2. Discussion TodayThe nature of opportunityHow entrepreneurs really work Business Plan or Business Model? Forecasting The opportunity model A reality check: What entrepreneurs are really like
3. Small Business Verses Entrepreneurship
4. New Economic PollutionParadigms Growth Fossil Fuels Export/Import Transport Farm Raw materials Transport Government Power Production Transport Diversity generation Warehouse Management Supermarket Conflict Research & Community Development Consumption Education Regulation Competition & Tension Air Transport Poverty & Unhappiness Development Waste Health Uncertainty
5. The External Variables Social EconomicSocial and cultural trends State of the economy and drivers Shift in focus on where toReviving historical trends spend moneyInfluence of international Level of disposable income trends Level of debt Product Opportunity Gap Regulation Technology Restriction of existing State of the art and regulations emerging technology New regulations and impact Re-evaluating existing on product markets and technology supply chainsTechnology applied in new areas
6. New knowledge about health, fitness, Urbanization, food, etc. New growing Changing confidence about Knowledge Domicile social status, etc. Experience Outlook Changing traditions Perceptual The Aspirations Changes Environment Where am I now? Where do I Attitudes want to be? Peers and Role NewChanging Models Global technologyAffluence Convergence
7. The benefits of exercise and working out in a gym ChangingPerceptions Women wanting a safe and secure environment Result in creation Pick up women’s of Fernwood changing perceptions Women’s Health Club Concept Women feeling intimidated in Not working conventional gyms in the weight out in areas. conventional Current situation gyms
8. Support/Facilitate Intellectual Property Laws Capital Raising Legal System Institutions Property Laws Labour Laws Business Formation Anti-trust Laws Procedures Environmental Taxation Laws Trade barriers & Opportunity Licensing & Protection Permits Fiscal & Monetary Specific Regulatory Bodies Policy Contract i.e., Pesticides Board Enforcement Product Standards Education & Training & safety R&D Policy Board of Policing of Investment Regulate/ControlEncourage/Discourage Corruption
9. Flux & Transformation Airlines DVD Rental Computer & Mobile Phone Automobile Manufacture Electronic GoodsDecreasing Stability Changing Technology Wholesaling Routine Small Retail Non-Routine FMCG Manufacturing Market gardening Consulting Business Cash cropping Medical Services Fast Food Subsistence FarmingRelatively Stable Increasing Complexity
17. Four potential firm opportunity seeking typologies Market Orientated Both Market & Firms Entrepreneurially High Orientated Firms High adaptability to the environment but low High adaptive and idea generative idea & strategy Market Orientation generative & strategy ability development ability Conservative firms Entrepreneurial Firms Low Very low adaptability to High generative idea environment & strategy capability Low High Entrepreneurial Orientation
19. Brand Signal Features Benefits Channels Theme Attributes Strategy Characteristics Central Theme Organically produced high active(Product Proposition) concentration shampoo with product variants to suit various conditions. Underlying High & discerning Low Assumptions Rapidly growing market end. competition segment. Customers who in segment. want mass custom produced products. Sustainable Products match personal values.
20. CustomersService Convenience Price Quality Relationship Laundry Service
21. Two ways to scan for opportunities Matching product to some marketspace Matching marketspace to some product
22. Change in how and where people buy the product Risk None Some Great None None Low MediumChangeIn User Some Low Medium High Habits Great Medium High Dangerous
23. We can land a man on the moon and return himsuccessfully to Earth but we are still not too sure what factors make a firm successful
24. How Entrepreneurs Really Work
25. CreativityThe Summarised IdeaEntrepreneurialProcess Turn into Opportunity Innovation Final Commitment NPD Start-Up Strategy Growth Sales Sustainability
28. Opportunities Firm Opportunity Trajectory ork tw Ne Firm Alternative Opportunity Trajectory Field of Network Based Opportunities Environment
29. The Individual & Family Family history, Current family livelihood, Current Family Status. Family Values Self Assessment Strategic Business (Self-efficacy) Analysis Resources, networks, capabilities, competitive Decision Making Skills The Vision Aspiration Knowledge environment, etc. Competencies Personal Goals Family Goals Business Goals Business Aspirations Family Asset FutureCompetencies Considerations Fulfillment (Retirement) Self view Knowledge Generational Value Time horizon Income needs evolution Production & Type Investment Operations Time Horizon Grooming options successors Needs Marketing View of Risk retirement Family aspirations Wants management Personnel Opportunity Lifestyle Liquidity needs Tax planning Financial cost of doing other activities Attachment Alternatives OpportunityRisk Management cost of doing Passion other activities Horizontal andvertical expansion Exit barriers Motivational Origins
30. The birth of an Images and Connections Vision Platform - Perception opportunity Time & Space Potential Concept Generator – Making Connections Concepts Learning: Conceptual World Real World Sources of Opportunity Identifying Experimentation concepts & Testing Evaluation after experience “A Narrative” Ideas Complete re- evaluation (seek further information) Structure common to all Evaluated and opportunities Elaborated Upon Vision – Outcomes Time & Space Opportunity Resources Networks Skills, Competencies & Capabilities Competitive Environment Strategy – scope & depth
35. Market ResearchLess than 2% of filed patents are ever commercialisedDoes a new invention have consumer benefits or create anycompetitive advantage?Can consumers accept the new invention?
