“INTRODUCTION TO ENTREPRENEURSHIP AND THE

ENTREPRENEUR”

Learning Objectives:
At the end of this lecture, the learner must be able to:

1. Describe the entrepreneur;

2. Recognize the Characteristics and competencies of the entrepreneur;
3. Understand the Process of Dealing with Daily Life as an Entrepreneur;
4. To know the major Steps in the Entrepreneurial Process and Recognizing Important m
Entrepreneurial Traits;
5. Explain the motivation to be an entrepreneur;
6. Understand the Risk and Reward of an Entrepreneur;
7. Identify the strengths and weaknesses of small enterprise;
8. Recognize the challenges faced by entrepreneurs; and
9. Explore the contribution to the society.

DESCRIBE THE ENTREPRENEUR

When an entrepreneur starts a new business, risk is involved.
Risk is the chance of losing something. An entrepreneur makes an investment of money, time,
and energy in the hope of receiving greater rewards, or benefits.

Four important terminologies:

1. Entrepreneur - Someone who creates and runs a business.
2. Entrepreneurial - To think or to act like an entrepreneur. Observing, listening, and
thinking are three ways to think like an entrepreneur.
3. Enterprise - An activity or a project that produces services or products.
4. Entrepreneurship - The ability and readiness to develop, organize, and
run a business enterprise, along with any of its uncertainties in order
to make a profit.

CHARACTERISTICS & COMPETENCIES OF THE ENTREPRENEUR

Characteristics & Definition

Competencies
Resilient The capacity within the self to bounce back or recover after a
disappointment.

Discipline The ability to stay focused and follow a schedule to

meet deadlines.
SSystematic Planning As the entrepreneur sets goals, he also plans on how to ensure the
and Monitoring achievement of these goals. Monitoring is continuously following up
on whether the goals are being achieved.

Passionate Deep in their hearts, entrepreneurs believe that they will make a
difference in the world and in people's lives.

Decision-Making & Knowing how to apply logic, information, and past experiences to
Problem-Solving Skills new decisions

Persuasion and Persuasion means being able to convince people that what you are
networking doing is right and useful.
Networking means the ability to create strong bonds with people who
may be involved in the business.

Empathy Being sensitive to the thoughts and feelings of others.

S.M.A.R.T. S.M.A.R.T. goal setting means that your goals are:

Goal setting • Specific: Are your goals precise, detailed and unambiguous?
• Measurable: How will you measure it? Goals can be measurable
by quality, quantity and cost.
• Achievable: Is it achievable? Although goals should be a stretch to
the team's capabilities, they must be within reach and realistic.
• Relevant: Does it contribute to the goals and strategies of the
team? Goals should focus on practical results to be achieved.
• Time-bound: When will this goal be achieved? Is the completion
date realistic?

Information The ability to seek and find the right and valuable information
Seeking needed by the business.

Self-Confidence Believing in oneself and in one's ability to get things done.

Leadership They are visionaries, adept at navigating uncertainty and resilient in

the face of setbacks.

Opportunity–seeking Ability to find business opportunities where other people do not.

behavior

Moderate risk-taking Ability to calculates the chances of success before taking a risk and
examines his strengths and weaknesses that will affect his decision.

High demand for Ability to meet or surpass the existing standards of excellence in the
efficiency and quality business.

Business Skills Understanding how to create and manage a business.

THE PROCESS OF DEALING WITH DAILY LIFE AS AN ENTREPRENEUR
● Entrepreneurship isn’t just about starting a business; it’s a journey filled with challenges
and decisions.
● Imagine yourself as an entrepreneur facing daily hurdles, managing time, setting
priorities, and navigating through uncertainties.

Successful entrepreneurs embrace uncertainty as an opportunity for growth.

MAJOR STEPS IN THE ENTREPRENEURIAL PROCESS

1. Identifying and Evaluating Opportunities:

● This phase involves spotting gaps in the market, recognizing needs, and
assessing the feasibility of potential business ideas.
● Entrepreneurs need to be observant and innovative, constantly seeking out
opportunities for innovation and improvement.
2. Developing a Comprehensive Business Plan:
● Once an opportunity is identified, entrepreneurs must create a detailed roadmap
for their venture.
● A well-crafted business plan outlines the company’s objectives, target market,
marketing strategy, financial projections, and operational plans.
3. Determining the Resources Required:
● Entrepreneurs need to assess the resources necessary to bring their business
idea to life, including financial capital, human resources, technology, and
infrastructure.
● It’s crucial to differentiate between critical resources and those that are merely
helpful, while also considering potential risks associated with resource
acquisition.
4. Managing the Resulting Enterprise:
● Once resources are acquired, entrepreneurs must effectively implement their
business plan and manage day-to-day operations.
● This involves establishing management structures, monitoring performance, and
adapting to changing market conditions.
RECOGNIZING IMPORTANT ENTREPRENEURIAL TRAITS
Entrepreneurship is not just about following a set of steps; it's a mindset characterized by
specific traits that drive success in the entrepreneurial journey.

