strategic entrepreneurship topic 3
TRANSCRIPT
STRATEGIC ENTREPRENEURSHIP
TOPIC 3DR ANIS AMIRA AB RAHMANSYAMSURIANA BINTI SIDEK
FACULTY OF ENTREPRENEURSHIP AND BUSINESSUNIVERSITI MALAYSIA KELANTAN
Dr Anis Amira Ab Rahman
SEIZING BUSINESS OPPORTUNITIES: VISSION, MISSION AND OBJECTIVE
Dr Anis Amira Ab Rahman
Strategic Entrepreneurship and Strategic Management
Source : Wheelen, T. L. and Hunger, J. D. (2000 cited in Kuratko, D. F. & Hodgetts, R.
M., 2004: 521).
Dr Anis Amira Ab Rahman
Business Opportunities
What is a Business Opportunity?
A business opportunity is said to exist when:
There is a possibility of offering a new product or service
in a particular market.
The product or service fulfills the demands and
preferences of the customers.
Where the product can be used to solve their problem.
Dr Anis Amira Ab Rahman
Business Opportunities
When and Why is there a need to offer a product or service in a particular market:
When? Changes in Environmental Factors
Political and Legal Economic Social Technological
Why? Because Environmental Factors effect customers’
demand for particular product or service.
Dr Anis Amira Ab Rahman
Business Opportunities
Involve the process of identifying, evaluating and selecting a business opportunity. Identify the needs and wants of customers.
Scanning (examining) the environment and evaluating of self (entrepreneur) and the community.
Screening (Process of evaluating) of business opportunities.
Selecting a business opportunity
Preparing a Business Plan.
Dr Anis Amira Ab Rahman
Process of Identify and Evaluate the Business Opportunity
Dr Anis Amira Ab Rahman
Entrepreneurship: Owning Your Future, 11th ed.
Steve Mariotti© 2010 Pearson Higher Education,
Upper Saddle River, NJ 07458. • All Rights Reserved.
Evaluating an Opportunity
The feasibility of an idea refers to how possible or worthwhile it is to
pursue it, to see if it is actually an opportunity.
Three methods for determining the feasibility of business ideasare:
Cost/Benefit Analysis. This is the process of adding up all theexpected benefits of an opportunity and subtracting all theexpected costs. If the benefits outweigh the costs, theopportunity may be worthwhile.
Opportunity-Cost Analysis. An opportunity-cost analysisexamines the potential benefits that you forfeit when youchoose one course of action over others.
SWOT Analysis. This is a business evaluation method thatdraws its name from the four areas it evaluates—Strengths,Weaknesses, Opportunities, and Threats.
Entrepreneurship: Owning Your Future, 11th ed.
Steve Mariotti© 2010 Pearson Higher Education,
Upper Saddle River, NJ 07458. • All Rights Reserved.
Sources of Opportunity
Sources of opportunities include:
Problems. Many well-known companies were started because
an entrepreneur wanted to solve a problem.
Changes. Our world is continually changing. Change often
produces needs or wants that no one is currently meeting.
New Discoveries. The creation of totally new products and
services can happen by accident.
Existing Products and Services. You can get ideas for
opportunities from businesses that already exist by looking for
ways to improve a product significantly.
Unique Knowledge. Entrepreneurs sometimes turn one-of-a-
kind experiences or uncommon knowledge into a product or
service that benefits others.
Emerging Industries
Industries in which standard operating procedures
have yet to be developed.
Opportunity: First-mover advantage
Fragmented Industries
Industries that are characterized by a large number of
firms of approximately equal size.
Opportunity: Consolidation
Industry Types and the Opportunities
Dr Anis Amira Ab Rahman
Mature Industries Industries that are experiencing slow or no increase in
demand. Opportunities: Process innovation and after-sale service innovation
Declining Industries Industries that are experiencing a reduction in demand.
Opportunities: Leadership, establishing a niche market, and pursuing a cost reduction strategy]
Global Industries Industries that are experiencing significant international
sales. Opportunities: Multidomestic and global strategies
Industry Types and the Opportunities
Dr Anis Amira Ab Rahman
Vision
Dr Anis Amira Ab Rahman
Vision
A vision is a guiding image of success
Vision
Inspiration
MotivationGuidance
Begins with intuition and
ideas
Evolve through discussion
Result in a shared sense of
direction and motivation
Dr Anis Amira Ab Rahman
Vision
It answers the question
“What will success look
like?”
