Community & Entrepreneurial Development Study Framework


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Community & Entrepreneurial Development Study Framework

  1. 1. Murray Hunter Required According to Terms f referenceStage One Stage Two Stage Three Stage Four Stage Five Stage SixSituational Capacity Opportunity Cluster Market Action Identification Development Audit Study Design Plan These pages map out a meta-framework Monitor (GEM) & Hunter Hunter 2006,2007, 2008, (Hunter 2009 & Hunter Economic Geography suggestion for the Sarawak study. Our Porter (Modified) & Approach (Porter & Entrepreneurship Use of Checlkists (2009) Approach Modified Global experience in Sabah showed that a sound Diamond) methodology was paramount to successfully 2012) 2011 completing the study. The writer has drawn together a number of theories that may be useful for the Sarawak study.
  2. 2. 1. Outbound and inbound trade connections (Domestic and international) a) Land b) Sea c) Air 6. Geographic issues 5. Climatic issues d) In-transit a) Topography – natural features, coast, a) Temperature & UV Radiation e) Port and Inland Port natural ports, dams, rivers, etc b) Rainfall (where too much making b) Natural resources problems and too little affecting plant c) Soil – erosion, nitrogen levels, heavy growth, limit on potential crops) metals, exhaustion, general c) Latitude length of day – limit on sustainability possible crops d) Land productivity d) Altitude e) Climate change – effect of climate 4. Infrastructure change a) Roads, ports, airports, railways, dams, b) Water – storage capacity, irrigation, drainage, toxins, catchments, erosion, salinity, etc. c) irrigation Situational Audit d) Transport – access arteries e) IT f) Education facilities 3. Potential economic Stakeholders’ Analysis 2. Economics Activities (and scale) a) General cost of living A) Agriculture b) Stock of housing B) Fisheries c) Industry C) Aquaculture d) Ability to borrow D) Mining Current Situation e) Quality of Life E) Transport f) Industry demographics. F) LoggingRural Communities & Aspirations g) Control over prices/markets G) Biodiversity Agencies Capabilities of state based industries, i.e., H) Potential for food control over mining, rubber, (Observation, semi price fluctuations, etc. intensive production – structured interviews) h) General cost of land verses suitable activities (land use/cost ratio)
  3. 3. 9. Legal 8. Pollution 7. Susceptibility to natural disasters a) Land ownership issues a) Land / subdivision a) Flood b) Land distribution – land ownership b) Water b) Storms traditions c) Air c) Tsunami, earthquakes, etc. c) Level of respect for law, consistency, d) Sea enforcement, ability to litigate, legal e) Propensity of environmental protection issues to become economic problems f) History 13. Governance a) Policies – rules & regulation b) Enforcement c) Result of what types of processes, Product Space d) Delivery effectiveness, Map Situational Audit 12. Vision for the region a) Look at Satun-Perlis Thesis b) Attitudes towards planning c) Attitudes towards regulation 10. Ability to adapt d) Cultural knitting and change to e) Views towards progress 11. Underlying cost of f) Cohesiveness, unity of direction, diversity, changing acceptance of diversity, open mindedness, environment living and ability vision, willingness to experiment, common to have a values, livelihood relative g) Level of community innovationThis could be based on desktop secondary information h) Public opinion verses economics to other i) General narrativesto fill in the background information on the study. The states/regions specific sectors the report focuses on could be given more attention with some primary information.
