/Pak N Save 100% 0.5 100% 0.8 100% 0.8 100% 0.5 100% 0.5 100% 0.25 100% 0.4 100% 1Foodstuffs/Four Square 65% 0.5 65% 0.8 65% 0.8 65% 0.5 65% 0.5 65% 0.25 65% 0.4 65% 1Foodstuffs/Non Banner 25% 0.5 25% 0.5 25% 0.6 25% 0.5 25% 0.5 25% 0.25 25% 0.4 25% 1Progressive/Foodtown 100% 0.5 100% 0.8 100% 0.6 100% 0.5 100% 0.5 100% 0.25 100% 0.4 100% 1Progressive/Supa Value/Fresh 65% 0.4 65% 0.5 65% 0.5 65% 0.5 65% 0.5 65% 0.25 65% 0.4 65% 1Woolworths/Prog. WellingWoolworths: 100% 0.5 100% 0.8 100% 0.8 100% 0.5 100% 0.5 100% 0.25 100% 0.4 100% 1Big Fresh 100% 0.5 100% 0.8 100% 0.6 100% 0.5 100% 0.5 100% 0.25 100% 0.4 100% 1Price Choppers 100% 0.5 100% 0.8 100% 0.8 100% 0.5 100% 0.5 100% 0.25 100% 0.4 100% 1Foodstuffs/New World 100% 0.5 100% 0.8 100% 0.6 100% 0.5 100% 0.5 100% 0.25 100% 0.4 100% 1Foodstuffs/Pak N Save/Right 65% 0.5 65% 0.5 65% 0.6 65% 0.5 65% 0.5 65% 0.25 65% 0.4 65% 1Foodstuffs/4 Square/non-bann 25% 0.4 25% 0.5 25% 0.5 25% 0.5 25% 0.5 25% 0.25 25% 0.4 25% 1Foodstuffs/South IslandNew World 100% 0.5 100% 0.5 100% 0.6 100% 0.5 100% 0.5 100% 0.25 100% 0.4 100% 1Pak N Save 100% 0.5 100% 0.5 100% 0.5 100% 0.5 100% 0.5 100% 0.25 100% 0.4 100% 1Four Square 20% 0.5 20% 0.25 20% 0.6 20% 0.6 20% 0.5 20% 0.25 20% 0.4 20% 1On the Spot 5% 0.5 5% 0.25 5% 0.5 5% 0.5 5% 0.5 5% 0.25 5% 0.4 5% 1
Annual Sales Distribution
Product J A S O N D J F M A M J Total
Roach Attack 140gram 5% 5% 7% 11% 12% 12% 12% 12% 8% 6% 5% 5% 100%Ant Attack 150grams 5% 5% 7% 11% 12% 12% 12% 12% 8% 6% 5% 5% 100%Ant Attack 50ml 5% 5% 7% 11% 12% 12% 12% 12% 8% 6% 5% 5% 100%No-Moz Cit. Candle 3x35gram 5% 5% 7% 11% 12% 12% 12% 12% 8% 6% 5% 5% 100%No-Moz Cit. Candle 100grams 5% 5% 7% 11% 12% 12% 12% 12% 8% 6% 5% 5% 100%Fun Candle 3x35grams 5% 5% 7% 11% 12% 12% 12% 12% 8% 6% 5% 5% 100%Prewash Stain Bar 100grams 5% 5% 7% 11% 12% 12% 12% 12% 8% 6% 5% 5% 100%L/S Wardrobe 30grams 5% 5% 7% 11% 12% 12% 12% 12% 8% 6% 5% 5% 100%
Percentage Distribution GainedAccount J A S O N D J F M A M J
Metcash:Nsw/Act 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Victoria 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Queensland 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% South Australia 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Other Independents:FAL/Action 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Hunters Brands Pty. Ltd. Product Costing Structure
Roach Attack Ant Attack Ant Attack 3x70gram 150grams
140grams 150grams 100ml Candle Supercandle
Carton size 6 6 6 24 24 0 0Unit calculations:
RSP: $5.98 $3.45 $3.49 $3.99 $3.99 $0.00 $0.00GST: $0.54 $0.31 $0.32 $0.36 $0.36 $0.00 $0.00
RSP (before GST): $5.44 $3.14 $3.17 $3.63 $3.63 $0.00 $0.00Carton calculations:
Retail Margin 40% $13.05 $7.53 $7.61 $26.12 $26.12 $0.00 $0.00Gross Invoice Price $19.57 $11.29 $11.42 $64.15 $64.15 $0.00 $0.00
Warehouse Allow. 0% $0.00 $0.00 $0.00 $3.21 $3.21 $0.00 $0.00Net Invoice Price $19.57 $11.29 $11.42 $60.94 $60.94 $0.00 $0.00
Trading Terms 0% $0.00 $0.00 $0.00 $9.14 $9.14 $0.00 $0.00Net Pricing $19.57 $11.29 $11.42 $51.80 $51.80 $0.00 $0.00
Case Deals (ave. 0%) $0.00 $0.00 $0.00 $0.00 $1.92 $0.00 $0.00
Fertool Margin 25% $4.89 $2.82 $2.86 $15.23 $15.23 $0.00 $0.00Net Price $14.68 $8.47 $8.57 $34.64 $34.64 $0.00 $0.00
Hunters Brands Pty. Ltd. Product Costing Structure
Roach Attack Ant Attack Ant Attack 3x70gram 150grams
140grams 150grams 100ml Candle Supercandle
Carton size 6 6 6 24 24 0 0Unit calculations:
RSP: $5.98 $3.45 $3.49 $3.99 $3.99 $0.00 $0.00GST: $0.54 $0.31 $0.32 $0.36 $0.36 $0.00 $0.00
RSP (before GST): $5.44 $3.14 $3.17 $3.63 $3.63 $0.00 $0.00Carton calculations:
Retail Margin 40% $13.05 $7.53 $7.61 $26.12 $26.12 $0.00 $0.00Gross Invoice Price $19.57 $11.29 $11.42 $64.15 $64.15 $0.00 $0.00
Warehouse Allow. 0% $0.00 $0.00 $0.00 $3.21 $3.21 $0.00 $0.00Net Invoice Price $19.57 $11.29 $11.42 $60.94 $60.94 $0.00 $0.00
Trading Terms 0% $0.00 $0.00 $0.00 $9.14 $9.14 $0.00 $0.00Net Pricing $19.57 $11.29 $11.42 $51.80 $51.80 $0.00 $0.00
Case Deals (ave. 0%) $0.00 $0.00 $0.00 $0.00 $1.92 $0.00 $0.00
Fertool Margin 25% $4.89 $2.82 $2.86 $15.23 $15.23 $0.00 $0.00Net Price $14.68 $8.47 $8.57 $34.64 $34.64 $0.00 $0.00
Product Benefit Strategies
Launch Product Perceived Consumer Benefits Promotional StrategiesImmediate Ant Attack Powder 150grams a) can use indoors Instore POP material
b) Non-Toxicc) Only use when problem arises
immediate Ant Attack Liquid 70ml a) can use indoors Instore POP materialb) Non-Toxicc) Only use when problem arisesd) Can be used on walls, etc.
