This document discusses strategic entrepreneurship and identifying business opportunities. It begins by defining a business opportunity and when opportunities exist. Environmental factors that impact customer demand are discussed. The process of identifying, evaluating and selecting opportunities is described. Methods for evaluating feasibility like cost/benefit analysis and SWOT analysis are provided. Sources of opportunities such as problems, changes, and unique knowledge are outlined. The document then covers vision, mission, objectives, and the difference between vision and mission. Industry types and the opportunities they provide are also summarized.

1. STRATEGIC ENTREPRENEURSHIP
TOPIC 3
DR ANIS AMIRA AB RAHMAN
SYAMSURIANA BINTI SIDEK
FACULTY OF ENTREPRENEURSHIP AND BUSINESS
UNIVERSITI MALAYSIA KELANTAN
anisamira@umk.edu.my
Dr Anis Amira Ab Rahman

2. SEIZING BUSINESS
OPPORTUNITIES: VISSION,
MISSION AND OBJECTIVE
Dr Anis Amira Ab Rahman

3. Strategic Entrepreneurship and Strategic Management
Source : Wheelen, T. L. and Hunger, J. D.
(2000 cited in Kuratko, D. F. & Hodgetts, R.
M., 2004: 521).
Dr Anis Amira Ab Rahman

4. Business Opportunities
 What is a Business Opportunity?
 A business opportunity is said to exist when:
 There is a possibility of offering a new product or service
in a particular market.
 The product or service fulfills the demands and
preferences of the customers.
 Where the product can be used to solve their problem.
Dr Anis Amira Ab Rahman

5. Business Opportunities
 When and Why is there a need to offer a
product or service in a particular market:
 When?
 Changes in Environmental Factors
 Political and Legal
 Economic
 Social
 Technological
 Why?
 Because Environmental Factors effect customers’
demand for particular product or service.
Dr Anis Amira Ab Rahman

6. Business Opportunities
 Involve the process of identifying, evaluating
and selecting a business opportunity.
 Identify the needs and wants of customers.
 Scanning (examining) the environment and
evaluating of self (entrepreneur) and the community.
 Screening (Process of evaluating) of business
opportunities.
 Selecting a business opportunity
 Preparing a Business Plan.
Dr Anis Amira Ab Rahman

7. Process of Identify and Evaluate
the Business Opportunity
Dr Anis Amira Ab Rahman

8. Entrepreneurship: Owning Your Future, 11th ed.
Steve Mariotti
© 2010 Pearson Higher Education,
Upper Saddle River, NJ 07458. • All Rights Reserved.
Evaluating an Opportunity
The feasibility of an idea refers to how possible or worthwhile it is to
pursue it, to see if it is actually an opportunity.
Three methods for determining the feasibility of business ideas
are:
 Cost/Benefit Analysis. This is the process of adding up all the
expected benefits of an opportunity and subtracting all the
expected costs. If the benefits outweigh the costs, the
opportunity may be worthwhile.
 Opportunity-Cost Analysis. An opportunity-cost analysis
examines the potential benefits that you forfeit when you
choose one course of action over others.
 SWOT Analysis. This is a business evaluation method that
draws its name from the four areas it evaluates—Strengths,
Weaknesses, Opportunities, and Threats.

9. Entrepreneurship: Owning Your Future, 11th ed.
Steve Mariotti
© 2010 Pearson Higher Education,
Upper Saddle River, NJ 07458. • All Rights Reserved.
Sources of Opportunity
Sources of opportunities include:
 Problems. Many well-known companies were started because
an entrepreneur wanted to solve a problem.
 Changes. Our world is continually changing. Change often
produces needs or wants that no one is currently meeting.
 New Discoveries. The creation of totally new products and
services can happen by accident.
 Existing Products and Services. You can get ideas for
opportunities from businesses that already exist by looking for
ways to improve a product significantly.
 Unique Knowledge. Entrepreneurs sometimes turn one-of-a-
kind experiences or uncommon knowledge into a product or
service that benefits others.