1. Risk-taking:
● Successful entrepreneurs are comfortable with taking calculated risks,
recognizing that uncertainty is an inherent part of business.
● They are willing to step outside their comfort zones and pursue opportunities
even in the face of potential failure.

2. Innovation:
● Entrepreneurs are constantly seeking new ways to solve problems, disrupt
industries, and create value for their customers.
● They embrace creativity and are not afraid to challenge conventional wisdom or
explore unconventional ideas.
3. Passion:
● Passion is the fuel that drives entrepreneurs to pursue their dreams relentlessly,
even in the face of adversity.
● It fuels their commitment, perseverance, and resilience in the pursuit of their
goals.

4. Adaptability:
● in the fast-paced world of entrepreneurship, adaptability is crucial for navigating
through uncertainties and changing market conditions.
● Successful entrepreneurs are flexible and agile, willing to pivot their strategies
and adjust their plans as needed.

MOTIVATION TO BE AN ENTREPRENEUR
Types of entrepreneurial motivation
There are several types of entrepreneurial motivation. These may vary depending on the type of
entrepreneur and their motive. These may also be classified as financial and non-financial
motivations. The most common motivations are:

● Monetary Gains - Entrepreneurs aim to generate profit through their business ventures,
gaining satisfaction through self-employment and offering innovative solutions to the
industry, while also maximizing financial gains.
● More Freedom - Entrepreneurial systems provide greater flexibility and long-term
benefits to entrepreneurs, allowing them to make decisions that align with their vision
and goals.
● More Authority - Entrepreneurs possess greater authority and self-accountability,
actively participating in every aspect of their business, from product development to
ensuring a sustainable customer base.
 ● Creative Control - Entrepreneurial motivation drives goal achievement. Aligning creative
decisions with vision is crucial, including product design and marketing strategies, to
target a specific customer base.

THE RISK AND REWARD OF AN ENTREPRENEUR

THE RISK OF AN ENTREPRENEUR

Running a business does come with risks, including those related to market and
economic trends, finances, and technology. Successful entrepreneurs deeply understand these
risks and use research to make informed decisions to help the company succeed.

• Risk of failure/Failing - Often, entrepreneurs aren’t creating a new market — they’re

entering an existing market that already has competitors. As a result, entrepreneurs
need nila to adopt new trends and continue to innovate. (Innovation is key to the
success of any entrepreneur. Peter Drucker)

• Risk to health and well-being - Exercise and fitness should be part of his lifestyle.
The entrepreneur must have time for rest and recreation. He should keep a positive
outlook in life.

• Social risk - The entrepreneur then has to learn to deal with stress creatively. Starting
a new venture uses much of the entrepreneur's energy and time. Consequently, their
other commitments may suffer and there is increased family and social risk. The work of
the entrepreneur can be a source of conflict with his family and social relationships that
can make his life stressful.

THE REWARD OF AN ENTREPRENEUR

While it’s important to take seriously the potential risks of starting a business, the
rewards can be great, as well. Being an entrepreneur often comes with more freedom and
control than being an employee, and business owners often enjoy other professional and
personal benefits.

• Self-fulfillment - The entrepreneur is pleased when he achieves and accomplishes his

plans through his hard work. Starting a business means turning a vision into a reality,
and that can be intensely fulfilling. Launching a business to solve problems
entrepreneurs are passionate about instills their work with a sense of purpose and allows
them to create the positive changes they'd like to see in their communities and
industries. (career fulfillment)

• Personal independence - Entrepreneurs running thoroughly established businesses

often have more control over their work-life balance than employees. (Work-life
Balance)
 • Financial reward - (profit) There is a potential for very high earnings with no salary
ceiling. The residual income from company ownership and equity may be substantial.

• Social rewards- Entrepreneurs leave a lasting impact on society, create jobs, and
foster innovation. (can connect to self-fulfillment)

STRENGTHS AND WEAKNESSES OF SMALL ENTERPRISE

STRENGTHS OF SMALL ENTERPRISE

1. Creativity - Creativity can be a key factor in the success of small businesses, whereas it
often faces limitations in larger corporations.
2. Adaptability - At its core, business revolves around interpersonal connections, and small
businesses hold the upper hand in truly understanding each individual client. This
enables them to offer tailored, personalized experiences that clients deeply appreciate.
3. Flexibility and Less Bureaucracy - Small businesses possess greater flexibility in
how they reward and acknowledge their staff, as well as in their approach to
customer interactions.
4. Active Listening - In contrast to large corporations, small businesses can set
themselves apart by establishing a feedback loop that fosters two-way
communication.
5. Speed - Small businesses have the advantage of being able to swiftly react to
shifts in the market, adjust their strategies, and pivot their operations as needed.
This agility enables them to remain competitive in rapidly changing
environments.
6. Lower Costs - Small businesses generally have lower overhead expenses
compared to larger counterparts. They operate with leaner budgets, affording
them greater flexibility and financial stability, particularly during economic
downturns.