immediate Roach Attack 140grams a) Realign product as a small space air Instore POP material freshener as well as insect repellent.
immediate Lilin Serai Wangi a) Super strength boosted product. a) Instore POP materialb) New presentation b) regional radio when wholesaler
appointed.c) Newspaper
immediate Citrus All purpose Cleaner 500ml a) Powderful Natural solvent cleaner a) Instore POP materialb) fresh orange citrus fragrance b) block/demo/promoters
Nov. 2003 Thick Bleach a) More powerful than ordinary bleach a) Instore POP materialb) Can use on toilet bowl and walls b) block/demo/promoters
Nov. 2003 Non-Toxic Knock Down Aerosol a) Non-Toxic a) Instore POP materialb) Safe near food b) block/demo/promoters
c) regional radio when wholesaler appointed.
Nov. 2003 Non-Toxic Surface Aerosol a) Non-Toxic a) Instore POP materialb) Safe near food b) block/demo/promoters
c) regional radio when wholesaler appointed.
Feb. 2004 Tea Tree Soap a) Natural Antiseptic a) Instore POP materialb) block/demo/promotersc) regional radio when wholesaler appointed.
April 2004 Aromatherapy Bath & Shower Gel a) Use Essential oils a) Instore POP materialb) Full Concept b) block/demo/promoters
April 2004 Incistern blue blocks Price benefit a) Instore POP materialb) block
Essential Home Products Pty. Ltd. Cost & Pricing Matrix
Product Ctn Landed Net Net Net Invoice Gross Invoice RSP Value RSPCost Price* Price** Value Price Carton*** Carton****
Roach Attack 140grams 24 $24.73 $70.18 $77.63 $91.33 $96.14 $72.36 $143.52Ant Attack 150grams 24 $17.48 $40.49 $44.79 $52.69 $55.46 $75.36 $82.80Ant Attack 50ml 24 $36.46 $40.96 $45.31 $53.30 $56.11 $76.08 $83.76No-Moz Citronella Cnd. 3x35g 24 $20.77 $31.10 $34.40 $40.47 $42.60 $57.84 $63.60No-Moz Citronella Cnd. 100g 24 $15.45 $22.30 $24.67 $29.02 $30.55 $41.52 $45.60Aroma Fun Candle 3x35grams 24 $29.30 $44.60 $49.33 $58.04 $61.09 $82.80 $91.20Prewash Stain Removal Bar 48 $35.44 $39.67 $43.88 $51.62 $54.34 $73.92 $81.12Living Scents Wardrobe 30g 24 $12.48 $19.83 $21.94 $25.81 $27.17 $36.96 $40.56* Net Price: After discounts, trading terms & brokerage fees
** Net Price: After discounts & trading temrs before brokerage fees
***Before GST
****After GST
Planned Distribution MatrixKey A/C Supermrk't Convenience M. Mrk't
Citronella Candle 100grams X X X XCitronella Candle 70grams X X XNon-Toxic Knock Down Aerosol X X X XNon-Toxic Surface Aerosol X X X XPrewash Stain Removal Bar X X XCitrus Cleaner X XAnt Attack Powder X X X XAnt Attack Liquid X X X XRoach Attack X X XWardrobe Small A/fresh X X X X
RSP Position Decision Making MatrixProduct Direct Competitors Pack Price Cost/ Competitor Claims EHP Claims Sugg.
Size Unit RSPRoach Attack 140grams Mortein Lure 'n' Kill 6 baits $3.34 n/a 1. Honey, malt, soya 1. Repels cockroaches, $5.98
21grams extract moths, silverfish &2. Lasts 3 months other crawling insects
Sureguard Mini Strips 3 pack $8.89 n/a 1. Kills up to 6 months 2. Non-toxic60grams 3. No insecticides
Mortein Moth & Insect Strips 3 pack $7.69 n/a 4. Natural citronella &15 grams Lavender oils
Cedar fresh Moth Balls 18 balls $4.83 n/a 1. 100% natural cedar 5. Leaves clothes & 2. Repels moths & oth. linen smelling fresh
3. Prevents mildrew 6. Takes away the smell of pets from the home7. No naphthelene or PDCB
Ant Attack 150grams David Grey's Ant Granules 500grams $5.39 0.01/g 1. Controls ants outside 1. Non-Toxic $3.45
the home 2. No insecticidesMortein Ant Sand 500grams $8.39 0.016/g 1. Controls ants outside 3. Natural essential oils
the home 4. Can use inside homeBaygon Insect Dust 250grams $8.53 0.034/gHortico Ant Killer Dust 500grams $6.24 0.012/g
Ant Attack 50ml Combat Ant Rid 50ml $2.66 0.053/ml 1. Indoor Ant Liquid 1. Non-toxic $3.49Baygon Ant Killer 200grams $4.68 $0.02 2. No insecticides
3. Natural essential oils4. Use inside the home
No-Moz Fly-Away 3x35grams Radience Citronella Candles 3 pack $1.99 Tea candle concept 1. Non-toxic $2.65Citronella Candle No-Moz Citronella Candles 300grams $2.49- .0083/g claims 1.5% active 2. Safe near foodNo-Moz Fly-Away 100grams $2.86 .0095/g citronella 3. 5% active citronella $1.90Citronella Candle Heat Beads Citronella Candle 300grams $3.99 0.0133/g (not claimed on pack)
No-Moz (small bucket) approx $2.99 0.015/hr 1. Claims 20 hours 4. 3x35grams approx250grams burning time 27 hours burning time
No-Moz (large bucket) $7.99 0.016/hr 1. Claims 50 hours 5. 100grams approx burning time 15 hours burning time
Aromatherapy Fragranced Haze Air freshener Candle 120grams $4.53- n/a 1. To help create moods $3.80Fun Candles 3x35grams $5.20 to relax, relieve stress
Parrot Aromatherapy Candles 300grams $3.59 and invigorateRomantics Aromatherapy $5.99 1. Awakens yourCandles 2 pack passion, etcAroma Scents 6 pack $2.99 1. To delight your
senses
AMSO Coles Stores May 2002Mentone Southland Coburg Nth Balwyn Hawthorn Malvern Glenhuntly Sandriham
