12

ENTREPRENEURSHIP
Second Semester
Third Quarter
Module 3: Seeking,
Screening, and Seizing
Opportunities

1
 Republic of the Philippines
Department of Education
REGION VII-CENTRAL VISAYAS
SCHOOLS DIVISION OF SIQUIJOR
------------------------------------------------------------------------------------------------------------------------------------------------------
COPYRIGHT NOTICE

Section 9 of presidential Decree No. 49 provides:

“No copyright shall subsist in any work of the Government of the Republic of the Philippines.
However, prior approval of the government agency of the office wherein the work is created shall
be necessary for exploitation of such work for profit.”

This material has been developed through the initiative of the Curriculum Implementation Division
(CID) of the Department of education- Siquijor Division.

It can be reproduced for education purposes and the source must be clearly acknowledged. The
material may be modified for the purpose of translation into another language, but the original work must be
acknowledged. Derivatives of the work including the creation of an edited version, supplementary work, or
an enhancement of it are permitted provided that the original work is acknowledged, and the copyright is
attributed. No work may be derived from this material for commercial purposes and profit

Borrowed materials (i.e. songs, stories, poems, picture, photos, brand names, trademarks, etc.)
included in this module are owned by their respective copyright holders. Every effort has been exerted to
locate and seek permission to use these materials from their respective copyright owners. The publisher
and authors do not represent nor claim ownership over them.

Published by the Department of Education

OIC- Schools Division Superintendent: Dr. Neri C. Ojastro

Assistant Schools Division Superintendent: Dr. Edmark Ian L. Cabio

Writer: Juliet Anne Christina O. Doble

Printed by: Juliet Anne Christina O. Doble

Department of Education-Region VII,Central Visayas, Division of Siquijor

Office address: Larena,Siquijor
Telephone No.: (035) 377-2034-2038
E-mail Address: [Link]@[Link]

2
 12
ENTREPRENEURSHIP

Second Semester
Third Quarter
Module 3:
Seeking, Screening, and
Seizing Opportunities

3
 What I Need to know
The most difficult part of every task is where and how to start. The same is
true with entrepreneurship. You may have all the resources needed to operate a
new venture, but it will never be easy to start one. This module will discuss the
proper and efficient ways of starting a business. After going through this module,
you will be able to
1. Screen the proposed solution/s based on viability, profitability, and customer
requirements; and
2. Select the best product or service that will meet the market need.

What I Know
To check your prior knowledge about the topic, identify the terms being
described in each number below. Write your answers in your notebook.

____________1. It is a comprehensive paper that details the situation analysis,

objectives, strategies and tactics, and how to monitor and control the enterprise.
____________2. It is a comprehensive process of understanding the customers’
intricacies and the industry they revolve in.
____________3. It is the approximation of the number of buyers and sellers in a
particular market.
____________4. These are specific features and characteristics that the customers
need from a product or a service.
____________5. They are the voice of every business that every entrepreneur
should listen to.
____________6. It is the process of grouping similar or homogeneous customers
according to demographic, psychographic, geographic (location), and behavior.
____________7. It is the process of grouping customers according to relevant
socioeconomic variables for the business venture.
____________8. It is the process of grouping customers according to their
perceptions, way of life, motivations, and inclinations.

4
 What’s In
As we go further, let us try to recall the discussions in Module 2 on
Recognizing the Potential Market by doing the activity below.

Directions: Read and analyze the statements below and identify whether this
refers to potential market, available market, target market, or penetrated
market. Write your answer in your notebook.
_________1. Active consumers of a product.
_________2. People who are both willing and capable of buying a particular
product or service in a particular market.
_________3. It is the part of the total population that has shown some level of
interest in buying a particular product or service.
_________4. It includes specific customers to whom a company directs its
marketing efforts.
_________5. Customers or clients who are already using a particular product or
service.

