Who was theinventor of the  light bulb?
Discussion TodayThe nature of opportunityHow entrepreneurs really         work   Business Plan or   Business Model?       ...
Small Business Verses Entrepreneurship
New        Economic                     PollutionParadigms      Growth                                                    ...
The External Variables        Social                                              EconomicSocial and cultural trends      ...
New knowledge                                                        about health, fitness,                       Urbaniza...
The benefits of exercise and                           working out in a gym ChangingPerceptions                Women wanti...
Support/Facilitate                                        Intellectual Property                                           ...
Flux & Transformation                                                      Airlines                             DVD Rental...
Demographics                     Technology    Shock                                     Competitor’s                     ...
Degree of ambiguity                                                                                   Active/Imaginative  ...
Low                            Intuitive                                   High High                       Large Companies...
Imitative
Allocative
Discovery
Construction
Four potential firm opportunity seeking               typologies                                   Market Orientated      ...
C           Constructed Concept              Concept Extraction                        Charcoal Burger Grill A (location) ...
Brand                         Signal                                     Features Benefits              Channels          ...
CustomersService   Convenience     Price     Quality   Relationship                         Laundry                       ...
Two ways to scan for opportunities        Matching product to some              marketspace        Matching marketspace to...
Change in how and where people buy the product          Risk                            None                   Some       ...
We can land a man on the moon and return himsuccessfully to Earth but we are still not too sure      what factors make a f...
How Entrepreneurs Really         Work
CreativityThe Summarised                               IdeaEntrepreneurialProcess                       Turn into Opportun...
Your advantages &                   Disadvantages     Your  Competitor’s    Moves                           Your Moves©Hun...
Ideas                      Opportunities            Strategies        Opportunity          Performancematch               ...
Opportunities                Firm Opportunity                    Trajectory                                    ork        ...
The Individual & Family                                               Family history, Current family                      ...
The birth of an                 Images and                                Connections                   Vision Platform - ...
Can and doentrepreneurs use a business plan?
The Secret
Forecasting
Rate of Adoption               Innovation                 Growth                 Maturity100%80%60%40%20%       1975      ...
Market ResearchLess than 2% of filed patents are ever commercialisedDoes a new invention have consumer benefits or create ...
Product EvolutionPre 1900’s                         Laundry BlueUp to Late 1940’s        Solid Soaps &                    ...
Present time  The Past                            A Radical change in                                          technology ...
Media Reports                     The Continuum from media                                                          report...
Supermarket Retail Prices                                  New Zealand June 2002                Product            Size   ...
New ZealandSales Forecast (Net Invoice Price*)Account: Auckland/FoodStuf s/ProgressiveProduct:         Roach Attack 140gra...
Estimated % Distribtion and Average Monthly Self Offtake (in Cartons)                               Roach Attack    Ant At...
Annual Sales Distribution          Product                J     A      S      O      N      D      J      F      M      A ...
Hunters Brands Pty. Ltd.                                                     Product Costing Structure                    ...
Hunters Brands Pty. Ltd.                                                     Product Costing Structure                    ...
Product Benefit Strategies  Launch                        Product                             Perceived Consumer Benefits ...
Essential Home Products Pty. Ltd.                                                                           Cost & Pricing...
Planned Distribution Matrix                                  Key A/C Supermrkt Convenience   M. MrktCitronella Candle 100g...
RSP Position Decision Making Matrix          Product                 Direct Competitors          Pack     Price     Cost/ ...
AMSO Coles Stores May 2002                                              Mentone   Southland   Coburg   Nth Balwyn   Hawtho...
Cockroach, Silverfish & Crawling Insect Market Survey                                                                     ...
Tariff Heading: 3808Tariff      Heading                            Description                                            ...
Hunters Brands Sdn. Bhd.                                    Standard Product Costing Sheet           Product:     Ant Atta...
Wholesaler Price Structure & Sales Projection         Wholesaler: National                    Location:                   ...
Curiosity Insight                               Exploration                  Security &                                   ...
Networks                        Competitive                Skills,                           Field                 Capabil...
Find the right opportunity
Randomness &Changes in any of                             Unexpectedness                         Interrelated Factors     ...
Automobile                      Airlines             Manufacturers                                                        ...
Characteristics of                 Characteristics of Under-                   Characteristics of a                  Chara...
Market segmentation                                              Still under-developed logistic systemsstill weak         ...