Deodorant Blocks/Camphor/other small space
Cedar Fresh Moth Balls 16 12 0 9.33Hovex Camphor (2 pack) 28 44 32 84 56 48 48.67Fragrascene Deodorant Block 12 56 20 24 16 27Parry's Fresh Guard 24 44 32 20 20 48 31.33Parry's Deodorant block 44 20 80 0 28 16 31.33Wardrobe Wonder 8 12 4 0 8 6.4
Small Space Gel Air Fresheners
Haze Mini Scents Gel (2 pack) 52 36 0 64 38Glade Secrets (2 pack) 40 56 48Generic Gel 84 84 84Haze Crystal Air 36 20 24 40 40 48 33.6Ambi Pur Gel 32 52 24 48 48 40.8Generic Gel 60 112 86Glade Country Garden Gel 36 76 28 48 44 52 36 46
Citronella Candles
Radience Citronella Candles (3 pack)No-Moz Citronella Candle 12 20 24 8 0 24 14.67Heat Beads Citronella CandleNo-Moz Small Bucket Citronella Candle 8 8No-Moz Large Bucket Citronella Candle 16 8 12
Oil
Recochem Citronella Lamp Oil 8 8
Air Freshener/aromatherapy Candles
Haze Glass 0 56 16 0 12 20 17.33Parrot Aromatherapy candle 0Romantics Aromatherapy Candle (2 pack) 0 0Aroma Scents (6 pack) 0Parrot Tea Candles 0 8 8
Cockroach, Silverfish & Crawling Insect Market SurveyApr-02
Product Ave. Dist. AMSO Ave Vol. Ave Val. Ave Vol. Ave Val. %RSP per Month per month Per annum Per annum M'ktshare
Mortein Lure 'n' Kill Cockroach Baits $3.34 1866 26 48516 $162,043.44 582192 $1,944,521.28 16.89%Sureguard Mini Strips (3 pack) $8.89 1172 25 29300 $260,477.00 351600 $3,125,724.00 27.14%Mortein Moth & Insect Strip (3 pack) $7.69 1292 24 31008 $238,451.52 372096 $2,861,418.24 24.85%Cedar Fresh Moth Balls $4.83 1866 9.33 17409.78 $84,089.24 208917.4 $1,009,070.85 8.76%Hovex Camphor (2 pack) $1.64 1866 48.33 90183.78 $147,901.40 1082205 $1,774,816.79 15.41%Fragrascene Deodorant Blocks $1.43 662 27 17874 $25,559.82 214488 $306,717.84 2.66%Parry's Fresh Guard 100grams $1.62 230 31.33 7205.9 $11,673.56 86470.8 $140,082.70 1.22%Parry's Deodorant Block 50grams $1.17 630 31.33 19737.9 $23,093.34 236854.8 $277,120.12 2.41%Wardrobe Wonder 60grams $1.56 630 6.4 4032 $6,289.92 48384 $75,479.04 0.66%
265267.4 $959,579.24 3183208 $11,514,950.85
Tariff Heading: 3808 Tariff Heading
3808 Column Heading Definitions
Description INSECTICIDES, RODENTICIDES, FUNGICIDES, HERBICIDES, ANTI-SPROUTING PRODUCTS AND PLANT-GROWTH REGULATORS, DISINFECTANTS AND SIMILAR PRODUCTS, PUT UP IN FORMS OR PACKINGS FOR RETAIL SALE OR AS PREPARATIONS OR ARTICLES (FOR EXAMPLE, SULPHUR-TREATED BANDS, WICKS AND CANDLES, AND FLY-PAPERS)
HS Code SS Units Description Rate #
3808 INSECTICIDES, RODENTICIDES, FUNGICIDES, HERBICIDES, ANTI-SPROUTING PRODUCTS AND PLANT-GROWTH REGULATORS, DISINFECTANTS AND SIMILAR PRODUCTS, PUT UP IN FORMS OR PACKINGS FOR RETAIL SALE OR AS PREPARATIONS OR ARTICLES (FOR EXAMPLE, SULPHUR-TREATED BANDS, WICKS AND CANDLES, AND FLY-PAPERS): 3808.10 - Insecticides: 3808.10.10 --- Goods, as follows: Free (a) camphor; (b) fly-papers; (c) mosquito spirals and coils 22 kg Camphor 23 .. Fly-papers 24 .. Mosquito spirals and coils 3808.10.90 59 kg --- Other 5% 3808.20.00 - Fungicides 5% 39 kg Mancozeb 40 kg Other 3808.30.00 - Herbicides, anti-sprouting products and 5% plant-growth regulators 28 kg Goods wholly of, or with a basis of: (a) pentachlorophenol; (b) 2,4-dichlorophenoxyacetic acid, its salts or esters; or (c) 2,4,5-trichlorophenoxyacetic acid, its salts or esters 49 kg Goods wholly of, or with a basis of: (a) chlorsulphuron (C12H12ClN5O4S); or (b) metsulphuron methyl (C14H15N5O6S) 50 kg Other 3808.40.00 57 kg - Disinfectants 5%
Hunters Brands Sdn. Bhd.Standard Product Costing Sheet
Product: Ant Attack Liquid 100ml Size: 0.1
Formulation No: Date: 16/6/03
Units per packet: 1 No. Packets per Outer Carton: 6
Individual Unit Size: 0.1 Batch Size (Kg): 100
Part 1: Chemical Materials
Ingredient Quantity Price ExtensionEthanol 93 $2.500 $232.500Clove Oil 5.25 $35.000 $183.750Peppermint Oil 0.7 $38.000 $26.600Citronella Oil 1.05 $35.000 $36.750
$0.000$0.000$0.000$0.000$0.000$0.000$0.000$0.000$0.000
100
Batch Cost: $479.600 Cost Per Kilogram: $4.796
Wastage Cost per raw unit: $0.480 Factor Cost per Packet: $0.480
0.00% Cost Per Outer Qty: $2.878Ctn Cost per yield: $2.878
Ave. Yield/ Units per Batch: 1000 Date Last Updated:
Part 2: Packaging Materials
Item Unit Mea Quantity Price ExtensionAnt Attack Inner Box unit 6 $0.190 $1.140Ant Attack 50ml Label unit 6 $0.095 $0.570Ant Attack Bottle unit 6 $0.750 $4.500Ant Attack 50ml Outer carton unit 1 $0.450 $0.450
$0.000$0.000$0.000$0.000$0.000
Total Packaging: $6.660
Part 3: Labour
Mean Labour Cost $0.70Mean Fixed Overhead $0.00Mean Administrative Cost $0.00
$0.70 Part 4: Total Product Cost
Unit Carton % TotalMaterials $0.480 $2.878 28.11Packaging $1.110 $6.660 65.05Labour $0.117 $0.700 6.84Total $1.706 $10.238
Part 5: Selling Prices and Margins
Sell Price Gross Contribution % Margin Transfer Price -$10.24 #DIV/0! Sell 1: Whole/Distributor -$10.24 #DIV/0! Sell 2: Retailers -$10.24 #DIV/0! Sell 3: Export -$10.24 #DIV/0! Sell 4: Other -$10.24 #DIV/0!