What’s New
Directions: Read the situation below and answer the questions that follows. Do
this in your notebook.
Situation:
Filipinos love to take photos and share it on social media and there’s another
trend to make special occasions or parties more fun. Photo booth is just like karaoke
booth however, you need to invest money to buy equipment for this such as printer,
laptop, DSLR, etc. You also need to have some photo editing skills so you can create
templates for your clients. This kind of business is booming because Filipinos are
fond of parties and taking photos. You want to start this photo booth business in
your locality. You are to conduct a survey in order for you get the information that
you need to start the business.
1. How will you conduct the survey?
2. What information do you need to start your business?

5
 What is It

THE ENTREPRENEURIAL PROCESS

The entrepreneurial process is a step-by-step procedure in establishing any

kind of business that an entrepreneur has to undergo. It is composed of four
aspects.

1. Opportunity spotting and assessment

2. Developing a business plan
3. Determining the capital needed
4. Running the business

1. OPPORTUNITY SPOTTING AND ASSESSMENT

This is the beginning of the process and is considered the most difficult.
Entrepreneurs take note of interesting trends in their environment. Consumers
are reliable sources of opportunity information because market needs originate
from them as well as the glaring problems in the environment, problems
encountered by co-entrepreneurs, new trends, processes, and developments in
the environment. The entrepreneur’s toughest job is to carefully assess the
opportunity through estimation of opportunity length, capitalization required,
threats, profitability, and calculation of real and perceived value. Entrepreneurs
should also assess if the opportunity is aligned with their personal goals and
attributes.

2. DEVELOPING A BUSINESS PLAN

Entrepreneurs should formulate a business plan when they have already

spotted and assessed the opportunities for a market. A business plan is a
comprehensive paper that details the marketing, operational, human resource,
financial, strategic direction, and tactics of the business. The business plan will
be the core guide of the entrepreneur.

6
3. DETERMINING THE CAPITAL NEEDED

A big idea can never be translated into reality if the entrepreneur’s

resources are limited. Caution must be applied in computing the complete set of
resources needed and include only those items that are considered as the real
needs in venture creation. Allowance must be considered as well because there
will be times that resources will be inadequate or unsuitable.

4. RUNNING THE BUSINESS

This is the part where the entrepreneur should use the resources allocated
for the new venture. The business plan in step 2 should already have been
implemented. All aspects of the business plan should be critically observed from
operations, marketing and sales, human resources, finance, and strategy
implementation.

The table below summarizes the components and steps in the

entrepreneurial process.

Components and Steps in the Entrepreneurial Process

Opportunity Developing a Determining the Running the
Spotting and Business Plan Capital Needed Business
Assessment
Evaluate the Come up with a Calculate the Practice leadership
identified business description intrinsic and as a way of life
opportunity and analysis extrinsic capital
needed
Conceptualize and Perform industry Calculate the Recognize critical
measure the analysis existing capital success factors
opportunity
Identify the Come up with the Calculate the Identify existing and
perceived value of marketing plan difference between foreseeable
the opportunity to the needed capital problems and issues
the company and and the existing
customers capital. Choose the
most cost-efficient
suppliers or service
providers
Do cost-benefit Prepare the Develop contact and Employ risk-
analysis of the operations plan relationship with mitigating controls
opportunity including the suppliers and and monitoring
including risk organizational plan service providers systems
analysis
Match the Come up with the Device an
opportunity with the financial plan expansion/
entrepreneur’s skills sustainability
and objectives strategy
Scan the strengths Identify strategies
and weaknesses of and tactics
competitors
Perform monitoring
and control

7
SEEKING, SREENING, AND SEIZING

The process of seeking, screening, and seizing is adapted to create the most
suited product or service for an opportunity. The general rule is to find the
opportunity first before coming up with a new product or service, not the other
way around.

The 3S (seeking, screening, and seizing) of opportunity spotting and

assessment is the framework that most of the promising entrepreneurs use to
finally come up with the ultimate product or service for a specific opportunity.

An opportunity is an entrepreneur’s business idea that can potentially

become a commercial product or service in the future.

S1: SEEKING THE OPPORTUNITY

Opportunity seeking is the first step and is the most difficult process of all
due to the number of options that the entrepreneur will have to choose from. It
involves the development of new ideas from various sources as follows:

1. Macroenvironmental Sources

1.1. STEEPLED (Sociocultural, Technological, Economic, Environmental,

Political, Legal, Ethical, and Demographic factors). Any external factor or a
combination of external factors from these eight environmental forces can have a
direct effect in opportunity generation and business sustainability.

