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APK - Lecture2

This document summarizes a lecture about recognizing business opportunities and generating ideas. It discusses identifying trends, solving problems, and finding gaps in the market as ways to recognize opportunities. Examples are given of entrepreneurs who started businesses by addressing problems or capitalizing on trends. Techniques for generating ideas like brainstorming and surveys are also outlined. The document concludes by suggesting some potential business ideas and providing an outline for presenting a new business idea.

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Chua CK
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42 views22 pages

APK - Lecture2

This document summarizes a lecture about recognizing business opportunities and generating ideas. It discusses identifying trends, solving problems, and finding gaps in the market as ways to recognize opportunities. Examples are given of entrepreneurs who started businesses by addressing problems or capitalizing on trends. Techniques for generating ideas like brainstorming and surveys are also outlined. The document concludes by suggesting some potential business ideas and providing an outline for presenting a new business idea.

Uploaded by

Chua CK
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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APK Lecture Week 2 18 September 2012

Recognizing Opportunities & Generating Business Ideas

Reminder :1. Submit Group Name list and assigned group leader. Identifying group numbering. 2. Sign 2 attendance sheets. 3. 4. 5. Have you register yourself in the system? Text Book :- 2day is the last day to order Examination will be on week 8.

Important Notice
Week 8 :-

TEST
06 November 2012 (Tuesday)
EXPO Dates :- 24 & 25 November (Sat & Sun) Venue :- ???

Role & Functions of Organizing Team


Ultimate Goal : To ensure the success of the EXPO in term of operation, marketing and cost control Coordination : Between SSIL, PPIB, Lecturer, coordinator and groups. * Planning : Venue, date and time, as well as setting. Marketing : Of the entire expo internally and externally Collection : RM20 from each group Reporting : As of other groups

Recognizing Opportunities
Opportunity :- a favorable circumstances that create a need for new product, service or business. Opportunity gap :- a recognized problem to be fixed e.g. Barber shop in a university

Window of opportunity :- time to enter a new market.


e.g. Jeff Bezos Amazon.com (1994)

Opportunity rather than just idea


Opportunity must coincide with :- attractiveness (both entrepreneur and customers) :- Timely :- Durable :- Anchored in a product, service or business that add value for buyer /end users

Environmental Trends

3 ways to identify an opportunity


1. Observing Trends Economic factors, social trends, technological advances, political actions and regulatory statutes

2. Solving a problem Recognizing problem by observing challenges that people encounter in their daily lives 3. Finding gaps in the marketplace Recognize a need that customers have that is not being satisfied by other firms

Examples of observing trends


Trends Economic Social Technological Political & Regulatory Environmental change
Teenagers with more cash & disposable income

Resulting new business


Designer clothes, PC, hand phones

Increasing Restaurants, predominance of dual- microwavable dinners, income families food delivery services Development of internet Increased OSHA & accounting standards Web-based business Transaction via internet Consulting companies, accounting & legal firms

Examples of problem solving


Entrepreneur
Julie Aigner-Clark Baby Einstein (1997)

Problem
No method to exposing young children to art & Science Inability to get spare parts delivered on a timely bases for his company, a jet aircraft sales firm No method to find or organize favorite Web sites

Solution
Created a company to produce videos designed to capture attention and stimulate childrens mind Started a new company to help others get packages delivered in a timely manner Created online directories to find and store favorites

Fred Smith FedEx (1973)

Jerry Yang & David Filo Google (1994)

Examples of filling gaps


Small boutique or specialty store to fight against large stores.
e.g. Gary Heavin Curves International (1992) fitness centres targeted ignored segment :- elderly and overweight ladies Cartridge World refill ink for printers. (cheaper) Homestay for budget travellers

Personal Characteristics of an Entrepreneur


Prior Experience : Studies showed that prior experience in an industry helps entrepreneurs recognize business opportunity. Cognitive Factors : The sixth sense of entrepreneur in recognizing opportunity or entrepreneur alertness. Social Networks : The extent and depth of an individuals social network affects opportunity recognition. e.g. join social clubs, involve in community activities, association. Creativity : The process of generating useful idea. Opportunity recognition may be, at least in part, a creative process.

Five steps to generating creative ideas


1. Preparation in term of background, experience and knowledge an entrepreneur brings to the opportunity recognition. Incubation, the stage during which a person considers an idea or thinks about a problem. Insight, the flash of recognition, when the solution to a problem is seen or an idea is born. Evaluation, the stage of the creative process during which an idea is analyzed for its viability. Elaboration, the stage during which the creative idea is put into final form. :- a business plan is written.

2.

3.
4.

5.

Techniques for generating ideas


1. Brainstorming :- ideas are gathered. no evaluation. focus on one issue at a time no criticism allowed strength : lots of ideas can be generated weakness : most ideas can be useless Focus group :- 5 10 persons for discussion strength : much can be revealed. weakness : do not represent random sample. More on qualitative. Survey :- large sample collection. can be done through questionnaire, telephone, mail or internet. strength : large samples can be collected weakness : large fund needed and time consuming. More on quantitative

2.

3.

Some business ideas


1. Tuition for secondary and primary school students 2. Car wash for lecturers and university staffs 3. Food 4. Computer service and repair 5. Laundry Service

Some creative ideas

Some creative ideas

Some creative ideas

Creative products

Most expensive car wash

Your business idea presentation


1. 2. 3. 4. 5. Ways of coming up with ideas Describe the products / services Your organization Implementation Expected target customers, funding and sales expectation 6. Possible risks and problems

Thank you

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