  4. 4. A product space map is one way of summarizing information from the situational audit. It can be made as simple or complex as need be.Agricultural Activities Other Activities Biotechnology Education Rubber Fruit Production Agro-Industry Fishing Palm Oil Vegetable Production Agro-Tourism Industry Service Transport Hunter 2011 Paddy Other Crops Handicraft Logging Construction
  5. 5. Pictorialization of Diamond (2006) Collapse pp. 56 +++ Montana example Cause and effect diagrams are good for showing the dynamics of the environment. Decrease in economic development Conflict of values Local people Higher land taxes to support struggle to local infrastructure survive Massive Increase land demographic prices Rising land changes prices Less land available for farmingInflux of out of Locals emigrate region land from region buyers Lush Beautiful farmlands Increased conservation and hinterlands
  6. 6. Modified Global Entrepreneurship Monitor (GEM) ModelThe Gem model is suitable for giving an indication aboutentrepreneurial readiness. Data can be secondary withcategories adjusted for relevance. There is also a lot ofcomparative information using the same model on theGEM website. GEM Framework
  7. 7. Competency Present Not Comments Present Technical 1. Botany Basic Need guidance 2. Plant Physiology Low Need assistance 3. Chemistry/Analytical Basic Need guidance 4. Micro-propagation 5. Nursery Management Low Assistance Available 6. Environmental Engineering Experience Can design 7. Chemical engineering/thermodynamics/etc Experience Need appraisal 8. Soil Management Experience Use contractor 9. Agronomy/plant nutrition/field management Low Use institute 10. Entomology Basic Replicated experiments 11. Irrigation engineering Low With Environment 12. Agricultural Engineering Low Use contractor 13. Regulation knowledge 14. Cosmetic chemistry/food etc Low Can develop 15. Perfume/flavours Low Need assistance 16. Packaging & design Low Learn from experience 17. Consumer product manufacturing Low Use contractor Basic Basic Opportunity/Entrepreneurial/Commitment 1. Able to screen environment for opportunities Yes 2. Able to evaluate opportunities Yes 3. Commitment level Passionate Need to see realistically Relationship 1. Have relationships in target industries A few 2. Have relationships in research area A few 3. Have relationships in finance industry Some Organising/Management 1. Able to project manage Yes 2. Able to administrate Yes 3. Able to financially manage operation Yes 4. Able to undertake research Alternatively or in 5. Able to keep key people motivated Yes Yesconjunction a checklist Strategic can be used. 1. Understand dynamics of market and industry environment Yes 2. Able to plan for a business within this environment Yes 3. Able to implement, evaluate and adjust plans in this Yes Believe so but not tested Hunter 2009 environment
  8. 8. Hunter (2009)
  9. 9. Desktop Screening Checklists 1. Product Characteristics 2. Agronomic Characteristics 3. The Project Characteristics (if applicable) Technology Low &The novelty of a A C D B Genetic Material Easily Need to Required Generic High & Specializednew essential oil Low Novelty High Novelty Available Develop Level of Habitat & Not Suitable Mechanization Low and/or High and/orThe potential Topography Very Suitable or Need to Required Generic specializeduses & applications Low Potential High Potential Suitability Developof the new essential Research & Short & straight Long &oil Soil Type, Development Texture & Very Suitable Not Suitable forward Complex Close No Close Time-frame The closeness of Drainage any substitutes Substitutes Substitutes Suitability Capital High Low Temperature Very Suitable Out of Range Requirements RangeThe stability of Poor Stability Good Stability Suitabilitythe essential oil Crop Cycle Short Longin applications Very Suitable Deficient or Timeframe Rainfall Excessive Suitability (Additional)The Poor Ratio Good Ratio Lowcost/performance Infrastructure Highratio Access to Yes No Required Irrigation Regulatory Low Need of High Need ofThe Toxicity High Toxicity Low Toxicity Issues Consideration Consideration Diurnal Very Suitable Out of Range Skills, Radiation CompetenciesThe general Low Common & Rare & High & Capabilitiesconsistency of Crop Required Generic Specialized Consistency Requirequality and supply Consistency Maintenance Common & Specialized Available Cycle Generic Networks, Need Network, Processes Market, Potential Networks, Wide Specialized The prevailing Low Trend High Trend Pest, Disease & Competitors, etc. Market & high Market, Few Common & Require market/product Match Weed Control competition Competitors trends Match Generic Specialized Issues Potential Processes Revenue High Low High The current Low Harvest & Require likelihood of Common & level of Likelihood of Extraction Specialized Generic technology synthesis Synthesis Processes Processes Using lists are a very convenient desktop method of screening ideas to see if they are opportunities. The parameters can be changed according to relevance. Hunter (2011)
  10. 10. 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 The elements that must be satisfied in order to be an opportunity Hunter (2012)Vol. 2
  11. 11. New Opportunities New Competitive Field Social Technology Complementary goods and Substitutes Influence Influence of of suppliers The Competitive customers Field Barriers to Field Entry Economic Regulation The Opportunity Gap & CompetitiveHunter (2012), Vol. 2 Field Analysis (Desktop)
  12. 12. OTOP Petani Competitive Analysis (Hunter 2008)This can be done desktop with primarily secondary information.
  13. 13. Plotting potentialopportunities on theBCG matrix is primarily asubjective process ordone according to thecriteria within thechecklists if points areassigned.
  14. 14. Link to the Enterprise Substitutes & Complementary Goods The Competitive Field Capital Influence ofInfluence of Customers Strategy Suppliers Networking Competencies & Capabilities Resources Barriers to Entry Hunter 2012 Vol 2
  15. 15. - Of what already exists and what could beCluster Structure: Fresh Flower Cluster Proposed Sabah SAIP 2007Develop a model ofthe existing clusterand what type ofcluster that would beneeded tosuccessfully develop anew industry.