Changing Demographics                                  Rapid Economic Growth                                           Pos...
Shifting ValuesTraditional/colonialization        Developing Economy Agriculture based lifestyle     Urban based lifestyle...
1750                1775                  1800                 1825                   1850                     1875       ...
Automobile Chassis       Engine       Tires       Control &     Braking System   Environment                              ...
Have a source of innovation
Sources of Opportunity                                                  (Opportunity Anchors)Market Void          Technolo...
Develop into a source of competitive advantage
Figure 9.9. The General Tools of Intellectual Property in Business Strategy                                       Influenc...
Getting the right skills around you
Opportunity, Strategy & Entrepreneurship: A Meta-Theory
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Opportunity, Strategy & Entrepreneurship: A Meta-Theory
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Opportunity, Strategy & Entrepreneurship: A Meta-Theory Presentation to TAR College 3rd may 2012

Published in: Business, Technology

Opportunity, Strategy & Entrepreneurship: A Meta-Theory

  1. 1. Who was theinventor of the light bulb?
  2. 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. 3. Small Business Verses Entrepreneurship
  4. 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. 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. 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. 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. 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. 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
  10. 10. Demographics Technology Shock Competitor’s new products Change New New Merging Opportunities Information IndustriesLifestyle Economy Gestalt Changing Tastes Regulation ©Hunter (2012)
  11. 11. Degree of ambiguity Active/Imaginative Allocative Construction Intuitive Analytical Supply/Demand changes New technologies Demographic changes New Business models Value creation n t io va no Locus of change In Inductive Imitation Discovery Deductive Replication & Extension Incongruities (Black & white) Structural changesPassive/Reactive ©Hunter (2012) The forms of opportunity
  12. 12. Low Intuitive High High Large Companies & Breakthrough Consumer Type Technology Markets High analytical and high High analytical & Low intuitive opportunities, high intuitive opportunities, strategy & high tactical Analytical high strategy & low tactical exploitation Growing exploitation importance Imitative Business Entrepreneurial of formal Low analytical & low intuitive Low analytical & high intuitive, strategy opportunities, low strategy & low strategy & high tactical low tactical exploitation exploitation Low Growing importance©Hunter (2012) of tactical moves
  13. 13. Imitative
  14. 14. Allocative
  15. 15. Discovery
  16. 16. Construction
  17. 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
  18. 18. C Constructed Concept Concept Extraction Charcoal Burger Grill A (location) + B (characteristics) 1. Location near young people = C (constructed Concept) (university): convenient 2. Cheap and affordable University 3. Good service 4. Authentic charcoal BBQ burger grill (western style) 5. Convenient meeting place A with WiFi etc. Location Fastfood B Concept Extraction (General Characteristics) 1. Cheap 2. Good standard of hygiene 3. Good service 4. Fast and efficient 5. Specialize in a particular food 6. Know what to expect 7. A meeting place for people Potential success©Hunter (2011) parameters
  19. 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. 20. CustomersService Convenience Price Quality Relationship Laundry Service
  21. 21. Two ways to scan for opportunities Matching product to some marketspace Matching marketspace to some product
  22. 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. 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. 24. How Entrepreneurs Really Work
  25. 25. CreativityThe Summarised IdeaEntrepreneurialProcess Turn into Opportunity Innovation Final Commitment NPD Start-Up Strategy Growth Sales Sustainability
  26. 26. Your advantages & Disadvantages Your Competitor’s Moves Your Moves©Hunter (2011)
  27. 27. 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
  28. 28. Opportunities Firm Opportunity Trajectory ork tw Ne Firm Alternative Opportunity Trajectory Field of Network Based Opportunities Environment
  29. 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. 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
  31. 31. Can and doentrepreneurs use a business plan?
