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Business Enterprise Simulation

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0% found this document useful (0 votes)
45 views

Business Enterprise Simulation

Uploaded by

envy laluna
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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BUSINESS

ENTERPRISE
SIMULATION

By:
Batas, Carl Nathan
Fuertez, Jay Ar
Tuazon, Mhargem
Almanzor, Arshelyn
Hipolito, Gamela Rose
Quilala, Sheena Mae
Element 1: Attractiveness Score and Justification
Market Potential (25%) Vegetable Market Meat Market
1. Market Need Ratings: 5 Ratings: 5
• Does the business
provide high value to Justification: Justification:
customers? Vegetable markets are Meat markets are crucial
• Does it have a short essential for everyday living, for customers’ everyday
payback period? especially in San Vicente needs. The payback period is
• If it is a product, is it where there isn’t a nearby 6 months since meat is
durable, affordable, market to buy vegetables. consistently in demand in the
or new? The payback period is 3 market and is offered at a
• If’ it is a service, is it months since vegetables are reasonable price.
highly in demand? easy to sell and in high
demand, being necessary for
everyday living.
2. Market Structure Ratings: 5 Ratings: 5
• Is it an emerging
market or a declining Justification: Justification:
one? The vegetable market is The meat market is an
an emerging business emerging business because
because it is essential for people enjoy meat, but there
everyday life, but there are a are also many competitors in
lot of competitors. the market.
3. Market Size Ratings: 5 Ratings: 5
• Is the market already
established or still Justification: Justification:
unpredictable? The market is already The meat market will be
• Will it be something established, so it will be worthwhile because it is
worth the while of the worthwhile for the owner essential for consumers and
entrepreneur or just because vegetables are in necessary for all living
very small? high demand for various beings, as it is consumed
purposes, as they are daily.
essential for all living beings.
4. Growth Rate Ratings: 5 Ratings: 5
• Does the market
grow fast or slow? Justification: Justification:
The market will grow The market will grow
rapidly due to its location in rapidly due to its location in
San Vicente, Cabiao, Nueva San Vicente, Cabiao, Nueva
Ecija, where there will be Ecija, where there will be
many consumers making many consumers making
purchases. purchases.
5. Market Capacity Ratings: 5 Ratings: 5
• Is the market fully
capacitated or under Justification: Justification:
capacitated? The market is fully The market is fully
capacitated because the capacitated because the
owner can handle the entire owner can handle the entire
process very well, from the process very well, from the
suppliers to its store. suppliers to its store.
6. Market Share Ratings: 4 Ratings: 4
• Is it easy to acquire
new markets? Justification: Justification:
Acquiring new markets is Acquiring new markets is
easy because of its location easy because of its location
in San Vicente, Cabiao, far in San Vicente, Cabiao, far
from other marketplaces, from other marketplaces,
making it easier to attract making it easier to attract
new customers, although new customers, although
there may be competitors. there may be competitors.
7. Cost Leadership Ratings: 4.5 Ratings: 4.5
• Is it cost-efficient to
sell/operate or too Justification: Justification:
costly? It is cost-efficient because It is cost-efficient since
the owner can manage the there is high demand from
business well, and there is consumers who use meat for