Socio-cultural factors involve the following:

* health consciousness
* education level
* attitude toward imported goods and services
* attitude toward product quality and customer service
* attitude toward saving and investing
* emphasis on safety
* buying habits
* religion and beliefs

Technological factors involve the following:

* basic infrastructure level
* rate of technological change
* spending on research and development
* technology incentives
* legislation regarding technology
* communication infrastructure
* access to newest technology
* internet infrastructure and penetration

8
Economic factors involve the following:
* growth rates
* inflation rates
* interest rates
* exchange rates
* unemployment trends
* labor costs
* stages of business cycle
* trade flows and patterns
* level of consumers’ disposable income
* monetary policies
* fiscal policies
* price fluctuations
* stock market trends

Environmental or ecological factors involve the following:

* weather
* climate change
* laws regulating environment pollution
* air and water pollution
* recycling
* waste management
* attitudes toward green or ecological products
* endangered species
* attitudes toward and support for renewable energy

Political factors involve the following:

* government stability and likely changes
* bureaucracy
* corruption level
* tax policy (Rates and incentives)
* freedom of press
* rule of law
* government effectiveness
* political rights

Legal factors involve the following:

* Anti-trust law
* Discrimination law
* Copyright, patents/intellectual property rights
* consumer protection
* employment law
* health and safety law
* data protection law

Ethical factors involve the following:

* Ethical advertising and sales practices
* Accepted accounting, management, and marketing standards
* Attitude toward counterfeiting and breaking patents
* Attitude toward development and well-being of employees
9
 Demographic factors involve the following:
* Population growth rate
* Age distribution and life expectancy rates
* Gender distribution
* Social classes
* Family size and structure
* Minorities

1.2. Industry. This is the source of current trend on what is happening in

the industry where the future business will belong to. For example, the
entrepreneur should be fully acclimated on what is happening with the rice
industry if he or she wants to establish a rice retailing business.

1.3. New discovery or knowledge. These are new trends that can be the
core business model of a new venture.

1.4. Futuristic opportunities. These are projected new opportunities that

can possibly affect the new business while it is running.

2. Micromarket

2.1. Consumer preferences, interests, and perception. These are the

current needs and wants of potential customers that should be discovered right
away by a budding entrepreneur.

2.2. Competitors. Recognizing and understanding potential competitors

will aid the entrepreneur to develop a product or service that is unique and will
surely stand out from the competition.

2.3. Unexpected opportunities from customers. Existing problems and

bottlenecks often give rise to an unexpected opportunity.

2.4. Talents, hobbies, skills, and expertise. The entrepreneur’s talents,

hobbies, skills, or expertise can be a source of business opportunity.

2.5. Irritants in the marketplace such as deterrents, problems,

complaints, and delays. When customers are already sick and tired of a
recurring problem or issue, that is when the opportunistic entrepreneur should
come in and make a difference.

2.6. Location. For example, if the entrepreneur’s location has many

schools, then a restaurant, an eatery, or probably a computer shop might be a
good business to establish.

10
METHODS OF GENERATING IDEAS

Recognizing and understanding the vast sources of opportunities is one

difficult activity to do. Below are methods of generating ideas that will help the
entrepreneur. Either one or a combination of the methods given can be employed
by the entrepreneur in generating new ideas.

1. Focused group discussion (FGD).

In this method, a moderator handles a very open, free-flowing, and in-depth

discussion with a group of people who can provide insightful ideas about a new
product/service that will fill a market need.

2. Brainstorming.

Similar to an FGD, this is an activity that allows the participants to share

creative ideas using the following rules:
a. no destructive criticism or judgment allowed
b. wilder ideas are accepted
c. more ideas are preferred
d. improvement of others’ ideas is allowed

3. Brainwriting or Internet brainstorming.

This is exactly the same as brainstorming except that the channel used is
not face-to-face, but in writing or online. The answers depend on the availability
of the participants in answering the questionnaires online.