36. Product EvolutionPre 1900’s Laundry BlueUp to Late 1940’s Solid Soaps & Powders Laundry Detergent Bars1950’s until present Laundry Detergents Powders Laundry Detergents with Liquids Special Detergents Additives Concentrated1980’s until present Laundry Powders Laundry Detergent Tablets
37. Present time The Past A Radical change in technology Will radically Thischange the changes the parallel of the a timeline into market gradually new industryWe know the past and The effect of competitor present Without any changes our innovation will bring product timeline will remain relatively evolution unaltered
38. Media Reports The Continuum from media reports to wisdom in relation Ideas to availability and usefulnessAvailability Increases Data Information Knowledge Wisdom Usefulness Increases
39. Supermarket Retail Prices New Zealand June 2002 Product Size Pak N Save Woolworths Foodtown Warehouse New World Gilmours Cockroach ControlRaid Advanced Baits (3 Baits) 30ml $3.75 $3.53Mortein Roach Trap 4 traps $6.07 $6.99 $6.55 $6.75No Cockroaches 500ml $10.39 Ant ControlRaid Ant Killer 120ml $3.16 $3.69 $3.70 $3.79 $3.18No Ants Gel Bait 60ml $7.72 $7.60 $7.99 $7.30No Ants Bait Stations $3.95 $3.49 $4.99Mortein Ant Nest Stop 4 baits $3.91 $3.99Neverong Ant 250ml $2.90 $2.38Raid Ant Baits 3 pack $4.25Ant Ban $4.15No Ants 500ml $10.99 Moths/OtherRaid Moth Proofer $3.65 $3.29 $3.29Mortein Mosquito Coils 10 coils $2.02Raid Portable Mozzie Repeller $12.33 $10.65 $10.99 $12.99Spiral Fly & Mosquito Rep. $11.45Mortein Mozzie Zapper $10.45No Fleas/No Spiders 500ml $10.99
45. Product Benefit Strategies Launch Product Perceived Consumer Benefits Promotional StrategiesImmediate Ant Attack Powder 150grams a) can use indoors Instore POP material b) Non-Toxic c) Only use when problem arisesimmediate Ant Attack Liquid 70ml a) can use indoors Instore POP material b) Non-Toxic c) Only use when problem arises d) Can be used on walls, etc.immediate Roach Attack 140grams a) Realign product as a small space air Instore POP material freshener as well as insect repellent.immediate Lilin Serai Wangi a) Super strength boosted product. a) Instore POP material b) New presentation b) regional radio when wholesaler appointed. c) Newspaperimmediate Citrus All purpose Cleaner 500ml a) Powderful Natural solvent cleaner a) Instore POP material b) fresh orange citrus fragrance b) block/demo/promotersNov. 2003 Thick Bleach a) More powerful than ordinary bleach a) Instore POP material b) Can use on toilet bowl and walls b) block/demo/promotersNov. 2003 Non-Toxic Knock Down Aerosol a) Non-Toxic a) Instore POP material b) Safe near food b) block/demo/promoters c) regional radio when wholesaler appointed.Nov. 2003 Non-Toxic Surface Aerosol a) Non-Toxic a) Instore POP material b) Safe near food b) block/demo/promoters c) regional radio when wholesaler appointed.Feb. 2004 Tea Tree Soap a) Natural Antiseptic a) Instore POP material b) block/demo/promoters c) regional radio when wholesaler appointed.April 2004 Aromatherapy Bath & Shower Gel a) Use Essential oils a) Instore POP material b) Full Concept b) block/demo/promotersApril 2004 Incistern blue blocks Price benefit a) Instore POP material b) block
47. Planned Distribution Matrix Key A/C Supermrkt Convenience M. MrktCitronella Candle 100grams X X X XCitronella Candle 70grams X X XNon-Toxic Knock Down Aerosol X X X XNon-Toxic Surface Aerosol X X X XPrewash Stain Removal Bar X X XCitrus Cleaner X XAnt Attack Powder X X X XAnt Attack Liquid X X X XRoach Attack X X XWardrobe Small A/fresh X X X X
48. RSP Position Decision Making Matrix Product Direct Competitors Pack Price Cost/ Competitor Claims EHP Claims Sugg. Size Unit RSPRoach Attack 140grams Mortein Lure n Kill 6 baits $3.34 n/a 1. Honey, malt, soya 1. Repels cockroaches, $5.98 21grams extract moths, silverfish & 2. Lasts 3 months other crawling insects Sureguard Mini Strips 3 pack $8.89 n/a 1. Kills up to 6 months 2. Non-toxic 60grams 3. No insecticides Mortein Moth & Insect Strips 3 pack $7.69 n/a 4. Natural citronella & 15 grams Lavender oils Cedar fresh Moth Balls 18 balls $4.83 n/a 1. 100% natural cedar 5. Leaves clothes & 2. Repels moths & oth. linen smelling fresh 3. Prevents mildrew 6. Takes away the smell of pets from the home 7. No naphthelene or PDCBAnt Attack 150grams David Greys Ant Granules 500grams $5.39 0.01/g 1. Controls ants outside 1. Non-Toxic $3.45 the home 2. No insecticides Mortein Ant Sand 500grams $8.39 0.016/g 1. Controls ants outside 3. Natural essential oils the home 4. Can use inside home Baygon Insect Dust 250grams $8.53 0.034/g Hortico Ant Killer Dust 500grams $6.24 0.012/gAnt Attack 50ml Combat Ant Rid 50ml $2.66 0.053/ml 1. Indoor Ant Liquid 1. Non-toxic $3.49 Baygon Ant Killer 200grams $4.68 $0.02 2. No insecticides 3. Natural essential oils 4. Use inside the homeNo-Moz Fly-Away 3x35grams Radience Citronella Candles 3 pack $1.99 Tea candle concept 1. Non-toxic $2.65Citronella Candle No-Moz Citronella Candles 300grams $2.49- .0083/g claims 1.5% active 2. Safe near foodNo-Moz Fly-Away 100grams $2.86 .0095/g citronella 3. 5% active citronella $1.90Citronella Candle Heat Beads Citronella Candle 300grams $3.99 0.0133/g (not claimed on pack) No-Moz (small bucket) approx $2.99 0.015/hr 1. Claims 20 hours 4. 3x35grams approx 250grams burning time 27 hours burning time No-Moz (large bucket) $7.99 0.016/hr 1. Claims 50 hours 5. 100grams approx burning time 15 hours burning timeAromatherapy Fragranced Haze Air freshener Candle 120grams $4.53- n/a 1. To help create moods $3.80Fun Candles 3x35grams $5.20 to relax, relieve stress Parrot Aromatherapy Candles 300grams $3.59 and invigorate Romantics Aromatherapy $5.99 1. Awakens your Candles 2 pack passion, etc Aroma Scents 6 pack $2.99 1. To delight your senses
51. Tariff Heading: 3808Tariff Heading Description INSECTICIDES, RODENTICIDES, FUNGICIDES,3808 HERBICIDES, ANTI-SPROUTING PRODUCTS AND PLANT-GROWTH REGULATORS,Column Heading Definitions DISINFECTANTS AND SIMILAR PRODUCTS, PUT UP IN FORMS OR PACKINGS FOR RETAIL SALE OR AS PREPARATIONS OR ARTICLES (FOR EXAMPLE, SULPHUR-TREATED BANDS, WICKS AND CANDLES, AND FLY-PAPERS)HS Code SS Units Description Rate #3808 INSECTICIDES, RODENTICIDES, FUNGICIDES, HERBICIDES, ANTI-SPROUTING PRODUCTS AND PLANT-GROWTH REGULATORS, DISINFECTANTS AND SIMILAR PRODUCTS, PUT UP IN FORMS OR PACKINGS FOR RETAIL SALE OR AS PREPARATIONS OR ARTICLES (FOR EXAMPLE, SULPHUR-TREATED BANDS, WICKS AND CANDLES, AND FLY-PAPERS):3808.10 - Insecticides:3808.10.10 --- Goods, as follows: Free (a) camphor; (b) fly-papers; (c) mosquito spirals and coils 22 kg Camphor 23 .. Fly-papers 24 .. Mosquito spirals and coils3808.10.90 59 kg --- Other 5%3808.20.00 - Fungicides 5% 39 kg Mancozeb 40 kg Other3808.30.00 - Herbicides, anti-sprouting products and 5% plant-growth regulators 28 kg Goods wholly of, or with a basis of: (a) pentachlorophenol; (b) 2,4-dichlorophenoxyacetic acid, its salts or esters; or (c) 2,4,5-trichlorophenoxyacetic acid, its salts or esters 49 kg Goods wholly of, or with a basis of: (a) chlorsulphuron (C12H12ClN5O4S); or (b) metsulphuron methyl (C14H15N5O6S) 50 kg Other3808.40.00 57 kg - Disinfectants 5%
