Applied Entrep (Q3W2)
Applied Entrep (Q3W2)
Applied Entrep (Q3W2)
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Task 1
FIX ME
Direction: Arrange the scrambled letters to form a correct word.
1. UPSIERSPL ________________
2. NISSUBES _ _______________
3. KERTAM ________________
4. EDICRRSTO ________________
5. SUTEMOSRC _______________
1
Lesson 1: Recognize a Potential Market
Entrepreneurial Ideas
These are the basic foundation that the entrepreneur must have in seeking opportunities:
Sources of Opportunities
There are many ways to discover opportunities. Looking at the big picture some have noticed the emerging
trends and patterns for business opportunities. While others are trying to find out their target market.
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The priorities, projects, programs, and policies of the government are also good sources of ideas. For example,
The use of firecrackers to celebrate New Year’s Eve is strictly prohibited. People without entrepreneurial interest will
view the ordinance as a plain restriction. However, for an entrepreneur, it is a business opportunity to come up with
a new product that will serve as a substitute for firecrackers.
4. People’s interest
The interest, hobbies, and preferences of people are rich source of entrepreneurial ideas. Like the increasing
number of Internet Café at present could be lead to the strong attachment of young people to computers.
5. Past experiences
The expertise and skills developed by a person who has worked in a particular field may lead to the opening
of related business enterprise. For example an accountant who has learned the appropriate accounting and
management skills and techniques in a prominent accounting firm can start his/her business venture by opening
his/her own accounting firm.
Forces of Competition Model
It is also known as the “five forces of competition,” An industry environment is a competitive environment.
Regardless of what product or services you have, competition is always present
Competition – it is the act or process of trying to get or win something. For example, the prices are lower when there
is a competition among the stores. These are the five forces competing within the industry:
Buyers
Potential new entrants
Rivalry among existing firms
Substitute products
Supplier
1. Buyers
The buyers are the one that pays cash in exchange to your goods and services. For example, the influenced
of the price or in the bargaining strategy. The buyer has a strong and magnified bargaining power. The threat of its
bargaining power will be less if the following factors notice:
a. There are several suppliers available in the market.
b. The buyer has the potential for backward integration.
c. The cost of switching the supplier cost is minimal.
d. The product represents a high percentage of the buyer’s cost.
e. The buyer purchases large portions of the seller’s product or services.
2. Potential New Entrants
A new entrant is defined as the one who enters something. For example, the level of capital requirements, if
the business requires huge capital, new entrants should decline to join the business. This gives a threat to the
business. This can be notice if there is the presence of the following factors:
a. Substantial capital requirement.
b. Strict government policy.
c. Difficulty in accessing distribution channels.
d. Economies of scale.
e. High cost of product differentiation.
f. High switching cost
3. Rivalry among Existing Firms
Rivalry is a state or situation in which people or groups are competing with each other. For example it depends
on the Marketing strategy of your competitor, like giving freebies and special offers. The intensity of rivalry among
existing firms is characterized to the following factors:
a. Diversity of rivals.
b. Number of competing firms.
c. Characteristics of the products or services.
d. Increased capacity.
e. Amount of fixed costs.
f. Rate of industry growth.
4. Substitute Products
Substitute means anything that takes the place or function of another. For example the consumers decide
to use margarine as a substitute for butter. In case the price of butter increases, preferably the consumer will gradually
switch to margarine. A substitute product can give a big threat in the industry environment if the following
factors are notice:
a. Switching cost is low.
b. Preferences and tastes of the customers easily change.
c. Product differentiation is highly noticeable
d. The quality of substitute products dramatically improves.
e. The price of substitute product is substantially lower.
5. Suppliers
The Suppliers are the one that provide something that is needed or wanted. For example if the supply and
services being offered is unstable or keep. The intensity of the threat is strong in this kind of the competitive force in
the industry. This can be notice if there is the presence of the following factors:
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a. The supplier has the ability for forward integration.
b. Suppliers in the industry are few, but the sales volume is high.
c. Substitute products are not readily available in the market
d. The switching cost is very high.
e. The product or service is unique.
Definition of Terms
Opportunity seeking - Process of considering, evaluating, and pursuing market based activities that are accepted to
be beneficial for the business.
Entrepreneurial process - can be defined as the steps taken in order to begin a new enterprise. It is a step-by-step
method, one has to follow to set up a business.
Entrepreneurial ideas - an innovative concept that can be used for financial gain that is usually centered on a
product or service that can be offered for money.