4. Problem inventory analysis.

This method is similar to FGD except that the participants are already given
an inventory of product or service problems. The participants will just identify
from the list given the compelling problem of a potential product or service instead
of generating the ideas from them.

S2: SCREENING THE OPPORTUNITY

Opportunity screening is the process of cautiously selecting the best

opportunity. The selection will depend on the entrepreneur’s internal intent (the
main objective that the business will accomplish in the entrepreneur’s life) and
the external intent (which will address the compelling needs of the target
market).

11
 The crafting of a business plan starts only when entrepreneurs already said
NO to many opportunities and said YES to one forceful opportunity, to which they
will devote their time and resources.

The entrepreneur should say NO to an opportunity if it does NOT contain any

of these business opportunity elements:

1. Has superior value to customers

2. Solves a compelling problem, issue, a need, or a want
3. Is a potential cash cow
4. Matches with the entrepreneur’s skills, resources, and risk appetite

The opportunity attractiveness test

The Opportunity Attractiveness Test (OAT) aims to assist entrepreneurs in

ensuring that the opportunity that they will venture into is an attractive and
feasible prospect.

This test is designed to detail each entrepreneurial aspect into small

chunks to come up with a sound entrepreneurial decision. The entrepreneur
must answer this test realistically and avoid overestimation or underestimation.

Opportunity metrics

These are considered as the opportunity’s critical success factors. These

factors will approximately determine the attractiveness of the new venture
depending on the total scores that it will generate. The weight of each factor
should be determined by the entrepreneur. Factors include

 Market potential
 Financial feasibility
 Exit strategies or harvest options
 Competitive advantage
 Management team
 Strategic differentiation
 Assessment of personal resources

Total attractiveness score

At the end of the test, the entrepreneur should first compute for the total
scores per factor. The entrepreneur should also establish a tiered scale and
description on the total attractiveness score:

Sample Tiered Scale:

4.00 - 5.00 Very attractive
3.00 – 3.99 Attractive
2.00 – 2.99 Tolerable but must take caution and due diligence of the risks
1.00 – 1.99 Not attractive or too risky

12
S3: SEIZING THE OPPORTUNITY

Opportunity seizing is the last step in opportunity spotting and

assessment. This is the “pushing through” with the chosen opportunity. The
entrepreneur’s idea can be any type of innovations listed here.

Innovation is the process of positively improving an existing product or

service. There are three types of innovations according to the degree of
distinctiveness.

1. Breakthrough innovation

Innovations which occur infrequently as these establish the platform on

which future innovations in an area are developed. They must be protected by a
patent, a trade secret, or a copyright. Examples, Internet, computer, airplane

2. Technological Innovation

These innovations are technological advancements of an existing

product/service. Examples include wireless fidelity (WIFI), laptop, jet airplane.

3. Ordinary Innovation

They are commonly originating from market analysis and technology pull
instead of push. This means that the market has a strong influence in the
implementation of an innovation. Examples are internet plans, wireless mouse,
Bluetooth speakers.

Product or Service Planning and Development Process

The last process, called the seizing process involves refining and developing
the opportunity. The refining process is called product or service planning and
development process. It has four key stages.

1. Idea stage. In this stage, the entrepreneur determines what are the feasible
products and/or services that will perfectly suit the opportunity

2. Concept stage. The developed idea will undergo a consumer acceptance test.
This test includes getting the initial reactions of the primary target market.

Conversational interviews are conducted to understand consumer

preference on physical characteristics and attributes of a product or the physical
evidence/characteristics of a service.

3. Product development stage. In this stage, the entrepreneur leverages on the

information generated from the prospective customers via the concept stage. The
entrepreneur will conduct a consumer panel where actual product/service
samples will be given/rendered to the panel of potential customers. The
participant’s task is to critique the actual product/service and record the good
13
qualities and inferior attributes. They are also given sample of competitor’s
product or services for comparative purposes.

4. Test Marketing Stage. This stage validates the work done from the first three
stages to measure success in the commercialization of the product or service.
Actual sale results will be the foundation of the consumer’s acceptance level and
will be the basis in commercializing the product/service.