  32. 32. The Secret
  33. 33. Forecasting
  34. 34. Rate of Adoption Innovation Growth Maturity100%80%60%40%20% 1975 1980 1985 1990 1995 2000 2005 2010
  35. 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. 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. 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. 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. 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
  40. 40. New ZealandSales Forecast (Net Invoice Price*)Account: Auckland/FoodStuf s/ProgressiveProduct: Roach Attack 140grams %Year 5.10% 4.96% 6.95% 10.92% 11.92% 11.92% 11.92% 11.92% 7.94% 5.96% 5.79% 4.70% 100.00% No Stores July August Sept. October November December January Februrary March April May June TotalTotal Account 274 Vol 61.46 59.78 83.70 131.52 143.48 143.48 143.48 143.48 95.65 71.74 74.99 56.63 1209.42 Val $4,447.54 $4,325.97 $6,056.36 $9,517.13 $10,382.33 $10,382.33 $10,382.33 $10,382.33 $6,921.55 $5,191.16 $5,045.33 $4,098.04 $87,132.39Auckland/ 42 Vol 12.60 12.60 17.64 27.72 30.24 30.24 30.24 30.24 20.16 15.12 12.60 12.60 252.00New World Val $911.74 $911.74 $1,276.43 $2,005.82 $2,188.17 $2,188.17 $2,188.17 $2,188.17 $1,458.78 $1,094.08 $911.74 $911.74 $18,234.72Auckland/ 19 Vol 5.70 5.70 7.98 12.54 13.68 13.68 13.68 13.68 9.12 6.84 5.70 5.70 114.00Pak N Save Val $412.45 $412.45 $577.43 $907.39 $989.88 $989.88 $989.88 $989.88 $659.92 $494.94 $412.45 $412.45 $8,249.04Auckland/ 130 Vol 25.35 25.35 35.49 55.77 60.84 60.84 60.84 60.84 40.56 30.42 40.56 25.35 522.21Four Square Val $1,834.33 $1,834.33 $2,568.06 $4,035.52 $4,402.38 $4,402.38 $4,402.38 $4,402.38 $2,934.92 $2,201.19 $2,934.92 $1,834.33 $37,787.12Auckland/ 14 Vol 2.73 1.05 1.47 2.31 2.52 2.52 2.52 2.52 1.68 1.26 1.05 1.05 22.68Non Banner Val $197.54 $75.98 $106.37 $167.15 $182.35 $182.35 $182.35 $182.35 $121.56 $91.17 $75.98 $75.98 $1,641.12Progressive/ 30 Vol 9.00 9.00 12.60 19.80 21.60 21.60 21.60 21.60 14.40 10.80 9.00 5.85 176.85Foodtown Val $651.24 $651.24 $911.74 $1,432.73 $1,562.98 $1,562.98 $1,562.98 $1,562.98 $1,041.98 $781.49 $270.00 $423.31 $12,415.63Progressive/ 39 Vol 6.08 6.08 8.52 13.38 14.60 14.60 14.60 14.60 9.73 7.30 6.08 6.08 121.68Supa Value/Fresh Val $440.24 $440.24 $616.33 $968.52 $1,056.57 $1,056.57 $1,056.57 $1,056.57 $704.38 $528.29 $440.24 $440.24 $8,804.76
  41. 41. Estimated % Distribtion and Average Monthly Self Offtake (in Cartons) Roach Attack Ant Attack Ant Attack No-Moz No-Moz Fun Candles Prewash Living Scents Group 140grams grams 150grams grams 50 ml ml 3x35 grams 100 grams 3x35g rams Stain 100grams Wardrobe 30g %dist AMSO %dist AMSO %dist AMSO %dist AMSO %dist AMSO %dist AMSO %dist AMSO %dist AMSOAucklandFoodstuffs/New World 100% 0.5 100% 0.8 100% 0.8 100% 0.5 100% 0.5 100% 0.25 100% 0.4 100% 1Foodstuffs/Pak N Save 100% 0.5 100% 0.8 100% 0.8 100% 0.5 100% 0.5 100% 0.25 100% 0.4 100% 1Foodstuffs/Four Square 65% 0.5 65% 0.8 65% 0.8 65% 0.5 65% 0.5 65% 0.25 65% 0.4 65% 1Foodstuffs/Non Banner 25% 0.5 25% 0.5 25% 0.6 25% 0.5 25% 0.5 25% 0.25 25% 0.4 25% 1Progressive/Foodtown 100% 0.5 100% 0.8 100% 0.6 100% 0.5 100% 0.5 100% 0.25 100% 0.4 100% 1Progressive/Supa Value/Fresh 