52. Hunters Brands Sdn. Bhd. Standard Product Costing Sheet Product: Ant Attack Liquid 100ml Size: 0.1 Formulation No: Date: 16/6/03 Units per packet: 1 No. Packets per Outer Carton: 6 Individual Unit Size: 0.1 Batch Size (Kg): 100Part 1: Chemical Materials Ingredient Quantity Price Extension Ethanol 93 $2.500 $232.500 Clove Oil 5.25 $35.000 $183.750 Peppermint Oil 0.7 $38.000 $26.600 Citronella Oil 1.05 $35.000 $36.750 $0.000 $0.000 $0.000 $0.000 $0.000 $0.000 $0.000 $0.000 $0.000 100 Batch Cost: $479.600 Cost Per Kilogram: $4.796 Wastage Cost per raw unit: $0.480 Factor Cost per Packet: $0.480 0.00% Cost Per Outer Qty: $2.878 Ctn Cost per yield: $2.878 Ave. Yield/ Units per Batch: 1000 Date Last Updated:Part 2: Packaging Materials Item Unit Mea Quantity Price Extension Ant Attack Inner Box unit 6 $0.190 $1.140 Ant Attack 50ml Label unit 6 $0.095 $0.570 Ant Attack Bottle unit 6 $0.750 $4.500 Ant Attack 50ml Outer carton unit 1 $0.450 $0.450 $0.000 $0.000 $0.000 $0.000 $0.000 Total Packaging: $6.660Part 3: Labour Mean Labour Cost $0.70 Mean Fixed Overhead $0.00 Mean Administrative Cost $0.00 $0.70Part 4: Total Product Cost Unit Carton % Total Materials $0.480 $2.878 28.11 Packaging $1.110 $6.660 65.05 Labour $0.117 $0.700 6.84 Total $1.706 $10.238Part 5: Selling Prices and Margins Sell Price Gross Contribution % Margin Transfer Price -$10.24 #DIV/0! Sell 1: Whole/Distributor -$10.24 #DIV/0! Sell 2: Retailers -$10.24 #DIV/0! Sell 3: Export -$10.24 #DIV/0! Sell 4: Other -$10.24 #DIV/0!
57. Randomness &Changes in any of Unexpectedness Interrelated Factors A random or unexpected the factors event that creates an opportunity Social Economic Stage of economic Social and cultural trends development. and drivers. State of the economy. Reviving historical trends. Level of disposable income. Influence of international Macroeconomic, general trends. industry conditions, financial Changing demographics. &geographical environment. Styles, fashions & fads. Product Opportunity Gap Technology Government &Current state of the art and Regulation emerging technology. Government needs &Re-evaluating and utilizing priorities.existing technology in new Restriction by Government. areas. New laws & regulations and New knowledge. impact on product markets Invention. and supply chains. Trade liberalization. Our Inner Self New Our upbringing, domicile outlook, experiences, interests, skills & abilities, assumptions, beliefs, Knowledge or attitudes, perception, cognitive processes, patterning and biases, our inner psych and emotions, imagination, Information energy, and passion, etc. The way we interact and stimulated by the environment and make connections
58. Automobile Airlines Manufacturers Mega Banks Large Pharmaceutical Business Companies Universities Independent Retail Chains Large manufacturing Large Mall Type Shopping Centres Business Modern Extensive Farming Enterprises Lifestyle Businesses Independent specialty Retail SME Level Specialty Wholesaling Corner ShopsAmbition, sense ofmission, attitudes, beliefs,values, available (and Street Stalls Micro-potential resources), self entrepreneursefficacy, networks, skills, Micro-enterprisecompetencies, andcapabilities, etc. Vision Platform
59. Characteristics of Characteristics of Under- Characteristics of a Characteristics ofTraditional Economies developed Economies Developing Economy Developed Economies Post IndustrialSubsistence agriculture based Economy Some simple infrastructure An improving rate of saving leading The economy relies almoston traditional knowledge development to a higher rate of investment completely on consumerismLow level of urbanization, The adoption of basic modern which becomes a driver of the for growth and prosperity,majority of population live in a farming techniques economy often criticized for excessrural and/or coastal existence Characteristics of Post Reliance on natural resource The acquisition of technologyUnwillingness to accept new factors to create new industries, through JVs, licensing, education Industrial Economiesideas and little innovation, even i.e, fertile land and favourable abroad, consultants, etc. Developedresistance to new ideas, lack of climate for specific agricultural Through employment growth local A rapid decline in the Economyresearch and development and/or commodity crops, or incomes grow and begin a surge in agriculture and industrialExtremely conservative society abundant labour, etc. (It is these consumption sectors (industries closing downVery little credit finance capital factors that provide first There is a shift from rural to urban as they lose internationalavailable, low level of savings opportunities) areas in search of employment and competitive advantage) and aand very immature cash Very high dependence on imports opportunities rise in the services sectoreconomy anyway, little or no Fragmented markets that are yet High level of research & Corresponding increase in theinvestment to segment development imports of consumer goods DevelopingExtremely low level of A limited range of industries based High level of industrial from lower cost producinginfrastructure, poor transport on cost advantages owned by an Economy innovation nationsroutes and communication elite group of society High market segmentation A decline in some urban areasFeudal and/or corrupt form of Usually highly regulated and and specialization and a rise in other partsgovernment where resources restricted economy (though not Sophisticated logistic supply (increase in inner suburbanmay be diverted to necessarily) chains living)unproductive projects Higher emphasis on education Very high number of SMEs Investment tends to be wealthVery low level of education Surge in infrastructure projects High level of firm and based focusing on minimal risk Under-developedVery poor ability to recover that spur on economic growth individual compliance