ENTREPRENEUR- unique individual who has extraordinary dedication to establish and manage a business.

5 PILLARS OF ENTREPRENEUR

Innovator - someone who is source with a new idea and offers and improvement to an existing product or service

Initiator - initiates the process of creating and enterprise by coming up with the idea for the business and planning out
how to turn that idea into a reality

Responsible - Taking responsibility for his/her actions and results because only if we recognize our responsibility for the
acts and consequences, we will have the ability to improve, move forward, and achieve success.

Enhancer - it enhances the capabilities and products to provide good outcome than before.

Risk Taker - trying out something new when the results are largely unknown.

CHARACTERISTICS OF ENTREPRENEUR

 Passionate - Always on
 Business savvy - Money managers
 Confident - Never giving up
 Planners

CORE COMPETENCIES- distinctive goods, services, abilities and knowledge that provide a company an edge over rivals.

Core Competencies Advantages- are proficiencies or resources that give businesses a competitive advantage. Have a
greater shot at beating out the competition and reaping the benefits.

Core Competencies Disadvantage- Prevent a company from trying to do better. For instance, relying too heavily on a
certain advantage can lead to problems in the future. Especially because the market is likely to evolve with new trends.

CORE COMPETENCIES EXAMPLE

Strategic planning - the purpose of strategic planning is to set your overall goals for your business ad to develop a plan
to achieve them

Excellent organization skills - Great organizational skills can save a business owner time and reduce stress.

Leadership and personnel management - Leadership is to continuously influence a team of individuals and
encompasses many important traits. Management is the overall direction and oversight of the work activities of a team,
leadership focuses on the ongoing motivation, engagement and productivity of a team. Personnel management can be
defined as obtaining, using and maintaining a satisfied workforce. It is a significant part of management concerned with
employees at work and with their relationship within the organization.

Project management - involves the planning and organization of a company's resources to move a specific task, event,
or duty towards completion. It can involve a one-time project or an ongoing activity, and resources managed include
personnel, finances, technology, and intellectual property.

Attention to detail - Attention to detail is a business skill that increases efficiency, improves time management, and
optimizes customer service. In fact, neglecting details can end up getting your business into trouble. Employees often
lose track of this valuable skill when it's not emphasized within a company's culture.

Consistently high quality - Quality consistency means the ability of an organization to bring about, based on a business
concept and strategy.

Customer service - Customer service is the assistance provided to customers before, during, and after purchase. An
organization wanting to provide error-free customer service will invest as much money in it as they do in aspects such as
product development or sales and marketing.
Reliability - Reliability is the measure of how long a business service performs its intended function.

Innovation - Its focus is one continuous improvement, and that includes its recommendation systems that create user
engagement.

Flexibility- flexibility being able to quickly adapt to new circumstances as they arise

Target Is Market - A target is a group of customers with shared demographics who have been identified as the most
likely buyers of a company's product or service.

Product development - also called new product management - is a series of steps that includes the conceptualization,
design, development and marketing of newly created or newly rebranded goods or services.

ENTREPRENEURSHIP- Creating a business while taking financial risk

EMPLOYMENT- Working for a company in exchange for compensation.

EMPLOYEE BUSINESS MAN

-8-9 hours working days. -have to manage on their own time.

-trade time for money. -creates value for money.

-focus on time, money and significance. -focus on money and positions.

-wait for the right time. -start without waiting for the right time.

-see security as taking calculated risk. -don’t like to take risk.

Graduates in Entrepreneurship may seek jobs in:

1. Small Business Owners and Franchise Managers 7. Commercial Bankers

2. New Venture Developers 8. Financial Manager
3. E-Commerce Entrepreneurs 9. Advertising Executive
4. Sales Managers, Marketing Managers and Sales Representatives 10. Cryptocurrency trader
5. “Work at Home” Business Owners or “One-Person Firms” 11. Day Trader
6. Business Consultants 12. Sway Trader

SCANNING THE MARKET ENVIRONMENT- Its purpose is to identify potential sources to consult with or consider when
making business decisions.

ENVIRONMENTAL SCANNING TECHNIQUES USED IN MARKETING

SWOT analysis- stands for strengths, weaknesses, opportunities, and threats. Marketing department of an organization
must look internally at the company’s strengths and opportunities and externally at its weaknesses and threats.

Research- Many organizations rely on their own research to learn more about the political climate, legislative shifts,
technological advancements, and other potential changes that can impact the industry in which they operate.