65% 0.4 65% 0.5 65% 0.5 65% 0.5 65% 0.5 65% 0.25 65% 0.4 65% 1Woolworths/Prog. WellingWoolworths: 100% 0.5 100% 0.8 100% 0.8 100% 0.5 100% 0.5 100% 0.25 100% 0.4 100% 1Big Fresh 100% 0.5 100% 0.8 100% 0.6 100% 0.5 100% 0.5 100% 0.25 100% 0.4 100% 1Price Choppers 100% 0.5 100% 0.8 100% 0.8 100% 0.5 100% 0.5 100% 0.25 100% 0.4 100% 1Foodstuffs/New World 100% 0.5 100% 0.8 100% 0.6 100% 0.5 100% 0.5 100% 0.25 100% 0.4 100% 1Foodstuffs/Pak N Save/Right 65% 0.5 65% 0.5 65% 0.6 65% 0.5 65% 0.5 65% 0.25 65% 0.4 65% 1Foodstuffs/4 Square/non-bann 25% 0.4 25% 0.5 25% 0.5 25% 0.5 25% 0.5 25% 0.25 25% 0.4 25% 1Foodstuffs/South IslandNew World 100% 0.5 100% 0.5 100% 0.6 100% 0.5 100% 0.5 100% 0.25 100% 0.4 100% 1Pak N Save 100% 0.5 100% 0.5 100% 0.5 100% 0.5 100% 0.5 100% 0.25 100% 0.4 100% 1Four Square 20% 0.5 20% 0.25 20% 0.6 20% 0.6 20% 0.5 20% 0.25 20% 0.4 20% 1On the Spot 5% 0.5 5% 0.25 5% 0.5 5% 0.5 5% 0.5 5% 0.25 5% 0.4 5% 1
  42. 42. Annual Sales Distribution Product J A S O N D J F M A M J TotalRoach Attack 140gram 5% 5% 7% 11% 12% 12% 12% 12% 8% 6% 5% 5% 100%Ant Attack 150grams 5% 5% 7% 11% 12% 12% 12% 12% 8% 6% 5% 5% 100%Ant Attack 50ml 5% 5% 7% 11% 12% 12% 12% 12% 8% 6% 5% 5% 100%No-Moz Cit. Candle 3x35gram 5% 5% 7% 11% 12% 12% 12% 12% 8% 6% 5% 5% 100%No-Moz Cit. Candle 100grams 5% 5% 7% 11% 12% 12% 12% 12% 8% 6% 5% 5% 100%Fun Candle 3x35grams 5% 5% 7% 11% 12% 12% 12% 12% 8% 6% 5% 5% 100%Prewash Stain Bar 100grams 5% 5% 7% 11% 12% 12% 12% 12% 8% 6% 5% 5% 100%L/S Wardrobe 30grams 5% 5% 7% 11% 12% 12% 12% 12% 8% 6% 5% 5% 100%Percentage Distribution Gained Account J A S O N D J F M A M JMetcash:Nsw/Act 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%Victoria 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%Queensland 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%South Australia 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%Other Independents:FAL/Action 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
  43. 43. Hunters Brands Pty. Ltd. Product Costing Structure Roach Attack Ant Attack Ant Attack 3x70gram 150grams 140grams 150grams 100ml Candle Supercandle Carton size 6 6 6 24 24 0 0 Unit calculations: RSP: $5.98 $3.45 $3.49 $3.99 $3.99 $0.00 $0.00 GST: $0.54 $0.31 $0.32 $0.36 $0.36 $0.00 $0.00 RSP (before GST): $5.44 $3.14 $3.17 $3.63 $3.63 $0.00 $0.00 Carton calculations: Retail Margin 40% $13.05 $7.53 $7.61 $26.12 $26.12 $0.00 $0.00 Gross Invoice Price $19.57 $11.29 $11.42 $64.15 $64.15 $0.00 $0.00Warehouse Allow. 0% $0.00 $0.00 $0.00 $3.21 $3.21 $0.00 $0.00 Net Invoice Price $19.57 $11.29 $11.42 $60.94 $60.94 $0.00 $0.00 Trading Terms 0% $0.00 $0.00 $0.00 $9.14 $9.14 $0.00 $0.00 Net Pricing $19.57 $11.29 $11.42 $51.80 $51.80 $0.00 $0.00Case Deals (ave. 0%) $0.00 $0.00 $0.00 $0.00 $1.92 $0.00 $0.00Fertool Margin 25% $4.89 $2.82 $2.86 $15.23 $15.23 $0.00 $0.00 Net Price $14.68 $8.47 $8.57 $34.64 $34.64 $0.00 $0.00
