Lesson 2

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Jaypi

Cards (37)

  • Businesses are the backbone of the economy.
  • Entrepreneurship is encouraged by the economy because it can provide a lot of opportunities for the unemployed people.
  • EMF - Entrepreneurial Mind Frame - allows the entrepreneur to see things in a very positive and optimistic way in the midst of difficult situation.
  • EGG - Entrepreneurial Gut Game - refers to the ability of the entrepreneur of being intuitive.
  • EHF - Entrepreneurial Heart Flame - entrepreneurs are driven by passion; they are attracted to discover satisfaction in the act and process of discovery.
  • Passion is the great desire of an entrepreneur to achieve his/her goals.
  • Sources of Opportunities
    1. C - Changes in the Environment
    2. T - Technological Discovery and Advancement
    3. G - Government's thrust, programs, and policies
    4. PI - People's Interest
    5. PE - Past Experiences
  • Changes in the Environment - entrepreneurial ideas arise when changes happen in the external environment.
  • Climate - the weather conditions
  • Natural Resources - such as minerals, forests, water, and fertile land that occur in nature and can be used for economic gain.
  • Wildfire - includes all mammals, birds, reptiles, fish, etc., that live in the wild.
  • Physical Environment includes:
    1. C - Climate
    2. NR - Natural Resources
    3. W - Wildfire
  • Political Forces - includes all the laws, rules, and regulations that govern business practices as well as the permits, approvals, and licenses necessary to operate the business.
  • Economic Forces - such as income level and employment rate.
  • Sociocultural Forces - customs, lifestyles, and values that characterize a society.
  • Technological Environment - new inventions and technology innovations.
  • Societal Environment includes:
    1. PF - Political Forces
    2. EF - Economic Forces
    3. SF - Sociocultural Forces
    4. TE - Technological Environment
  • Industry Environment of the Business includes:
    1. C - Competitors
    2. C - Customers
    3. C - Creditors
    4. E - Employees
    5. G - Government
    6. S - Suppliers
  • Technological Discovery and Advancement - a person with entrepreneurial interest sees possibility of business opportunities in any new discovery or because of the use of latest technology.
  • Government's thrust, programs, and policies - priorities, projects, and policies of the government are also good sources of ideas.
  • People's Interest - the interest, hobbies, and preferences of people are rich sources of entrepreneurial ideas.
  • Past Experiences - expertise and skills developed by a person who has worked in a particular field may lead to the opening of a related business enterprise.
  • Forces of Competition Model - also known as the "five forces of competition."
  • Five Forces of Competition (Intensity of Industry Rivalry)
    1. B - Buyers
    2. PNE - Potential New Entrants
    3. RAEF - Rivalry among Existing Firms
    4. SP - Substitute Products
    5. S - Suppliers
  • Competition - the act or process of trying to get or win something.
  • Buyers - ones that pay cash in exchange for your goods and services.
  • Potential New Entrants - defined as companies or businesses that have the ability to penetrate or enter into a particular industry.
  • Rivalry among Existing Firms - it is a state or situations wherein business organizations are competing with each other in a particular market.
  • Substitute Products - one that serves the same purpose as another product in the market.
  • Suppliers - one that provide something that is needed in business operations such as office supplies and equipment.
  • Market Characteristics
    1. CB - Consumer Behaviour
    2. SD - Supply and Demand
    3. MS - Market Size
  • Consumer Behavior - understanding consumer preferences, buying patterns, and decision-making processes is crucial for market recognition and targetting.
  • Supply and Demand - analyzing the equilibrium between supply and demand helps in determining the market dynamics and pricing strategies.
  • Market Size - assessing the total addressable market (TAM) and its segments aids in market recognition and strategic planning.
  • Identifying Market Trends
    1. TAT - Trend Analysis Tools
    2. DA - Data Analysis
  • Trend Analysis Tools - utilizing advanced tools such as trend forecasting models and predictive analytics supports the identification of market trends and future outlook.
  • Data Analysis - leveraging big data and analytics can unveil emerging market trends and consumer insights for informed decision-making.