WEAKNESSES OF SMALL ENTERPRISE

1. Time commitment - Small business owners report working more than eighty hours a
week handling everything from purchasing to banking to advertising. This time
commitment can place a strain on family and friends and add to the stress of launching a
new business venture.

2. Financial commitment - For many people starting small businesses, their initial source
of funding is personal savings, investments, or retirement funds. In most cases where a
small business receives start-up funding through a loan, the entrepreneur must secure
the loan by pledging personal assets, such as a home. Risking the equity in one’s home
is a financial commitment not all entrepreneurs are willing to make.
 3. Stress and Health Issues - As a business owner, you are the face of the business and
you "wear many hats". As the owner, you’re also responsible for the well-being of your
employees, and you’ll probably have to perform some unpleasant tasks, like firing
people.

4. Uncertainty - External factors such as downturns in the economy, new competitors

entering the marketplace, or shifts in consumer demand may stall the businesses
growth. Even entrepreneurs who go through a comprehensive planning process will
never be able to anticipate all of the potential changes in the business environment.

5. Reputation - when you start a small business, it hasn't been around for so long if at all,
and no one knows who you are. The business hasn't had enough time to build a positive
reputation and customers don’t know they can trust you.

6. Market Competition
•Failure to Cope Up with the Intense Competition
-Right from the beginning, almost all online business enterprises struggle to establish a
brand within the most intense market competition. Adverse political and economic
environment apart, the opportunity to grow is simply too narrow to survive with.
•Failure to Market the Product
-Small business problems can occur in advertising and marketing their product and
services into different online media to capture the interest of their prospects and potential
clients.

CHALLENGES FACES BY ENTREPRENEURS

● Limited access to specialists and consultants - The entrepreneur has very limited
access to specialists and consultants to help him at the beginning of the enterprise.

● Hard and demanding work - Starting an enterprise entails hard work. It may seem easy
at first but the entrepreneur may encounter difficulty later.

● Finding the right idea - Before your business can take off, you need to have a viable,
profitable business plan. This starts with your idea. Does your business offer something
of value? Is there a target market for your business?

● Selecting a service or product- An entrepreneur may have the skills and passion to
start a company, but one important factor in starting a business is deciding what to sell.
To start, they may identify a demand in their community they could meet.

● Lack of funding - As a business owner, you take on the financial responsibility needed
to successfully run your business. Small business owners often begin as solopreneurs,
who handle all the work themselves and don’t have a need to hire employees or
outsource their work—at least not yet.
 ● Managing time - Starting a new business and managing it creates many periodic tasks,
so entrepreneurs may create deadlines to help with prioritizing their obligations. Because
their role can encompass many responsibilities, entrepreneurs have several approaches
they can take to manage time

● Hiring and managing employees - Assuming you have the financial resources to hire
and manage a team, the next hurdle comes with finding the right people to work with
you.

● Maintaining confidence - It can take a lot of confidence to start a company and just as
much to run one. It's important for entrepreneurs to maintain confidence so they can lead
effectively and make appropriate business decisions.

CONTRIBUTION TO THE SOCIETY

1. Raises Standard of Living - A significant role of entrepreneurship in economic

development is that it can greatly enhance the standard of living for individuals and
communities by setting up industries and creating wealth and new positions.
Entrepreneurship not only provides large-scale employment and ways to generate
income, it also has the potential to improve the quality of individual life by developing
products and services that are affordable, safe to use, and add value to their lives
.
2. Economic Independence - Entrepreneurship can be a path to economic independence
for both the country and the entrepreneur. It reduces the nation’s dependence on
imported goods and services and promotes self-reliance. The manufactured goods and
services can also be exported to foreign markets, leading to expansion, self-reliance,
currency inflow, and economic independence. Similarly, entrepreneurs get complete
control over their financial future. Through their hard work and innovation, they generate
income and create wealth, allowing them to achieve economic independence and
financial security.

3. Benefits of New Firms and Businesses - Entrepreneurs identify market needs and
develop solutions through their products and services to begin their business venture. By
starting new firms and businesses, entrepreneurs play a key role in shaping the
economy and creating a more dynamic and diverse business landscape.
Entrepreneurship also promotes innovation and competition, leading to new and
improved products and services that contribute to economic growth and development.

4. Creation of Jobs - Entrepreneurship is a pivotal driver of job creation. Running the

operations of new businesses and meeting the requirements of customers results in new
work opportunities. Entrepreneurship also drives innovation and competition that
encourages other entrepreneurs and investments, creating new jobs in a wide range of
industries, from manufacturing and construction to service and technology sectors.
5. Encourages Capital Formation - Capital formation is the process of accumulating
resources, such as savings and investments, to fund new business ventures and support
economic growth. Entrepreneurship can encourage capital formation by attracting
investment. In addition, the creation of new businesses and the growth of existing firms
can also contribute to the development of a more diverse and dynamic economy that
encourages capital formation and opens the door to a wide range of investment
opportunities.