MARKETING PLAN

Marketing research is a comprehensive process of understanding the

customer’s intricacies and the industry they revolve in. The result of marketing
research is the entrepreneur’s major investment in a business, as it will lead him
or her to the most effective strategies to employ. Marketing research aims to
scrutinize the target market, their specific requirements, and the market size
where the business operates.

Market size is simply the size the arena where the entrepreneur’s business
will play. It is the approximation of the number of buyers and sellers in a
particular market.

Steps in determining the market share profit:

1. Estimate the potential market.
2. Eliminate the customers who are probably unlikely to buy the product or
avail the service.
3. Estimate the market share.

Market Share Computation Illustration

Mr. Alvin Antonio, wants to establish a rice retailing business in his area
in Barangay San Isidro. He wants to know if this business is worth his capital
and effort. He dug deep and found out that there are approximately 500 families
in Brgy. San Isidro with an average of 5 members per family. He did a survey and
found out that only 475 families eat rice; they consume an average of 1 kilo of
rice per day.

There are four other retailers in the area that have been there for 10 years
already, and they have equal market shares of 20% each. The other 20% of the
market is buying in bulk (per sack) from groceries or convenience stores. The
average net profit per kilo of rice is P10. How big is the market size and what
could be the potential market share of Alvin’s rice retail business?
Market size of rice business in San Isidro = Number of families who eat rice x
average consumption per annum

Market size = 475 families x 1 kilo/day x 365days

= 173, 375 kilos of rice
Market size profit = 173, 375 kilos x P10
= P 1,733, 750 per annum

14
 The objective of Mr. Antonio in the first year is to capture the 20% of the
market by implementing marketing strategies in pricing (reduced markup of P2)
and promotion (free delivery of rice for five kilos and up) through text messages
or phone call. None of the competitors have thought of or done these strategies
yet.

Potential market share = market size x estimated market share

= P 1,733,750 x 20%
= P346,750
However, because Mr. Antonio will reduce the markup by P2, the net profit
per kilo will only become P8.

Potential market share = P 173, 375 x 20% x P8

= P 277,400

This market share for a startup business is an attractive venture. Mr.

Antonio also has a bigger chance of capturing the market share of competitors if
he implements relevant and enticing marketing strategies.

Customer Requirements, Target Market

Customers are said to be the lifeblood of the business. These are the people
who buy the products or avail the services of the entrepreneur. Their thoughts,
feelings, and experiences shape the decisions of the business.

Customer requirements are specific features and characteristics that the

customers need from a product or a service. The customer is the voice of every
business that every entrepreneur should listen to.

Market intelligence includes customer profiling, which drives the

entrepreneur on what correct strategies and tactics to employ. This can be
obtained through a meticulous market segmentation process.

Market segmentation is the process of grouping similar or homogeneous

customers according to demographic, psychographic, geographic (location), and
behavioral.

1. DEMOGRAPHIC

Demographic segmentation, also called socioeconomic segmentation, is the

process of grouping customers according to relevant socioeconomic variables for
the business venture. Socioeconomic variables include:
• Income range and the social class
• Occupation
• Gender and age group
• Religion and ethnicity

15
2. PSYCHOGRAPHIC

Psychographic segmentation is a process of grouping customers according to

their perceptions, way of life, motivations, and inclinations.
• Perceptions (individual receives external stimuli using the 5 senses)
• Way of life
• Motivations (physiological – needs of the person)
(psychological – customers’ preferences, likes or dislikes)
(aspirations – what customers wants to achieve)
or deprivation – involves recognition of certain voids to fill)
 Inclinations – preferring one product over another as a result of gaining a
refreshing experience when using the product

3. GEOGRAPHIC

Geographic segmentation is simply grouping customers according to their

location. This is critical in the analysis of the target market as this encompasses
the cultures, beliefs, preferences, politics, and lifestyle of a certain geography.

Geographic segmentation can be as small as a street, a village, or a

barangay. It can also be based on municipality, city, province, or region. It can
be as big as a country or continent depending on the entrepreneur’s business
objectives.