  44. 44. Hunters Brands Pty. Ltd. Product Costing Structure Roach Attack Ant Attack Ant Attack 3x70gram 150grams 140grams 150grams 100ml Candle Supercandle Carton size 6 6 6 24 24 0 0 Unit calculations: RSP: $5.98 $3.45 $3.49 $3.99 $3.99 $0.00 $0.00 GST: $0.54 $0.31 $0.32 $0.36 $0.36 $0.00 $0.00 RSP (before GST): $5.44 $3.14 $3.17 $3.63 $3.63 $0.00 $0.00 Carton calculations: Retail Margin 40% $13.05 $7.53 $7.61 $26.12 $26.12 $0.00 $0.00 Gross Invoice Price $19.57 $11.29 $11.42 $64.15 $64.15 $0.00 $0.00Warehouse Allow. 0% $0.00 $0.00 $0.00 $3.21 $3.21 $0.00 $0.00 Net Invoice Price $19.57 $11.29 $11.42 $60.94 $60.94 $0.00 $0.00 Trading Terms 0% $0.00 $0.00 $0.00 $9.14 $9.14 $0.00 $0.00 Net Pricing $19.57 $11.29 $11.42 $51.80 $51.80 $0.00 $0.00Case Deals (ave. 0%) $0.00 $0.00 $0.00 $0.00 $1.92 $0.00 $0.00Fertool Margin 25% $4.89 $2.82 $2.86 $15.23 $15.23 $0.00 $0.00 Net Price $14.68 $8.47 $8.57 $34.64 $34.64 $0.00 $0.00
  45. 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
  46. 46. Essential Home Products Pty. Ltd. Cost & Pricing Matrix Product Ctn Landed Net Net Net Invoice Gross Invoice RSP Value RSP Cost Price* Price** Value Price Carton*** Carton****Roach Attack 140grams 24 $24.73 $70.18 $77.63 $91.33 $96.14 $72.36 $143.52Ant Attack 150grams 24 $17.48 $40.49 $44.79 $52.69 $55.46 $75.36 $82.80Ant Attack 50ml 24 $36.46 $40.96 $45.31 $53.30 $56.11 $76.08 $83.76No-Moz Citronella Cnd. 3x35g 24 $20.77 $31.10 $34.40 $40.47 $42.60 $57.84 $63.60No-Moz Citronella Cnd. 100g 24 $15.45 $22.30 $24.67 $29.02 $30.55 $41.52 $45.60Aroma Fun Candle 3x35grams 24 $29.30 $44.60 $49.33 $58.04 $61.09 $82.80 $91.20Prewash Stain Removal Bar 48 $35.44 $39.67 $43.88 $51.62 $54.34 $73.92 $81.12Living Scents Wardrobe 30g 24 $12.48 $19.83 $21.94 $25.81 $27.17 $36.96 $40.56* Net Price: After discounts, trading terms & brokerage fees** Net Price: After discounts & trading temrs before brokerage fees***Before GST****After GST
  47. 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. 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
  49. 49. AMSO Coles Stores May 2002 Mentone Southland Coburg Nth Balwyn Hawthorn Malvern Glenhuntly Sandriham Deodorant Blocks/Camphor/other small spaceCedar Fresh Moth Balls 16 12 0 9.33Hovex Camphor (2 pack) 28 44 32 84 56 48 48.67Fragrascene Deodorant Block 12 56 20 24 16 27Parrys Fresh Guard 24 44 32 20 20 48 31.33Parrys Deodorant block 44 20 80 0 28 16 31.33Wardrobe Wonder 8 12 4 0 8 6.4 Small Space Gel Air FreshenersHaze Mini Scents Gel (2 pack) 52 36 0 64 38Glade Secrets (2 pack) 40 56 48Generic Gel 84 84 84Haze Crystal Air 36 20 24 40 40 48 33.6Ambi Pur Gel 32 52 24 48 48 40.8Generic Gel 60 112 86Glade Country Garden Gel 36 76 28 48 44 52 36 46 Citronella CandlesRadience Citronella Candles (3 pack)No-Moz Citronella Candle 12 20 24 8 0 24 14.67Heat Beads Citronella CandleNo-Moz Small Bucket Citronella Candle 8 8No-Moz Large Bucket Citronella Candle 16 8 12 OilRecochem Citronella Lamp Oil 8 8 Air Freshener/aromatherapy CandlesHaze Glass 0 56 16 0 12 20 17.33Parrot Aromatherapy candle 0Romantics Aromatherapy Candle (2 pack) 0 0Aroma Scents (6 pack) 0Parrot Tea Candles 0 8 8