also high demand for everyday living, and the
vegetables. owner can manage the
business very effectively.
Average Score: 4.79 4.79
5+5+5+5+5+4+4.5= 33.5 5+5+5+5+5+4+4.5= 33.5
33.5 ÷ 7 = 4.79 33.5 ÷ 7 = 4.79
Description: Highest Market Potential Highest Market Potential
Market Potential Score: 4.79 x 25% = 1.20 4.79 x 25% = 1.20
Element 2: Attractiveness Score and Justification
Financial Feasibility (25%) Vegetable Market Meat Market
1. Net Income Ratings: 4 Ratings: 4
• Will it be a steady or
unpredictable stream Justification: Justification:
of income? The stream of income in The stream of income in
• • Will it have high the vegetable market may be the meat market may be
cost of sales or will somewhat unpredictable, as it somewhat unpredictable, as it
it be cost-efficient? can fluctuate depending on can fluctuate depending on
the season, resulting in either the season, resulting in either
high or low revenue. The high or low revenue. The
cost of sale may be on the cost of sale may be on the
high side since they acquire high side since they acquire
their produce directly from their produce directly from
suppliers rather than growing suppliers rather than growing
it themselves. it themselves.
2. Return on Investment Ratings: 5 Ratings: 5
and Capital Recovery
Period Justification: Justification:
• Will the capital be The investment capital Investment capital can
recovered faster and may recover more quickly recover quickly since meat is
with high returns? since there are not many consumed by nearly
competitors in San Vicente, everyone, and there are not
and consumers rely on the many competitors in the
market for their everyday market.
needs.
3. Capitalization Ratings: 4 Ratings: 4
• Does it have
reasonable or Justification: Justification:
unreasonable Higher capital is needed n the meat shop, higher
capitalization? in the vegetable business. capital is required by buying
Buying vegetables from meat in bulk. However, it’s
suppliers in bulk, they are easy to sell to consumers.
then sold in her shop located
on the roadside in San
Vicente, Cabiao, Nueva
Ecija.
4. Free Cash Flow Ratings: 4 Ratings: 4
• Will the business
still be liquid after Justification: Justification:
allocating funds to It will depend on the setup It will depend on the setup
capital because the business can because the business can
expenditures? offer cash or installment for offer cash or installment for
• Will it have high or bulk buying. Sales growth bulk buying. Sales growth
low sales growth? and gross income are and gross income are
• Will it be asset or expected to be n the high side expected to be on the high
sales intensive? since the business is build in side since the business is
• Will it require San Vicente, Cabiao, Nueva built in San Vicente, Cabiao,
higher or lower Ecija. Nueva Ecija.
working capital?
• Will it incur high or
low research and
development costs?
• Will it have high or
low gross income?
Average Score: 4.25 4.25
4+5+4+4= 17 4+5+4+4= 17
17 ÷ 4 = 4.25 17 ÷ 4 = 4.25
Description: High Financial Potential High Financial Potential
Market Potential Score: 4.25 x 25% = 1.06 4.25 x 25% = 1.06
Element 3: Attractiveness Score and Justification
Competitive Advantage Vegetable Market Meat Market
and Entrepreneurial
Resources (50%)
1. Control Over Prices, Ratings: 2.5 Ratings: 3
Distribution, and Costs
• Will the business Justification: Justification:
have a strong or weak Ms. Jesussa Quintero Ms. Jesussa Quintero
control over prices, does not have control over lowers the price by around
distribution, and the vegetables' prices, as the P1 to P5 pesos on some of
costs? distribution costs are
her products while
variable, and there are
competitors. maintaining good service
for her customers.