4. BEHAVIORAL

Behavioral segmentation is the process of grouping the customers according

to their actions. These behaviors are instigated by occasions, desired benefits,
loyalty, and usage of products or availment of services.
• Occasions (Christmas, weddings, birthdays, etc.)
• Desired Benefits (offer the most suited products/service to the exact need
of the customers)
• Loyalty (result of maintaining satisfied customers)
• Usage of products or availment of services (how often a product is used or
service is availed)

TALKING TO YOUR CUSTOMERS

Marketing research will not be complete without talking directly to the

target customers.

A marketing research should:

1. Have a solid objective
2. Analyze proper timing for research execution
3. Establish a market research design that will effectively implement the steps
mentioned

16
 Depending on the objective, responses are either qualitative or quantitative.
Qualitative research includes identifying the written or spoken opinions of
customers. Quantitative research involves analyzing the customers’ preferences
by using relevant statistics (such as those in surveys).

Methods of Collecting Data from The Target Customers

• Interview
• Focused Group Discussion
• Observation
• Survey

1. The Interview

Interview is one of the most reliable ways of getting relevant information

from the target customers. The researcher will be able to capture not just verbal
but also the nonverbal answers such as facial expressions, character of words
used, or body language. It is also helpful as it provides customer’s feedback.
If the number of respondents is large the solution is to apply sampling which is
the selection of respondents that statistically represent the total population.

2 Main Types of Interviews

1.1 Unstructured Interview – an informal type of interview and does not

follow a specific set of questions. The researcher has a checklist of high-
level issues and will ask all the possible questions until he or she is satisfied
that all the necessary issues in his/her checklist have been answered.

2.1 Structured Interview – employs a specific set of questions and

produces quantitative data. A prearranged questionnaire with specific
questions answerable by yes or no, forced ranking, multiple choice, or choose-
the-best will be answered by the respondents. A structured interview does not
allow the interviewer and the respondent to omit or add questions, nor change the
sequence or how the questions are worded.

Challenges in An Interview

1. Setting an appointment with an interviewee.

2. Respondent’s indifference to how they share their opinions. Interviewees
should be assured that the results be kept confidential.
3. Getting unbiased answers from the respondents. There are factors for this:
a. limited memory /forgetfulness of the respondents
b. difficulty of the questions
c. the environment they are in

17
2. Focus Group Discussion (FGD)

FGD is the process of mining customer and noncustomer experience and

insights about a specific product or service. FGD is led by a moderator who keeps
the discussion spontaneous and on the right track. His task is to encourage a
group of participants to talk about a list of topics prepared prior to the FGD.
FGD lasts from one to two hours. Session must be recorded by either audio or
video, so that the researcher can digest the session and pick the most relevant insights
from the participants.

FGD is also a preparatory step in crafting a quantitative survey.

3. Observation

Observation is one of the preferred and practical methods of generating

ideas because the researcher documents the behavioral patterns of people or of
objects or events without necessarily requiring them to participate in the research
process.

Observation is reliable because it allows the researcher to see the real and
actual behavior of customers rather than hearing what they need to say.
Observation can be performed by either human or machine observer.

Examples of human observation:

1. Customer purchase patterns
2. Mystery shopping

Examples of machine observation:

1. Video cameras or closed-circuit television (CCTV)
2. Traffic counters
3. Web analytics
4. Barcode scanners
5. GPS Technology

Observation only becomes a relevant research tool if it meets the following

conditions:
1. If the person, object, or event is indeed observable
2. If the person does the activity regularly or the event happens on a regular
basis.
3. If doing an interview or FGD is becoming intrusive of the privacy of the
person.
4. If the subject of observation does not take too long to produce relevant
information.

4. Survey

When it comes to quantitative research, taking surveys is essential. It is the

process of getting answers from a sample of respondents derived from a particular
population.
18
 The respondents will be given a questionnaire asking about their awareness
level, their profile, preferences, and behaviors. These questionnaires can be
distributed and answered verbally, by writing, or through the Internet
(e-mails, websites, or social media sites).

