LESSON-1

SON 1
LES
Less BUSINESS
on CONCEPTS AND
1 OPPORTUNITIES
1
REVIEW
What are the two types of product?
What does SWOT stands for?
2
Business enterprises do not exist
without a product of its own that
made available in the market.
Physical product or also known
as Tangible products are visible
that you can touch and feel it.
3
While, Intangible products have no
physical attributes, but they still
provide buyers with tangible
benefits.
Intangible products typically
don’t come with packaged, but
they can still be advertised and
marketed to appeal to a target 4
What is Business idea and
opportunity?
Business Idea- is a business
concept that results in profits if
it is turned into a tangible and
intangible product or service. 5
Opportunity - is defined as a
situation that enables an
entrepreneur to offer marketable
products or services to interested
buyers or end users.
6
Opportunity Identification
-it is same as opportunity
recognition or discovery of
business opportunities.
7
Approach to opportunity
Identification
1. Observe Changes in the
environment- Changes in the
environment give rise to needs,
wants or problems of an individual
and lead to opportunity emerge. 8
Important environment
forces to observe include:
a. Economic forces
b. Social Forces
c. Technological advances
d. Political and regulatory statues
9
Examples of how Changes in the Environment
provides Opening for New Product and Service
Opportunities.
Forces Changes in the New Product/Service
Environment Opportunities
Social Increase interest in Dancing class, Fitness

fitness center, health food store,
In-house exercise
Technological Development of E-commerce, Online
Advances the internet selling, improved
communication
Government Increase driving Smoke emission control,
10
Policies and standards helmet, seatbelt
2. Recognize a need that
customers have that is not being
satisfied- Opportunity occurs
whenever there is a need and wants to
fulfil. The term “needs” refer to basic
needs that the consumer must have in
order to live while the term “wants”
refer to the personal desire for
11
something that is more than the basic
3. Recognize problem and
find solution-Problems can be
recognized by observing the
challenges that people encounter
in their daily lives. Solution to the
problem represented a business
opportunity. 12
Opportunity Identification Process
Recognize
Search for
needs, Discovery of
changes in the
wants and Opportunity
environment
solutions
13
What are the other sources of ideas and
opportunities?
1. Primary sources-refers to first hand data or
information gathered directly through
observation, interviews, experiments, survey.
a. Observation- data is gathered by
observing and recording the respondent’s
actions.
b. Interviews-Field research covers 14
interviews with customers, suppliers,
What are the other sources of ideas and
opportunities?
c. Surveys- Refers to the development
of a short questionnaire with respect to the
targeted product. The questions should be
very specific.
d. Experiments- Experiments or
product sampling is another option to test
15
the acceptability in the market.
2. Secondary sources- involved
gathering data that have already been
compiled and are available. It is initially
conducted for one purpose using
existing data which is reliable, available
references and mass media and
electronic media.
a. Reliable existing data-
16
Information obtained from annual report

b. References- An entrepreneur can
use reference such as publish
information from the library, internet and
so on.
c. Mass Media and Electronic
media- advertisement and information
in the newspaper, magazines and
internet can be a source of business 17
opportunity of an entrepreneur.
GROUP WORK
Make a SWOT analysis on the
business you chose.
18
indicators of Strengths, Weaknesses, Opportunities and Threats
or also known as SWOT.
Internal Factors
1.Strengths – These are the strong points of the business
products or services. These are referred to as the strong
points or good attributes of the project or the business.
Analysing and evaluating these strong points will be very
beneficial, most especially in determining the feasibility of
the business. It includes:
 cheap and abundant raw materials ,sufficient and available
working capital, availability of skilled workers, Less
operating expenses, technical expertise of an entrepreneur
(workers or owners), strong consumer demand for the
19
product or services, easy to manage, small working capital
2. Weaknesses – These are the set of problems
that the business is facing at present from the
time the business was established. Your
weaknesses may include:
 poor quality of product/service,poor
management control, mismanagement of
capital, lack of skilled workers, lack of
advertisements, lack of technical skill of the
owner/manager, poor design, inappropriate
size, poor packaging’, poor marketing
strategies, expensive, low production at a time
20
of peak of popularity of the product

External Factors
3. Opportunities – These are good chances for
future advancement which the business should take
advantage. Since your goal is to operate a business in
your locality your prospect includes:
 your products should include those that are not yet
available in the market, presence of favourable
government policy/support for such
products/services, scarcity of the products, poor
quality of existing products in the locality or
location of the business, increasing consumer
demands for the product/services offered,
21
continued product development

1.Threats – These are obstacles that prevent
the business from achieving its financial
objectives which may totally damage the
venture causes its downfall and the progress
of your business or they can be external
conditions that may work against you
beyond your control. The threats may
include: shortage of raw materials, rising
costs of materials, presence of too many
competitors, unfavorable government
22
support and legislation, new taxation

The other two perspectives of analysis are the internal
and
external perspectives. These can offer more detailed
information which the company may act upon.
Internal Factors External Factors
(Strengths and Weaknesses) (Opportunities and Threats)
This is an evaluation of the These make up the factors that can
internal environment which affect a company’s performance
include the following: from the outside:
 Company culture and image  The customers
 Staff  Market trends
 Resources  Competitors
 Abilities  Technology
 Market share  Politics and other regulatory
 Identity boards 23
 Environment
GROUP WORK
Conduct a market analysis of your
product/business by answering these simple
questions.
1.Who are my potential customers?
2.What are my customer’s shopping and
buying habits?
3. How large is my target market?
4. How much are potential customers willing
to pay? 24
5. Who are my competitors?

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SON 1

What are the two types of product?

What does SWOT stands for?

Social Increase interest in Dancing class, Fitness

Information obtained from annual report

of peak of popularity of the product

continued product development

support and legislation, new taxation

5. Who are my competitors?

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