Wholesaler Price Structure & Sales ProjectionWholesaler: National Location: Date: 1/6/03
1 2 3 4 5 6 7 8Super Roach Ant Ant Citro
Cit. candle Attack Attack (P) Attack (L) Fresh 500mlCarton Size 24 24 24 24 12
RSP (Unit) $3.50 $5.60 $4.20 $5.90 $7.90Margin 16.67% 16.67% 16.67% 16.67% 16.67%
RP (Carton) $70.00 $112.00 $84.00 $118.00 $79.00 $0.00 $0.00 $0.00Carton calculations:
Whl'slr Margin % 15.00% 15.00% 15.00% 15.00% 15.00%Whl'slr GP (RM) $10.50 $16.80 $12.60 $17.70 $11.85 $0.00 $0.00 $0.00
Gross Invoice Price $59.50 $95.20 $71.40 $100.30 $67.15 $0.00 $0.00 $0.00
A&P % 15.00% 15.00% 15.00% 15.00% 15.00%A&P Amount (RM) $10.50 $16.80 $12.60 $17.70 $11.85 $0.00 $0.00 $0.00
Net Invoice Price $49.00 $78.40 $58.80 $82.60 $55.30 $0.00 $0.00 $0.00
Media % 5.00% 5.00% 5.00% 5.00% 5.00%Media Amount (RM) $3.50 $5.60 $4.20 $5.90 $3.95 $0.00 $0.00 $0.00
Net Price (Before Mrkt) $45.50 $72.80 $54.60 $76.70 $51.35 $0.00 $0.00 $0.00Freight $1.00 $1.00 $1.00 $1.00 $1.20
Gross Margin % 54.29% 132.81% 178.86% 73.38% 39.30% #DIV/0! #DIV/0! #DIV/0!Gross Margin RM $15.66 $40.96 $34.38 $32.04 $14.15 $0.00 $0.00 $0.00
Cost $28.84 $30.84 $19.22 $43.66 $36.00
Curiosity
Exploration
Discovery
Excitement
Dedication
Mastery
New Skills
Confidence/ Self Esteem
Security & Purpose
Insight
Passion for the domain
Openness to Learning
Obsessive Persistence
Wisdom
Networks
Skills, Capabilities
Resources
Making Connection
Vision Platform
Time & Space
Strategy
Competitive Field
©Hunter (2012)
Find the right opportunity
Product Opportunity
Gap
Social Social and cultural trends
and drivers. Reviving historical trends. Influence of international
trends. Changing demographics. Styles, fashions & fads.
Economic Stage of economic
development. State of the economy.
Level of disposable income. Macroeconomic, general
industry conditions, financial &geographical environment.
Technology Current state of the art and
emerging technology. Re-evaluating and utilizing existing technology in new
areas. New knowledge.
Invention.
Government & Regulation
Government needs & priorities.
Restriction by Government. New laws & regulations and impact on product markets
and supply chains. Trade liberalization.
Our Inner Self Our upbringing, domicile outlook, experiences, interests, skills & abilities, assumptions, beliefs,
attitudes, perception, cognitive processes, patterning and biases, our inner psych and emotions, imagination,
energy, and passion, etc. The way we interact and stimulated by the
environment and make connections
Randomness & Unexpectedness A random or unexpected
event that creates an opportunity
Changes in any of the factors
New Knowledge or Information
Interrelated Factors
Ambition, sense of mission, attitudes, beliefs, values, available (and potential resources), self efficacy, networks, skills, competencies, and capabilities, etc.
Vision Platform
Micro-enterprise
Street Stalls
Corner Shops
Micro-entrepreneurs
Lifestyle Businesses
Independent specialty Retail SME Level
Large manufacturing
Independent Retail Chains
Large Business
Specialty Wholesaling
Automobile Manufacturers
Airlines
Universities
Modern Extensive Farming Enterprises
Large Pharmaceutical Companies
Banks
Mega Business
Mall Type Shopping Centres
Traditional Economy
Under-developed Economy
Developing Economy
Developed Economy
Post Industrial Economy
Characteristics of Traditional Economies
Subsistence agriculture based on traditional knowledge
Low level of urbanization, majority of population live in a rural and/or coastal existence
Unwillingness to accept new ideas and little innovation, even resistance to new ideas, lack of research and development
Extremely conservative society Very little credit finance capital
available, low level of savings and very immature cash economy anyway, little or no investment
Extremely low level of infrastructure, poor transport routes and communication
Feudal and/or corrupt form of government where resources may be diverted to unproductive projects
Very low level of education Very poor ability to recover
from natural disasters Low national vision
Characteristics of Under-developed Economies
Some simple infrastructure development
The adoption of basic modern farming techniques
Reliance on natural resource factors to create new industries, i.e, fertile land and favourable climate for specific agricultural and/or commodity crops, or abundant labour, etc. (It is these factors that provide first opportunities)
Very high dependence on imports Fragmented markets that are yet
to segment A limited range of industries based
on cost advantages owned by an elite group of society
Usually highly regulated and restricted economy (though not necessarily)
Government tries to attract foreign aid and investment
Ability to allocate resources within economy not efficient at this stage
Very low rates of SME formation and high informal economy
Characteristics of a Developing Economy
An improving rate of saving leading to a higher rate of investment which becomes a driver of the economy
The acquisition of technology through JVs, licensing, education abroad, consultants, etc.
Through employment growth local incomes grow and begin a surge in consumption
There is a shift from rural to urban areas in search of employment and opportunities
Higher emphasis on education Surge in infrastructure projects
that spur on economic growth through improved transport links, etc.