6. Elimination of Poverty - Entrepreneurship has the potential to lift people out of poverty
by generating employment and stimulating economic activity. Entrepreneurship also
contributes to the development of local economies and helps improve the overall
standard of living.

7. Community Development - Entrepreneurship promotes economic growth, provides

access to goods and services, and improves the overall standard of living. Many
entrepreneurs also make a positive impact on their communities and improve their
well-being by catering to underserved areas and developing environment-friendly
products. Their work can help build stronger, more vibrant communities and promote
social and economic development.

8. Optimal Use of Resources - Entrepreneurship can help identify market opportunities

and allocate resources in the most effective way possible. Entrepreneurs also play a key
role in developing innovative products and services that meet the needs of customers
while optimizing the use of available resources.

9. Increases Gross National Product and Per Capita Income - Entrepreneurship can
play a significant role in increasing economic growth and prosperity by increasing Gross
National Product (GNP) and Per Capita Income (PCI). GNP measures the total
economic output of a country while PCI calculates the average income per person. The
increase in GNP can lead to a rise in PCI. Entrepreneurship can contribute to GNP by
creating new businesses and industries, which can lead to job creation, increased
consumer spending, and higher tax revenue.
THE ENTREPRENEUR

OPPORTUNITY RECOGNITION

“An opportunity is a favourable set of circumstances that creates a need for a new product, service or
business

QUALITIES:

* ATTRACTIVE.

* TIMELY.

* DURABLE OR SUSTAINABLE.

* ADDS VALUE TO CUSTOMERS AND ANCHORED IN PRODUCTS SERVICES OR A BUSINESS

THREE APPROACHES TO OPPORTUNITY RECOGNITION

* Observing trends.

* Solving a problem.

* Finding market gaps.

RECOGNIZING AN OPPORTUNITY

PRIOR EXPERIENCE: Prospective entrepreneurs with prior experience in a particular industry or sector
stand a good chance of identifying an opportunity from the myriad of problems facing their industry.

INTELLECTUAL CURIOSITY: Those who want to know why or are willing to explore new ideas as potential
opportunities. The key idea here is “What If?”.

INNOVATIVE AND CREATIVE: Those that can think outside of the box and can create solutions that no
one has considered will see opportunities everywhere?

NETWORKING: The successful entrepreneur will be able to network with others and explore
opportunities that his or her peers and colleagues identify as potential business Ventures.

ASSESS RISK: The potential entrepreneur can quickly identify a problem, identify potential solutions and
has the ability to identify the potential risks facing any potential Solution.

MOTIVATION: The potential entrepreneur needs to be self‐motivated and a self‐starter to be able to see
and pursue potential opportunities.

TURNING IDEAS INTO OPPORTUNITIES

(A) START A NEW BUSINESS

(B) BUY AN INDEPENDENT BUSINESS

(C) BUY A FRANCHISE

DOWNSIDE:

* Initial and Ongoing Fees.

* Less Entrepreneurial Freedom

UPSIDE:

* Proven System.

* Customer Awareness.

* Multiple Benefits Provided by the Franchisor.

* Exclusive Geographical Area.

* Easier Financing.

(D) BECOME AN INVETOR

BUSINESS OPPORTUNITY

A business opportunity is a consumer need or want that can potentially be met by a new business. In
economics, a need is defined as something that people must have to survive, such as water, food,
clothing, or shelter. A want is a product or service that people desire.

SOURCE OF OPPORTUNITY

* Problems.

* Changes.

* New Discoveries.

*Existing Products and Services.

*Unique Knowledge.

WHERE TO LOOK FOR OPPORTUNITIES:

* Newspapers and Magazines.

* Business and Governmental Agencies.

* Trade Resources.

* World Wide Web.

SOLUTIONS

* Think outside the box.

* Creative Thinking.

* Use your imagination.

CHALLENGE THE USUAL

Challenge what you believe about hoĺw products should work or how things are done.

THINK BACKWARD

Sometimes solving a problem is easier when you start by imagining the result you want. Then mentally
trace imaginary steps backward to see how you could get there.

BE FLEXIBLE

There is almost always more than one way to solve a problem. Force yourself to examine things from
different angles. Problems can even become solutions.

JUDGE LATER

Not all ideas have to make sense in the beginning. You’ll have time later to decide which ones are not
useful. Sometimes ideas that seem silly initially inspire other, more useful, solutions later.

DRAW IDEA MAPS

Drawing possibilities in this way often helps you to see a bigger picture, with new possibilities that you
might have otherwise missed. You might also try using sticky notes on a wall or poster board. This
method allows you to move ideas around

BRAINSTORM IN A GROUP

Ask your friends, family, and classmates to help you generate ideas.

DAYDREAM

Letting your mind wander is okay; just make sure you pick an appropriate time.
ENVIRONMENTAL

ENTREPRENEURIAL ENVIRONMENT is a collection of external conditions for entrepreneurs to engage in

their entrepreneurial activities.