  16. 16. Cluster Spin-off & Flow-on Effect in Tourism Industry Hunter (2012) Vol. 1. New Resort Hotel Other resort Companies Attracted to the Area Directly Creates Jobs Resort Suppliers Creation of Retail Businesses Creation of Down market Creation of Service Accommodation to Cafes Businesses Accommodation New market Segments Taxies Taxes Spent on Restaurants Infrastructure Tourist Other Shopping ContractorsThe spin-offs and flow-oneffects of a new industry can More Jobs Indirectlybe predicted. Incomes support more Travel Created businesses Related
  17. 17. ExampleAn example of a cluster model for OTOP inThailand.
  18. 18. The steps and issues to follow in developing products from the clusters. Strategic Options Influences on Strategy Enterprise Performance Geography History Structural/Support Interventional Strategies Strategies (Climate, Topography, Flora, Fauna, Economic) Culture Social Institutions Source (Family, Religion, School, Media, Government, Corporations) Technology Demographics Political Economy The process of product/market development The Competitive Field (Structure & Situational Factors) Time and Company Evolution/Change Development Regulation TechnologyAttributes Change & Theme Product 4 Ps Competitive Position External Influences & Threats Synthesis Strengths and Weaknesses Experience Perceptions Cognitive Biases Management Finance Personal The Set of Potential & Skills Opportunities Knowledge, Inspiration, Adaption, Construction, Social Situation Idea & Opportunity Formation, Deconstruction, Economy Competition Aspirations Resources Realization, & Creation Facilities Redefinition Application Key internal Key external Available & Potential influences on influences on Network Management Styles Resources & Position Market the strategic the strategic process process Capabilities Cognitive Bias Strategy 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
  19. 19. 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 backing & liquidity, long timeframe view Poor infrastructure that hinders production or marketing Shortage of funds to undertake project to completion Qualified or lack of commitment by any key people within An opportunity evaluation Ability to learn through research organization and experimentation Any network connections with industry and access to the supply Lack of network, knowledge and access to supply chain Any factor or group of factors that can hinder the framework 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.
  20. 20. An example of market strategy options foressential oil products.
  21. 21. The Types of Opportunities Available Degree of ambiguity Active/Imaginative Allocative Construction Intuitive Analytical Supply/Demand changes New technologies Demographic changes New Business models Value creation n io v at no Locus of change In Inductive Imitation Discovery Deductive Replication & Extension Incongruities (Black & white) Structural changesPassive/Reactive
  22. 22. These are the important market variables to focus upon in a long term marketing plan.
  23. 23. Developing branding themes Company Product Attributes Theme Value Proposition Consumer Aspirations Needs/Wants/Fantasy
  24. 24. A report must consider all these variables
  25. 25. Different levels of aspirations and compatible product types. Actualisation (The Artist) Study after retirement Self-fulfillment Fresh vegetables (Organic) BooksFine Dining & Processed Foods Aromatherapy products Luxury cars Esteem Nutraceuticals & herbs Travel & Vacations (The Executive) Achievement, Fine Fragrances prestige,fulfillmentCar Air Fresheners Fashion Clothes (e.g. Social (Worker) Jeans) Chewing Gum Family, relationships, workgroups Most Water Household Purifiers Safety (The Farmer) Home, Security and stability Cleaning Products FreshSoap Vegetables Physiological (The Hunter) Rice Basic Biological Needs – Food, water, air
  26. 26. Some of the broad aspects of self concept Selective perception Personality traits – thousands, important ones, locus of control, self confidence, self efficacy, introvert/extrovert, etc. Ego Selective distortion Age & generational identification The ideal self Cultural identity National identity Anxieties Racial & ethnic identity Sexual identity and sexuality Family background The actual self Self Concept Educational background (Who am I?) Social class identification Domicile outlook Anxieties Attitudes and beliefs Sociability and acceptance Societal identification anchors The social self Interests & hobbies Life experience Sensitivity The meaning of possessions Self knowledge and consciousness Religious, moral and spiritual beliefs Physical appearance
  27. 27. The concept of spiritual materialism The Earth – the mission of the firm Fused concept of value and New technologies New ideas and knowledge spiritualism Spiritual materialism Ego, and self concept Spirituality and values Social and peer acceptance
  28. 28. Some major brands and the aspirations they tap. Brand Image and Emotions Associated with brand McDonalds Family enjoyment and togetherness around a fast food meal. Nike Transformation on the sports field Norgen-Vaas Ice Cream Indulgence The Body Shop Social equality and justice in business Disney A magical world of fantasy for the family Air Asia Now everyone can afford to fly Apple Transforming how people use technology Amazon The largest range of reasonably priced books available Google Making the world’s information accessible Young & invigorating image Internet Bookings An exciting low Young good looking cost airline to fly air & ground crews Modern and trendy on aircraft interiors Advertising image Limited use of Baggage travel agents Standardized aircraft to No baggage transfers cut down on No connection with maintenance costs other 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 ticketingHow Air Asia’s sub-strategies contribute to the overall general No connection with other Headquarters located methods airlines at airport terminal Related businesses -strategy hotels
  29. 29. Development of Product Attributes Product/Strategy Attributes Features Benefits Signal Channels Attributes General Impression Tangible Intangible Local Benefits Benefits Strength Spiritual International Performance impression Consumer Efficacy Romance Variant Tactile and Demographics sensory Efficacy Health & Indicator of Use Mainstream or impression according to Well-Being Specialised theme Life Status Impact Caring Form of Pleasant & FreshnessOdour profile Promotion & lasting Security Association apt fragrance AssociationSubstantively to product Lifestyle theme Association Ingredients(according to Concern theme)
  30. 30. Market Segmentation Definitions Defined by Income Defined by social Defined by age background demographics Market Defined by Defined by family Segment aspirations demographics Defined by Defined by leisure interests activities
  31. 31. Product Types Buyer 1 2 3 4 5 Groups A B C D E The Competitive Field Specific Social, This influences the specificeconomic, technology set of complementary & regulatory products & substitutes,influences upon each customers, suppliers & segment Barriers to entry. The competitive field broken into segments.
