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Entrepreneurship
– Robert D Hisrich,
– Micheal P. Peters
– Dean a Shepherd
Edition
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• Author:
th
8
CHAPTER 5
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Identification And Analyzing Domestic And
International Opportunities
Group Member’s
Usman Akhtar
Roll No 07-17
Danish Hussain Roll No 07-09
M. Taha Khan Roll No 07-06
Imran Khan
Roll No 07-37
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• Opportunity assessment plan is not a business plan:
1. Be shorter
2. Focus on the opportunity, not the venture
3. Have no computer-based spreadsheet
4. Act or wait on an opportunity
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Opportunity Recognition And The
Opportunity Assessment Plan
Opportunity Recognition And The
Opportunity Assessment Plan
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Opportunity assessment plan contain four section: Two major and
Two minor sections.
MAJOR SECTIONS:
1. first major section: Develops the product/service idea, analyze
the competitive products and companies
Opportunity Recognition And The
Opportunity Assessment Plan
1. Second major section: Focus on the market its size, trends, characteristics,
and growth rate
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MAJOR SECTIONS:
Opportunity Recognition And The
Opportunity Assessment Plan
• Third Minor section: focus on the entrepreneur and the
management team in terms of skills and experience.
• FINAL SECTION: Timeline, successfully launch the venture
and translate the idea in to a viable business entity.
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• MINOR SECTIONS:
Information Sources
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• Helps in starting the new business.
1. General Information:
• Help taken from the online websites e.g. www.score.org (non profit
organization).
2. Industry And Market Information:
• There are the wide variety of database that provide you the
significant information about the industry and the market e.g.
plunkett (trends) , frost and sullivan (specific info)
Information Sources
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3. Competitive company and product information:
• supply significant information on product and services:
• Example: business source complete (industry information).
4. Government sources And Search Engine:
• Census reports & export/import authority
• Search engine provide industry, market and competitive information
5. Trade Association and Trade publishing:
• Trade association do market surveys.
• Trade publishing's provide insight on trends e.g. growth rate
International versus Domestic
Entrepreneurship
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• International Entrepreneur: An entrepreneur doing business
across his or her national boundary. It is more complex due to
uncontrollable factors:
1. Economics:
• In domestic: Single economic system, same currency
• In international: Dealing in differences in level of economic
development, Govt. regulation.
2. Stages of economic development:
• Rational and regional variance.
3. Current Account:
• The trade status of import/export between countries.
International versus Domestic
Entrepreneurship
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4. Type of economic system:
• Distribution rights
• Barter (directly exchange) or Third-party arrangements
(indirectly).
5. Political-legal environment:
• Price fluctuation - VAT (value added tax)
• Political risk analysis (prior to entering into business)
• critical areas (property right, contract law, product safety &
liability
6. Language:
• Native tongue
07-09
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Danish Hussain
Technological Environment
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• Technology Varies Across Countries
• New Products are created
based on conditions and
infrastructure operating
in the country
Culture
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Social Culture
Language
Religion
Manners and Customs
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• Culture refers to common ways of thinking and
behaving
• Culture Includes
Culture in Entrepreneur’s Context
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• Crossing Cultures are the Problems for
entrepreneurs
• Entrepreneur must have command over
country’s language
• Both Verbal and Nonverbal languages are
important
Culture Norms and Values
Social Culture
Religion
Political Philosophy
Economics and Economic Philosophy
Education
Manners and Customs
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Religin
Social Culture
Culture Norms
&
Value System
Manners & Customs
Education
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Language
Economics &
Economic Philosophy
Social Culture
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• Refers to social institutions in a culture
• Social Stratification affect the behavior of the
people in one particular strata
• Reference Groups provide influencing values
and attitudes
Religion
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• Ideas for life reflected in values and attitudes of
society
• Impact on entrepreneurship varies
• Impact depends on dominant religious tenets on
attitudes and values
Manners and Custom
• Gifts can be important part of developing
relationship in a culture
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• Particularly important for entrepreneurs in
negotiations
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Muhammad Taha Khan
07-06
Motivations To Go Global
Profits
Competitive Pressures
Unique Products or Services
Excess Production Capacity
Declining Home Country Sales
Technological Benefits
Tax Benefits
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Strategic Effects of going Global
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• New set of wide ranging problems
• New set of domestic and international
regulations
• Physical and Psychological closeness does
matter
Foreign Market Selection
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• Market selection and market entry strategies are
critical issues
• Decision should base on past sales and
competitive positioning
• Appropriate market-selection model should be
followed
Entrepreneurial Entry Strategies
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• Exporting
• Nonequity Arrangements
• Direct Foreign Investment
Exporting
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• Direct Exporting
• Indirect Exporting
Nonequity Arrangements
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• Licencing
• Turn-Key Projects
• Management Contracts
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Muhammad Imran Khan
07-37
Direct Foreign Investment
Minority Interests
Joint Ventures
Majority Interest
Mergers
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Entrepreneurial Partnering
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• Amongst best methods for entering
International Market
• Foreign entrepreneurs know country and culture
• Finding good partner can be beneficial for the
entrepreneur
Entrepreneurial Partnering
– Information needed on industry and potential
partners
– Appropriate trade shows should be attended
– Should Check References for the partner
– Meet with the potential partner several times before
commitment
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• How to find Good Partner?
Barriers to International Trade
General Agreement on Tariffs and Trade
Increasing Protectionist attitudes
Trade Blocs and Free Trade Areas
Entrepreneur’s Strategy and Trade Barriers
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Thanks
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Queries are welcome…..!