Opportunity Analysis
Content
An entrepreneur entrepreneur is termed as opportunity seeker. seeker. Business Busine ss opportunity is an attractive attractive project in terms of adequate ade quate return which motivates the entrepreneur to accept accept that particular project for making investment decision. Favorable market demand available Adequate Adequate rate rate of returns
Objectives of identification of business opportunities
To evaluate the possibilities of developing and utilizing physical resources of a particular region from the technical and economic point of view. To study and examine small, medium and large scale industrial activities. To recommend by certifying the usefulness of other possible industries for the region. To assess and estimate the capital, labour, transport, power, fuel, raw material for feasible industries.
To evaluate the impact of achievement in financial resources, production, employment and initial requirement of capital.
IDENTIFICATION OF BUSINESS OPPORTUNITIES
Volume of internal demand Availability of Industrial raw material Availability of internal resources Forms of external assistance Possibility of exports Analysis of performance of existing units Level of risk in the business
BUSINESS OPPORTUNITIES IN VARIOUS SECTORS
Green Business Bio-technology Event management IT enabled services Food, Fruit, Vegetables processing, Refrigration and transportation Mineral water Insurance sector Telecommunication Herbal sector Tourism
Opportunity Analysis
The emergence, working and growth of entrepreneur is facilitated in the economies whose favourable condition exist. Schumpeter is of the opinion that an entrepreneur is always on the lookout of potential profitable opportunities and exploit them in the best interest of his enterprise.
Acc. To Peter F. Drucker, an entrepreneur must be capable of analyzing the opportunities and exploits them successfully. Adequate attention will be paid to 5Ms. Opportunities are of three kinds:
Additive opportunities Complementary opportunities Breakthrough opportunities
Additive opportunities – enable the decision maker to better utilize the existing resources without incorporating the change. Complementary opportunities – Introduction of new ideas and as such do lead to certain amount of change in the existing structure. Breakthrough opportunities – involves fundamental change in both the structure and character of the business.
An entrepreneur after making appraisal of the resources at his command, perceives a business opportunity for producing and marketing a product or service.
Search for prospective business idea Processing for these ideas and seeking the best idea Collecting the required resources and setting up the enterprise
Search for prospective business idea
Imagination and foresight Idea must be viable and should ensure adequate return on investment Source of business idea
Market observation Consumer survey Keeping track of the development Scrutinizing project profiles
Processing for these ideas and seeking the best idea
Detailed investigation of the potential ideas is carried on
Technical feasibility Commercial feasibility
Collecting the required resources and setting up the enterprise
Required to develop a sound and efficient system of collecting, recording and analysis of market information. Availability of right kind of information at right time to right persons thereby ensuring taking of right decisions and achieving right results.
Determination of objective of the enterprise Development of an organisation Securing adequate financial resources Efficient technological equipment Development of a market Maintenance of good relations with public authorities and people
Problems faced by an entrepreneur
Selection of appropriate technology Resource mobilisation External economies Supply of trained manpower Government regulations
Stages for setting a unit Decision to be self employed
Identification of opportunities
Selection of the product
I Decision to be self employed
Either to work for others as an employee or for himself/herself. Depends upon various factors Possess
right kind of skills, qualities, knowledge, experience and attitude. Solution for employment Contributory factors like less investment, less legal formalities. Internal factors: educational and family background External factors: availability of rawmaterial, assistance from financial institutions.
II Identification of opportunities
A small scale enterprise originate and operate within the business environment. The interaction between an enterprise and environment helps in the understanding of business which facillitates taking of various strategic and operational decisions Need to conduct SWOT and PEST analysis Required to identify opportunities and exploit them in the best interest of the organisation. Identification of market needs is essential. A business must lay proper emphasis on quality, quantity and cost in order to remain competitive and successful.
III Selection of the product
Selection based on market research Identification of both short term and long term prospects is essential. An entrepreneur would select the product based on his knowledge, skill, experience and motivation.
Product Design
The backbone of organisation is its products. Evolution of operational system -> what to produce and how to produce Image of an enterprise and its profit earning capacity -> product design Product launching depends upon market demands -> consumer behaviour. Greatly said – more the time one spends on product design, better become one’s chances of success.
An entrepreneur before deciding about the product should find answers for the following important questions:
Who will buy the product? When they will buy? How much they will buy? At what price they will buy? From where they will buy? What are their expectations from our product? Who are our competitors and how they are performing? How to advertise and sell?