INCLUSIONS:

* Government Policies

* Laws and Regulations

* Socio- economic Conditions

* Venture Capital Support

* 1Non-capital Support

* Entrepreneurship and management skills

ENVIRONMENTAL AND ECONOMIC TRENDS AFFECTING ENTREPRENEURSHIP

There are economic trends and environmental factors which should be closely and carefully studied in
identifying entrepreneurial opportunities

* Technological Evolution

* Social Responsibility

* Inclusive Growth

* Globalization

* E-commerce

* The Cyberspace

* Franchising Trends

* Green Economy

ENTERPRISE PLANNING

Strategic process of setting goals, defining strategies, and allocating resources to achieve long-term
success for a business or organization

MARKETING ASPECT

Refers to the strategies, tactics, and actions taken by businesses to promote their products or services,
increase brand awareness, and ultimately drive sales and revenue.
KEY COMPONENTS OF THE MARKETING ASPECT INCLUDE

MARKET RESEARCH: Understanding your target audience, their needs, and preferences through surveys,
focus groups, and data analysis.

PRODUCT MARKETING: Focuses on promoting and selling a specific product or range of products.

BRAND MARKETING: Concentrates on building, maintaining, and promoting a brand's image, reputation,
and identity.

ADVERTISING MARKETING: Involves creating and placing promotional content through various media
channels like television, radio, print, online, and social media.

DIGITAL MARKETING: Utilizes digital channels such as search engines, social media, email, and content
marketing to reach and engage with customers.

SALES PROMOTION MARKETING: Designs short-term incentives and campaigns to boost sales, such as
discounts, contests, and special offers.

PUBLIC RELATIONS MARKETING: Manages communication with the public, media, and other
stakeholders to build a positive image and reputation.

THE MARKET

Plays a crucial role in enterprise planning as it helps organizations understand the external environment
in which they operate.

KEY ASPECTS OF THE MARKET IN ENTERPRISE PLANNING INCLUDE:

MARKET ANALYSIS: Conducting a thorough analysis of the industry, target market, and competitors.

MARKET TRENDS: Identifying and monitoring market trends

COMPETITIVE ANALYSIS: Assessing the competitive landscape, including direct and indirect competitors

MARKET SEGMENTATION: Identifying and targeting specific customer segments based on their needs,
preferences, and behavior.

MARKET OPPORTUNITIES: Exploring potential growth opportunities within the existing market or new
markets

MARKET RISKS: Identifying and assessing potential risks associated with the market.

MARKET-DRIVEN INNOVATION: Leveraging market insights to develop innovative products, service, or

business models.

PRICING STRATEGY: Determining an appropriate pricing strategy based on market conditions.

MARKET RESEARCH

Is a system or a process of identifying and analyzing possible problem and techniques.

To help the product or business identify their possible customer, market their product minimize
potential risk and for the management to make informed or good decisions.

TYPES OF MARKET

MASS MARKET: Selling the product to or service to as many customers as possible.

TARGET MARKET: A limited number of customers who are most likely to buy the product or services.

TYPES OF CUSTOMERS

CONSUMERS: Company who sell to individuals. Also know as business to consumer company

BUSINESS: Company who sells to other company . Also known as business to business company

MARKET RESEARCH METHOD

Research methods are particular techniques for gathering and examining data. Creating your research
methodology is a crucial component of your market research.

TYPES OF RESEARCH DATA

PRIMARY DATA: New information that is collected for a particular purpose.

SECONDARY DATA: Existing information that was previously gathered for a purpose other that a study
at hand.

QUALITATIVE DATA: Data or information about experiences, ideas, opinions or something that can't be
described numerically.

QUANTITATIVE DATA: Data or information about gathering and examining numerical data in order to do
statistical analysis.

MARKETING STRATEGY

A marketing strategy is a comprehensive plan that contains a company's marketing goals and objectives

A good marketing strategy can help companies better identify their best customers and understand
their needs and expectations.

4 P’S OF MARKETING STRATEGY

PRODUCT

PRICE
PLACE

PROMOTION

SIX MARKETING STRATEGIES:

RELATIONSHIP MARKETING: The emphasis of this is on building a solid connection between the brand
and the customer

EXPEDITIONARY MARKETING: This involves forming markets and creating innovative products

ONE TO ONE MARKETING: Here customers are marketed to as individuals

REAL TIME MARKETING: This makes use of the power of technology to interrelate with a customer in
actual time.

VIRAL MARKETING: It places marketing messages on the Internet like Facebook and Instagram so they
can be shared and expanded on by customers

DIGITAL MARKETING: This considers leveraging the power of Internet tools like e-mail and social
networking to back-up marketing efforts

WHY ANALYZE THE COMPETITON?

As an entrepreneur, it is critical to deeply understand the competitive landscape before and during
operating your business. Knowing the strengths and weaknesses of competitors can reveal key
opportunities worth pursuing and pitfalls to avoid. Tracking competitive moves over time allows you to
stay agile and differentiate.