In preparation for the survey, the researcher must:

1. Identify what sampling technique to follow (probability and nonprobability
sampling)
2. Identify the number of respondents to be surveyed (sample size)
3. Create the blueprint of the questionnaire

Tips in making the questionnaire:

1. Be specific and direct with the questions
2. Be flexible with the respondents’ convenient way of answering the
questionnaires (mail, telephone, face-to-face, or online)
3. Ensure that each question is necessary and not repetitive
4. Always put yourself in the shoes of your respondents
5. Make sure that questions are arranged in a coherent order
6. Questionnaire should look professional, be divided into strategic parts, and
be properly numbered.

What’s More
Directions: Do the following activity in your notebook.
1. List down four opportunities in your locality and discuss what method of
generating ideas will you use and why.

Rubric for Essay Type of Questions

Points 10 8 6
Topic Sentences introduce Sentences don’t Topic is unclear
the key fully introduce
element/response response
Evidence 2 or more At least one No supporting
supporting details supporting detail is detail is given
are given given
Explanation Complete Minimal No explanation
explanation explanation

19
 What I have learned

I learned that:
The entrepreneurial process is a step-by-step procedure in establishing any
kind of business that an entrepreneur has to undergo. It is composed of
four aspects.
▪ Opportunity spotting and assessment
▪ Developing a business plan
▪ Determining the capital needed
▪ Running the business
The 3S (seeking, screening, and seizing) of opportunity spotting and
assessment is the framework that most of the promising entrepreneurs use
to finally come up with the ultimate product or service for a specific
opportunity.
Methods of generating idea for business opportunities includes FGD,
Brainstorming, Brainwriting, and Problem inventory analysis.
Product or service planning and development process stages: Idea stage,
Concept stage, Product development stage, and Test marketing stage.
Methods of collecting data from target customers: interview, FGD,
observation, and survey.

What I can do
A. Directions: Analyze the situation below and do the required activities in your
notebook.

Situation:
Lena, a fresh graduate of Technical Education and Skills Development
Authority (TESDA), thinks that there is an opportunity to open a salon in their
community in Batisan Village, Cabanatuan City. Her initial findings show that
their community has only one barber shop for men and one beauty salon for
women. Batisan Village has 200 families. Majority of the members of the families
are office workers and students. She conducted an informal survey via social
media that families want to go to just one barber shop/salon together for their
beauty and relaxation needs plus they also want other services like nail cleaning
and massage.

20
Requirement:
1. Lena need additional data for her to decide on the attractiveness of the business
opportunity, what method of generating ideas will she use and why?
2. Prepare a set of idea-generating questions that will answer the information that
Lena needs. (Prepare a minimum of 10 questions).
3. Make a product/service planning and development process (concise
description) following the 4key stages.
▪ Idea stage,
▪ Concept stage,
▪ Product development stage test
▪ Marketing stage

Assessment
A. Directions: For numbers 1-8, identify each of the following factors where they
belong. Write the letter of the correct answer in your notebook.
1. Inflation rates
a. Sociocultural
b. Technological
c. Economic
d. Environmental

2. Health consciousness
a. Sociocultural
b. Technological
c. Economic
d. Environmental

3. Education level
a. Sociocultural
b. Technological
c. Economic
d. Environmental

4. Climate change
a. Sociocultural
b. Technological
c. Economic
d. Environmental

21
5. Bureaucracy
a. Political
b. Legal
c. Ethical
d. Demographic

6. Attitude toward development and well-being of employees

a. Political
b. Legal
c. Ethical
d. Demographic

7. Consumer protection
a. Political
b. Legal
c. Ethical
d. Demographic

8. Communication infrastructure
a. Sociocultural
b. Technological
c. Economic
d. Environmental

For the following questions, choose the letter only of the correct answer. Write
your answers in your notebook.

9. What is the most difficult process of the opportunity spotting and assessment
due to the number of options that entrepreneur will have to choose from?
a. Opportunity seeking
b. Opportunity screening
c. Opportunity seizing
d. none of the above

10. Which is NOT a micromarket source?

a. Competitors
b. Location
c. Irritants in the market place
d. Industry

11. Which of the following statements is NOT correct?

a. Business opportunities do not just come from outside forces, but also from
within the entrepreneur.
b. Existing problems often give rise to unexpected opportunities.
c. Entrepreneurs just have to look at their ecosystem and they will be able to spot
a business opportunity right away.
d. A want is recognized when a customer believes that there is a difference
between his/her current situation versus his or her desired condition.