Expert opinions- The opinions of experts can provide new insight into the industry. It’s important to look for experts in
the industry who listen to the conversations between other people and can decipher what trends or shifts may arise.
Industry analysis- Focus is competitors, both direct and indirect, of the organization. It helps a business to learn more
about the strategies of competitors and determine what strategies it can use to compete against those companies.

PEST analysis- stands for political, economic, social and technological. Provides insights into external macro-
environmental factors, marketing professionals will look for potential government shifts and other political factors as
well as economic shifts that may impact the business.

8 IMPORTANT NEEDS AND IMPORTANCE OF ENVIRONMENTAL SCANNING

Identification of strength- Strength of the business firm means capacity of the firm to gain advantage over its
competitors.

Identification of weakness- Weakness of the firm means limitations of the firm.

Identification of opportunities- The Firm should make every possible effort to grab the opportunities when they come.

Identification of threat- Environmental analyses help them to identify threat from the external environment. Early
identification of threat is always beneficial as it helps to diffuse off some threat.

Optimum use of resources- Systematic analyses of business environment help the firm to reduce wastage and make
optimum use of available resources.

Survival and growth- Systematic analyses of business environment help the firm to maximize their strength, minimize
the weakness, grab the opportunities, and diffuse threats. This enables the firm to survive and grow.

To plan long term business strategy- Proper analyses of environmental factors help the business firm to frame plans and
policies that could help in easy accomplishment of those organizational objectives.

Environmental scanning aids decision-making- a process of selecting the best alternative. Study of environmental
analyses enables the firm to select the best option for the success and growth of the firm.

ENTREPRENEURIAL PROCESS- involves finding and analyzing opportunities and bringing resources together to achieve
them.

Idea Generation- every new venture begins with an idea. It is a creative process that involves coming up with,
developing, and sharing original ideas and concepts that serve as the cornerstone of your innovation strategy.

Opportunity Evaluation- this is where you ask the question of whether there is an opportunity worth investing in.

Planning- An entrepreneur may determine exactly what has to be done to create a business and what resources, both
human and financial, are needed to carry out the plan with the aid of the business planning process.

Company Formation/Launch- process of choosing the right form of corporate entity and actually creating the venture as
a legal entity.

Growth- The main focus is on those people who want to start new businesses or who want to grow their existing ones.

OPPORTUNITY EVALUATION (investment prospectus)- It is helpful to think of the evaluation step as continually asking
the question of whether the opportunity is worth investing in.

Need / problem- A market need is the potential for a change in consumption. This concept covers everything from
unmet clinical needs, challenges facing corporations, social problems, entertainment and social interaction with youth.

Solution- the entrepreneur will try to understand what will be required to offer a compelling solution that will actually
spur the change in consumption required.

Competitive position- Entrepreneurs often make the mistake of thinking of competition as other companies that have
the same product idea as they do. But competition must be considered from the customers perspective.
Team- If a team has a viable idea, they can only capitalize on it if they can execute well in all of the key areas needed to
make a venture successful.

Risk / reward profile- Will someone pay us enough so that we can create, sustain, and grow our venture?

STRATEGY- There are four main areas of strategy: determination of the target customer set, business model, position
and objectives.

Target customer- is the set of potential buyers who are your focus as you design your company’s solution.

Business model- is your theory about how you will make money.

Position- refers both to how your company is differentiated from any competitors and also how it relates to other
companies in the value chain.

Milestones / company objectives- As a first step toward creating your operating plan, you should create a set of high-
level objectives for your business.

OPERATING PLAN- is where you spell out all of the things that you plan to do and what they will yield for your business.

company timeline - Representation of all accomplishments that are necessary for you to achieve your strategy.

staffing plan - This is the document where you capture all of the hiring your firm will do.

budget - is where all the pieces of the operating plan come together and are expressed in financial terms.

financing plan - the capital needs, the timing of those needs and the desired/expected sources of that capital.

PLANNING PROCESS

 Actual budget, are then driven by estimates of what it takes to accomplish the tasks in the required timeframe.
 Build a plan that captures everything
 Revenue: detailed plan, based on information about customer groupings, conversion rates, sales activity
 Expenses: usually people driven - build in realistic hiring timetables, training, learning curve, benefits, travel, etc.
 Program expenses: mostly marketing - must support the plan and estimates should be equally comprehensive
 The plan must close - all piece’s tie together.

EXECUTION- process or a logical set of related activities that enable an organization to take a strategy and make it work.