  50. 50. Cockroach, Silverfish & Crawling Insect Market Survey Apr-02 Product Ave. Dist. AMSO Ave Vol. Ave Val. Ave Vol. Ave Val. % RSP per Month per month Per annum Per annum MktshareMortein Lure n Kill Cockroach Baits $3.34 1866 26 48516 $162,043.44 582192 $1,944,521.28 16.89%Sureguard Mini Strips (3 pack) $8.89 1172 25 29300 $260,477.00 351600 $3,125,724.00 27.14%Mortein Moth & Insect Strip (3 pack) $7.69 1292 24 31008 $238,451.52 372096 $2,861,418.24 24.85%Cedar Fresh Moth Balls $4.83 1866 9.33 17409.78 $84,089.24 208917.4 $1,009,070.85 8.76%Hovex Camphor (2 pack) $1.64 1866 48.33 90183.78 $147,901.40 1082205 $1,774,816.79 15.41%Fragrascene Deodorant Blocks $1.43 662 27 17874 $25,559.82 214488 $306,717.84 2.66%Parrys Fresh Guard 100grams $1.62 230 31.33 7205.9 $11,673.56 86470.8 $140,082.70 1.22%Parrys Deodorant Block 50grams $1.17 630 31.33 19737.9 $23,093.34 236854.8 $277,120.12 2.41%Wardrobe Wonder 60grams $1.56 630 6.4 4032 $6,289.92 48384 $75,479.04 0.66% 265267.4 $959,579.24 3183208 $11,514,950.85
  51. 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. 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!
  53. 53. Wholesaler Price Structure & Sales Projection Wholesaler: National Location: Date: 1/6/03 1 2 3 4 5 6 7 8 Super Roach Ant Ant Citro Cit. candle Attack Attack (P) Attack (L) Fresh 500ml Carton Size 24 24 24 24 12 RSP (Unit) $3.50 $5.60 $4.20 $5.90 $7.90 Margin 16.67% 16.67% 16.67% 16.67% 16.67% RP (Carton) $70.00 $112.00 $84.00 $118.00 $79.00 $0.00 $0.00 $0.00 Carton calculations: Whlslr Margin % 15.00% 15.00% 15.00% 15.00% 15.00% Whlslr GP (RM) $10.50 $16.80 $12.60 $17.70 $11.85 $0.00 $0.00 $0.00Gross Invoice Price $59.50 $95.20 $71.40 $100.30 $67.15 $0.00 $0.00 $0.00 A&P % 15.00% 15.00% 15.00% 15.00% 15.00%A&P Amount (RM) $10.50 $16.80 $12.60 $17.70 $11.85 $0.00 $0.00 $0.00 Net Invoice Price $49.00 $78.40 $58.80 $82.60 $55.30 $0.00 $0.00 $0.00 Media % 5.00% 5.00% 5.00% 5.00% 5.00%Media Amount (RM) $3.50 $5.60 $4.20 $5.90 $3.95 $0.00 $0.00 $0.00Net Price (Before Mrkt) $45.50 $72.80 $54.60 $76.70 $51.35 $0.00 $0.00 $0.00 Freight $1.00 $1.00 $1.00 $1.00 $1.20 Gross Margin % 54.29% 132.81% 178.86% 73.38% 39.30% #DIV/0! #DIV/0! #DIV/0! Gross Margin RM $15.66 $40.96 $34.38 $32.04 $14.15 $0.00 $0.00 $0.00 Cost $28.84 $30.84 $19.22 $43.66 $36.00
  54. 54. Curiosity Insight Exploration Security & Discovery Purpose Openness toWisdom Learning Confidence/ Excitement Self Esteem Obsessive Passion for Persistence the domain New Skills Dedication Mastery
  55. 55. Networks Competitive Skills, Field Capabilities Strategy Resources Time & Making Space Connection Vision Platform©Hunter (2012)
  56. 56. Find the right opportunity
  57. 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. 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. 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. 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. 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. 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. 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. 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. 65. Have a source of innovation
  66. 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. 67. Develop into a source of competitive advantage
  68. 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. 69. Getting the right skills around you

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