2. Barriers to Entry Ratings: 3 Ratings: 4


• Is it easy or difficult
to enter into this Justification: Justification:
business? Entering the vegetable Managing a meat shop is
• Are there any legal or market is not easy; it's difficult due to fluctuating
proprietary difficult. Ms. Jessusa prices. Proper documentation
protections required Quintero ensures that all is in place, but there are
like exclusivity? necessary documents are competitors in the same area.
• Is the competition not complete. Her competitors However, the business is
yet aggressive or employ aggressive business accessible to customers.
tough already? strategies, but consumers are
• Is the business directed to Ms. Quintero's
accessible to store to buy vegetables.
customers?
• Is it easy to build
customer
relationships or does
it require intensive
work?
3. Degree of Fit Ratings: 5 Ratings: 4
• Is the entrepreneur fit
to establish theJustification: Justification:
business? The vegetable market fits It's suitable for Ms.
Ms. Quintero as her family Quintero because a meat
has experience in the same product complements the
business. vegetable market well.
4. Entrepreneurial and Ratings: 3 Ratings: 3
Technological
Differentiation Justification: Justification:
• Will the entrepreneur The owner will offer The owner will offer
offer new products to products that are already in products that are already in
its competitors? the market to ensure the the market to ensure the
• Is the business an "I revenue. revenue.
first" (the concept is
original) or a "me
too" (the concept
follows what the
competitors are
offering)?
5. Service Management Ratings: 4 Ratings: 3.5
• Will the business
offer seamless service Justification: Justification:
to its customers, Ms. Quintero needs to Ms. Quintero adopts
including after sales? create an attractive marketing strategies to attract
marketplace in San Vicente, customers.
Cabiao, Nueva Ecija.
6. Timing Ratings: 5 Ratings: 5
• Is the business right
on time where Justification: Justification:
business opportunities There are no right or There are no right or
and entrepreneurial wrong time when it comes o wrong time for meat market
resources are vegetable market since it is since customer consume it
conspiring? needed for everyday living. every day.
7. Fatal Flaw Ratings: 4 Ratings: 4
• Is the business risk-
free? Justification: Justification:
There is a little risk, many There is a little risk since
people have been opening a meats are supposed to be
vegetable market in San inside a refrigerator and
Vicente so the competitors should not be exposed to heat
are getting bigger. for a long time.
8. Flexibility Ratings: 5 Ratings: 5
• Is the business
adaptable to change Justification: Justification:
or is it traditional? The business is adaptable The business is adaptable
to change, since there are to change, they can be sold
seasons for vegetable. The online.
owner is also trying to sell
bulk orders of vegetable
online.
9. Opportunity Orientation Ratings: 5 Ratings: 5
• Does the entrepreneur
think the opportunity Justification: Justification:
is long-term or just The owner recognizes the The owner sees are as a
short-term? long-term potential due to long-term, despite the
the crucial supply of expense, the continuous
vegetables and the strategic demand for meat ensures
location. long-term viability, as people
cannot avoid consuming it.
10. Pricing Ratings: 3.5 Ratings: 4
• Will the entrepreneur
go for price Justification: Justification:
leadership or will he Offering competitive Despite the competition,
or she lower prices? prices while maintaining especially in the higher-
profitability is crucial, priced meat market,
considering that vegetables employing effective
are typically more affordable marketing strategies to keep
for consumers. prices reasonable for
consumers is essential.
