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

SEIZING BUSINESS
OPPORTUNITIES: VISSION,
MISSION AND OBJECTIVE

Dr Anis Amira Ab Rahman

Strategic Entrepreneurship and Strategic

Management

Dr Anis Amira Ab Rahman

Source : Wheelen, T. L. and Hunger,

J. D. (2000 cited in Kuratko, D. F. &
Hodgetts, R. M., 2004: 521).

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

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

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

Process of Identify and Evaluate

the Business Opportunity

Dr Anis Amira Ab Rahman

Evaluating an Opportunity
The feasibility of an idea refers to how possible or worthwhile it is to
The feasibility of an idea refers to how possible or worthwhile it is to
pursue it, to see if it is actually an opportunity.
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 evaluatesStrengths,
Weaknesses, Opportunities, and Threats.
Entrepreneurship:OwningYourFuture,11thed.
SteveMariotti

2010PearsonHigherEducation,
UpperSaddleRiver,NJ07458.AllRightsReserved.

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-akind experiences or uncommon knowledge into a product or
service that benefits others.

Entrepreneurship:OwningYourFuture,11thed.
SteveMariotti

2010PearsonHigherEducation,
UpperSaddleRiver,NJ07458.AllRightsReserved.

Industry Types and the Opportunities

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

Dr Anis Amira Ab Rahman

Industry Types and the Opportunities

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
Dr Anis Amira Ab Rahman

Vision

Dr Anis Amira Ab Rahman

Vision

A vision is a guiding image of success

Inspiratio
n

Begins with intuition and

ideas
Evolve through discussion

Visio
n
Guidance

Motivatio
n

Result in a shared sense of

direction and motivation

Dr Anis Amira Ab Rahman

Vision
It answers the question
What will success look
like?

Examples
A just world without poverty

It is compelling
It challenges and inspires
the group

To become a world leader at

connecting people to wildlife and
conservation

It focuses first on the client

To become the most influential

bridge between investors and
entrepreneurs

It describes what the

organization will look like
when functioning
effectively.

To refresh the world, inspire

moments of optimism and happiness
and make a difference

Dr Anis Amira Ab Rahman

Examples of visions

1.

2.

McDonalds - 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
Ford our company delivers excellent products
and services and strives to make the world a
better place.

Dr Anis Amira Ab Rahman

Mission

Dr Anis Amira Ab Rahman

Mission
Mission describes the overarching purpose of the
organization the reason it exists.

Who are you, as an

organization?
Why do you exist?

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

What do you do?

Who do you serve?

A description of the primary means used to

accomplish that purpose

Dr Anis Amira Ab Rahman

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 organizations 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

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

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

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
oclock 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

Objectives
Objectives must be evaluated by SMARTER tools:

Dr Anis Amira Ab Rahman

Specific

Measureable

Attainable

Realistic

Timeframe

Extending

Rewarding

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. (11 th 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 (2 nd 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