projects like shopping mallsfrom natural disasters Economy through improved transport links, regulation Innovative start-ups often comeLow national vision etc. Vast majority of population from new arrivals to the International markets entered resides in urban areas country (exception of Japan) and channels developed through Very stable institutional Increasing rates of OEM and contract production environment unemployment and often Increasing wages, productivity, Abandonment of elite and shortage of manual labour as Government tries to attract foreign aid Traditional and investment and employment leading to rising favored groups within the other types of careers are living standards business sector where an preferred Economy Ability to allocate resources within Increasing professionalization of egalitarian values prevail Usually a slightly declining economy not efficient at this stage workforce and management society population which signifies a Very low rates of SME formation and needed to compete Very high value placed upon declining workforce size, this high informal economy internationally education in society lowers economic growth rates
60. Market segmentation Still under-developed logistic systemsstill weak Post Industrial Some wealth driven businesses (i.e., Economy hotels) by elite familiesIncreasing marketglobalization Developed Economy Under-developed Local firms Economy exporting to theStill building infrastructure world Some rent-earning feudal elements Thailand Developing Economy Still factor and investment rather than innovation driven Traditional Economy Malaysia Still some small remote areas
61. Changing Demographics Rapid Economic Growth Positive (Rural-urban drift) geographic disposition Increased Investment Increased SavingPopulation Growth Increased Demand Increased Opportunities Those with natural New Skills & talents emerge Increased Capabilities quicklyIncreasing Education Knowledge Emerging Learn as Culture you go Imported Technology
62. Shifting ValuesTraditional/colonialization Developing Economy Agriculture based lifestyle Urban based lifestyle Connection with extended Cut off from extended family family Subsistence orientation Planning orientation Rural value base Changing to urban values Acceptance of situation Seek to improve situation Little saving Saving for capital Social mobility – end of feudalism New wealth – New poverty
63. 1750 1775 1800 1825 1850 1875 1900 1925 1950 Bismarck instituted health & accident insurance Armed conflict forced American merchants to Establishment of cotton industry in Regulation instituted to manufacture American South – invention of the gin control banking, railways, The beginnings of business (a political governments using fiscal & The use of steam technology for transport – the railways Britain invention) monetary policy to control The development of the American West The decline of mercantilism the economy Frederick Taylor developed Development of canals in Britain and America “Scientific Management” Development of the steam engine Ocean going coal based steam ships Whaling industry for lamp oil & whalebone Early beginnings of the petroleum industry Spinning Jenny First Sears CatalogueFlying shuttle Formation of DuPont invented by James Borden develops the publishedinvented by John by Eleuthère Irénéé du Hargreaves process to produce Henry Ford produces first massKay (1733) Pont condensed milk produced automobile Use of water frame to spin Development of the The invention of the cotton credited to Richard electronic telegraph telephone switchboard First air conditioner by Willis Arkwright Formation of the Western Union Haviland Carrier Telegraph Company Invention of the jet engine Spinning mule invented by Invention of the tire Refrigerated railway box Samuel Crompton cars (ice system) First useable electric First self powered First electric power Discovery of light globe Refrigerated railway box automobile distribution aerodynamic principals Invention of home cars (mechanical system) by George Cayley refrigerator by Jacob Invention of the four- Perkins Wright Brothers flew the first stroke engine airplane First manned glider by Otto Lilienthal Between the wars The post war The industrial revolution in Great Britain, and collapse of The liberal age growth years Europe and the United States international trade
64. Automobile Chassis Engine Tires Control & Braking System Environment management Systems RubberSuspension Fuel Electronics Alloys Road Rules systems Compression Chemical Hydraulics Roads & Steel Microprocessors & Processes Carriageways Combustion Plantations Time & History
65. Have a source of innovation
66. Sources of Opportunity (Opportunity Anchors)Market Void Technology Structural changes Resource Regulation Non-Innovative Infusion Monopoly Incongruities Invention Changes in Physical Resource Effect on Personal Industry Product Service & Structure Consulting Incremental Capability Resource Demographic Effect on Process Improvement New Changes Duplication Processes Legal Resource Adaptation Perceptual Adaptation, Extension Brand Resource Changes combination & integration New Processes Copy/ Scarcity Power Imitation New Materials Cost/value Shift Strategies for each source of opportunity
67. Develop into a source of competitive advantage
68. Figure 9.9. The General Tools of Intellectual Property in Business Strategy Influence of New Product Development Technology - Invention (new to the world) - New to company product Competitors - New Style, variant or benefits Patent, Registered Design, Proprietary Influence of Knowledge (secrecy and Product non-disclosure Lifecycle agreements) Process Development (manufacturing) Patent, Proprietary Knowledge (secrecy and non-disclosure The Market agreements) The General Business Market Strategy Place Strategy Market parameters (mix) Values Channels Expectations Knowledge Emotions Image & Story (target) Knowledge, Creativity, Recognition Branding, Trademarks, Potential Copyright Emotional Connections
69. Getting the right skills around you