11. Place of Distribution Ratings: 5 Ratings: 5
• Is the business
accessible to many or Justification: Justification:
to a limited few only? The business's roadside The business's roadside
location ensures high location ensures high
visibility to passing visibility to passing
customers, coupled with the customers, coupled with the
high demand for vegetables, high demand for meat,
increasing the likelihood of increasing the likelihood of
more sales. more sales.
12. Margin for Mistakes and Ratings: 5 Ratings: 5
Errors
• Can the entrepreneur Justification: Justification:
afford to commit Ms. Jessusa Quintero's Ms. Jessusa Quintero's
mistakes or is he or readiness to navigate preparedness to handle
she not ready yet for mistakes stems from her mistakes is rooted in her
risks? extensive experience in the long-standing experience in
• Will the entrepreneur vegetable market, her adept various business ventures.
have the propensity to problem-solving skills, and While meat prices are
succeed? her effective business currently high, her expertise
management, all contributing in managing pricing
to a high chance of success. strategies adds to the
potential for success.
13. Industry and Technical Ratings: 4 Ratings: 3
Experience
• Is the entrepreneur Justification: Justification:
highly skilled and Ms. Jessusa Quintero's While Ms. Jessusa
experienced in the background in working with Quintero possesses some
chosen industry? vegetables, including her expertise in meat handling
experience with relatives' procedures, her level of
harvests, combined with her experience in this area is not
successful track record in as extensive as in the
other ventures, showcases vegetable market, which
her industry and technical slightly affects the rating.
expertise, contributing to the
market's rating.
14. Integrity, Concern for Ratings: 5 Ratings: 5
the New Venture, and
Intellectual Honesty Justification: Justification:
• Does the entrepreneur The owner has been The owner has been
have a high degree of selling vegetables for quite a selling vegetables for quite a
integrity and concern while now. She evaluates while now. She evaluates
for the new business? herself to improve more for herself to improve more for
• Is the entrepreneur her business since this her business since this
willing to understand support her lifestyle support her lifestyle.
what he or she does
not know?
15. Personal Goals and Fit Ratings: 4 Ratings: 4
• Does the entrepreneur
have clear objectives Justification: Justification:
and do these The owner has a clear The owner has a clear
objectives match his objective to sell a quality objective to sell a quality
or her resources? product and have a proper product and have a proper
communication with her communication with her
customers, it matches her customers, it matches her
resources. resources.
16. Desirability Ratings: 4 Ratings: 4
• Does the business
match the Justification: Justification:
entrepreneur’s The business matches the The business matches the
lifestyle and owner’s lifestyle and owner’s lifestyle and
preference preference. preference.
17. Stress Management Ratings: 4 Ratings: 4
• Will the entrepreneur
be able to bear the Justification: Justification:
stress that a new The owner has been doing The owner has been doing
business brings? it for quite a while now that’s it for quite a while now that’s
why she is already an expert why she is already an expert
when it comes to handling when it comes to handling
this kind of thing. this kind of thing.
Average Score: 4.18 4.15
2.5+3+5+3+4+5+4+5+5+3.5 3+4+4+3+3.5+5+4+5+5+4+5
+5+5+4+5+4+4+4= 71 +5+3+5+4+4+4= 70.5
71 ÷ 17 = 4.18 70.5 ÷ 17 = 4.15
Description: High Competitive High Competitive
Advantage and Advantage and
Entrepreneurial Resources Entrepreneurial Resources
Potential Potential
Market Potential Score: 4.18 x 50% = 2.09 4.15 x 50% = 2.08