International markets entered and channels developed through OEM and contract production
Increasing wages, productivity, and employment leading to rising living standards
Increasing professionalization of workforce and management needed to compete internationally
Characteristics of Developed Economies
The economy relies almost completely on consumerism for growth and prosperity, often criticized for excess
High level of research & development
High level of industrial innovation
High market segmentation and specialization
Sophisticated logistic supply chains
Very high number of SMEs High level of firm and
individual compliance regulation
Vast majority of population resides in urban areas
Very stable institutional environment
Abandonment of elite and favored groups within the business sector where an egalitarian values prevail society
Very high value placed upon education in society
Characteristics of Post Industrial Economies
A rapid decline in the agriculture and industrial sectors (industries closing down as they lose international competitive advantage) and a rise in the services sector
Corresponding increase in the imports of consumer goods from lower cost producing nations
A decline in some urban areas and a rise in other parts (increase in inner suburban living)
Investment tends to be wealth based focusing on minimal risk projects like shopping malls
Innovative start-ups often come from new arrivals to the country (exception of Japan)
Increasing rates of unemployment and often shortage of manual labour as other types of careers are preferred
Usually a slightly declining population which signifies a declining workforce size, this lowers economic growth rates
Opportunity is connected with stage of economic growth
Traditional Economy
Under-developed Economy
Developing Economy
Developed Economy
Post Industrial Economy
Thailand
Malaysia
Still under-developed logistic systems Market segmentation still weak
Local firms exporting to the world
Increasing market globalization
Still factor and investment rather than innovation driven
Still some small remote areas
Still building infrastructure
Some wealth driven businesses (i.e., hotels) by elite families
Some rent-earning feudal elements
Changing Demographics (Rural-urban drift)
Population Growth
Increasing Education Increased
Knowledge
Imported Technology
Increased Investment
Increased Demand
Increased Saving
Increased Opportunities
Emerging Culture
New Skills & Capabilities
Learn as you go
Rapid Economic Growth Positive
geographic disposition
Those with natural talents emerge
quickly
Shifting Values Traditional/colonialization Developing Economy
Agriculture based lifestyle Connection with extended family Subsistence orientation Rural value base Acceptance of situation Little saving
Urban based lifestyle Cut off from extended family Planning orientation Changing to urban values Seek to improve situation Saving for capital
Social mobility – end of feudalism
New wealth – New poverty
1750 1775 1800 1825 1850 1875 1900 1925 1950 Bismarck instituted health
& accident insurance
Regulation instituted to control banking, railways,
business (a political invention)
The beginnings of governments using fiscal & monetary policy to control
the economy
Ocean going coal based steam ships
Whaling industry for lamp oil & whalebone Early beginnings of the petroleum industry
The use of steam technology for transport – the railways Britain The development of the American West
Establishment of cotton industry in American South – invention of the gin
The liberal age
Between the wars and collapse of
international trade
The post war growth years The industrial revolution in Great Britain,
Europe and the United States
Borden develops the process to produce condensed milk
Formation of DuPont by Eleuthère Irénéé du Pont
Development of canals in Britain and America
The invention of the telephone switchboard
Armed conflict forced American merchants to
manufacture
Development of the electronic telegraph
Formation of the Western Union Telegraph Company
First Sears Catalogue published
The decline of mercantilism
Refrigerated railway box cars (ice system)
Refrigerated railway box cars (mechanical system)
Henry Ford produces first mass produced automobile
Frederick Taylor developed “Scientific Management”
Use of water frame to spin cotton credited to Richard Arkwright
Spinning mule invented by Samuel Crompton
Flying shuttle invented by John Kay (1733)
Spinning Jenny invented by James Hargreaves
Development of the steam engine
Invention of the tire
Invention of the four-stroke engine
First self powered automobile
First air conditioner by Willis Haviland Carrier
Wright Brothers flew the first airplane
Discovery of aerodynamic principals by George Cayley
First manned glider by Otto Lilienthal
Invention of the jet engine
First useable electric light globe First electric power
distribution Invention of home refrigerator by Jacob Perkins
Automobile
Chassis Engine Tires Control & management
Systems
Braking System Environment
Steel
Suspension systems
Fuel
Compression &
Combustion
Rubber
Chemical Processes
Plantations
Road Rules
Roads & Carriageways
Alloys
Hydraulics
Electronics
Microprocessors
Time & History
Have a source of innovation
Sources of Opportunity (Opportunity Anchors)
Market Void Technology Infusion
Structural changes Resource Monopoly
Regulation Non-Innovative
Incongruities
Demographic Changes
Perceptual Changes
Invention
Incremental Improvement
Adaptation
New Processes
New Materials
Changes in Industry Structure
New Processes
Adaptation, combination &
integration
Physical Resource
Capability Resource
Legal Resource
Brand Resource
Scarcity Power
Cost/value Shift
Effect on Product
Effect on Process
Personal Service &
Consulting
Duplication
Extension
Copy/ Imitation
Strategies for each source of opportunity
Develop into a source of competitive advantage
Competitors
The Market Place
Values Expectations Emotions Recognition Potential
Emotional Connections
Influence of Product Lifecycle
The General Business Strategy
Influence of New
Technology Product Development - Invention (new to the world) - New to company product - New Style, variant or benefits
Patent, Registered Design, Proprietary
Knowledge (secrecy and non-disclosure agreements)
Process Development (manufacturing)
Patent, Proprietary Knowledge (secrecy and
non-disclosure agreements)
Market Strategy Market parameters (mix) Channels
Knowledge Image & Story (target)
Knowledge, Creativity, Branding, Trademarks,
Copyright
Figure 9.9. The General Tools of Intellectual Property in Business Strategy
Getting the right skills around you
Competencies Required During the Essential Oil Development Process
Screening & Bio-prospecting
Propagation & domestication or
introduction
Planting, cultivation & maintenance
Harvesting, Extraction and
wastage handling
New product development &
creation of value added products &
activities
Strategic, operations, finance and technical
management
Product & venture management
Marketing & commercialisation
Sustaining and growing the enterprise
(adapting & survival)
Output: Result/Performance, Sustainable and healthy enterprise or
a struggling and failing enterprise
Opportunity and technical competencies require:
Botany, ethno-botany, research ability, chemistry, bio-chemistry, analytical
chemistry. Market and specific technical product knowledge
Technical Competencies require: Plant physiology, micro-propagation, nursery
management, agronomics
Technical competencies require:
Bio-system engineering, Soil management,
entomology, plant nutrition, Agronomics, field
management, irrigation engineering
Technical competencies require:
Thermodynamics and plant physiology, heat transfer, distillation engineering,
chemistry, chemical engineering, agricultural
engineering, environmental engineering (waste
management)
Strategic, opportunity and technical
competencies require: Project management,
marketing management, chemistry, cosmetic
chemistry, perfumery/ flavour knowledge,
Packaging & design, manufacturing
engineering
Strategic, organizational, relationship opportunity competencies require:
Business strategic, industry knowledge, industry
networks, ability to raise finance, ability to plan,
implement & adjust, leadership, entrepreneurial
Strategic and organizational
competencies require: Administrative, financial management, technical management, strategic
management, personnel management, resources
management, entreprenuerial
Start-up Growth Stability
Various cognitive skills Research skills
Opportunity Competency
Entrepreneurial Competency
Relationship Competency
Strategic Competency
Management Competency
Idea Evaluation
Idea Discovery
Organizational Competency
Research skills Evaluation skills Decision making skills Networking skills Interpersonal & communications skills
Specific technical skills (product) Basic administration skills Resource gathering skills Interpersonal skills Business plan preparation skills Oral presentation skills Production engineering skills Organizational development skills Sales skills Promotional skills Start-up finance skills Networking skills Decision making skills
Various Cognitive Skills
General management skills Interpersonal skills Accounting skills Finance skills Cash-flow management skills Marketing skills Sales skills Human resource management skills Logistics management skills Manufacturing management skills
Leadership Competency
Creativity Competency
Entrepreneurial Start-Up Competencies
EntrepreneurialStrategic
Conceptual
Opportunity
Commitment
Management
Managed Company Competencies
Entrepreneurial
Strategic
Conceptual
Opportunity
Commitment
Management
Sub-Skills Book-keeping Product costing Administration Presentation Sales Business plan preparation Data-entry Negotiation Budgeting Empathy Imagination Sense of fairness Interpersonal Technical (product) Promotional Teamwork Communication Accounting procedures Self reflection Networking Ability to inspire Deal with uncertainty Resource gathering Paperwork
Skills Marketing Production Scheduling Delegation Product design Finance Planning Sourcing Human resources Organizational Decision making Finance Operational
Personal Competencies Entrepreneurial competency Managerial competency Opportunity competency Leadership competency Creativity competency Conceptual competency Ethical competency Strategic competency Emotional intelligence Commitment competency
Enterprise Capabilities New Product Development Logistics capability Manufacturing capability Management capability Growth capability Strategic capability Learning capability Marketing capability Innovation capability Technology capability Organizational culture
Dynamic Capabilities
Strategy Anchors
Competency Present Not Present Comments
Technical 1. Botany2. Plant Physiology3. Chemistry/Analytical4. Micro-propagation5. Nursery Management6. Environmental Engineering7. Chemical
engineering/thermodynamics/etc8. Soil Management9. Agronomy/plant nutrition/field
management10. Entomology11. Irrigation engineering12. Agricultural Engineering13. Regulation knowledge14. Cosmetic chemistry/food etc15. Perfume/flavours16. Packaging & design17. Consumer product manufacturing
Basic
BasicExperienc
eExperienc
eExperienc
eBasicBasicBasic
LowLowLowLowLowLowLowLowLow
Need guidanceNeed assistanceNeed guidance Assistance AvailableCan design Need appraisalUse contractorUse instituteReplicated experimentsWith EnvironmentUse contractorCan developNeed assistanceLearn from experienceUse contractor
Opportunity/Entrepreneurial/Commitment1. Able to screen environment for
opportunities2. Able to evaluate opportunities3. Commitment level
YesYes
Passionate
Need to see realistically
Relationship1. Have relationships in target
industries2. Have relationships in research
area3. Have relationships in finance
industry
A fewA fewSome
Organising/Management1. Able to project manage2. Able to administrate3. Able to financially manage
operation4. Able to undertake research5. Able to keep key people
motivated
YesYesYesYesYes
Strategic1. Understand dynamics of market
and industry environment2. Able to plan for a business
within this environment3. Able to implement, evaluate
and adjust plans in this environment
YesYesYes
Believe so but not tested
Resources
Tangible Resources Intangible Resources
Product Designs
Knowledge
Intellectual property
Research & Development
Creativity Brands
Team Specific Experience
Reputation
Organizational Routines
Relationships
Passion
People
Plant & Equipment
Property & Location
Technology
Cash & Other Finance
Access to inputs
Business model
Time
Organizational Culture
Inputs are combined, transformed and converted
into capabilities. Organizational capabilities
are used to support strategies. The objective is to create value in line with
the value proposition through defined distribution
channels to generate a revenue stream.
Distribution Channels
Strategies
The Venture People Plant & Equipment Property & Location Cash & Other Finance Technology Product Designs Knowledge Brands Reputation Relationships Organization Culture Access to inputs Intellectual Property Research & Development Creativity Team Specific Experience Organizational Routines Passion
Inputs Outputs
Perceived problem observed and value
proposition proposed through a product and/or service
Product/Service
Revenue Stream
Feedback influences inputs such as reputation, R&D direction, available inputs, level of technology, etc
Determine your needs
Enterprise Capabilities
Specialized Resources
Applied Resources
Generic Resources
Input Resources Raw Materials Various Support Services Consultancies Fixed Costs
People
Property & Location Cash & Other Finance
Technology
Business Model
Intellectual Property
Knowledge
Brands
Reputation Organizational Culture
Organizational Routines
Basic Plant & Equipment
Office Space
Product designs
Proprietary Machinery
Creativity Team Ind. Experience
The Resource Pyramid
Wool Processing
Raw Woolen Materials
Skilled Employees
Incoming Trends & Ideas
Fabrics & Fashion
Skilled Designers
Technology (Universities & Research
Institutions)
Suppliers
Dye & Chemical Industries
International Supplier Chains Wholesalers
Retailers Domestic Supply Chains
Retailers
Wholesalers
Deve
lope
d Fir
m
Valu
e Cha
ins
Finance Houses
Support Businesses All kinds of Knowledge
Perceived Opportunities
Rese
arch
Strategies
Spin-off Opportunities
Critics & Media
Regulatory
Competitive Environment (Direct & Indirect Competitors)
Decision Maker
Inside the firm Father
Accountant
Bank
Customer
Employees
Property Owner
Competencies
Friends
Expectations
Suppliers
Auto Parts manufacturers
Automobile manufacturer
Coordination, Kanban, JIT, etc.
Independent Dealerships
Sales coordination, Custom Ordering
Service Centres
Consumers
In constant communication about service times and
other car owner information Road Side Assist
Schemes
Arrange the necessary Resources
Think about how to develop a new product
Competitive Rivalries Lemongrass quick yield and straightforward to cultivate and distil – expect high elasticity of supply from both existing and new producers. Producers of substitutes very aggressive
Bargaining Power of Suppliers Collecting the most suitable planting material require effort. Extraction and harvest .technology needs to be acquired or developed Analytical equipment or service maybe expensive/remote.