22
12. The following are methods of generating ideas except one. Which is the
exception?
a. FGD
b. Brainstorming
c. Internet brainstorming
d. Problem sales analysis

13. The following are business opportunity elements except one. Which is the
exception?
a. Is a potential cash cow
b. Solves a compelling problem
c. Has superior value to customers
d. Matches with the customers’ skills, resources, and risk appetite

14. Which of the following statements about Opportunity Attractiveness Test

(OAT) is NOT correct?
a. This test is designed to detail each entrepreneurial aspect into small chunks
to come up with a sound entrepreneurial decision.
b. The customer must answer this test realistically and avoid overestimation or
underestimation.
c. The answers in this test will be guiding principles of the entrepreneur in writing
the business plan.
d. The entrepreneur should be able to at least decipher the relative attractiveness
of the business opportunity.

15. This is a stage of the product or service planning and development process
where the entrepreneur conducts a consumer panel where the actual product
samples or actual service samples are given to the panel of potential customers.
What is this stage?
a. Idea stage
b. Concept stage
c. Product development stage
d. Test marketing stage

16. It is the grouping of customers according to socioeconomic variables. What is

this?
a. Demographic
b. Psychographic
c. Geographic
d. Behavioral

17. It is the grouping of customers according to perceptions, way of life,

motivations and inclinations. What is this?
a. Demographic
b. Psychographic
c. Geographic
d. Behavioral

23
18. What is the most reliable and credible ways of getting relevant information
from the target customers because the researcher captures not just verbal but
also nonverbal answers?
a. Interview
b. Focus group discussion
c. Observation
d. Survey

19. What is the main difference between a focus group discussion and a group
interview?
a. Group interviews involve fewer participants.
b. Focus groups are used to study the ways people discuss a specific topic.
c. There is no moderator present in a focus group.
d. Focus groups save more time and money.

20. How have focus groups been used in market research studies?
a. To distribute questionnaires.
b. To discuss research methodology.
c. To test new product and advertising concepts.
d. To calculate market shares of the biggest brands.

21. When might it be useful to conduct a relatively large number of focus groups?
a. When there are plenty of willing volunteers who meet the relevant criteria.
b. When you want to capture as much diversity in perspectives as possible.
c. When participants' views are likely to be affected by socio-demographic factors.
d. All of the above.

22. What is the role of the moderator in a focus group discussion?

a. To stimulate discussion and keep the conversation on track.
b. To ask leading questions and dominate the discussion.
c. To sit away from the group and observe their behaviour.
d. To evaluate the group's performance on a particular task.

23. What is a key advantage of a focus group discussion?

a. It is nice for people to get together for a chat.
b. It might reunite participants who haven't seen each other for a while.
c. It appropriate as it brings feminists together.
d. It allows multiple participants' perspectives

24. This method is reliable because it allows the researcher to see the real and
actual behavior of customers rather than hearing what they need to say. What is
this method?
a. Interview
b. Focus group discussion
c. Observation
d. Survey

24
25. The following are conditions for observation to become a relevant research
tool except one. Which is the exception?
a. If the person, object, or event is indeed observable
b. If the activity or event happens regularly.
c. If the observation is intrusive of the privacy of the person.
d. If the subject of observation does not take too long to produce relevant
information.

26. The following are tips how to create questionnaire blueprint except one.
Which is the exception?
a. Be specific and direct
b. Be flexible with the respondent’s way of answering
c. Always put yourself in the shoes of your respondents.
d. None of the above

B. Directions: Enumerate what is asked in each number. Write your answers in

your notebook.
1. What are the 3 steps in an Opportunity spotting and assessment? (3pts)
2. What are the 3 types of innovation? (3 pts)
3. What are the steps in product or service development process? (4pts)
4. What are the methods of collecting data from target customers? (4pts)
5. Give at least two challenges in an interview (2pts)
6. Give at least two examples of human observation (2pts)

25