It is compelling
It challenges and inspires
the group
It focuses first on the client
It describes what the
organization will look like
when functioning
effectively.
Examples
“A just world without poverty”
“To become a world leader at
connecting people to wildlife and
conservation”
“To become the most influential
bridge between investors and
entrepreneurs”
“To refresh the world, inspire
moments of optimism and happiness
and make a difference”
Dr Anis Amira Ab Rahman
Examples of visions
1. McDonald’s - We are committed To doing what is
right. To being a good neighbour and partner in
the community To conduct our business with the
environment in mind
2. Ford – our company delivers excellent products
and services and strives to make the world a
better place.
Dr Anis Amira Ab Rahman
Mission
Dr Anis Amira Ab Rahman
Mission
Mission describes the overarching purpose of the
organization – the reason it exists.
Who are you, as an
organization?
Why do you exist?
What do you do?
Who do you serve?
Purpose: sentence that describe the end result
An infinitive that indicates a change in
status
An identification of the problem or
condition to be changed
A description of the primary means used to
accomplish that purpose
Dr Anis Amira Ab Rahman
Create Your Mission Statement
• What is the problem that exists to solve?
• Who is affected by the problem?
• How would the community be improved, changed or
different if your organization’s efforts were
successful?
• What is the purpose of your organization?
• Why does it exist?
• What is the ultimate outcome or result you are
hoping to achieve?
Dr Anis Amira Ab Rahman
Create Your Mission Statement
• What business are you in?
• What do you do to fulfill your purpose?
• What is the broadest way in which you could
state your work?
• For whom do you work?
• Who is your target population, your audience,
your market?
• Where do you work?
• What are your geographic boundaries?
Dr Anis Amira Ab Rahman
Difference Between Mission and Vision
A mission statement describes the *present*state of a person or organization: "Who areyou? Why are you here? Why do you exist?"
The vision statement describes *future* state:"Who do I want to be? Where do we want togo?" The vision should be inspirational andslightly out of reach. Typically, it is a person ororganization's vision that provides a frameworkfor planning.
Dr Anis Amira Ab Rahman
Objectives
After developing mission statement, objectivesare required to define. Objectives are muchspecific than mission statement
For example- I want to finish my assignment by10 o’clock this morning. This indicates toperform a number of tasks including typing textinto computer, reviewing somequestions/criteria that have already be written,printing out the assignment for proofreadingand so on.
Dr Anis Amira Ab Rahman
Objectives
S •Specific
M •Measureable
A •Attainable
R •Realistic
T •Timeframe
E •Extending
R •Rewarding
Objectives must be evaluated by SMARTER tools:
Dr Anis Amira Ab Rahman
REFERENCES Barringer, B and Ireland, D (2012) Entrepreneurship – Successfully Launching New
Ventures (4th Ed.). Pearson Education, Global Edition. Dollinger, Marc J., (2003) Entrepreneurship: Strategies and Resources, 3rd Edition,
Prentice Hall International Edition. Mariotti, S. (2010). Entrepreneurship: Owing Your Future. (11th Ed.). England: Pearson
Education Ltd. Hitt, M. A., Ireland, R.D., & Hoskisson, R.E. (2011). Strategic Management:
Competitiveness & Globalization. (9th. Ed.). Canada: South-Western CengageLearning.
Wickham, P. A. (2006) Strategic Entrepreneurship. (4th. Ed.). England: PearsonEducation Ltd.
James P. Lewis (2001) “Fundamentals of Project Management: Developing CoreCompetencies to Help Outperform the Competition” (2nd edition), AMACOMpublisher.
Kuratko, D. F., & Hodgetts, R. M. (2004). Entrepreneurship: Theory, process, practice.Mason, Ohio: Thomson/South-Western
Leong, B. (2011). Introduction, Identifying Ideas & Business Opportunities, NanyangTechnological University.
Slideshare. (2007). Entrepreneurship studies – Chapter 2, Cosmopoint InternationalUniversity College, School of Business.
Dr Anis Amira Ab Rahman