Substitutes Citral (main constituents) can be produced from a number of chemical feed stocks. Alternative oils (litsea cubeba) cost much less to produce. Lemon myrtle oil much smoother and acceptable to end users Many alternatives to lemongrass in product formulations.
Trends & Technology Alternative technologies to steam distillation (CO2) can make much smoother oil but will increase capital needs greatly. Natural, exotic, organic, FAIRTRADE could increase oils popularity (?) if seen as exotic.
Substitutes
Tre
nd
s &
Te
ch
no
log
y
Bargaining power of buyers
Bargaining power of suppliers
Competitive Rivalries
Re
gu
lati
on
Regulation SCCP placed lemongrass oil under scrutiny as a cosmetic ingredient in EU.
Industry Competitors
Intensity of Rivalry
Bargaining Power of Buyers Currently small item of trade in flavour industry, strong relationships with established producers.
Things are always a
mystery until we get there
Business PlanOr
Business Model?
The Wright Bros. developed the airplane through effectuation (trial & error). They developed a new theory and a new invention.
It was only when a use for the new
invention was found that an industry
developed.
Could the Wright Brothers developed a business plan when they first decided to build a flying
machine?
At the time this looked just as viable
Sometimes it only comes down to vision
Idea/Product/Concept1. What is the idea/product/concept?
2. Is there a consumer need for this idea/product/concept?3. Do many people need this idea/product/concept?4. How do consumers cope with their problem/need/want without this idea/product/concept now?
5. Will this idea/product/concept provide a better solution to the consumer than what is already available?
Marketing1. Who are the potential customers and target market?2. How many potential customers are there (how large is the market)?3. Who are the competitors (and potential competitors)?4. How are your competitors doing in the market (decline, stable, growth)?5. Is it their major business (do they rely on other forms of business)?6. How will you promote the product (what advertising and promotion strategy)?
7. What will be your pricing strategy (what revenue over cost)?8. Do you have the ability to reach potential customers?
Skills
1. What skills do you need to realize the opportunity?
2. Do you have these skills or can they be acquired?
3. Are these skills commonly available to all competitors (and potential)?4. Can I manage this venture?
Networks
1. What networks do I need on the supply side?
2. What networks do I need to obtain resources (materials, people, finance)?3. What networks do I need on the sales side?
4. How crucial are these networks to success/failure?
Resources
1. What resources do I need?
2. Are these resources available?
3. Are these resources within my reach?
4. Are these resources available to everyone?
5. Will I have enough financial resources to sustain this venture?
Product
1. Does the product solve a consumer problem, or satisfy a want or need?2. Is this problem, want or need an important one?
3. What are the alternative solutions to the consumer?
4. What is the cost to the consumer of these solutions?
Product/Strategy
1. Can I develop a product/strategy that is different from others?2. Will this different product/strategy be valued (or provide benefits) to consumers?
Hunter (2012)
History
Thomas Edison
Who was the inventor of the light bulb?
Sir Joseph Wilson Swan
What entrepreneurship
is really like
PROFILE OF SMEs
144
Manufacturing, Manufacturing Related Services and Agro -based Industry
Companies with annual sales turnover not exceeding RM25 million OR full time employees not exceeding 150
Companies with annual sales turnover not exceeding RM5 million OR full time employees not exceeding 50
DEFINITION OF SMEs
Services, Primary Agriculture, Information And Communication Technology (ICT)
145
LARGE
MEDIUM
SMALL
MICRO
4,542(0.8%)
12,694(2.3%)
100,561(18.2%)
435,052(78.7%)
TOTAL ESTABLISHMENTS: 552,849Census of Establishments & Enterprises 2005 DOS - Dec 2005
TOTAL ESTABLISHMENTS OF COMPANIES BY SIZE
146
39,376(7.2%)
Services
474,706
(86.6%)
Agriculture
34,225
(6.2%)
TOTAL SMEs : 548,307
Census of Establishments & Enterprises 2005 DOS - Dec 2005
Manufacturing
DISTRIBUTION OF SMEs BY SECTOR
147
8.4
19.7
3.9
14.5
33.9
8.1
11
7.9
0.1
0
10
20
30
40
50
60
G DP E mployment T otal E xport
Manufacturing S ervices Agriculture
CONTRIBUTION BY SMEs
(%)
contribution
Preliminary Statistics by DOS - Dec 2005
148
Most Entrepreneurs look like this
Most Businesses are like this
The high growth venture is largely a myth:
the exception
Most people like
to take things easy
Global
National
City
Neighbourhood
Sectional Interest
Today Next Next Next Life Children’s W Week Year Few Years Time Lifetime
Space
Time
Very few people think far away
No innovation
Innovation is almost free
Tissue Culture
Microwave Oven Pressure Cooker
Chemicals & Spoons, etc. Glassware
Locked into old paradigms of business
Business practices
Presetnation
Logistics
Selection & presentation
Food handling
Why let the train leave without you?
Step 1: Examination of the product to determine characteristics. a) What type of process was it manufactured by? b) What would be its formulation/recipe? C) What materials are used in its manufacture?
Product from Market
Product Technical & Market Specifications
Step 2: Develop a full technical specification for the product and production process.