Essentials of entrepreneur’s opportunity seeking - These are the basic foundation that the entrepreneur must
have in seeking opportunities, such as entrepreneurial mind frame, heart flame and gut game.
Sources of opportunity - can be attain by assessing and looking at changes in the environment; technological
discovery and advancement; government’s thrust, programs, and policies; people’s interest, and past experiences.
External environment - refers to the physical environment, societal environment, and industry where the business
operates.
Government - refers to the local government (municipality, city, or provincial) or the national government and its
branches.
Competition – it is the act or process of trying to get or win something.
Substitute – anything that takes the place or function of another.
New entrants – the one who enters something.
Suppliers – are the one that provide something that is needed or wanted.
Buyers – are the one that pays cash in exchange to your goods and services.
Rivalry – is a state or situation in which people or groups are competing with each other.
Directions: Choose the best answer for each question. Write the letter of your answer on a separate
sheet.
1. Which of the following good sources of entrepreneurial ideas determine the interest, hobbies and preferences of
people.
A. Changes in the environment C. People’s interest
B. Technological discovery D. Past experiences
2. Societal environment includes the following, except:
A. Economic forces C. Political forces
B. Sociocultural forces D. Natural resources
3. Which among the following is the result of identifying entrepreneurial opportunities?
A. Creation of entrepreneurial ideas C. Sources of opportunity
B. Opening of entrepreneurial venture D. Entrepreneurial process
4. What entrepreneurial idea will you recognized, if you consider the new discovery
and advancement of technology as source of opportunity?
A. Changes in the environment
B. Technological discovery and advancement
C. Government’s thrust, programs, and policies
D. People’s interest
5. Source of entrepreneurial idea where expertise and skills develop by a person from its previous work can lead to
the opening of a related business enterprise.
A. Government’s thrust, programs, and policies
B. Past experiences
C. People’s interests
D. Technological discovery and advancement
Task 1
FIX ME
Direction: Arrange the scrambled letters to form a correct word.
4
1. AEDI ___________________
2. STPECNOC _____________
3. LYSISANA _______________
4. VEYSUR _______________
5. PERIEXMENTS ___________
Two ways to determine the possible product/service that will meet the need,
You must develop the ability to select and offer the right or best products/ services to meet the market need. For a
product or service to succeed, it must be the right product, being sold at the right time,
To the right customer, in the right market. It must be produced and sold by the right company, and the right people.
The proposed solutions should be screened based on viability, profitability, and customers requirements. Idea
screening is the process of comparing related ideas in order to select the most appropriate one of your business.
After considering various solutions , strategies or ideas , you have to screen and evaluate them based on the
following criteria:
1. Viability- whether the idea will have a reasonable chance of success
2. Profitability- possible return on investment and profit
3. Customer requirements- the product will meet customer needs
5
Task 2
ENUMERATION
TASK 3
IDENTIFICATION
Identify the following questions. Write your answer on the space provided
HOW WILL YOU APPLY THE CONCEPT AND SKILLS IN YOUR DAILY LIVING?
________________________________________________________________
________________________________________________________________
_________________________________________________________________
____________________________________________________________
Directions: Choose the best answer for each question. Encircle the letter of
your answer.
1. It is the process of considering, evaluating, and pursuing market-based
activities that are believed to be advantageous for the firm.
A. Opportunity seeking C. Opportunity screening
B. Opportunity seizing D. Sources of opportunity
3. It is the ability of entrepreneur that can sense without using the five senses,
also known as intuition.
A. Entrepreneurial mind frame C. Entrepreneurial heart flame
B. Entrepreneurial gut game D. Entrepreneurial heart frame
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5. What variable of societal environment includes income level and employment
rate?
A. Economic forces C. Political forces
B. Sociocultural forces D. Technological forces
6. Which are the factors of the substitute product that pose a great threat in the
industry environment?
A. A, B, C, D C. A and D
B. A and C D. B and C
7. Which are the factors that influenced the buyer to have a less threats because
of the bargaining power?
A. A only C. A and D
B. A and C D. B and C
8. They are the one that pays cash in exchange to your goods and services.
A. Buyers C. Sellers
B. Competitors D. Suppliers
A. Diversity of rivals.
B. Number of competing firms.
C. Characteristics of the products or services.
D. The product represents a high percentage of the buyer’s cost.
10. The following are the forces competing within the industry except one:
A. Potential new entrants and Substitute Products
B. Buyers and Suppliers
C. Rivalry among existing firms
D. Needs and Wants
__________________________________________ _______
Signature of Parents/Guardian Above Printed Name Date
ELECTRONIC RESOURCES
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https://smartasset.com
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