The following is a summary of the OAM for Case 1.

Opportunity Attractiveness Vegetable Market Meat Market


(OAM) Elements
Market Potential (25%) Highest Market Potential Highest Market Potential
4.79 x 25% = 1.20 4.79 x 25% = 1.20
Financial Potential (25%) High Financial Potential High Financial Potential
4.25 x 25% = 1.06 4.25 x 25% = 1.06
Competitive Advantage and High Competitive advantage High Competitive advantage
Entrepreneurial Resources and Entrepreneurial and Entrepreneurial
(50%) Resources Potential Resources Potential
4.18 x 50% = 2.09 4.15 x 50% = 2.08
Total 4.35 (High Potential) 4.34 (High Potential)
Element 1: Attractiveness Score and Justification
Market Potential (25%) Tailoring Shop Clothes for Rent
1. Market Need Ratings: 3.5 Ratings: 4
• Does the business
provide high value to Justification: Justification:
customers? Tailoring establishments The need for clothing
• Does it have a short address an essential market rental services stems from
payback period? demand by providing tailored customers looking for cost-
• If it is a product, is it clothing options, effective options to access a
durable, affordable, guaranteeing the right fit, and wide range of outfits for
or new? preferred style. It may have a various events without the
• If' it is a service, is it long payback period. obligation to buy. It has a
highly in demand? long payback period, but in
demand in the market or a
specific occasion.
2. Market Structure Ratings: 5 Ratings: 5
• Is it an emerging
market or a declining Justification: Justification:
one? The relevance of tailoring Clothes for rent are
services increases, granting emerging business, it offers
customers the opportunity to solution to the impact of fast
tailor their acquisitions to fashion while providing
achieve an ideal fit. access to high-quality, on
trend clothing without the
commitment of ownership.
Clothes for rent are likely to
continue growing in
popularity, making it an
emerging business.
3. Market Size Ratings: 5 Ratings: 5
• Is the market already
established or still Justification: Justification:
unpredictable? The tailoring shop The clothes for rent is a
• Will it be something industry is growing because growing industry since a lot
worth the while of the of the different fashion that of people like to rent clothes
entrepreneur or just every generation have. in every occasion for
very small? affordable price.
4. Growth Rate Ratings: 5 Ratings: 5
• Does the market
grow fast or slow? Justification: Justification:
Tailoring businesses tend The clothing rental
to grow steadily rather than industry has shown promise
rapidly, as it takes time to for both rapid and gradual
build a loyal customer base expansion, fueled by
and establish a reputation for changing consumer tastes
delivering high-quality and the increasing adoption
craftsmanship. of sustainable consumption
habits.
5. Market Capacity Ratings: 5 Ratings: 5
• Is the market fully
capacitated or under Justification: Justification:
capacitated? It is fully capacitated It is fully capacitated
because the owner can because anyone can
consistently handle its consistently handle clothes
workload effectively, meets rental, meet customers'
customer needs promptly, needs, and operate smoothly.
and operates smoothly.
6. Market Share Ratings: 5 Ratings: 4
• Is it easy to acquire
new markets? Justification: Justification:
Acquiring new markets Expanding into new
for a tailoring shop is not a markets within the clothing
problem since they are the rental industry may pose
only tailoring shop in that difficulties, but with the
location. appropriate tactics and
commitment, it's definitely
achievable.
7. Cost Leadership Ratings: 5 Ratings: 3
• Is it cost-efficient to
sell/operate or too Justification: Justification:
costly? It is cost-efficient since It is costly to operate
there are no competitors. since the clothes are still paid
for much cheaper by the
customer than the original
price of the clothes.
Additionally, the detergent
needed to wash the clothes
and rent them again adds to
the expenses.
Average Score: 4.79 4.43
3.5+5+5+5+5+5+5= 33.5 4+5+5+5+5+4+3= 31
33.5 ÷ 7 = 4.79 31 ÷ 7 = 4.43
Description: Highest Market Potential High Market Potential
Market Potential Score: 4.79 x 25% = 1.20 4.43 x 25% = 1.11
Element 2: Attractiveness Score and Justification
Financial Feasibility (25%) Tailoring Shop Clothes for Rent
1. Net Income Ratings: 3 Ratings: 3
• Will it be a steady or
unpredictable stream Justification: Justification:
of income? The tailoring shop may The income from clothes
• • Will it have high have an unpredictable stream for rent may depend on the
cost of sales or willof income since it depends on occasion because many
it be cost-efficient?a client basis. There may be people rent clothes,