DEFINING COMPETITORS

Direct competitors offer customers the exact same type of product or service. These are ones vying for
the same target customer segment. Indirect competitors offer substitute products that satisfy the same
underlying need.

COMPETITOR ANALYSIS

Competitive analysis in marketing and strategic management is an assessment of the strengths and
weaknesses of current and potential competitors. This analysis provides both an offensive and defensive
strategic context to identify opportunities and threats.

Performing ongoing competitor analysis provides entrepreneurial businesses valuable strategic insight
into where opportunities lie for growth and improvement.

WHY IS AN COMPETITIVE ANALYSIS IMPORTANT?

Strategic Business Decisions. Anchoring your business strategies on solid, data-driven insights ensures
you stay ahead in the game.
Fortifying Defense. By knowing what your competitors are up to, you can better defend your market
share and even capture new territories.

Unearth Golden Opportunities. Delving into the intricacies of your competition's operations can
spotlight areas where you can shine brighter.

The ripple effects of a well-executed competitive analysis are manifold:

COMPETITIVE MARKET RESEARCH:

The process of determining who your competitors are, researching their strategies, and unpacking what
they do well from this process, you can learn a lot about your company's own strengths and weaknesses,
as well as how to remain a strong competitor in your industry.

HOW TO DO A COMPETITIVE ANALYSIS

1. Determine who your competitors are.

2. Take note of competition's content strategy.

3. Determine what products your competitors offers

4. Learn what technology stack competitors use.

5. Research your competitors sales tactics and results.

6. Analyze the level of engagement on your competitors content.

7. Take a look at your competitors pricing and perks they offer.

8. Observe how they promote marketing content.

9. Ensure your meeting competitive shipping costs.

10. Look at their social media presence, strategies, and go-to platforms.

11. Analyze how your competitors market their product.

12. Perform a SWOT analysis.

 “ENTERPRISE PLANNING & THE ORGANIZATION AND
MANAGEMENT ASPECT”

Learning Objectives:
At the end of this lesson, we should be able to:

1. Marketing Mix: Determine the 7P’s of marketing mix.

2. Prototype Development: Determine its (1) definition, (2) significance, and (3) stages.
3. Locating Business: To determine the factors and Information crucial to the location of the
business.
4. Internal and External Organization Study: Determine the critical factors within an
organization's internal and external environments that influence its performance and
competitiveness.
5. Types of Organizational Chart: Determine the types of organizational chart.
6. Human Resources for the New Enterprise: To determine the human resources for the new
enterprise.
7. The Hiring Process: Determine the hiring process in the Philippines.

Marketing Mix
Set of controllable and connected variables that a company gather to satisfy a customer better
than its competitor.

1. Product - Refers to any goods or services that is produced to meet the consumers' wants,
tastes and preferences.
2. Place - It represents the location where the buyer and seller exchange goods or services.
It includes physical stores as well as virtual stores or online shops in the market.
3. Price - In the sense of monetary unit, it is the value of money in exchange to a product or
services. Price is determined by:
- A buyer willing to pay.
- A seller willing to accept.
- The competition is allowing to be charged.
4. Promotion - Set of activities which communicate the product, brand or service to the user.
The idea of attracting consumes to be interested to your products or services.
5. People - Persons who are involved in the product or services whether directly or
indirectly. They are the one who sell and push the products or services.
 6. Packaging - It is the outside appearance of the product and how it is being presented to
the consumer. The functions of packaging are protection, containments, information,
utility of use and promotion.
7. Positioning - Process used by marketers to create an image in the minds of the target
markets.

Prototype Development
Prototype Defined - it is a preliminary version or model of a product, system, or service that is
developed to test its feasibility, functionality, and design before full-scale production or
implementation.

Significance of Prototype Development

1. Validating Ideas
2. Gathering Feedback
3. Reducing Risk
4. Saving Time and Resources
5. Improving Marketability

Stages of Prototype Development

1. PLANNING - Define the objectives and requirements of the prototype. Conduct research
to understand user needs, market trends, and technological feasibility. Develop a plan
outlining the scope, timeline, and resources required for prototype development.
2. DESIGNING - Define the user interface (UI) and user experience (UX) design elements.
Determine the navigation flow, interaction patterns, and key features of the prototype.
Iterate on the design based on feedback from stakeholders and users.
3. SELECTING - Select appropriate tools and technologies for building the prototype. Use
prototyping tools such as Adobe XD, Sketch, Figma, or InVision to create interactive
prototypes.
4. TESTING – Conduct usability testing with representative users to gather feedback on the
prototype. Test the prototype for usability, functionality, and performance throughout the
development process. Test the prototype under different scenarios and conditions to
ensure its reliability and effectiveness.
5. REFINEMENT - Make necessary adjustments and refinements to the prototype based on
feedback and testing results. Iterate on the prototype through multiple cycles of testing,
refinement, and iteration. Focus on improving usability, functionality, and user
experience to align with the project objectives and user needs.
6. IMPLEMENTATION - The final product will be developed according to the final
prototype model The final product will be tested thoroughly and deployed. The product
needs to be under maintenance of preventing downtime and large-scale failures.
Locating Business

Why is Location Crucial to a Business?