70. Competencies Required During the Strategic and organizational Essential Oil Development Process competencies require: Administrative, financial Strategic, organizational, management, technical relationship opportunity management, strategic competencies require: management, personnel Business strategic, industry Strategic, operations, management, resources knowledge, industry finance and technical management, networks, ability to raise management entreprenuerial finance, ability to plan, implement & adjust, leadership, entrepreneurial Marketing & commercialisation Product & venture management Strategic, opportunity and technical competencies require: Project management, marketing management, chemistry, cosmetic New product chemistry, perfumery/ development & flavour knowledge, creation of value Packaging & design, manufacturing added products & engineering activities Sustaining and growing the enterpriseTechnical competencies (adapting & survival) require:Thermodynamics and plant Harvesting, physiology, heat transfer, Extraction and distillation engineering, wastage handling chemistry, chemical engineering, agriculturalengineering, environmental engineering (waste management) Planting, cultivation & maintenance Output: Result/Performance, Sustainable and healthy enterprise orTechnical competencies require: a struggling and failing enterprise Bio-system engineering, Soil management,entomology, plant nutrition, Propagation & Agronomics, field Technical Competencies require: management, irrigation domestication or Plant physiology, micro-propagation, nursery engineering introduction management, agronomics Screening & Opportunity and technical Bio-prospecting competencies require: Botany, ethno-botany, research ability, chemistry, bio-chemistry, analytical chemistry. Market and specific technical product knowledge
71. Leadership Competency Creativity Competency Organizational Strategic Competency Competency Management Entrepreneurial Competency Competency Opportunity Relationship Competency Competency Idea Idea Start-up Growth Stability Discovery Evaluation Specific technical skills (product) Basic administration skills General management skills Resource gathering skills Interpersonal skillsVarious Cognitive Skills Interpersonal skills Accounting skills Research skills Business plan preparation skills Finance skills Evaluation skills Oral presentation skills Various cognitive skills Cash-flow management skills Decision making Production engineering skills Research skills Marketing skills skills Organizational development skills Sales skills Networking skills Sales skills Human resource management skills Interpersonal & Promotional skills Logistics management skills communications Start-up finance skills Manufacturing management skills skills Networking skills Decision making skills
73. Strategy Anchors Dynamic Capabilities Enterprise Capabilities New Product Development Logistics capability Manufacturing capability Management capability Growth capability Strategic capability Learning capability Marketing capability Innovation capability Technology capability Organizational culture Personal Competencies Entrepreneurial competency Managerial competency Opportunity competency Leadership competency Creativity competency Conceptual competency Ethical competency Strategic competency Emotional intelligence Commitment competency Skills Marketing Production Scheduling Delegation Product design Finance Planning Sourcing Human resources Organizational Decision making Finance Operational Sub-SkillsBook-keeping Product costing Administration PresentationSales Business plan preparation Data-entry NegotiationBudgeting Empathy Imagination Sense of fairnessInterpersonal Technical (product) Promotional TeamworkCommunication Accounting procedures Self reflection NetworkingAbility to inspire Deal with uncertainty Resource gathering Paperwork
74. Competency Present Not Present CommentsTechnical1. Botany Basic Low Need guidance2. Plant Physiology Low Need assistance3. Chemistry/Analytical Basic Low Need guidance4. Micro-propagation Experience Low Assistance Available5. Nursery Management Experience Low Can design6. Environmental Engineering Experience Low Need appraisal7. Chemical engineering/thermodynamics/etc Basic Low Use contractor8. Soil Management Basic Low Use institute9. Agronomy/plant nutrition/field management Basic Low Replicated10. Entomology experiments11. Irrigation engineering With Environment12. Agricultural Engineering Use contractor13. Regulation knowledge Can develop14. Cosmetic chemistry/food etc Need assistance15. Perfume/flavours Learn from16. Packaging & design experience17. Consumer product manufacturing Use contractorOpportunity/Entrepreneurial/Commitment1. Able to screen environment for opportunities Yes Need to see2. Able to evaluate opportunities Yes realistically3. Commitment level Passionate
75. Relationship1. Have relationships in target A few industries A few2. Have relationships in research area Some3. Have relationships in finance industryOrganising/Management1. Able to project manage Yes2. Able to administrate Yes3. Able to financially manage operation Yes4. Able to undertake research Yes5. Able to keep key people motivated YesStrategic1. Understand dynamics of market and Yes Believe so but industry environment Yes not tested2. Able to plan for a business within Yes this environment3. Able to implement, evaluate and adjust plans in this environment
76. Resources Business modelTangible Resources Intangible Time Resources Intellectual property People Product Designs Research & Plant & Equipment Development Knowledge Property & Location Brands Creativity Cash & Other Finance Reputation Team Specific Experience Technology Relationships Organizational Organizational Routines Culture Access to inputs Passion
77. Determine your needsInputs The Venture OutputsPeople Product/Service Distribution ChannelsPlant & EquipmentProperty & LocationCash & Other Finance Perceived Inputs are combined, problemTechnology StrategiesProduct Designs transformed and converted observedKnowledge into capabilities. and valueBrands Organizational capabilities propositionReputation are used to support proposedRelationships strategies. The objective is through aOrganization Culture to create value in line with productAccess to inputs the value propositionIntellectual Property and/or through defined distributionResearch & Development service channels to generate aCreativity revenue stream.Team Specific ExperienceOrganizational RoutinesPassion Revenue Stream Feedback influences inputs such as reputation, R&D direction, available inputs, level of technology, etc
78. Enterprise Capabilities Business Model Organizational CultureSpecialized Resources Reputation Knowledge Organizational Routines Creativity Team Ind. Experience Intellectual Property Brands Product designsApplied Resources Proprietary Machinery Technology People Basic Plant & Equipment Office SpaceGeneric Resources Property & Location Cash & Other Finance Fixed Costs Various Support ServicesInput Resources Raw Materials Consultancies The Resource Pyramid