THE 3’S OF OPPORTUNITY SPOTTING: SEEKING, SCREENING, SEIZING- use to finally come up with the ultimate product
or service suited for specific opportunity.

We can create new ideas for our business from the following:

 Changes in the Environment - Government's thrust, programs, and policies

 External/Macroenvironment - People's interest
 Internal/Microenvironment - Past experiences
 Technological discovery and advancement

OPPORTUNITY SEEKING

External/ Macroenvironment (P.E.S.T.E.L, Industry)- includes the wider forces that impact on the macroenvironment.

Political Factors- induced by government policies and admins, which have a strong effect in the Entrepreneur's business.

Economic Factors- caused by changes in Economy that have direct or indirect effects on the entrepreneurial venture.
Socio-cultural Factors- represent a general view of a locality's traditions, customs, beliefs, norms, and perceptions.

Technological Factors-refer to trends, developments in computer, information technology that have impact on business.

Environmental/Ecological Factors-consider climate, temperature, weather system of a place in seeking opportunities.

Legal Factors- we need to consider the laws and ordinances directly affecting the business.

INDUSTRY ENVIRONMENT

1.Government- refers to the system or institution that handles the affairs of a particular country.

2.Suppliers- refer to the persons or companies that provide the required materials, parts, or services to business.

Criteria of Selecting a Supplier:

 Quality of the goods or services - Ability to respond to urgent needs

 Terms of payment - Proximity of the location
 Stability

3. Customers - are the buyers of goods and services produced or rendered by the business.

4. Competitors- forces in the industry that produce, sell or render products which are similar to those of the business.

 Direct Competitors - produce and sell similar products or services.

 Indirect Competitors- produce and sell substitute products

5. Employees- workers of the business, highly responsible for the production of goods or services to the customers.

6. Creditors- refer to banks, financial institutions, and financial intermediaries engaged in the lending of money.

INTERNAL/MICROENVIRONMENT - refers to the environment within the business.

A. Business Resources- assets or properties owned or controlled by the business. It can either be tangible or intangible.

Tangible Resources - assets that have a physical form (Money, Property, Gold, and other stores of value)

 Current Resources - Noncurrent or fixed Resources

Intangible Resources - assets that do not have a physical form. (Mind, Time, and Energy)

B. Business Culture- set of values, beliefs, principles, expectations learned and shared by the whole business.

Types of Culture operating in the Internal Environment:

 Culture of the business or organization - Individual Culture of the Employees

Types of Culture within a business:

 Cultural Acceptance - the employees accept the culture of the business.

 Cultural Integration- the business accepts and share a common culture.

C. Business Structure- refers to the formal organizational structure of a business.

OPPORTUNITY SCREENING- Is the process of cautiously selecting the best opportunity

Risk Appetite - the level of risk that an entrepreneur is prepared to accept to achieve their goals

The entrepreneur should say no to an opportunity if it does not contain any of these business opportunity elements:

 Has high value to the customers. -Matches with the entrepreneur's skills, resources, and risk appetite
  Solves the compelling problem, issue, need, or want. - A potential cash cow

Opportunity Screening Matrix (OSM)- aims to assist the entrepreneur if the opportunity is well worth pursuing.

The 12Rs of Opportunity Screening

 Relevance to vision, mission, and objectives of the entrepreneur.

 Resonance to values
 Reinforcement of entrepreneurial Interest
 Revenues- determine the sales potential of the products or services you want to offer.
 Responsiveness to a customer's needs or wants.
 Reach- the attainment of rapid growth
 Range - potentially lead to a wide range of possible product or service offerings.
 Revolutionary Impact-"next big thing" or a game changer that will revolutionize the industry.
 Returns- high return on investment.
 Relative Ease of Implementation - easy to implement
 Resources required - fewer resources are better than those requiring more resources.
 Risks

OPPORTUNITY SEIZING- The "pushing through" in the chosen opportunity. Known as the "Grabbing the Opportunity"

Innovation- is the process of improving an existing product or service.

There are three types of innovations according to the degree of distinctiveness:

Breakthrough Innovation- Includes inventions, that occur infrequently as these establish the platform on which future
innovations in an area are developed.

Technological Innovation- These are technological advancements of an existing product or service.

Ordinary Innovation- The market has a strong influence on the implementation of an innovation.

FOUR FINAL STAGES IN OPPORTUNITY SEIZING:

Idea Stage- the entrepreneur determines what are the achievable products that will perfectly suit the opportunity

 Market Evaluation (what the customers want)

 Assessment of the value of new products/ services (importance of the product/service)
 Elimination of unappealing products/services

Concept Stage- A consumer acceptance test. It includes getting the initial insights and opinions of the target customer.