• Geographic Location - Selecting the right geographic location is essential for businesses
to optimize their operations, manage costs, and capitalize on growth opportunities in a
dynamic and competitive global marketplace.
• Operational Needs - Crucial to making sure a business runs smoothly. They include
everything that the company needs to run well on a daily basis. Meeting operational
needs enables companies to satisfy client requests quickly, uphold quality standards, and
remain competitive in the marketplace.
• Rent Cost - The cost of rent plays a critical role in determining the viability and
profitability of a business location. High rent expenses can significantly impact the
bottom line, especially for small businesses and startups with limited resources.
Conversely, choosing a location with affordable rent allows businesses to allocate more
capital towards growth and expansion efforts.
• State and Local Taxes - Because state and local taxes directly affect operating expenses,
they are a major factor in deciding how desirable a site is for a firm. Excessive tax loads
can reduce a company's profitability and make it more difficult for it to compete. On the
other hand, areas with reduced tax rates frequently draw companies looking to increase
their profit margin.
• Security - Since they offer investors security and stability, securities are a significant
factor in determining how desirable a site is for a firm. Because they provide a favorable
atmosphere for growth and success, areas with well-established physical and digital
security measures tend to draw in more enterprises. Furthermore, a strong security
infrastructure may boost stakeholders', customers', and workers' confidence, creating a
favorable business climate.
• Competition - Competition has a significant impact on customer behavior and market
dynamics, which in turn determines a business location's feasibility and success.
Businesses may evaluate market saturation, pricing strategies, and differentiation
opportunities by having a thorough understanding of the competitive environment. These
elements are critical for maintaining growth and profitability. Furthermore, in order to
maintain long-term relevance and competitiveness, competition encourages innovation
and pushes companies to continuously enhance their goods and services in response to
shifting customer needs.
• Growth Potential - A company's capacity for expansion is essential for long-term success
since it has a direct bearing on sustainability and profitability. An advantageous location
that has several prospects for growth enables enterprises to access novel markets, draw
skilled personnel, and expand their activities effectively. Businesses may minimize risks
and maximize returns on investment by making well-informed decisions through the
assessment of growth potential.
• Accessibility - Accessibility is crucial for businesses as it directly impacts their ability to
reach customers, suppliers, and employees. A well-located business can attract a larger
customer base, facilitate efficient supply chain management, and ensure easy commute
for employees, ultimately enhancing productivity and profitability. Ignoring accessibility
considerations can limit growth opportunities and hinder competitiveness in the market.
Business Location Factors

SUPPLY FACTORS

- Labour
- Land Cost
- Non-Financial Factors
- Energy Cost
- Transportation Cost

DEMAND FACTORS

- Skilled Labour
- Location Suitability
- Customer ease
- Future Expansion

Internal & External Organizational Study

INTERNAL

- Organizational Structure
- Culture and Values
- Resources and Capabilities
- Policies and Procedures
- Leadership and Management

EXTERNAL

- Market Conditions
- Economic Factors
- Legal and Regulatory Factors
- Social and Cultural Trends
- Technological Advancements

What is SWOT Analysis?

EXTERNAL FACTORS: Opportunities and Threats - technology, competition, economic,

political, legal, social trends

INTERNAL FACTORS: Strengths and Weaknesses – financial, technical, competition, position,

human resources, product line
Types of Organizational Charts

HIERARCHICAL STRUCTURE - In a hierarchical organization structure, employees are

grouped with every employee having one clear supervisor.

MATRIX STRUCTURE - It is a type of organizational management in which people with

similar skills are pooled for work assignments, resulting in more than one manager to report to
(sometimes referred to as solid line and dotted line reports, in reference to traditional business
organization charts).

HORIZONTAL / FLAT STRUCTURE - This is an organizational chart type mostly adopted by

small companies and start-ups in their early stage. It’s almost impossible to use this model for
larger companies with many projects and employees since this structure eliminates many levels
of middle management.

NETWORK STRUCTURE - Network organizational structure helps visualize both internal and
external relationships between managers and top-level management. The idea behind the
network structure is based on social networks.

DIVISIONAL STRUCTURE – Divisional types of organizational charts have their own division
which corresponds to either products or geographies. Each division contains the necessary
resources and functions needed to support the product line and geography.

LINE STRUCTURE - Its authority flows from top to bottom. The chain of command and each
department head has control over their departments.

TEAM-BASED ORGANIZATIONAL STRUCTURE - Team-based organizational structures are

made of teams working towards a common goal while working on their individual tasks. They
are less hierarchical, and they have flexible structures that reinforce problem-solving, decision-
making, and teamwork.