79. Dye & Chemical Industries Perceived Opportunities Incoming Trends & Ideas Skilled Developed Firm Designers Value Chains Raw Woolen Materials Critics & Media Suppliers Fabrics & Fashion Regulatory Research Skilled Employees Technology (Universities & Research Wool Institutions) Finance Houses Processing All kinds of Knowledge Support Businesses Strategies Retailers International Domestic Retailers Competitive Environment Supplier (Direct & Indirect Competitors) Supply Chains Wholesalers Chains Wholesalers Spin-off Opportunities
80. Friends Customer Father Inside the firm DecisionExpectations Employees Maker Competencies Accountant Bank Property Suppliers Owner
81. Auto Parts manufacturers Coordination, Kanban, JIT, etc. Automobile manufacturer Sales coordination, Custom Ordering Independent Dealerships Service Centres In constant communication about service times and other car owner informationRoad Side Assist Consumers Schemes
82. Arrange the necessary Resources
83. Think about how to develop a new product
84. Resale Markets Resale Industrial Second hand goods, some Government internet sites like eBay, Auctions & Real Estate, etc. Sales often undertaken by Government Markets Industrial Markets intermediaries, pricing varies according to demand & supply, Usually high volume capital & These markets usually buy service products. power in market according to scarcitymaterials and components to Goods usually decided upon throughmanufacture other products, issuing specifications and tenders. Inor supplies necessary to run a some industries the government market can be up to 60% of the total market. business. Types This market although decisions madeManufacturers usually deal directly with industrial customers or act of Markets through tenders, strategies based upon building strong relationships necessary. through distributors. International Markets Consumer An international market could be any type of the other markets excepting it is in a remote location from the Consumer Markets enterprise. Consumer products include automobiles, white The entering firm will have to decide whether to enter directly through a fully owned goods, electrical goods, fast moving consumer International subsidiary, joint venture with a local partner, products and services, including financial, insurance, utilize a distributor or other representative, travel, etc. license or franchise the product or service to a Companies market and sell direct to consumers, through local company. The enterprise will also have to distributors and/or retailers, etc. Many manufacturers tend to adapt its strategies to the local ways of doing service national markets, while many service businesses are things. localized, except where companies have overcome fragmentation.
85. Regulation SCCP placed lemongrass oil under scrutiny as a cosmetic Trends & Technology ingredient in EU.Alternative technologies tosteam distillation (CO2) Substitutescan make much smoother Citral (main constituents) canoil but will increase capital be produced from a number of Trends & Technologyneeds greatly. chemical feed stocks. RegulationNatural, exotic, organic, Alternative oils (litsea cubeba)FAIRTRADE could cost much less to produce.increase oils popularity (?) Lemon myrtle oil muchif seen as exotic. smoother and acceptable to end users Many alternatives to lemongrass in product formulations. Substitutes Industry Competitors Bargaining Bargaining power of power of buyers suppliers Intensity of Rivalry Competitive Rivalries Bargaining Power of Buyers Currently small item of trade in flavour industry, strong relationships with established producers. Bargaining Power of Suppliers Collecting the most suitable Competitive Rivalries planting material require effort. Lemongrass quick yield and Extraction and straightforward to cultivate and distil harvest .technology needs to be – expect high elasticity of supply acquired or developed from both existing and new Analytical equipment or service producers. maybe expensive/remote. Producers of substitutes very aggressive
86. Personal and enterprise Competency gap competencies, knowledge & Short term timeframe, no fall back position if positive results experience that can be utilized for delayed or there are technical or market failures the benefit of the enterprise Facilities, infrastructure, financial Poor infrastructure that hinders production or marketing backing & liquidity, long timeframe Shortage of funds to undertake project to completion view Qualified or lack of commitment by any key people within Ability to learn through research organization and experimentation Lack of network, knowledge and access to supply chain Any network connections with Any factor or group of factors that can hinder the industry and access to the supply chain for both information and enterprise gain competitive advantage over its marketing competitors Ambition and vision (but not delusional), focus & commitment Ability to innovate technically, market and organizational wise Strengths WeaknessesAny factor or group of factors that can assist the enterprise gain competitive advantage over its competitors An identified market where enterprise resources and competencies will be able to exploit The potential opportunity will have a large enough market size to sustain the enterprise Opportunities The enterprise will be able to take advantage of this opportunity better than any other competitors Outside elements in the supply chain will support the enterpriseAny factor or group of factors that will allow the enterprise to grow in asustainable manner within the market environment Risks/ Threats Uncertainties Competitors identifying the same Cognitive Bias opportunities and enacting upon them Any factor or The regulatory environment and potential changes within it groups of factors Inability to penetrate the existing that make supply chain and make alternative outcomes uncertain strategies Dependence on survival from a single in the future Opportunities are seen with bias or very few customers Depending on a single product for total according to knowledge, Any factor or Any factor or group of factors that experience, wisdom, educational groups of factors may potentially hinder enterprise growth in a sustainable manner background, market knowledge, that may lead to without any contingencies verse competencies, etc. venture failure acts of God, bad weather, drought, etc.