Consideration in view while designing product
Standardisation Reliability Maintainability Servicing Reproducibility Sustainability Product simplification Quality commensurate with cost Product value Consumer quality
Measuring Economic Viability
Assessing the existing demand in the domestic and export markets Assessing the potential demand Availability of substitutes in the market and their performance Expected demand from big units for ancillary products
An entrepreneur entrepreneur is termed as opportunity seeker. seeker. Business Busine ss opportunity is an attractive attractive project in terms of adequate ade quate return which motivates the entrepreneur to accept accept that particular project for making investment decision. Favorable market demand available Adequate Adequate rate rate of returns
Objectives of identification of business opportunities
To evaluate the possibilities of developing and utilizing physical resources of a particular region from the technical and economic point of view. To study and examine small, medium and large scale industrial activities. To recommend by certifying the usefulness of other possible industries for the region. To assess and estimate the capital, labour, transport, power, fuel, raw material for feasible industries.
To evaluate the impact of achievement in financial resources, production, employment and initial requirement of capital.
IDENTIFICATION OF BUSINESS OPPORTUNITIES
Volume of internal demand Availability of Industrial raw material Availability of internal resources Forms of external assistance Possibility of exports Analysis of performance of existing units Level of risk in the business
BUSINESS OPPORTUNITIES IN VARIOUS SECTORS
Green Business Bio-technology Event management IT enabled services Food, Fruit, Vegetables processing, Refrigration and transportation Mineral water Insurance sector Telecommunication Herbal sector Tourism
Opportunity Analysis
The emergence, working and growth of entrepreneur is facilitated in the economies whose favourable condition exist. Schumpeter is of the opinion that an entrepreneur is always on the lookout of potential profitable opportunities and exploit them in the best interest of his enterprise.
Acc. To Peter F. Drucker, an entrepreneur must be capable of analyzing the opportunities and exploits them successfully. Adequate attention will be paid to 5Ms. Opportunities are of three kinds:
Additive opportunities Complementary opportunities Breakthrough opportunities
Additive opportunities – enable the decision maker to better utilize the existing resources without incorporating the change. Complementary opportunities – Introduction of new ideas and as such do lead to certain amount of change in the existing structure. Breakthrough opportunities – involves fundamental change in both the structure and character of the business.
An entrepreneur after making appraisal of the resources at his command, perceives a business opportunity for producing and marketing a product or service.
Search for prospective business idea Processing for these ideas and seeking the best idea Collecting the required resources and setting up the enterprise
Search for prospective business idea
Imagination and foresight Idea must be viable and should ensure adequate return on investment Source of business idea
Market observation Consumer survey Keeping track of the development Scrutinizing project profiles
Processing for these ideas and seeking the best idea
Detailed investigation of the potential ideas is carried on
Technical feasibility Commercial feasibility
Collecting the required resources and setting up the enterprise
Required to develop a sound and efficient system of collecting, recording and analysis of market information. Availability of right kind of information at right time to right persons thereby ensuring taking of right decisions and achieving right results.
Determination of objective of the enterprise Development of an organisation Securing adequate financial resources Efficient technological equipment Development of a market Maintenance of good relations with public authorities and people
Problems faced by an entrepreneur
Selection of appropriate technology Resource mobilisation External economies Supply of trained manpower Government regulations
Stages for setting a unit Decision to be self employed
Identification of opportunities
Selection of the product
I Decision to be self employed
Either to work for others as an employee or for himself/herself. Depends upon various factors Possess
right kind of skills, qualities, knowledge, experience and attitude. Solution for employment Contributory factors like less investment, less legal formalities. Internal factors: educational and family background External factors: availability of rawmaterial, assistance from financial institutions.
II Identification of opportunities
A small scale enterprise originate and operate within the business environment. The interaction between an enterprise and environment helps in the understanding of business which facillitates taking of various strategic and operational decisions Need to conduct SWOT and PEST analysis Required to identify opportunities and exploit them in the best interest of the organisation. Identification of market needs is essential. A business must lay proper emphasis on quality, quantity and cost in order to remain competitive and successful.
III Selection of the product
Selection based on market research Identification of both short term and long term prospects is essential. An entrepreneur would select the product based on his knowledge, skill, experience and motivation.
Product Design
The backbone of organisation is its products. Evolution of operational system -> what to produce and how to produce Image of an enterprise and its profit earning capacity -> product design Product launching depends upon market demands -> consumer behaviour. Greatly said – more the time one spends on product design, better become one’s chances of success.
An entrepreneur before deciding about the product should find answers for the following important questions:
Who will buy the product? When they will buy? How much they will buy? At what price they will buy? From where they will buy? What are their expectations from our product? Who are our competitors and how they are performing? How to advertise and sell?
Consideration in view while designing product
Standardisation Reliability Maintainability Servicing Reproducibility Sustainability Product simplification Quality commensurate with cost Product value Consumer quality
Measuring Economic Viability
Assessing the existing demand in the domestic and export markets Assessing the potential demand Availability of substitutes in the market and their performance Expected demand from big units for ancillary products