Conversational Interviews, Surveys, Free Taste

Product development stage – Production or systematic process of creating the products to sell.

Test Marketing stage- The process of commercializing the business either a product or service.

MARKETING PLAN- is an operational document that outlines an advertising strategy that an organization will implement
to generate leads and reach its target market.

1. WHAT’S THE DIFFERENCE BETWEEN A USP AND A VALUE PROPOSITION?

USP unique selling proposition- is often the first bit of copy you’ll see above the fold on a given company’s homepage.

Value propositions- it express the tangible results a customer experiences from using a company’s products or services.
2. DETERMINE WHO THE CUSTOMERS ARE IN TERMS OF THE FOLLOWING:

A. TARGET MARKET- is a group of consumers or organizations most likely to buy a company's products or services.

B. CUSTOMER REQUIREMENTS- refer to the features of a product or service that are deemed necessary by customers.

C. MARKET SIZE- The total number of likely buyers of your product or service within a given market.

3. VALIDATE CUSTOMER RELATED CONCERNS

Customer Validation- test assumptions about customer’s problem. Insights gained will be used to create a product.

INTERVIEWS- are conducted one-on-one with professionals who can give detailed responses because of their knowledge
in the industry. There are three groups within target market to listen:

1. Existing customers 2. Evaluators 3. Potentials

FOCUS GROUP DISCUSSION – interactive group setting with a moderator, group of people gives face-to- face feedback.

C. OBSERVATION – you can learn what your customers want. Types of it are categorized into six major subdivisions.

1. Disguised observation 4. Mechanical observation

2. Non-disguised observation 5. Direct observation
3. Human observation 6. Indirect observation

SURVEY/RESEARCH – uses a written or online questionnaire to be completed by the person being surveyed.

1. Telephone Interviews 2. Direct-mail Interviews

MARKETING PLAN- a document outlining the platforms, methods a company will use to reach their target market.

Marketing Mix 7Ps

 Product - People
 Place - Packaging
 Price - Process
 Promotion

PRODUCT- any physical good, idea that is created by the entrepreneur in serving the needs of the customers.

PLACE- This refers to a location or the medium of transaction.

PRICE- assigns to a product or service after considering its costs, competition, objectives, positioning, and target market.

MOST COMMON PRICING STRATEGIES:

1. BUNDLING 6. PSYCHOLOGICAL PRICING

2. PENETRATION PRICING 7. PREMIUM PRICING
3. SKIMMING 8. OPTIONAL PRICING
4. COMPETITIVE PRICING 9. COST-BASED PRICING
5. PRODUCT LINE PRICING 10. COST PLUS PRICING

TWO CLASSIFICATIONS OF COSTS:

Variable costs or controllable costs - these costs are directly proportional to the number of products of manufactured.

Fixed costs or uncontrollable costs - these costs are not directly proportional to the manufacturing of a product.
GENERAL PRICING GUIDELINES:

1. Do not price the product or service below its cost.

2. Monitor the competitors' prices, and ensure that your prices are at par with them unless the product or service
is really way superior to the competitors’.
3. Align prices with the other 6Ps (product, place, promotion, people, packaging and processing).
4. Implement price strategies that are relevant to your market segment.
5. Align prices with your business objectives.

PROMOTION- involves presenting the products or services to the public and how these can address the public's need.

PROMOTIONAL TOOLS:

Advertising - influences the behavior of a customer to choose the product of the entrepreneur over the competitors.

Selling - act of trading a product or service for a price or a fee.

Sales promotions - these are the short-term promotional gimmicks. Ex: raffles, contests & games, promo items.

Public relations - these are the image-building initiatives of the entrepreneur to make the name of the business
reputable to stakeholders, Ex: press conferences, launching events, strong media relations through press kits.

PEOPLE- play vital role in serving customers even though the entrepreneur sells only physical goods.

PACKAGING- the major differentiators is how people or employees make a difference in the lives of the customers.

PROCESS-Process is defined as activity workflow that the entrepreneur or employees follow to serve customers.

DEVELOPING BRAND NAME- refers to the identity of a company, of a product, of a service or of an entrepreneur himself
the goals of branding include the following:

 Establishing to target customers that the business is reliable and trustworthy and that the product or service is
the superior solution to their current problem
 Differentiating with competitors and;
 Driving customer loyalty and retention.