87. Cosmetic High Organic production for Cosmetic international Essential Oil production for market Based Agro- international chemical marketMarketGrowth Essential Oil under CO2 extraction Crude Essential Oil Steam Distilled Low Strong Weak Relative Competitive Position
88. Enterprise Performance Structural/Support Interventional Strategies Strategies The process of product/market development Time and Company Evolution/Change Development Regulation TechnologyAttributes Change & Theme Product 4 Ps Competitive Position External Influences & Threats Strengths and Weaknesses Management Finance Personal The Set of Potential & Skills Opportunities Social Situation Economy Competition Aspirations Resources Facilities Key internal Key external influences on influences on Network Position Market the strategic the strategic process process Cognitive Bias The base for potential future Development How the Business is Currently Performing Organisational Capability Creative, Opportunity, conceptual, strategic, Personal Learning, Organisational, financial, Technical,Objectives Marketing, Networking and Commitment Competencies Resources Existing and Available to the Business
89. Duplication &Aspirational Brand Convergence Divergence Replication Strategy Creating Customer Utility Technology Superiority Extension Imitation Synthesis Range of Generic StrategiesDynamic Strategy Segmenting Cost Advantage Differentiation Overcoming Tactical Fragmentation Combination New Business Market Leadership Creative Imitation Model
90. Opportunity Manifestation as a set of strategies (Product, Channel, Business model, etc.)Capabilities Capabilities Capabilities Capabilities CapabilitiesResources Resources Resources Resources Resources The Sources of Opportunity (Market Void, Technology Infusion, Structural Changes, Resource Monopoly, Regulation & non- Innovative Sources) Factors and causes leading to the Opportunity Conditions (Social, Economic, Technology, & Regulatory Conditions)
91. OpportunitySales Revenues, Profitability, Other marketMeasures, Growth, Sustainability, Survival Tactical Actions & Behavior Field Promotion, Discounts, Incentives, Selling, Product Styles, etc. Operational Strategies Competitive strategies: Marketing, Sales, Advertising, Channel, New product development, Intellectual property, supply chain, etc. General Operational: Manufacturing, product & customer service support, accounting, etc. Administrative (Support) Strategies Financial (operational), Procurement, Logistical, Human Resources, Operational Policies, Work Procedures, etc. Foundation (Capacity Building) Strategies Finance, Gearing, Asset Management, Location Decisions, Identity, Mission, etc. Enterprise capabilities
92. Things are always amystery untilwe get there
93. Consumers Positioning Potential new novel Opportunity product extending market field or creating a new oneAttempting through existing or to create Targeting new channels and Refining thesome form business models. Idea ofcompetitive advantage Segmentation Concept Product idea to compete with Market existing products in market Identification The set of possible ideas/products/markets The Causation Process The Effectuation Process
94. Wind in the case of a yacht orenvironmental turbulence in the Vision & case of a firm. Goals Actual Path & Performance y ateg d Str ate Modified t icip An Vision & Goals
95. Evolved Strategy Trial and error tactical use with various levels ofX X X X Success/Non-Success Tactics Applied
96. Existing Products New ProductsExisting CausationMarkets New EffectuationMarkets
97. Opportunity Shift Time Newly identified opportunity needing different goals, An identified strategies,opportunity in competencies, skills, the past resources and organization than previously The Opportunity Landscape What strategies are required to successfully Present Needed exploit the new Strategies Realignment of Strategies Strategies opportunity and meet the organizations new goals? Competitiveness What type of organization and Present Needed business model is Organization Realignment of Organization Organization needed to support the selected strategy? What skills, competencies and Present Skills & Needed Skills & technologies are Realignment of Skills & Competencies needed to support the Competencies Competencies new business model and strategy? What resources are needed to support Present Needed Realignment of Resources skills, competencies, Resources Resources technologies, new business model and strategy? What networks are Present Needed needed to exploit the Networks Realignment of Networks Networks opportunity, acquires skills, technologies and resources, support the new business model and strategy? What new goals are Present Goals New Goals Setting of New goals needed to exploit the newly identified opportunity? Reengineering of Total Organization
98. Young & invigorating image Internet Bookings An exciting lowYoung good looking cost airline to flyair & ground crewsModern and trendy on aircraft interiors Advertising image Limited use of Baggage travel agents Standardized aircraft toNo baggage transfers cut down on No connection with maintenance costsother airline baggage Fast Aircraft services turn-around times Baggage surcharge General savings on overheads Extra means of Auto-check with no revenue baggage Not burdened by Paid snacks & meals Seating traditional air and ground Low landing charges Blankets crew procedures and terminal fees Computerized ticketing No connection with other Headquarters located methods airlines at airport terminal Related businesses - hotels
99. The Wright Bros. developed the airplane through effectuation (trial & error). They developed a new theory and a new invention.
100. It was only when a use for the newinvention was found that an industry developed.
101. Could the Wright Brothers developed a business plan whenthey first decided to build a flying machine?
102. At the time this looked just as viable
103. Idea/Product/Concept 1. What is the idea/product/concept?2. Is there a consumer need for this idea/product/concept?3. Do many people need this idea/product/concept?4. How do consumers cope with their problem/need/want without thisidea/product/concept now?5. Will this idea/product/concept provide a better solution to the consumer thanwhat is already available? Marketing1. Who are the potential customers and target market?2. How many potential customers are there (how large is the market)?3. Who are the competitors (and potential competitors)?4. How are your competitors doing in the market (decline, stable, growth)?5. Is it their major business (do they rely on other forms of business)?6. How will you promote the product (what advertising and promotionstrategy)?7. What will be your pricing strategy (what revenue over cost)?8. Do you have the ability to reach potential customers?
104. Skills1. What skills do you need to realize the opportunity?2. Do you have these skills or can they be acquired?3. Are these skills commonly available to all competitors (andpotential)?4. Can I manage this venture? Networks1. What networks do I need on the supply side?2. What networks do I need to obtain resources (materials, people,finance)?3. What networks do I need on the sales side?4. How crucial are these networks to success/failure? Resources1. What resources do I need?2. Are these resources available?3. Are these resources within my reach?4. Are these resources available to everyone?5. Will I have enough financial resources to sustain this venture?
105. Product1. Does the product solve a consumer problem, or satisfy a want orneed?2. Is this problem, want or need an important one?3. What are the alternative solutions to the consumer?4. What is the cost to the consumer of these solutions? Product/Strategy1. Can I develop a product/strategy that is different from others?2. Will this different product/strategy be valued (or providebenefits) to consumers?