Step 3: Include any improvements to the product
Probable Product Production Process
Product Reengineering Process
(Process for FMCG Product)
Laboratory Development & Production Trials Step 4: Laboratory
development of formulation/recipe and development of production process
Product Trials (Both consumer use &
production)
Return to lab. For any modifications
Step 5: Undertake consumer product testing and production trials
Completed Product
Most new businesses fail
• Insufficient Capital• No business plan• No managerial focus• Inadequate records• Lack of profit focus
• Cash flow• Inadequate systems• Failure to plan for taxation• Inadequate resource management
• Break even point
• Insufficient Sales
• Failure to develop new products
THERE IS NO SUCH PERSON AS AN ENTREPRENEUR
Cultural Paradigm
Pee
r g
rou
ps m
en
tors
, s
oc
iety
Chance & Fate
Paradigm Personality Paradigm
Strategic Paradigm
Creativity Paradigm
Action Paradigm
Interpersonal Paradigm
Skills Paradigm
Infl
ue
nce o
n o
the
r p
ara
dig
ms
Co
mm
itm
en
t a
nd
eth
ics
So
cia
l &
Ed
uca
tio
nal
Bac
kg
rou
nd
Ide
nti
fy a
nd
ex
plo
it
op
po
rtu
nit
ies
Res
ou
rce g
ath
eri
ng
Cu
sto
me
r o
rien
tate
d
Sen
se o
f ac
hie
ve
men
t
Mo
tiv
ati
on
&
dete
rmin
ati
on
Ad
ve
rsit
y t
o r
isk t
akin
g
See
k &
id
en
tify
o
pp
ort
un
itie
s
Inn
ov
ati
ve
In c
on
tro
l o
f th
e
bu
sin
es
s
Ab
le t
o in
sp
ire
peo
ple
Ab
ilit
y t
o w
ork
w
ith
pe
op
le
Netw
ork
ing
Exp
eri
en
ce
Tec
hn
ica
l s
kil
ls
So
ft s
kil
ls
Tale
nts
& a
bil
itie
s
He
alt
h,
pe
rso
nal e
ne
rgy,
fo
cu
s,
tim
e o
rie
nta
tio
n,
ori
en
tati
on
to
gett
ing
th
ing
s
do
ne
, o
rie
nta
tio
n t
ow
ard
s
ge
ttin
g t
he
rig
ht
thin
gs
do
ne
Lo
ok
ing
fo
r b
en
efi
ts,
eff
ec
tive
pe
rfo
rma
nc
e,
ab
le t
o s
ec
ure
re
so
urc
es
, o
ve
rall
vis
ion
, a
ble
to
w
eig
h t
hin
gs
up
in
s
tra
teg
ic w
ay
En
viro
nm
en
t, tr
igg
ers
, in
sp
ira
tio
n,
late
ral
&
se
ria
l th
ink
ing
, te
ch
nic
al
sk
ills
, id
ea
s,
op
po
rtu
nit
ies
, so
luti
on
fi
nd
ing
En
vir
on
men
t, p
eers
, fa
mil
y,
cu
ltu
re, re
ali
ties, m
oti
vati
on
, d
ed
icati
on
, self
assu
ran
ce,
self
perc
ep
tio
n, m
ora
lity
, re
sp
on
sib
ilit
y,
acco
unta
bilit
y, a
dvers
ity t
o
risk t
akin
g (
co
ura
ge), sta
nd
o
n b
eli
efs
, le
vel o
f co
mfo
rt
Sele
cti
ng
th
e r
igh
t p
eo
ple
, te
am
/in
div
idu
al
ori
en
tati
on
, vie
w o
f o
uts
ide e
xp
ert
ise,
netw
ork
ing
, in
terp
ers
on
al
ou
tlo
oks, m
an
ag
em
en
t sty
le,
lead
ers
hip
, d
om
inan
ce/s
ub
mis
siv
en
ess
Up
bri
ng
ing
an
d f
am
ily
ba
ck
gro
un
d,
ed
uc
ati
on
an
d
life
exp
eri
en
ce
s, s
tre
ss
ful
un
ex
pec
ted
eve
nts
, fa
te
So
cie
ty &
fa
mil
y,
pe
ers
&
role
mo
de
ls, a
ss
um
pti
on
s,
va
lue
s,
be
lie
fs, le
arn
ing
, m
en
tors
, p
erc
ep
tio
ns
Po
sit
ive
& n
eg
ati
ve
e
xp
eri
en
ce
s, s
ucc
ess
&
fail
ure
, e
du
ca
tio
n &
s
kil
ls, s
oft
sk
ills
, ta
len
ts
an
d a
bilit
ies
Attributes of the Entrepreneur
Behavior
Influencers
“Who I am” “What I do”
Sense of self. ego, encoded
assumptions, beliefs and values.
Expectations, goals, self regulating restraints, etc.
The Psych
Personality Traits
Feedback
Ou
tco
mes
Prior Knowledge
Wo
rld
an
d w
ork
exp
erie
nce
, ed
uca
tio
n, c
ult
ure
, fam
ily u
pb
rin
gin
g, e
tc.
Pe
rcep
tio
n Alertness
Motivation
“How I feel”
Skills
Strategic Outlook Creativity
Propensity to Action
Talents and Abilities
Interpersonal
Personal Paradigms
A Trigger Situation
Motivational Trigger
Idea GAP
External event or internal feelings
The Potential Socio-psycho Factors that Influence Opportunity Discovery and Behavior.
People start businesses for the wrong reasons and mistake something they like for an opportunity
Entrepreneurship is a stressful occupation
Loss of freedom
Most entrepreneurs are worse off than of working for someone else
Size
Pre start-up Start-up Growth Maturity Decline or rebirth
Profit
Sales
An era of complacency and
rigidity
Mid-life crisis
Regeneration
First entrepreneurial phase Possible mature entrepreneurial phase
Decline
Usually time of increasing
organizational rigidity
Usually NPD strategies
Enterprise begins to take a ‘past orientation’
Entrepreneurship is just a stage in the firm lifecycle
There is no such thing
as a success formula
Many ideas work great
in retrospect
Most people are not risk takers
Its about new product development
Not invention
Entrepreneurship Curriculum & Teaching
Without
Relevant Technology Knowledge & Training
The education system is hung up about measuring
intelligence
Is entrepreneurship about intelligence or creativity?
What’s intelligence go to do with it?
Entrepreneurship has very little to do with intelligence. It
is all about creativity.
Otherwise one would have to be a professor to start a
new business.
Unlike intelligence creativity
can be taught
New Ideas Unknown Opportunities
Developing Strategies Solving Problems
Surrounding Environment
“Domain” &“Field”
Environmental Factors conducive
to creativity
Environmental Factors that
hinder creativity
Motivational Trigger
Internal Influencing Factors
Focus & Attention Creative Sensitivity
Energy Emotion Curiosity Empathy
Confidence Discipline Interest Passion
Prior Knowledge
Perception
Patterning
Patterned Thinking Processes
Thinking Processes
(Self Organizing System)
Cognitive Thinking Tools & Styles
Creative Product
Applied Thinking Tools,
Manifestations & Elaborations
Domain & Field Acceptance/
Rejection
Memory Heuristics
Belief Imagination
Fantasy Experience
Tacit Knowledge
Hunter (2012)
The Metaphoric Concept of Creative
Intelligence
Perfumer Excellence
Knowledge (vocabulary) of
odorous substances
Knowledge of potential strengths,
weaknesses and applications of
odorous materials
Knowledge of outstanding
fragrance creations within the domain
Practical knowledge & experience
Olfactory sensitivity
Time, patience, perseverance
Interest and passion
Imagination
Knowledge Base Emotion
Cognitive Skill Creativity Tool
Process & Product
Curiosity, enquiry and
experimentation
This is a product of creativity
This is a creative man
PassionateAll successful in there own way
Thank You