The document discusses various aspects of competency and entrepreneurial competency. It provides definitions and examples of competency, core competencies of different companies, tests for what constitutes a competency, and risks of ignoring competencies. It also discusses identifying business opportunities, assessing various factors related to starting a business like market demand, competition, production processes, product design, and the top 10 competencies for entrepreneurial success such as integrity, conceptual thinking, risk taking, and people focus.

2. MEANING: COMPETENCY
Competency: forms of
business-related expertise
Basic business competency:
understanding the organizational and
business processes of a firm

3. MEANING: COMPETENCY
Competency is a bundle of skills and
technologies that enables a company to
provide a particular benefit to stakeholders
For example,
At Sony – benefit is pocketability
core competence is miniaturization
At Times of India – benefit is on time delivery
core competence is logistics management
At Motorola–benefit is un tethered(rope) communication
core competence is wireless communication.

4. MEANING: COMPETENCY
Determination competencies: skill identified with
the energy and focus needed to bring a business
into existence
Opportunity competencies: skills necessary to
identify and exploit elements of the business
environment that can lead to a profitable and
sustainable business

5. Resource competencies: the ability or skill of the
entrepreneur at finding expendable components
necessary to the operation of the business
Time
Information
Location
Financing
Raw materials
Expertise
MEANING: COMPETENCY

6. MEANING: ENTREPRENEURIAL
COMPETENCY
Entrepreneurial competency means
the area of expertise, skills, ability,
efficiency, updated technology
regarding organizational and business
processes of a firm.

7. PERSPECTIVES OF COMPETENCY
Identifying existing competency
Establishing competence acquisition agenda
Building competency
Deploying competency
Protecting and defending competence
leadership

8. ENTREPRENEURIAL COMPETENCIES
INITIATIVE
SNATCHES OPPORTUNITY
PERSISTENCE, ASSERTIVE, PERSUASIVE, SELF
CONFIDENCE, INFLUENCE
INFORMATION SEEKING
CONCERN FOR HIGH QUALITY
COMMITMENT
EFFICIENCY ORIENTATION, MONITORING
SYSTEMATIC PLANNING
PROBLEM SOLVING
CONCERN FOR WORK AND EMPLOYEES
CUSTOMER ORIENTATION

9. TO BE CONSIDERED COMPETENCE A SKILL
MUST MEET THREE TESTS
1. Customer Value: Competencies are the skills that enable
a firm to deliver a fundamental customer benefit.
2. Competitor Differentiation: A capability must also be
competitively unique
power trains is a competence at Honda which has never been so at Ford.
Honda’s ability to produce some of the world’s best engines and
power trains does provide customers with highly valued benefits
of superior fuel economy, zippy acceleration, less noise and
vibration.

10. TO BE CONSIDERED COMPETENCE A SKILL
MUST MEET THREE TESTS
 3. Extendibility: A competitive is truly core
when it focus the basis for entry
into new product markets.
SKF, the world’s leading manufacturer of roller bearing has
competencies in antification, precision engineering and making
perfectly spherical devices. In order to achieve extendibility, SKF must
be capable of manufacturing the round, high precision recording heads
that go inside a VCR, most of which are now manufactured by Japanese
firms.

11. RISKS OF IGNORING COMPETENCIES
Opportunities for growth will be turned down.
Ignorance of competencies may weaken the enterprise
The lack of competence perspective can make a company
dependent on outside suppliers for core products.
A company focused only on end products may fail to invest
adequately in new competency that may constrain growth in
the future.
The new entrants in the area /competitors may lag the growth
of the company.

13. AWARENESS
Identification of business
opportunity.

14. INDENTIFICATION OF
OPPORTUNITY
Tools
1. Environment Scanning
2. SWOT Analysis

15. FACTORS IN IDENTIFICATION OF
OPPORTUNITIES
1. Self Experience or Exp. of Pretense / family
members.
2. Ready demand in local market
3. Imports banned or controlled
4. Competition of Medium & large enterprises
5. High profitability
6. Reservation
7. Incentive by Govt.
8. Marketing by Govt.

16. CAREER ALTERNATIVES IN SELF
EMPLOYMENT
Industry – Manufacturing
Trade
Commercial Services
Banking
Insurance
Warehousing, Logistics
Professional Service
CA
Architects
Doctors
Consultancy
Etc

18. SALES ASSESSMENT
PROCESSES OBJECTIVES
FIRM PRODUCT
1.PRICING
2.SELLING
3.ADVERTISING
1. SALES
2. PROFITS

19. MARKETING ASSESSMENT
PROCESSES OBJECTIVES
FIRM PRODUCT
1.Product Quality
2.Pricing
3.Barnding
4.Advertising
5.Selling
6.Channels
1.Customer
Satisfaction
2.Sales
3.Short term &
Long Term Profits
4.Brand Image &
Goodwill
5.Diversification
Environment

20. MARKET DEMAND ASSESSMENT
1. Product – Specifications
2. Total Volume- Physical Volume / Monetary
3. Bought – volume booked / dispatched / paid for /
received / consumed.
4. Customer Group.
5. Geographical Area.
6. Time period –season , plane period.
7. Marketing Environment – economic conditions , Govt.
policy , Practical , Consumer Behavior.
8. Marketing Program –Pricing , Advertising , Sale
promotion, personal selling , channels, dealers.

21. ASSESSMENT OF COMPETITION
1. Competitions
2. Market Share of competitors
3. Strength and weakness of consumer, Image of
competitor products-price features.
4. Consumers’ Image towards competitors’ products /
services.
5. Trade practices of competitors-Discount to dealer.
6. Major customers of each brand.