  32. 32. A simple segment matrix for hair shampoo A simple segment matrix for hair shampoo based on product type and user age group. This matrix identifies existing segments, where competitors, product attributes, price points and strategies 20s Something 30s Something 40s Something can be identified. Through going through this exercise repeatedly 50s Plus Children using different segment variables, relationships between segment Teens variables can be found and a meaningful picture of each potential segment can be developed. The matrixes will also show segments that are untouched by competition and potential buyers. The key questions that should be asked about each segment are;High Fragrance 1. What are the differences between the winners and losers in each category? 2. What strategies are they employing? i.e., a general field 2 in One strategy or a focus upon the segment? Price? Promotion? Channels? etc.High Protein 3. What resources do the firms need to undertake the strategies they are using? Medicated 4. What competencies do firms need to successfully implement their strategy? and 5. What networks are needed to use channels effectively?
  33. 33. Ways of Defining SegmentationLocation (country, Physical size Consumer Industrial Direct versesstate, province) Price level Demographics Buyer industry distributorsType of Hinterland Features Age, Sex, Buyers WholesaleType of economic Attributes Income levels, strategy Retailactivities Technology of etc. Technological BrokersWeather zones product Psychographics sophistication Types ofStage of Design Lifestyle OEM verses distributorsdevelopment Inputs used Language user InternetUrban/rural Performance Decision makers DecisionSocio-economic Branded makersdemographics verses PurchasingEthnic unbranded processconcentrations Financial strength Size Order patterns
  34. 34. Sabah is on the list of World “Exotic” locations There is Mystic There is cultural diversity There is history and heritage There is nature and serenity Sabah is a place of peace, health and harmonyAn example of a product theme
  35. 35. Consider the channels of distribution
  36. 36. The New Product Development ProcessHow will the cluster assist?
  37. 37. Top-down approach versus bottom-up approach?Siripatana A., Haslam N., Wansakhun W., Wanyeelae & Hunter 2011
  38. 38. Research Approach with the Community
  39. 39. Sustainability Plan
  40. 40. A hierarchy of family, personal and business aspirations (Adapted from Hunter 2009, P. 697). The Individual & Family Family history, Current family livelihood, Current Family Status. Any implementation plan must take account of what the stakeholders actually want. 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 Future Competencies 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 Opportunity Risk Management cost of doing Passion other activities Horizontal and vertical expansion Exit barriers Motivational Origins
  41. 41. Consider all environmental factors in implementation Inputs Culture (the way of doing things) Input NewResearch Ideas Technology Excitement New Changing Food Producers The supply Retailers products demands chain Sustainability Ethics Logistic science Finance Lifestyle & Houses values Skills/capabilities Underlying costs Retail practices Supply Demand Push Pull
  42. 42. Finally business scale must be Automobile Airlines considered 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
  43. 43. Success or failure of any SMEs will depend upon achieving all below Ideas Opportunities Strategies Opportunity Performancematch Match Management Evaluates Implements Capability Spots & Selects & Modifies Elaborates Perception & Innovation Strategic Venture Uniqueness / Creativity Thinking Operations Differentiation Competitive Advantage Capabilities Governing Competitive Scope Costs: To customers, to operate Knowledge: Competitive environment Relationships: Customers, Competencies Resources Networks suppliers, financiers, (relative Entrepreneurial, Opportunity power) Structure: Organizational abilityidentification, Network, Conceptual, Technology: strength Strategic, Commitment