10.  Emerging Industries
 Industries in which standard operating procedures
have yet to be developed.
 Opportunity: First-mover advantage
 Fragmented Industries
 Industries that are characterized by a large number of
firms of approximately equal size.
 Opportunity: Consolidation
Industry Types and the Opportunities
Dr Anis Amira Ab Rahman

11.  Mature Industries
 Industries that are experiencing slow or no increase in
demand.
 Opportunities: Process innovation and after-sale service innovation
 Declining Industries
 Industries that are experiencing a reduction in demand.
 Opportunities: Leadership, establishing a niche market, and
pursuing a cost reduction strategy]
 Global Industries
 Industries that are experiencing significant international
sales.
 Opportunities: Multidomestic and global strategies
Industry Types and the Opportunities
Dr Anis Amira Ab Rahman

12. Vision
Dr Anis Amira Ab Rahman

13. Vision
A vision is a guiding image of success
Vision
Inspiration
MotivationGuidance
 Begins with intuition and
ideas
 Evolve through discussion
 Result in a shared sense of
direction and motivation
Dr Anis Amira Ab Rahman

14. Vision
 It answers the question
“What will success look
like?”
 It is compelling
 It challenges and inspires
the group
 It focuses first on the client
 It describes what the
organization will look like
when functioning
effectively.
Examples
“A just world without poverty”
“To become a world leader at
connecting people to wildlife and
conservation”
“To become the most influential
bridge between investors and
entrepreneurs”
“To refresh the world, inspire
moments of optimism and happiness
and make a difference”
Dr Anis Amira Ab Rahman

15. Examples of visions
1. McDonald’s - We are committed To doing what is
right. To being a good neighbour and partner in
the community To conduct our business with the
environment in mind
2. Ford – our company delivers excellent products
and services and strives to make the world a
better place.
Dr Anis Amira Ab Rahman

16. Mission
Dr Anis Amira Ab Rahman

17. Mission
Mission describes the overarching purpose of the
organization – the reason it exists.
 Who are you, as an
organization?
 Why do you exist?
 What do you do?
 Who do you serve?
 Purpose: sentence that describe the end result
 An infinitive that indicates a change in
status
 An identification of the problem or
condition to be changed
 A description of the primary means used to
accomplish that purpose
Dr Anis Amira Ab Rahman

18. Create Your Mission Statement
• What is the problem that exists to solve?
• Who is affected by the problem?
• How would the community be improved, changed or
different if your organization’s efforts were
successful?
• What is the purpose of your organization?
• Why does it exist?
• What is the ultimate outcome or result you are
hoping to achieve?
Dr Anis Amira Ab Rahman

19. Create Your Mission Statement
• What business are you in?
• What do you do to fulfill your purpose?
• What is the broadest way in which you could
state your work?
• For whom do you work?
• Who is your target population, your audience,
your market?
• Where do you work?
• What are your geographic boundaries?
Dr Anis Amira Ab Rahman

20. Difference Between Mission and Vision
 A mission statement describes the *present*
state of a person or organization: "Who are
you? Why are you here? Why do you exist?"
 The vision statement describes *future* state:
"Who do I want to be? Where do we want to
go?" The vision should be inspirational and
slightly out of reach. Typically, it is a person or
organization's vision that provides a framework
for planning.
Dr Anis Amira Ab Rahman

21. Objectives
 After developing mission statement, objectives
are required to define. Objectives are much
specific than mission statement
 For example- I want to finish my assignment by
10 o’clock this morning. This indicates to
perform a number of tasks including typing text
into computer, reviewing some
questions/criteria that have already be written,
printing out the assignment for proofreading
and so on.
Dr Anis Amira Ab Rahman

22. Objectives
S •Specific
M •Measureable
A •Attainable
R •Realistic
T •Timeframe
E •Extending
R •Rewarding
Objectives must be evaluated by SMARTER tools:
Dr Anis Amira Ab Rahman

23. REFERENCES
 Barringer, B and Ireland, D (2012) Entrepreneurship – Successfully Launching New
Ventures (4th Ed.). Pearson Education, Global Edition.
 Dollinger, Marc J., (2003) Entrepreneurship: Strategies and Resources, 3rd Edition,
Prentice Hall International Edition.
 Mariotti, S. (2010). Entrepreneurship: Owing Your Future. (11th Ed.). England: Pearson
Education Ltd.
 Hitt, M. A., Ireland, R.D., & Hoskisson, R.E. (2011). Strategic Management:
Competitiveness & Globalization. (9th. Ed.). Canada: South-Western Cengage
Learning.
 Wickham, P. A. (2006) Strategic Entrepreneurship. (4th. Ed.). England: Pearson
Education Ltd.
 James P. Lewis (2001) “Fundamentals of Project Management: Developing Core
Competencies to Help Outperform the Competition” (2nd edition), AMACOM
publisher.
 Kuratko, D. F., & Hodgetts, R. M. (2004). Entrepreneurship: Theory, process, practice.
Mason, Ohio: Thomson/South-Western
 Leong, B. (2011). Introduction, Identifying Ideas & Business Opportunities, Nanyang
Technological University.
 Slideshare. (2007). Entrepreneurship studies – Chapter 2, Cosmopoint International
University College, School of Business.
Dr Anis Amira Ab Rahman