22. ASSESSMENT OF SITE
Factory
Personal Factors
Economics
Competition
Geography
Local Law’s
Procedure
Criteria
Factors
Location Alternatives
Evaluate
Select

23. SITE-SELECTION
FACTOR WEIGHT SCORE WEIGHT SCORE WEIGHT SCORE
1.Production
Cost
2. Raw
Material
Supply
3. Labour
Availability
4. Cost of
living
5. Enviro
nment
6. Market
WEIGHT
SITE-A SITE-B SITE-C
Total
score

24. LOCATIONAL & BREAK-EVEN
ANALYSIS
Site A
Site B
Site C
Rs. 1 Lakh
Rs. 1.5 Lakh
Rs. 2 Lakh
Rs.100
Rs.50
Rs.25
POTENTIAL
LOCATION
FIXED COST
PER YEAR
VARIABLE COST
PER UNIT

25. MAKE OR BUY
1. Facilities.
2. Plant Capability – Equipment , Quality ,
Quantity , Personnel.
3. Economic Advantage.
4. Trade relations.
5. Supplier Reliability
6. Trade Union Views.
7. Alternative Resource Uses.
8. Legal Restrictions (Patents).

26. ASSESSMENT OF PRODUCTION
PROCESS
1. Product / Service requirement
2. Technological Feasibility
3. Financial Considerations
4. Labors & skill
5. Output & capacity needs
6. Compatibility win existing facility
7. Flexibility
8. Raw materials
9. Size & other limits a plant/ building
10. Spare parts inventory

28. PRELIMINARY PRODUCT DESIGN
PILOT PROJECT
DETAILED PRODUCT DESIGN
PRE PRODUCTION RUN
MANUFACTURE

29. DESINGNING PRODUCT / SERVICE
INTERNAL
ENVIRONMENT IDEACOLLECTION EXTERNAL
ENVIRONMENT
MARKET
APPRAISAL
1. Demand
2. Supply
3. Competition
4. Physical Appearance:
Colour, Style, Fashion
5. Diversification
6. Packaging
7. Cost
8. Import & Export
9. Consumer Behavior
10. Distribution Channels
TECHNICAL
APPRAISAL
1. Inputs
2. Quality of
Materials
3. Production
Technology
4. Productivity
5. Equipment Choice
6. Location & Site
7. Lay-out
8. Work-Schedule
9. Value Analysis
10. Standardization
FINANCIAL
APPRAISAL
1. Investment
2. Financial
3. Cost
4. Profitability
5. Breakeven
6. Cash flow
7. Investment
Worthiness
ECONOMIC
APPRAISAL
1. Cost & Benefit
2. Impact on
Society
3. Employment
NEW PRODUCT DEVELOPMENT
Feasibility Study

30. 10 COMPETENCIES FOR
ENTREPRENEURIAL SUCCESS:
Major competencies that contribute towards top
performance to entrepreneur
Integrity - the entrepreneur has a clear sense of values
and beliefs that underpin the creative and business
decisions that they make; and that influence the
actions they take, particularly when in difficult or
challenging circumstances

31. 10 COMPETENCIES FOR
ENTREPRENEURIAL SUCCESS:
2. Conceptual Thinking - the entrepreneur is
prepared to use fresh approaches; comes up with crazy
ideas that may just work, leading to radical change or
significant improvements; and takes time to listen to
new ideas without pre-judgement

32. 10 COMPETENCIES FOR
ENTREPRENEURIAL SUCCESS:
3. Risk taking - the entrepreneur understands that
risk taking means trying something new, and possibly
better, in the sense of stretching beyond what has been
done in the past; and that the constant challenge is to
learn how to assess choices responsibly, weighing the
possible outcomes against his/her values and
responsibilities

33. 10 COMPETENCIES FOR
ENTREPRENEURIAL SUCCESS:
4. Networking - the entrepreneur understands that
networking is a key business activity which can
provide access to information, expertise, collaboration
and sales; and that careful planning and preparation
helps achieve desired results

34. 10 COMPETENCIES FOR
ENTREPRENEURIAL SUCCESS:
5. Strategic Thinking - the entrepreneur understands
and values the planning process, thinking and
planning over a significant timescale; recognizes
external trends and opportunities; and is able to think
through any complex implications for the business 6.
Commercial Aptitude - the entrepreneur keeps up to
date with developments in the sector; seeks out best
practice; and identifies and seizes opportunities that
are not obvious to others

35. 10 COMPETENCIES FOR
ENTREPRENEURIAL SUCCESS:
7. Decisiveness - the entrepreneur resolves issues as
they arise; does not get bogged down in analysis
during decision making; and responds flexibly to deal
with changing priorities
8. Optimism - the entrepreneur persists in pursuing
goals despite obstacles and setbacks; operates from
hope of success rather than from fear of failure; and
sees setbacks as due to manageable circumstance
rather than a personal flaw

36. 10 COMPETENCIES FOR
ENTREPRENEURIAL SUCCESS:
9. Customer Sensitivity - the entrepreneur builds trust
and long term relationships with customers; generates an
expectation of high level of customer service; and regularly
exceeds customer expectation
10. People Focus - the entrepreneur creates common
purpose with colleagues through shared vision and values;
walks the talk; sees and values the best in others; builds the
total capability of the immediate and wider team; and
always considers the principles of inclusiveness in planning
and dealing with others

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