no competitors, but the especially for events. It also
income will still depend on has a low cost of sales since
the clients that the owner will the owner is making the
serve. It will have a low cost clothes.
of sales since the owner is
creating the clothes from
scratch.
2. Return on Investment Ratings: 3 Ratings: 3.5
and Capital Recovery
Period Justification: Justification:
• Will the capital be Investment recovery may Investments recovery may
recovered faster and be a bit low since it’s a client be a bit faster since in every
with high returns? basis. event a tot of people would
like to rent clothes.
3. Capitalization Ratings: 3 Ratings: 3
• Does it have
reasonable or Justification: Justification:
unreasonable The income from clothes Capital is on the high side
capitalization? for rent may depend on the because you have to make or
occasion because many purchase clothing to show off
people rent clothes, in public, and since those
especially for events. It also who rent are the ones who
has a low cost of sales since have events to attend, the
the owner is making the capital is a little pricey.
clothes.
4. Free Cash Flow Ratings: 3 Ratings: 3
• Will the business
still be liquid after Justification: Justification:
allocating funds to It depends because some The number of customers
capital months yield strong income is crucial as the business
expenditures? while others do not. relies on rentals for revenue
• Will it have high or Additionally, significant generation. Renting clothing
low sales growth? investment is required as the necessitates a substantial
• Will it be asset or business entails purchasing initial investment.
sales intensive? various materials, contingent
• Will it require upon the demand for
higher or lower tailoring services.
working capital?
• Will it incur high or
low research and
development costs?
• Will it have high or
low gross income?
Average Score: 3 3.13
3+3+3+3= 12 3+3.5+3+3= 12.5
12 ÷ 4 = 3 12.5 ÷ 4 = 3.13
Description: Neutral Financial Potential Neutral Financial Potential
Market Potential Score: 3 x 25% = 0.75 3.13 x 25% = 0.79
Element 3: Attractiveness Score and Justification
Competitive Advantage Tailoring Shop Clothes for Rent
and Entrepreneurial
Resources (50%)
1. Control Over Prices, Ratings: 3 Ratings: 3
Distribution, and Costs
• Will the business Justification: Justification:
have a strong or weak The tailoring shop has For the rent of clothes, it
control over prices, both strong and weak pricing just depends on the clothes to
distribution, and control since it depends on be rented because all the
costs? the customer to decide how clothes have their own price.
many items or bulk, what
portion to make.
2. Barriers to Entry Ratings: 4 Ratings: 5
• Is it easy or difficult
to enter into this Justification: Justification:
business? The tailoring business is The clothes for rent s not
• Are there any legal or easy to start but challenging easy to enter, as long as you
proprietary to penetrate because it have clothes that you can
protections required depends on the location and offer to your customers you’ll
like exclusivity? the population density. earn. It is easy to build
• Is the competition not There's not a lot of relationship with the
yet aggressive or documents needed. customer as long as you have
tough already? the style of the clothes, they
• Is the business want.
accessible to
customers?
• Is it easy to build
customer
relationships or does
it require intensive
work?
3. Degree of Fit Ratings: 5 Ratings: 5
• Is the entrepreneur fit
to establish theJustification: Justification:
business? Mr. Jessi is a sewer ever Mr. Jessi is a sewer
since he was a child, it has ever since he was a child, it
been their family business. has been their family
business. He knows how to
operate the business
4. Entrepreneurial and Ratings: 3 Ratings: 3
Technological
Differentiation Justification: Justification:
• Will the entrepreneur Mr. Jessi will also offer Mr. Jessi will also offer
offer new tailoring new tailoring services if it is new fashion clothes if it is
services versus its trend in the market. trend in the market.
competitors?
• Is the business an "I
first" (the concept is
original) or a "me
too" (the concept
follows what the
competitors are
offering)?
5. Service Management Ratings: 3 Ratings: 3
• Will the business
offer seamless service Justification: Justification:
to its customers, Mr. Jessi will need to adopt Mr. Jessi will need to
including after sales? the trends in the market for adopt the trends in the market
clothes. for clothes.
6. Timing Ratings: 4 Ratings: 4
• Is the business right
on time where Justification: Justification:
business opportunities There is no right and It is seasonal so it is just
and entrepreneurial wrong time in building a right, the resources are much