106. Time & Space Personal Skills & Stage of economic, social, Competencies, legal, & knowledge development, Enterprise The Resource Capabilities Base The Ability to Build Networks Strategy The Sources of The Vision Platform Opportunity Market Void, Technology Social demographics, culture, The Competitive Environment Infusion, Structural Changes,generational outlook, experiences, Influence of suppliers, customers, Resource Monopoly, Regulation, Cognition, emotions, the psych & complementary goods & substitutes, barriers to Non-Innovative psychotic, & cognitive traps, etc. entry, the competitive field & influence of social, technology, economic, & regulatory factors The Ability to Make The Connections Opportunity Cognition, creativity, problem Gap solving, creative tools Hunter (2012)
108. Who was the inventor of the light bulb?Thomas Edison Sir Joseph Wilson Swan
109. PROFILE OF SMEs 144
110. DEFINITION OF SMEsManufacturing, Manufacturing RelatedServices and Agro -based IndustryCompanies with annual sales turnover not exceedingRM25 million OR full time employees not exceeding150 Services, Primary Agriculture, Information And Communication Technology (ICT) Companies with annual sales turnover not exceeding RM5 million OR full time employees not exceeding 50 145
111. TOTAL ESTABLISHMENTS OF COMPANIES BY SIZE 4,542 LARGE (0.8%) 12,694 MEDIUM (2.3%) 100,561 SMALL (18.2%) 435,052 MICRO (78.7%)Census of Establishments & Enterprises 2005 DOS - TOTAL ESTABLISHMENTS: 552,849Dec 2005 146
112. DISTRIBUTION OF SMEs BY SECTOR Manufacturing Agriculture 39,376 34,225 (7.2%) (6.2%) Services 474,706 TOTAL SMEs : 548,307 Census of Establishments & Enterprises 2005 DOS - (86.6%) Dec 2005 147
113. CONTRIBUTION BY SMEs(%)60 8.15040 3.9 33.930 0.120 19.7 7.910 14.5 8.4 11 0 G DP E mployment T otal E x port contribution Manufacturing S ervices Ag riculture Preliminary Statistics by DOS - Dec 2005 148
114. MostEntrepreneurs look like this
115. Mostpeople like to takethings easy
116. Space Global National City NeighbourhoodSectional Interest Today Next Next Next Life Children’s Time W Week Year Few Years Time Lifetime
117. Tissue Culture
118. Microwave Oven Pressure CookerChemicals & Spoons, etc. Glassware
119. Why let the train leave without you?
120. Product Reengineering Process (Process for FMCG Product) Product from Market Step 1: Examination of the product to determine characteristics. a) What type of process was it manufactured by? b) What would be its formulation/recipe? C) What materials are used in its manufacture? Step 2: Develop a full Product Technical & technical specification for Market Specifications the product and production process. Probable Product Production Process Step 3: Include any improvements to the product Laboratory Development Step 4: Laboratory & Production Trials development of formulation/recipe and Return to lab. For any development of modifications production process Product Trials (Both consumer use & Step 5: Undertake production) consumer product testing and production trials Completed Product
121. • Insufficient Sales•Insufficient Capital• No business plan• No managerial focus• Inadequate records• Lack of profit focus• Cash flow• Inadequate systems• Failure to plan for taxation• Inadequate resource management• Break even point • Failure to develop new products
122. Society & family, peers & Influence on other paradigmsrole models, assumptions,values, beliefs, learning,mentors, perceptions Peer groups mentors, society Cultural Paradigm Commitment and ethicsUpbringing and family Social & Educationalbackground, education and Backgroundlife experiences, stressfulunexpected events, fate Paradigm Chance & Fate Identify and exploitLooking for benefits, opportunitieseffective performance,able to secure resources,overall vision, able to Resource gatheringweigh things up in Paradigm Strategicstrategic way Customer orientatedEnvironment, peers, family,culture, realities, motivation, Sense of achievementdedication, self assurance,self perception, morality, Motivation &responsibility, determinationaccountability, adversity to Paradigm Personalityrisk taking (courage), standon beliefs, level of comfort Adversity to risk takingEnvironment, triggers, Seek & identifyinspiration, lateral & opportunitiesserial thinking,technical skills, ideas,opportunities, solution Innovative Paradigm CreativityfindingHealth, personal energy,focus, time orientation,orientation to getting things In control of thedone, orientation towards business Actiongetting the right things Paradigm Attributes of the Entrepreneurdone Able to inspireSelecting the right people,team/individual orientation, peopleview of outside expertise,networking, interpersonal Ability to workoutlooks, management style, with peopleleadership, Paradigmdominance/submissiveness Networking InterpersonalPositive & negative Experienceexperiences, success &failure, education &skills, soft skills, talents Technical skillsand abilities Skills Paradigm Soft skills Talents & abilities
123. The Potential Socio-psycho Factors that Influence Opportunity Discovery and Behavior. World and work experience, education, culture, family upbringing, etc. Personal Paradigms Skills Behavior Alertness Influencers Motivation The Psych Prior Knowledge Sense of self. ego, encoded Perception Strategic Outcomes assumptions, Outlook beliefs and values. Personality Feedback Creativity Expectations, goals, Traits self regulating Propensity restraints, etc. to Action Talents and Motivational Abilities Trigger Interpersonal Idea GAP “What I do” “How I feel” “Who I am” A Trigger External event or Situation internal feelings
124. People start businesses for the wrong reasons and mistake something they like for an opportunity
125. Size First entrepreneurial phase Possible mature entrepreneurial phase Usually NPD strategies Sales Regeneration Usually time of increasing Mid-life crisis organizational rigidity An era of complacency and Decline rigidity Enterprise begins to take a Profit ‘past orientation’ Pre start-up Start-up Growth Maturity Decline or rebirth Entrepreneurship is just a stage in the firm lifecycle
126. Entrepreneurship Curriculum & Teaching Without Relevant Technology Knowledge & Training
127. The educationsystem is hung upabout measuring intelligence
128. Entrepreneurshiphas very little to dowith intelligence. It is all about creativity. Otherwise onewould have to be aprofessor to start a new business.
131. Creativity Tool Cognitive Skill Knowledge (vocabulary) of odorous substances Imagination Olfactory sensitivity Knowledge of potential strengths, weaknesses and applications of odorous materials Knowledge of Curiosity, enquiry outstanding and Perfumer fragrance creations experimentation Excellence within the domain Practical knowledge & experience Process & Interest and Product passion Time, patience, perseverance EmotionKnowledge Base