Human Resources for the New Enterprise

1. Recruitment and Selection of Employees

2. Probation Review and Confirmation
3. Introduction / Orientation
4. Compensation Structure and Levels
5. Working hours and Leave
6. Expense Management
7. Code of Conduct
8. Labor Law Compliance
9. Employee Separation
10. Culture Building
Hiring Process in the Philippines

1. Create a job description.

2. Post the job.
3. Screen Resumes and conduct interviews.
4. Make an offer by developing compensation package and negotiate salary.
5. Sign employment contract and register with government agencies.
6. Conduct pre-employment medical examination.
7. Onboarding and training.
 GROUP 1_QUIZ (GROUP ACTIVITY)
”Matching Type”

Mechanics:
1. 4 representatives per group with 4 topics and charts.
2. Each group ay may assigned topic and chart which is may lamang mga statements and
questions na kailangan nyong ma-identify if ano ang correct answers.
3. Ang answer sa bawat statement/question ay nakalagay sa papel, then group representative
ang maglalagay/magdidikit ng tamang sagot doon sa specific statement or question.
4. If ever walang magvolunteer na magsasagot sa bawat group ay magkakaroon ng bunutan.

The highlighted “red word” and tamang answer sa corresponding statements and questions.

1. Types of entrepreneurial motivation

Monetary Gains - Entrepreneurs aim to generate profit through their business ventures,
gaining satisfaction through self-employment and offering innovative solutions to the
industry, while also maximizing financial gains.

More Freedom - Entrepreneurial systems provide greater flexibility and long-term

benefits to entrepreneurs, allowing them to make decisions that align with their vision
and goals.

More Authority - Entrepreneurs possess greater authority and self-accountability,

actively participating in every aspect of their business, from product development to
ensuring a sustainable customer base.

Creative Control - Entrepreneurial motivation drives goal achievement. Aligning creative

decisions with vision is crucial, including product design and marketing strategies, to
target a specific customer base.

2. Major steps in the entrepreneurial Process

1. Identifying and evaluating opportunities.
2. Developing a comprehensive business plan.
3. Determining the resources required.
4. Managing the resulting enterprise.

3. The Rewards of an entrepreneur

• Self-fulfillment
He feels self-fulfilled when he makes use of his talents, creativity, and skills as he
performs the various tasks required in the business from conceptualization and
planning, to implementation.

• Personal independence.
 The entrepreneur earns the prestige of being his own boss, the person in charge,
and the one who calls the shots.

• Financial reward.
Through his earnings, the entrepreneur receives substantial financial rewards
when running his own business rather than when working for someone else.

• Socialrewards.
The entrepreneur can create employment that contributes to the reduction of
unemployment and alleviation of poverty.

4. Describe the entrepreneur

Entrepreneur- Someone who creates and runs a business

Entrepreneurial- To think or to act like an entrepreneur
Enterprise- An activity or a project that produces services or products
Entrepreneurship- The ability and readiness to develop,organize, and run a business
enterprise,along with ay of its uncertainties in order to make a profit.
 GROUP 2_QUIZ (GROUP ACTIVITY)

Mechanics:
● One (1) member from a group must represent their group.
● The member must choose a number from 1-5.
● Each number has different questions and the member must answer the question.

Question 1: Give at least 3 sources of opportunity.

Answer:
● Problems.
● Changes.
● New Discoveries.
● Existing Products and Services.
● Unique Knowledge.

Question 2: Give (4) ways to turn ideas into opportunity.

Answer:
● Start a new business.
● Buy an independent business.
● Buy a franchise.
● Become an Inventor.

Question 3: How does this discussion help you in creating business in the future or in your daily
life?
Answer:
● Self-explanatory. (Own opinion)

Question 4: What is the full name of our Professor in Entrepreneurial Mindset?

Answer:
● Prof. Monching Murilla

Question 5: What are the 4p’s of the marketing strategy?

Answer:
● Product
● Price
● Place
● Promotion
Multiple Choice
1. Ano ang pinakamahalagang factor sa pagpili ng lokasyon ng negosyo?
- Trapiko at accessibilidad ng lugar
2. Ano ang pangunahing layunin ng prototype sa pag-develop ng produkto?
- Magbigay ng isang abstrak na konsepto ng produkto
3. Ano ang tinutukoy ng "Posisyon" sa Marketing Mix?
- Pagkakakilanlan sa Merkado
4. Ano ang pinakamahalagang kadahilanan sa pagpili ng tamang kandidato para sa
isang posisyon?
- Kasanayan at Kakayahan
5. Saan karaniwang ginagamit ang mga resulta ng internal organizational study?
- Sa pagpapabuti ng mga proseso at operasyon

TRUE OR FALSE
1. SWOT analysis is an example of an external organizational study tool.
- False
2. A business should avoid areas prone to natural disasters, even if they offer other
benefits.
- True
3. In a flat structure structure, there are fewer levels of management compared to a
tall organizational.
- False
4. Interviews are solely meant for the employer to assess the candidate's
qualifications.
- False
5. The marketing mix concept originated in the 20th century and has no relevance
in today's digital age.
- False