resources are tailoring shop, since people easier to prepare.
conspiring? always need a sewer.
7. Fatal Flaw Ratings: 3 Ratings: 3
• Is the business risk-
free? Justification: Justification:
There is a little risk, since The business has little risk
the owner will always be because the clothes may be
waiting for a consumer to ruin by costumer without the
have a large order. owner knowing.
8. Flexibility Ratings: 4 Ratings: 5
• Is the business
adaptable to change Justification: Justification:
or is it traditional? The business is adaptable The business is adaptable
to change; it adopts to to change just right.
change slowly
9. Opportunity Orientation Ratings: 5 Ratings: 5
• Does the entrepreneur
think the opportunity Justification: Justification:
is long-term or just The owner looks at the The owner sees the
short-term? business as long-term. business as long-term since
fashion change every now
and then, the customers have
a variety of choices.
10. Pricing Ratings: 5 Ratings: 5
• Will the entrepreneur
go for price Justification: Justification:
leadership or will he The owner base it price The owner base it price
or she lower prices? depending on the materials, depending on the materials,
and labor used. and labor used.
11. Place of Distribution Ratings: 2 Ratings: 2
• Is the business
accessible to many or Justification: Justification:
to a limited few only? The business is located at The business is located at
Sto. Nino, Arayat, Sto. Nino, Arayat, Pampanga,
Pampanga, and will not be and will not be open to an
open to an online store. online store.
12. Margin for Mistakes and Ratings: 5 Ratings: 5
Errors
• Can the entrepreneur Justification: Justification:
afford to commit The owner can commit The owner can commit
mistakes or is he or mistakes, and ready to take a mistakes, and ready to take a
she not ready yet for risk. He will have a risk. He will have a
risks? propensity to succeed. propensity to succeed.
• Will the entrepreneur
have the propensity to
succeed?
13. Industry and Technical Ratings: 5 Ratings: 4.5
Experience
• Is the entrepreneur Justification: Justification:
highly skilled and The owner is skilled in The owner is skilled in
experienced in the sewing since this he been his sewing and making clothes
chosen industry? hobby since he was young. but not a lot of experience in
rentals.
14. Integrity, Concern for Ratings: 5 Ratings: 5
the New Venture, and
Intellectual Honesty Justification: Justification:
• Does the entrepreneur The owner evaluates its The owner evaluates its
have a high degree of business every now and then business every now and then
integrity and concern to seek improvement. to seek improvement. Sewing
for the new business? Sewing has been his life. has been his life.
• Is the entrepreneur
willing to understand
what he or she does
not know?
15. Personal Goals and Fit Ratings: 4 Ratings: 4
• Does the entrepreneur
have clear objectives Justification: Justification:
and do these Mr. Jessi has a clear Mr. Jessi has a clear
objectives match his objective that match his objective that match his
or her resources? resources. resources.
16. Desirability Ratings: 4 Ratings: 4
• Does the business
match the Justification: Justification:
entrepreneur’s Mr. Jessi’s lifestyle Mr. Jessi’s lifestyle
lifestyle and matches his business since matches his business since
preference this has been his hobby since this has been his hobby since
he was young. he was young.
17. Stress Management Ratings: 4 Ratings: 4
• Will the entrepreneur
be able to bear the Justification: Justification:
stress that a new Mr. Jessi has an expertise Mr. Jessi has an
business brings? when it comes to sing, expertise when it comes to
challenges would be easy to sing, challenges would be
handle without bearing easy to handle without
stress. bearing stress.
Average Score: 4 4.09
3+4+5+3+3+4+3+4+5+5+2+ 3+5+5+3+3+4+3+5+5+5+2+
5+5+5+4+4+4= 68 5+4.5+5+4+4+4= 69.5
68 ÷ 17 = 4 69.5 ÷ 17 = 4.09
Description: High Competitive High Competitive
Advantage and Advantage and
Entrepreneurial Resources Entrepreneurial Resources
Potential Potential
Market Potential Score: 4 x 50% = 2 4.09 x 50% = 2.45

The following is a summary of the OAM for Case 2.

Opportunity Attractiveness Tailoring Shop Clothes for Rent


(OAM) Elements
Market Potential (25%) Highest Market Potential High Market Potential
4.79 x 25% = 1.20 4.43 x 25% = 1.11
Financial Potential (25%) Neutral Financial Potential Neutral Financial Potential
3.25 x 25% = 0.75 3.13 x 25% = 0.79
Competitive Advantage and High Competitive advantage High Competitive advantage
Entrepreneurial Resources and Entrepreneurial and Entrepreneurial
(50%) Resources Potential Resources Potential
4 x 50% = 2 4.09 x 50% = 2.45
Total 3.95 (High Potential) 4.35 (High Potential)

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